My colleague, Lois Vallely, recently wrote a brilliant weekend essay on crypto currency and her experience investing in the digital asset. She took a £30 punt on Ethereum, the second most popular digital currency after Bitcoin, at the tail end of last year.
At the time, Ethereum was trading at £3,456 and there was lot of hype by influencers on social media that it will hit the £10,000 mark. Four months later, the crypto sector suffered its worst crash wiping out $2trn of market value. Ethereum’s valued dropped to £1,347.
Unfortunately, my esteemed colleague’s investment didn’t pay off. Up to the time of writing this piece, the value of her Ethereum investment is £14.41. Ms Vallely has rightly taken a dim view of the crypto market and concluded that it is “all mouth and no trousers”.
I sympathised with her ordeal. I hope she will put down her loss as market research and claim it back as expense.
Despite her experience, I do have an opposite view of crypto. We love our polemics at Money Marketing HQ. I believe in crypto and subscribe to the view that it will modernise and democratise the anachronistic global financial system.
I also believe that it will be a force for good and improve financial inclusion when it is universally adopted. Many people with access to phones will be able to make transfers without relying on third parties. This is because the tech system, blockchain, that supports cryptocurrency is inherently secure and digital.
On Monday (31…
