Bitcoin, ether: should you be afraid to invest in cryptos?

About 20,000 dollars, or “only” 19,000 euros. On Wednesday, June 22, the price of bitcoin sails far, very far, from its highest. Its valuation is no longer even equivalent to a third of what it was on November 9, 2021, the date of its historic peak at 69,000 dollars. And the queen of cryptocurrencies is not the only one to suffer. At just over 1,000 euros, Ethereum has seen its price plunge by almost 70% since the start of the year. Adding to this the collapse of Terra Luna and its stablecoin, UST, all the lights seem to be red for cryptos.

In such a context, a question arises: is crypto dead? For Stanislas Barthelemi, consultant at Blockchain Partner, a consulting firm attached to KPMG, and first guest of the “Grand rendez-vous de l’épargne” (Capital / Radio Patrimoine), it would be a quick start. “It is not the cryptocurrency that is at stake, but rather the players who have built service offers on it who have mismanaged their risk”, advances the expert to explain the cascading liquidations in the world of crypto. “The underlying technology is not called into question. We are witnessing a crash because there is a paradigm shift, a macroeconomic context which has deteriorated considerably, much more inflation, with risky assets under pressure”, abounds for his part Quentin Soubranne, journalist at Capital and responsible for the 21 Million Newsletter, second guest on our show.

>> Discover 21 millions, Capital’s cryptocurrency newsletter. Decryptions, advice and analysis of weekly prices to support you in your investments in crypto-assets

Adopt a real investment strategy

Words likely to reassure investors… who may still be worried about their portfolio subject to extreme volatility. But nothing surprising, according to Stanislas Barthelemi, who compares cryptos, and more specifically bitcoin, to “stocks on steroids”. The challenge therefore consists in positioning oneself on a medium-term horizon in order to neutralize – in part – the risk. For a layman who would have neither the time nor the skills to manage his investment on a daily basis, the specialist therefore recommends “going to bitcoin or ether, with a time horizon of 2-3 years and not look at his wallet”. Another recommendation: invest gradually to “average your acquisition cost and smooth out volatility”.

Forget the prices and the volatility associated with these assets. Also forget the qualification of digital gold attributed to bitcoin, according to which the queen of cryptos would protect against inflation. A theory linked to its relative rarity – at most 21 million tokens – but undermined by recent events. “From this scarcity, people thought bitcoin would become a bulwark against inflation. Except that we have seen over the last 6 months that inflation has exploded and that bitcoin has fallen heavily”, says Quentin Soubranne.

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Our report at the blockchain school

But understanding cryptocurrency is not limited to price variation alone. It is above all a question of assimilating the technology with which it is associated: the blockchain. This is the objective of Alyra, the blockchain school, which trains people in ecosystem professions. In the “Reportage” sequence of our program, its founder Jérémy Wauquier presents the various training courses provided by the school: developer, consultant and specialist in decentralized finance. As many skills as it is possible to finance by many means, including the personal training account (CPF).

Towards a cleaning up of the market?

And lay crypto investors need to take the same approach. As we must be interested in the company whose share we are buying, it is essential to understand the blockchain behind the currency. Because for our guests, only the best of them will survive, like the sanitation observed on technology stocks at the end of the 90s. Internet bubble on technology stocks”, emphasizes Quentin Soubranne. A comparison that makes sense, according to Stanislas Barthelemi: “A large part of the companies had disappeared but the concept of the Internet has persisted”, he recalls. Perhaps a happy omen for our investors, provided of course that we make the right choices.

Pierre Sabatier’s crush / rant

Like every month, Pierre Sabatier, president of the Primeview firm, attributes his favorites and… mouths. The economist appreciates the yield on Italian government bonds, which is approaching 4% and, according to him, offers a great opportunity. Except, of course, in the event of a crash in the euro zone, a scenario in which he does not believe given the attitude of the European Central Bank. Under these conditions, “it’s a return/risk pair that seems interesting to us”, he argues.

His rant, on the other hand, is addressed to investment professionals, who must change their analysis software at all costs. Because the central banks have changed their discourse: they will no longer be the rescuers of last resort. Hence the imperative need to have “new glasses. The real subject is to learn to identify the good students and especially the bad students”, pleads the expert. Active management, neglected in recent years, could thus make a comeback.

The “It concerns you” section

In the last part of the program, the experts of the “Grand rendez-vous de l’épargne” answer your questions as they do every month, in the sequence “It concerns you”. Stéphane Absolu, associate director at Pyxis Conseil, thus enlightens a reader whose husband has benefited from life insurance and who wishes to know if part of this sum will be returned to him upon their divorce.

Next, Nathalie Couzigou-Suhas, notary in Paris, explains the rules in force regarding real estate wealth tax (IFI) for beneficiaries of a lifelong right to housing on the main residence in the presence of children from different beds. . Finally, Charlotte Thameur, consulting director at Yomoni, details the different types of fees applied to life insurance contracts and retirement savings plans (PER), these charges having to appear, since June 1, 2022, in a summary table on the site of each insurer and distributor of these products.

>> Buy and sell your investments (stock market, cryptocurrency, gold, etc.) at the right time thanks to Momentum, Capital’s newsletter on technical analysis. And right now, with the promo code CAPITAL 30J, take advantage of a free trial month.

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Bitcoin, ether: should you be afraid to invest in cryptos?

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