Investment adviser and Chief Executive Officer at Blueprint Capital Advisors, Mr Jacob Walthour has warned investors not to make the mistake of ignoring investment cryptocurrency assets, stressing that Cryptocurrencies will outperform equities.
Walthour, discussed his outlook for the crypto and equity markets in an interview with CNBC Wednesday. Walthour has over 25 years of experience in capital markets, traditional, and alternative asset management.
“At this stage, we have to think back to how it all started,” he began. “When we think back over the course of our lives, we started buying things with cash and then someone came up with the idea of using a check, and then someone came up with the idea of using plastics, and then someone came up with the idea of e-payments. And I think that the use of crypto, the whole concept of a wallet, is where we are going to go from here. And I think that bodes well for crypto overall in terms of its adoption rate over the course of the next five to 10 years.”
Emphasizing that there are now many companies accepting cryptocurrency as a form of payment, he said:
I think it’d be a mistake to ignore this asset class which has looked like the wild west for the last 5 or so years.
He added: “But if we see a stall in the U.S. equity market and a rise in crypto, I think the herd mentality could take over here, and you could see a lot of liquidity falling out of stocks into cryptocurrencies.”
Walthour further opined: “If crypto outperforms equity, I think it legitimizes crypto as an asset class from a diversification standpoint.”
While acknowledging that when stocks sell off, cryptocurrencies may fall even further due to higher volatility, he said: “I don’t think that necessarily holds into the foreseeable future.” He concluded:
My prediction for the foreseeable future, given that crypto, has sold off quite a bit in the last quarter, is that it does have a strong possibility of outperforming equities in 2022.