Aussie investors’ view on digital currencies
Aussie investor Paul Stolte is worried about the “dangers” of digital currencies.
Key points:Paul Stoltes chief investment officer says the digital currency market is “extremely volatile” and has a lot of riskWhile he does not think cryptocurrencies will become mainstream, he thinks the technology is “very interesting”He believes digital currencies can be “an extremely valuable asset class” for AustraliansHowever, Mr Stolts chief investment executive, Paul Stoll, thinks the digital currencies market is highly volatile and “has a lot, if not all, of risk.”
The technology “could be an extremely valuable investment asset class,” he told ABC Radio Canberra’s The Value Report.
“We believe it’s a good investment opportunity but it’s an extremely volatile market and you don’t want to get too comfortable.”
Mr Stoltyt said the digital coins he invests in are mostly bitcoin, ethereum and litecoin.
“I’ve been in the bitcoin market for about seven years now, I have a lot more experience in it,” he said.
“You know, it’s volatile.
It’s very volatile.
You can lose a lot in it, but the return is so good that I think it’s very good value for money.”
He said digital currencies could be a “very valuable asset category” for Australian investors, but he believes the technology could be “very exciting”.
“I’m not an expert in digital currencies, I’ve never done any research, but I would say the technology has a very interesting potential, it has potential to be a very valuable investment class for Australian consumers,” he explained.
“But there’s a lot we don’t know about it yet.”
Mr Solly agrees, saying: “I think it has an amazing potential and I don’t think there’s going to be any real world adoption of it until it gets to the point where it becomes a mainstream currency.”
It’s just too early to see how much people are going to want to use it as a store of value.
“If you’ve got a bank account, it doesn’t have the same value as cash or stocks.”
And then you’ve just got a big pile of paper money sitting there waiting to be used.
“In his view, there’s more risk with digital currencies than with traditional currencies, but Mr Stoll said it is a “pretty safe bet” that the technology will eventually become mainstream.”
The potential is enormous,” he noted.”
For the most part, the big risks that you take with digital currency are those that come with a lot and a lot going on at once.
“So you get an overspill in value or a price war.”
But, he said, the risks associated with digital coins were “extremely low” compared to traditional currencies.
“Digital coins are the safest currency in the world,” he stressed.
“They have no intrinsic value and it’s not a way to gamble with your money.”
What’s interesting is that when you take digital coins out of the digital world and put them in a bank, you’ve done the opposite, you’re actually creating a virtual currency that’s almost indistinguishable from the real world.
“Mr Pongloy said there were some risks associated not only with digital cryptocurrencies, but with digital assets generally.”
There are risks associated for instance, there is a risk associated with the use of cryptocurrency for payment,” he observed.”
Some of the things that have gone on in the Bitcoin ecosystem, people don’t seem to understand or are misinterpreting the value of Bitcoin.
“As soon as you take it out of a digital world, that value is wiped out and you’re in a different world.”
Topics:technology,investments,technology-and-finance,bitcoin,courier-substation,debt-and‑debit,courses-and/or-competencies,business-economics-and://affairs/financial-services,australiaMore stories from Victoria