Cryptocurrency investor: The year Ethereum was created, 2015, is when Simon Seojoon Kim began investing in Ether, the coin fueling the Ethereum network. In the early days of cryptocurrency, most of his friends thought he was crazy to invest his life savings. Almost $400,000 had been invested by the end of March 2017. As Ether climbed, he became more and more exhausted.
Despite Kim’s doubts about his investments, one thing cannot be denied: Ether has soared in value since 2017. There has been an increase of more than 980% in the past year. As well as Kim, another prominent blockchain advocate in South Korea has been Shin. The first blockchain fund he raised in December will be followed by another one this month.
The Hong Kong-based Boston Consulting Group Inc. managing director Sean Park described Kim as “the Jedi Master of cryptocurrencies.” Kim worked with Park on a blockchain project. In short, Kim is one of the most successful burgeoning classes of new millionaires who acquired their wealth through virtual currencies. Despite the wild swings in the value of both Ether and Bitcoin, both reached record highs this year. In a Seoul interview, Kim said about his early crypto investments, “the most successful investments are when you spot an asset that’s being overlooked or disregarded.”
Founder and former CEO of two successful companies, 36-year-old Peter, is a software developer by trade. While one was devoted to education technology, the other was dedicated to dating apps. Co-founder of Hashed, a blockchain venture capital firm he founded in 2018. It offers financial assistance, arranges partnerships, helps with public relations, and even buys stakes in companies. Hashed raised the first blockchain fund in December with $120 million.
According to quarter-end business reports published by Naver Corp. and Kakao Corp., the company’s backers included both companies. Currently, Hashed is looking to raise a second fund this month for at least 200 billion won (173 million dollars). The average investment Hash makes ranges between $1 million and $10 million.
Sky Mavis, the Vietnamese game maker that received $7.5 million in funding in May, was included with Mark Cuban, a billionaire. Additionally, Kim said, Loco, a game streaming platform based in India, received a $2.5 million investment. In addition to Hashed, South Korea’s third-largest listed company by market value, Naver, is its investors. According to Hashed, it has never invested 14 billion won into Hashed first fund, which has the most experience in the blockchain sector. Kim said that investors want to make the most money possible. Nevertheless, they are interested in learning about the market through us.”
Dean Kim Kyonghwan of Sungkyunkwan University’s school of entrepreneurship near Seoul cautions against overestimating the potential of developing countries like China. Blockchain is a new industry, so risks associated with unpredictability are high at the moment, he said. But ultimately, this market will become institutionalized and will grow. Kim believes blockchain technology has a lot of potential because it is still in its infancy. Those with no experience in crypto trading are advised to be cautious about making quick fortunes.
The mysterious creator of Bitcoin, Satoshi Nakamoto, sat at a table named after Kim, whose room most of his Ether is stored. As well as the Luna coin, he says he is a significant investor in the Cryptoverse. However, Kim tends not to be interested in more traditional investments like bonds and commodities. Rather than buy his property, he even lives with his wife in a rented apartment. I am not interested in traditional assets, he said. It just seems like they are too old and out of date.
New currencies are attracting investors who have been in the industry for years.
There is much potential in the blockchain industry, according to wealthy individuals.
Cryptocurrency investments can provide some unexpected benefits. Mike Novogratz’s speech about digital art had the added benefit of settling an old score with a prestigious auction house. The former money market trader tells The Independent: “I was thinking – if only my third-grade teacher were here to see me now.”. In this case, I’m on stage giving a talk at Christie’s despite her not believing I was any good.
Despite not being his most outstanding achievement, he still finds it highly fulfilling. Galaxy Digital, a cryptocurrency investment management company, finds financial services and cryptocurrency investments. Crypto boom excitement is second only to his most significant professional triumph, the first public offering of a hedge fund in 2007.”We were right in the middle of the  financial crisis as well, and we learned our lessons,” said Novogratz, regarding what happened to hedge funds at the time.
As much as I’ve enjoyed it, [crypto] has been even more fun. “It is the business of a young generation, and it is difficult to keep up with the innovation at the moment.”Novogratz is one of many wealthy investors in cryptocurrencies and invests in stocks, real estate, and other investments. In contrast, real change is occurring in technologies, exchanges, and asset management firms. Their most common source of capital comes from earlier investments they have made.
Bringing with it the expertise that could help transform chaos into a sustainable financial sector. Blockchain technology underlies the issuance and trading of cryptocurrencies, but there are plenty of opponents. The diversity and disorder of startups have also raised how mainstream investors or regulators can invest in such a network. There could be a difference if investors like Novogratz get involved. A crypto investor, he has an impressive background in finance, having worked at Goldman Sachs for a decade before the heyday of Fortress.
Investing in bitcoin for the first time in 2012, he paid $7m when worth $95 a coin. He saw bitcoin back then as an alternative currency and a way to speculate on something interesting since the world economy was in turmoil. The co-creator of Ethereum, Vitalik Buterin, sold 500,000 extra ethereum coins at $0.99 each three years later. After the punt produced enormous profits for Novogratz, he announced he would establish a crypto equivalent of Goldman Sachs. The Star Wars films inspired Galaxy Digital’s name, and he launched Galaxy Digital in 2018.
In addition, he is putting all his cryptocurrency holdings, worth $302 million, behind the company. Currently, the company has assets of over $9 billion. Now that traditional finance is threatened by cheap money, Novogratz believes that crypto’s arguments are even more compelling. As an economist for President Obama, the man known as Novo considers today’s market conditions to be comparable to those in 2012 when quantitative easing appeared. We are rebuilding the financial infrastructure by implementing a blockchain revolution, and we are going after rent-takers.
I have not come up with this idea for the first time. In recent years, technology has been dubbed a “payments-free” technology. People have claimed it could free up payments, empower the unbanked, end counterfeiting and give consumers control over their data. Blockchain technology, or distributed ledger technology, is viewed as destructive to the environment because it consumes massive amounts of electricity. Critics also claim that blockchain is outdated, clunky, and isn’t a helpful solution.
When blockchain was first introduced a decade ago, bitcoin was synonymous with it. Decentralized finance (Defi) and non-fungible tokens (NFTs) are new markets powered by new ledgers, such as Ethereum. Also, Ouroboros, a new way of using blockchain technology, is more efficient, faster, and environmentally friendly than its predecessors.Charles Hoskinson, who is based in Wyoming, also believes in the power of blockchain. As one of the principal figures in crypto, he is co-inventor and CEO of IOHK, the blockchain research organization founded in Hong Kong to research blockchain.
Despite ongoing projects, Hoskinson, 33, a graduate of analytic number theory from university, doesn’t get weekends. During his free time, he fasts for weeks, hunts with eagles in Mongolia, and participates in long fasts while on holiday. A football game with an elephant is on his resume. Blockchain has the potential to affect social change, as Hoskinson discussed in Davos last year. Bitcoin can be regarded as a coal-fired steam engine of old: a valuable but only temporary solution. Third-generation cryptocurrencies offer similar functionality. However, they don’t consume [the same amount of] power, he says.
“This progress will make blockchain more than just a financial technology, as it will facilitate the growth of real social change.”New blockchain-based applications in art, property, and collectibles, such as NFTs, extend well beyond finance. As of the number of coins listed on cryptocurrency data site CoinMarketCap, stablecoins, which provide a financial alternative to cryptocurrencies, have a market capitalization of nearly $115 billion. During the recent Euro 2020 tournament, even football fans were using a system that used distributed ledger technology.
There are still obstacles to overcome. Regulatory officials in China and the US are alarmed at the amount of money that has flowed into cryptocurrency in recent years because the market is volatile. Amidst the Covid-19 pandemic, investors were gripped by a crypto trading frenzy in the first few months. A bust or clear proof that this technology will prevail is possible, as the industry is at a crossroads. Novogratz explains that he can attract the best and brightest from every university now. However, if everything goes quiet for four years, they won’t be interested in crypto.
“The regulatory overhangs and pushback from China are real, which means [these are] going to be real tests.”There is no shortage of risk. Government regulators are concerned about losing control over private cryptocurrencies and developing tokens derived from traditional assets. Crypto analytics company CipherTrace estimates that scams cost crypto investors $1.9bn just in 2020.The following is what Yale School of Management finance professor Gary B Gorton wrote in a research paper:
As a result of historical experience, we conclude that currency created by private parties is a useless medium of exchange since it is not always accepted at par and is subject to runs. However, William Quigley, a committed investor, isn’t discouraged. The 56-year-old billionaire created the market for virtual assets in video games during the 1990s, where players would buy additional game items. As of today, the sector generates $200 billion in revenue each year. His venture capital firm, IdeaLab Capital Partners, backed Internet payments hub PayPal and was the first to focus on Internet startups.
His contributions to crypto include co-founding Tether, the world’s first stablecoin, and co-developing the first crypto derivatives. As executive chairman of the nation’s largest NFT platform, he also heads Worldwide Asset eXchange. Computer code can be used to store multimedia content, and it cannot be tampered with. They can tokenize artworks, sell the rights to hundreds of customers, and trade in secondary markets.
The bottom line:
Nevertheless, blockchain technology has a monumental obstacle to overcome before it can truly change the world: Demonstrate it can win the trust and acceptance of a broader range of individuals. Invest their money in it, and you’ll get a profit in return.
In addition to being used for online purchases, cryptocurrency can be used as an investment tool. When you exchange real currency, like dollars, for bitcoins or other cryptocurrencies, you buy “coins” or “tokens.” A trusted financial professional can help you create a plan that works harder.
Investing in crypto-assets can be highly profitable but can also be dangerous. Cryptocurrency investment is an excellent way to benefit from the demand for digital currency. In contrast, buying stocks of companies with exposure to cryptocurrency may be a safer but less lucrative option.
It is possible that Ethereum’s price continues to rise for weeks or that it may pull back. Ethereum is not a good investment for short-term gains. As long as you believe it has long-term potential and is willing to give it some time, you are likely to make quite a bit of money.
According to Vision Subramaniam, founder and financial planner at CapitalWe, investors interested in crypto should put between 2 and 5% of their net worth into it. We see two to three percent for most clients who don’t monitor crypto markets more than once a week.
There is no absolute “safety” associated with both of these cryptocurrencies; however, due to its long track record and higher recognition, Bitcoin may carry lower risks than Ethereum. On the other hand, Ethereum may have more growth potential in the future.