Cryptocurrencies could outperform traditional asset classes in 2019

With stock markets and other asset markets experiencing bearish trends, some believe cryptocurrencies have a chance to be the top performing asset next year.

Travis Kling, head of cryptocurrency asset management firm Ikigai, tweeted today:

The US Federal Reserve began quantitative easing a decade ago, cutting interest rates and buying trillions of dollars of government stocks and mortgage-backed securities. In theory, this step saved the United States from a major crisis. Other countries followed suit, buying stocks and increasing market liquidity to boost economic growth.

In 2017, the United States became the first country to end quantitative easing and move toward quantitative tightening. The Bank of Japan and the European Central Bank followed suit, buying far fewer bonds in 2018.

Cryptocurrencies emerged in 2009, just after the start of quantitative easing, and, Kling says, did not yet exist in the traditional bear market for assets. Kling also agrees that the approaching economic collapse has had a significant impact on the cryptocurrency market this year.

It was quite obvious to me that the unsettled cryptocurrency market would collapse much earlier than the traditional class market assets.

Kling's tweet sparked a lively discussion on the social network. Some believe that the value of cryptocurrencies will continue to fall and that they will soon become the “worst performing asset.” Others believe that the new asset class, free from government manipulation, will be revolutionary and its value will soon begin to recover.

The recovery may have already begun, because over the past week the value of the cryptocurrency market grew by $30 billion. This suggests that some of the money from traditional stock markets is flowing into alternative assets. 

If the digital asset market shows better performance in 2019, cryptocurrencies will forever gain a foothold in the global economy. Time will show. 

According to www.ccn.com