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Bitcoin Price Sees Volatile Run-Up: What To Know About Cryptocurrency Investing - YouTube
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Now after a huge move in 2020 and聽
a continuation of new highs this聽聽
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year bitcoin is squarely in the spotlight and聽
here now to discuss what's ahead for crypto is聽聽
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john van neck the ceo of vanek thanks for joining聽
me today john all right so first what do you make聽聽
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of this stunning move we've seen for crypto聽
as of late and what do you attribute it to聽聽
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well i think it's it's hard to know in聽
the short term what drives the prices but聽聽
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uh what i'd like to focus on is some fundamental聽
changes that's happened in the market聽聽
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since 2017 early 2017 when we as a firm got聽
involved and the bitcoin price was 2 500 a coin so聽聽
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big picture of course the number of investors has聽
expanded dramatically into the tens of millions聽聽
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square through its cash app last year聽
in paypal have added their 10 million聽聽
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multi-10 million dollar plus sorry customers聽
to the ecosystem so that's gotten mainstream聽聽
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that's on your apple phone so and and mass mutual聽
and the big public company called microstrategies聽聽
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bought you know over hundreds of millions of聽
dollars of bitcoin so endowments are looking聽聽
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at it institutional investors are looking at it of聽
course but underneath the surface and this is not聽聽
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available to a lot of investors has been the聽
emergence of what's called decentralized finance聽聽
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which means that actually you can earn interest聽
on your bitcoin holdings so you have to go to聽聽
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different crypto platforms to get that but they're聽
offering six percent and more and in the very low聽聽
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interest rate world that is going to attract a聽
lot of investor attention so that's number one聽聽
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and then number two is just the fact that these聽
platforms have become so robust uh you know聽聽
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they're away from our traditional financial system聽
but not only can you earn interest but you can聽聽
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structure derivatives there's a lot of different聽
types of financial products probably insurance聽聽
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products in the future you'll have a credit card聽
this year where you can actually earn points in聽聽
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bitcoin so i just think that all those things are聽
just going to broaden and more mainstream the use聽聽
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of bitcoin lastly sorry for the long answer聽
that regulators are giving green lights to聽聽
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broker dealers holding bitcoin for their clients聽
and banks using them in financial transactions so聽聽
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that green light will has also um given you know聽
some impetus to the price of bitcoin this year聽聽
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definitely and you know with the last big run in聽
bitcoin a couple of years ago there was a lot of聽聽
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buzz and a lot of debate about comparing bitcoin聽
to gold and the two you know one side saying that聽聽
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yeah it you can kind of think about it in the聽
same way and the other side staunchly saying聽聽
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no that is not the appropriate comparison to聽
make what are your thoughts on that and how do聽聽
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you think that that conversation has changed in聽
the last couple of years right well vanek is very聽聽
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close to the gold investing community we started聽
the first gold fund in the united states and聽聽
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and uh big holder and gold mining companies but聽
uh i do think bitcoin should be part of your聽聽
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diversification portfolio i say both old gold聽
owned some gold shares but also owned bitcoin聽聽
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uh bitcoin acts a little bit like i call it聽
you know a store of value and a tech stock聽聽
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sort of a third to store value and two-thirds聽
of tech stock maybe it's half and half now聽聽
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so it's got different dynamics just like silver as聽
an alternative to gold has different dynamics but聽聽
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absolutely in 2017 we determined this is a聽
legitimate long-term diversifier to your portfolio聽聽
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um and and i think in the way it's got a lot聽
of upside gold's total market cap is about 12聽聽
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trillion right now bitcoin and other digital聽
assets just passed one trillion in total value聽聽
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but even if it's a junior competitor to gold why聽
why couldn't it get to half the total market value聽聽
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of gold which would be five or six trillion聽
which would be you know another 10x from here聽聽
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so do you think the fact that bitcoin is no聽
longer seen as a novelty that there are real聽聽
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uses for it and that mainstream adoption has聽
broadened do you think that that should prevent聽聽
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sort of that boom and bust that we saw in bitcoin聽
when we rewind the clock a couple years ago or how聽聽
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should investors be thinking about the stability聽
when they're thinking about investing in bitcoin聽聽
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i think that's a great point and uh plan b聽
who's one of the i think most uh reputable聽聽
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commentators on the bitcoin price basically points聽
out that bitcoin has gone through different phases聽聽
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of maturation right when its total market cap was聽
a million obviously it was a toy right when it got聽聽
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to be a hundred million okay it's a little bit聽
more serious obviously now with the with again聽聽
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the millions of users and the total value uh well聽
over half a trillion dollars you're bringing more聽聽
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use cases and more investors into the space聽
and so i would expect to answer your question聽聽
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less volatility in the price the big picture to聽
me was and this was happened to gold last year can聽聽
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this asset reach all-time highs which for bitcoin聽
was in 2017. and when it did i think that kind of聽聽
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shows well wait a minute this is not just a bubble聽
a tulip bubble right and and and it does not have聽聽
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legs to it long-term legs and i think absolutely聽
the market move in the last three to six months聽聽
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has proven that bitcoin has a much longer future聽
trajectory than just a one-term bubble i hope聽聽
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the drawdowns aren't going to be as big but聽
absolutely investors should we should expect聽聽
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that it could go down 50 or more um in any like聽
like stocks did in march of last year right and so聽聽
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um what i recommend to people is buy a little i聽
know they think oh my god it's gone i've missed聽聽
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the whole thing but buy a little a little just to聽
get your mind over it and then if the price goes聽聽
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down significantly buy more all right and speaking聽
of accessibility to crypto getting that in an easy聽聽
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way that's definitely something of interest to uh聽
investors in our audience and vanek recently filed聽聽
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for a bitcoin fund what do you think that that聽
is going to do in terms of the accessibility for聽聽
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crypto in the investing world i mean bitcoin right聽
now is as easy as as your sell you know your phone聽聽
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right you can use your cash square cash app you聽
can use paypal you can use coinbase's account now聽聽
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whether you like the fees and all the features聽
there is a second question what uh what an etf聽聽
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brings is frankly the convenience of buying it聽
out of your investment account and also the tax聽聽
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reporting and i know that sounds silly but people聽
don't like to do their paperwork they don't like聽聽
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to file their taxes and when all that stuff is聽
provided for them with their brokerage system at聽聽
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that level of convenience is important the other聽
thing is the reliability of the infrastructure of聽聽
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a national stock exchange like a nasdaq or in new聽
york you still hear of crypto exchanges going down聽聽
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you don't quite know what their what their聽
capitalization is so with a with an etf you also聽聽
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have a more stable infrastructure and of course聽
then you have the regulatory overlay which should聽聽
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give com investors more comfort but listen i聽
don't see it any time in in the first half of 2021聽聽
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so who knows when it will happen all right well聽
shifting gears here and focusing our attention on聽聽
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another hot trend over the last year and that is聽
the esports and video game group now that trend uh聽聽
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did see a lot of acceleration in the pandemic the聽
vanic espo etf up some 80 percent in 2020 you know聽聽
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proving that this trend it's not a flash in the聽
pan that it is here to stay what are your thoughts聽聽
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on what we're seeing with that trend yeah i i like聽
to puncture myths around gaming because i think聽聽
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in my mind at least in some people's聽
minds you think of a single person聽聽
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playing a game on a device or a pc or something聽
like that and i think what's really changed the聽聽
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real revolution in gaming is that it's social聽
and that's why i think it presents a threat to聽聽
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let's say a netflix so netflix you're sitting聽
on your sofa it's not very social and netflix聽聽
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itself in 2019 said that they saw that gaming was聽
a competitor for them and just to do a comparison聽聽
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fortnite has 270 million paying customers that's聽
more than netflix at about 200 million right so聽聽
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that's what that's that's how revolutionary聽
gaming as a social phenomenon is the other聽聽
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thing obviously is the use of your phone like i聽
was talking about for buying bitcoin and playing聽聽
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games on your phone which you couldn't used to聽
be able to do and that's also broadened the use聽聽
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it's also very much a global phenomenon uh you聽
know there's some overlap we were talking about聽聽
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before between stocks held in our espo etf and聽
the investors business daily 50 top growth stocks聽聽
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um and and but some of the faster growers are are聽
internationally so um you know so there's lots of聽聽
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ways of playing this trend in the future what what聽
gets me excited is okay you take those 270 million聽聽
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players of fortnite you can cross-sell them聽
other things right you don't have to just sell聽聽
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them uniforms in the game or whatever people聽
buy within the fortnite game and of course聽聽
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there's a lot of that going on but wow what if聽
you started offering them streaming videos or聽聽
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other kind of social connections like you聽
get in facebook and so all these industries聽聽
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are kind of competing against each other for聽
uh for people's attention and entertainment聽聽
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such good points there and it sounds like聽
that trend has some room to grow so we'll聽聽
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keep an eye on it thank you so much for your聽
perspective today on on these hot trends thank you聽聽
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hi there thanks so much for watching聽
investing strategies on our youtube channel聽聽
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if you want more executive interviews聽
and analysis of key trends to watch聽聽
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