Cryptocurrencies could become the best performing asset class during 2019. This is what Travis Kling, Ikigai’s Chief Investment Officer believes that could happen the next year. 2018 was a terrible year for digital assets in terms of price performance.
In a recent tweet, Travis Kling wrote that cryptocurrencies have never existed during a bear market in traditional assets. Bitcoin was created back in 2008 at the beginning of one of the largest worldwide financial crisis ever experienced. This is why there is a chance for virtual currencies to perform better during 2019.
Crypto has never existed during a bear market in traditional assets.
BTC was birthed at the very beginning of the largest monetary experiment ever- globally coordinated QE. Ending QE is causing pain
There is a significant chance Crypto is the best performing asset class in 2019 pic.twitter.com/vIdKTrm5sV
— Travis Kling (@Travis_Kling) December 23, 2018
The U.S. Federal Reserve Bank (FED) has recently announced that during 2019 there are two scheduled rate hikes. This is something that analysts take as negative. Indeed, the U.S. President Donald Trump has several times shown that he is against this monetary policy taken by the FED.
Nevertheless, the FED could change the decisions for the future and modify its plan. On the matter, David Rosenberg, the Chief Economist at Gluskin Sheff, commented in a note to clients:
“When I tell people the Fed will be easing monetary policy in coming months, the view is met with derisions of laughter. But it is not a laughing matter. These folks who sneer and shake their head just because of what the central bank is saying today are not students of history.”
The uncertainty related to the FED and the interest rates that it would be applying is generating tensions around the world.
There are some experts and analysts that believe that virtual currencies would not behave positively during a bear market. At least it would not start a market bull run. Nevertheless, if there is a currency or inflationary crisis, virtual currencies could be embraced immediately, as other countries such as Venezuela showed.
If a crisis starts, or if the bear market keeps in 2019, it will be very interesting to see the evolution of cryptocurrencies and how they will be affected.