Why cryptocurrencies are in ‘bull territory’: deVere CEO

Cryptocurrencies continue to post big market gains, and may continue to do so—at least for now.

“Current market activity indicates that the major cryptocurrencies are set for another considerable surge in prices gains in the near future,” says Nigel Green, founder and CEO of deVere Group, in a release.

The rally is fuelled by several factors, he says. One is the growing integration and adoption by major banks and other financial institutions.

Referencing a Thomson Reuters survey, Green says 20% of all financial firms are considering trading digital currencies in the next 12 months.

Also, with globalization, there’s a growing awareness for the need and demand for digital, global currencies, he says.

Another factor is regulation, which most experts say is inevitable. “This will give investors even more protection and long-term confidence in the market,” says Green.

He notes that the digital currency Ethereum, in particular, is set to overperform.

“This general upswing will be fuelled by three mains drivers,” says Green. “First, more and more platforms are using Ethereum as a means of trading. Second, the increased use of smart contracts by Ethereum. And third, the decentralisation of cloud computing.”

Though he describes cryptocurrencies as in “bull territory,” investors should be wary.

“Cryptocurrency markets remain volatile,” Green says. “Caution should be exercised and professional advice sought.”

Also read:

OSC warning investors about BitConnect and BCC Exchange

Ripple, not bitcoin, set to convert crypto cynics: deVere CEO

IIROC to require dealers to report cyber breaches

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.