Though crypto’s total market capitalization surpassed US$3.63 trillion earlier this year – the U.S. stock market, for comparison, comes in at a little more than US$50 trillion – it can be difficult to understand how it’s managed to carve out a small but meaningful allocation in more than half a billion investment portfolios and counting.
We can break down the impetus behind crypto enthusiasm into two factions:
- Speculators, who allocate into crypto projects because of their exponential returns, as highlighted by Bitcoin’s more than 22,000 per cent return since 2015, in the hopes of benefitting from similar momentum.
- Active investors, who perform due diligence on crypto projects and the many uses of blockchain technology – including decentralized finance and software development – and make educated forecasts about the best investments in terms of undervaluation and…
