Bitcoin, ether: should you be afraid to invest in cryptocurrency?

About 20,000 dollars, or “only” 19,000 euros. On Wednesday, June 22, the price of bitcoin sails far, far away from its highest level. Its estimate is no longer equivalent to a third of what it was on November 9, 2021, at the date of its historic peak of $ 69,000. And not only the queen of cryptocurrencies suffers. Since the beginning of the year, the price of Ethereum has fallen by almost 70% to just over 1,000 euros. Add to that the collapse of Terra Luna and its stablecoin, UST, and all the lights seem to be on red for cryptocurrencies.

In this context, the question arises: is the cryptocurrency dead? For Stanislas Barthelemy, a consultant at Blockchain Partner, a consulting firm affiliated to KPMG, and the first guest of the Grand rendez-vous de l’épargne (Capital / Radio Patrimoine), this would be a quick start. “At stake is not cryptocurrency, but the players who created service offers on it, who mismanaged their risks,” – explains the expert, explaining the cascading liquidations in the world of cryptocurrencies. “The basic technology is beyond doubt. We are witnessing a collapse because of a paradigm shift, a macroeconomic context that has deteriorated significantly, inflation is much higher, and risky assets are under pressure, ”said Quentin Subrann, a Capital journalist and head of the 21 Million Newsletter. guest of our show.

>> Discover the 21 million Capital newsletter on cryptocurrencies. Decipher, advise and analyze weekly prices to support your cryptocurrency investment

Adopt a real investment strategy

The words are likely to reassure investors… who are still worried about their portfolio, which depends on extreme volatility. But no wonder, according to Stanislas Barthelemy, who compares cryptocurrency, or rather bitcoin, to “stocks on steroids.” Thus, the challenge is to position oneself in the medium term to partially neutralize risk. For a non-specialist who does not have the time or skills to manage their investments every day, the expert recommends “switch to bitcoin or broadcast with a time horizon of 2-3 years and do not look at your wallet.” Another recommendation is to invest gradually to “average the cost of acquisition and smooth out volatility.”

Forget about prices and volatility associated with these assets. Also forget about the qualification of digital gold attributed to bitcoin, according to which the queen of cryptocurrencies would protect against inflation. The theory of its relative rarity – at most 21 million tokens – has been undermined by recent events. “Because of this deficit, people thought that bitcoin would be a bulwark against inflation. Except for the last 6 months, we’ve seen inflation explode and bitcoin fall sharply, “said Quentin Subrann.

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Our report is in the blockchain school

But understanding cryptocurrency is not limited to changing prices. This is primarily a question of mastering the technology with which it is associated: blockchain. This is the goal of Alyra, a blockchain school that teaches people ecosystem professions. In the “Report” series of our program, its founder Jeremy Walker presents a variety of training courses offered by the school: developer, consultant and specialist in decentralized finance. As many skills as possible can be funded in many ways, including a personal learning account (CPF).

On the way to clearing the market?

And non-professional crypto investors should use the same approach. Since we need to be interested in the company we are buying a stake in, it is important to understand the blockchain behind the currency. Because for our guests only the best of them will survive, like sanitation, which was observed at technological events in the late 90’s. An Internet bubble on technology stocks, ”says Quentin Subrann. A meaningful comparison, according to Stanislas Barthelemy: “Most companies have disappeared, but the concept of the Internet has survived,” he said. Perhaps this is a happy sign for our investors, provided, of course, that we make the right choice.

Pierre Sabatier’s love affair / conversation

As every month, Pierre Sabatier, president of Primeview, attributes to his favorites and … companies. The economist estimates the yield on Italian government bonds, which is approaching 4% and, according to him, opens up great opportunities. Except, of course, the crash in the eurozone, a scenario he does not believe, given the position of the European Central Bank. Under these conditions, “it’s a profit / risk pair that we find interesting,” he said.

On the other hand, his curse is addressed to investment professionals who must change their analysis software at all costs. Because central banks have changed their discourse: they will no longer be the saviors of last resort. Hence the imperative need to have “new glasses. The real topic is to learn to identify good students, especially bad ones, ”says the expert. Thus, active management, which has been neglected in recent years, may return.

This section applies to you.

In the last part of the program, the experts of the Grand Rendez-vous de l’épargne answer your questions, as every month, in the sequence “This applies to you”. Stefan Absolu, Deputy Director of Pyxis Conseil, thus enlightens the reader whose husband has taken out life insurance and who wants to know whether part of this amount will be returned after their divorce.

Natalie Kuzigu-Sujas, a notary public in Paris, then explains the current rules on the property tax (IFI) for beneficiaries of the lifetime right to housing in the main place of residence with children from different beds. Finally, Charlotte Tamor, Yomoni’s Advisory Director, details the different types of fees that apply to life insurance contracts and retirement savings plans (PERs). insurer and distributor of these products.

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