DeFi & Tokenomics is NOW LIVE: Learn More

WAX ON: Why you should have cryptocurrency in your portfolio

Apr 14, 2020
Facebook Twitter Email Linked In


William: Hello, Megan is my partner at Magnetic Capital. She’ll be walking us through Magnetic’s framework for how we view and find investment opportunities for crypto. So Megan, share a little bit about what Magnetic does.

Megan: Magnetic’s focus since 2012 has been purely crypto and distributed ledger technology. We’ve watched the market evolve. The changes in technology, the experimentation, the tax, the regulatory, and the market changes. Our background is investors, company builders, and merchants. Using blockchain technology gives us insight that few investors can buy in this asset class. Our investment approach is experience-based and research driven.

William: So what is special about crypto that makes it a compelling investment opportunity?

Megan: The fact that it’s not yet a mature asset class. You can see this from the relatively small market cap of crypto compared to other asset classes. You also see this in the small user base. And we’re still at a very early stage of enterprise adoption. And yet whether you look at the past 10 years, the past 5 years, or even the past 3 years crypto as an asset class has generated the highest return of any asset class globally.

William: So Megan, is it too late to invest?

Megan: No. The crypto market opportunities are indicators for why we believe these are still the early days of crypto. In the last decade the crypto market achieved a return of 90,000x. Today, more developers, companies, and governments are building blockchain solutions than ever before. Over the next half a decade alone we can easily see a 5x market growth. So no you’re not late to the game because you didn’t buy bitcoin at $100

William: Are there specific opportunities you’re looking at?

Megan: Yes of course. Since the crypto market is in its nascent stages, we take a long-term investment horizon approach. And in that approach, we look at five main themes that are real world use cases for blockchain. In the top 5 best use cases there are several sectors that we look at such as payments, cross-border settlement, decentralized finance, stablecoins, cloud wallets, tokenized real-world assets, data collection and transfer, and gaming.

William: How do you invest in these use cases?

Megan: To invest in these use cases we look at the optimal way to participate in any one of these global opportunities that I’ve laid out which is influenced by the blockchain technology value creation stack. We clearly do not use a simple heuristic approach. For instance, as an investment approach we would not just invest in bitcoin and other top 10 protocol networks based on historical value. Most managers have used this investment methodology. It worked a few years ago but it won’t be a successful strategy going forward. This is because the focus is now on practical business applications.

William: So Megan, thank you for coming here today and sharing your insights about investing in crypto.

Megan: It’s my pleasure, thank you William, and thank you for watching.

Disclaimer: The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.


Let us know what you think by joining the WAX community:




Facebook Twitter Email Linked In

Related Articles

Blog Image

Network Fees on WAX are redistributed to the WAX Community

WAX is implementing a 2% Network Fee on all NFT secondary market transactions on the WAX blockchain, which will be collected, aggregated and then distributed to participants in the WAX DeFi model.

Read More
Blog Image

WAX Tokenomics & DeFi is NOW LIVE! Here's how to participate

WAX Tokenomics & DeFi is NOW LIVE! Here is an overview of the steps that you need to take to participate.

Read More

Thank you for subscribing to WAX updates!