Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

As Cryptocurrencies Beckon, Keep An Open Mind: Crypto Investor

Cryptocurrency NewsMay 13, 2021 18:45
Saved. See Saved Items.
This article has already been saved in your Saved Items

By Christiana Sciaudone -- Nonfungible tokens are hot -- as art and collectibles -- but insiders are more interested in the real life potential of the Ethereum-hosted technology, says one crypto expert.

NFTs can represent the transfer of value, of anything, according to Scott Melker, a relatively long-term crypto investor, who was steeped in equities until the 2010s when he started to poke around cryptos. Now he's a believer, and hosts a crypto-centered podcast, “The Wolf Of All Streets," and writes a daily crypto newsletter. 

"You can tokenize anything and transfer it directly without a third party," Melker said in a phone interview this week. "It could be a mortgage, a car title, stocks without clearing houses needed to clear the transactions."

The NFT transactions would be logged transparently on the blockchain. So who wouldn't want to cut out the cost and bureaucracy of the middle man in favor of faster and more open methods of doing business? Why haven't we jumped to adopt this technology?

Think banks, payment companies and governments that do not want to see their power and financial might slip away, Melker said. They are taking steps, however, to join the future.

"Central bank digital currencies are coming; You can't stop this tech, but they can hope to control it."

Melker urges all investors to push into crypto, but also keeps his traditional retirement account, equities and real estate investments humming. 

"Bitcoin is the most important asset of our generation by far," but boring portfolios are also important, Melker said. "You should have exposure to both."

One possible way to have exposure to both? A U.S. bitcoin exchange-traded fund. Some of the biggest institutions, such as pension funds, are itching to get exposure to crypto via ETFs, since they can't buy directly, Melker said. 

"Everything starts and ends with bitcoin to some degree," Melker said. "That is like investing in gold 2.0. That should be the core of everybody's focus."

But the U.S. Securities and Exchange Commission has been cautious, and has yet to approve any such ETF. 

In the meantime, the surge in crypto prices has been compared to the dotcom boom, which Melker sees as an apt and positive comparison. 

While most of the early dotcoms failed, the bust "also gave us the Googles of the world," Melker said. There are far too many coins on the market now, but that will certainly change.

Bitcoin will be a survivor, and Melker suggests, "If you want to be exposed to bitcoin you should buy bitcoin, there are no two ways about it."

Coinbase, the cryptocurrency exchange that went public last month, is not a proxy for crypto -- it's a company, not an asset, Melker said.  

"Coinbase's stock is more susceptible to the moves of the stock market than bitcoin itself," he said. Buying Tesla (NASDAQ:TSLA), likewise, is not the best way to gain such exposure, he said. Tesla, the electric vehicle maker, bought $1.5 billion of bitcoin in February and briefly said it would accept bitcoin as payment for its cars, until reversing course Wednesday and saying it had suspended that offer because of environmental concerns. Bitcoin fell 10% overnight.

Bitcoin, rather, with its scarce nature, is a way to store value.

"Bitcoin has replaced gold and there's not much need for gold,” Melker said.     

Coming in second place is Ethereum, which, as noted above with regards to NFTs, eliminates third parties with peer-to-peer transactions.

"It will be a parallel financial system, it won't replace banks," Melker said. Payment companies like Visa (NYSE:V) and Mastercard (NYSE:MA) also won't go out of business, but they may be forced to innovate.


As Cryptocurrencies Beckon, Keep An Open Mind: Crypto Investor

Related Articles

XRP Climbs 10.04% In Bullish Trade
XRP Climbs 10.04% In Bullish Trade By - Jun 24, 2021 - XRP was trading at $0.68891 by 18:08 (17:08 GMT) on the Index on Thursday, up 10.04% on the day. It was the largest one-day percentage gain since June...

Cardano Climbs 10.43% In Bullish Trade
Cardano Climbs 10.43% In Bullish Trade By - Jun 24, 2021 - Cardano was trading at $1.364836 by 16:18 (15:18 GMT) on the Index on Thursday, up 10.43% on the day. It was the largest one-day percentage gain since...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email