The sixth episode of Technext’s podcast series-Tech Bytes featured an expert on the topic of interest (the resulting effect of the crypto crash on investors and industry), Osamede Arhunmwunde who is the co-founder and COO at GIGX Technologies, who has a deep insight into the cryptocurrency market and was an early investor in several well-known blockchain projects.
In this episode, we had conversations on trending tech topics for the week. These include Elon Musk putting a hold on the deal to purchase twitter due to uncertainty around Twitter bots, GIGM’s new CEO appointment, Rwanda unveiling of its new $1 billion innovation hub, and Netflix’s layoff of 150 employees.
Our guest conversations with Osamede Arhunmwunde focused on “what next” for investors in the crypto space and the effect of the crash on industries like tech, economies and potentials around stock,
You can listen to the full episode below:
Excerpts from the Tech bytes conversation
Just in case you do not want to listen to the full episode first, please find below a summary of the conversation for you:
The main conversation with Osamede Arhunmwunde focused on the resulting consequence of the cryptos crash, the predictability of a re-occurrence as well as mechanisms that listeners can adopt to extenuate the impact.
He pointed out the need to properly contextualize the crypto price crash. According to him, these are familiar teething problems associated with early-stage technology.
Volatility is the price you pay for the sort of returns you get from a volatile asset. Volatility comes with its space.Osamede Arhunmwunde
Asked if it was adequate for people to trust the projections of analysts on making crypto investments, he noted that people should not forget the fact that investments in cryptos are long term, and listers would make their own research before investing.
A major contribution to the fluctuations in the prices of cryptos was the economical laws of demand and supply. He added that what investors should look for before investing is the potential of adoption rather than its current price.
Take a look at the bigger picture, Bitcoin is not a get-rich quick scheme, take a look at 5 years from now, 10 years from now when investing. it’s about the adoption, not the current price.
On Terra, Luna and UST
Osamede explained the Terra, Luna and UST debacle in-depth on the podcast.
The summary is that Terra‘s business model is based on pegging the UST at one dollar per. Hence, the company had to sell a lot of Bitcoins to stabilise the price of the UST when it was impacted by market forces. Hence, there was a glut of Bitcoin and a price crash followed.
On projections on the stability in the volatility anytime soon, he said – “No, it’s the nature of the space. If you want safety and security, invest in government bonds and earn little, or rather still keep your money in cash where inflation would tax it.”
But if you want an opportunity to earn, that could potentially transform your situation, then you have to think about investing in riskier assets.Osamede Arhunmwunde
Osamede Arhunmwunde noted that, although there is no guarantee that we will experience a rise in the prices of Bitcoins in the short, there is a promise in the long term, that it would yield for investors.
He, however, advised listeners to strive to balance their investment portfolios. “Do not invest too much in one instrument”, he added.
On his advice to investors looking to invest in cryptocurrencies right now, Osamede said that there were no guaranteed formulas but listeners should be on the lookout for global trends.
“The same rules applies to all forms of investments, investing is investing. Observe the changing world and ask yourself what companies can benefit from this changing world.”
He reiterated his beliefs that the future of finance is rooted in individuals having control over their finances and investments. We asked him if it was wise for individuals to hand over their money to experts to invest for them. He said that this negates the principle of financial autonomy that the blockchain represents.
Finally, Osamede offers a safe guide to listeners: diversify your portfolio across the top five or top ten projects doing well right now. And, hold your tokens for at least five years.
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