South Korean Wealth Management Firm: Cryptocurrency Can be a Safe Haven Asset

In an interview with ZDNet Korea, Jeong said that cryptocurrencies have the potential to become safe haven assets if innovative technologies and solutions can be employed to minimize risk in investment. Currently, the cryptocurrency market is extremely volatile and as a means of payment, digital currencies still remain immature.

 But, as the adoption of cryptocurrencies from merchants, businesses, individual users, and retailers grow, the market will become stable, allowing cryptocurrencies to reach a certain level of stability that is necessary for businesses to adopt them as legitimate payment methods.
As an investment, cryptocurrencies remain a high risk and high return asset class, and traders could secure a 30 percent gain in a 24-hour period or experience a 50 percent loss. For full-time traders and individuals that are deeply committed to the industry, such a level of volatility is manageable but for casual traders and institutional investors, it is difficult deal with highly volatile assets.


Risk Minimization

Recently, billionaire investor Peter Thiel-led venture capital firm Founders Fund invested in a startup called Tagomi which will help institutional investors and large-scale family funds invest in the cryptocurrency market with high liquidity by evenly distributing orders across over-the-counter (OTC) markets and cryptocurrency exchanges. Apart from this traditional stock market investment method, Tagomi is expected to implement other innovative solutions to minimize risk for large-scale investors.

As Cornell professor Emin Gun Sirer explained, the blockchain sector is yet to see a practical implementation of artificial intelligence in cryptocurrency wealth management and investment. But, success in doing so could lead to mass adoption of cryptocurrencies and could appeal to public investors.
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