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Trends Watch: September 20th, 2018

EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.

This week, Elana talks with Shaun Dindial, General Partner, Crypto Global Capital.

What is your outlook for crypto?

2017 was a breakout year for crypto. Many early adopters have been going through ups and downs going back to Bitcoin’s early days... seven plus years ago. This recent boom has attracted investors and new money from all corners of the globe. It is the first of its kind and has spurred a rush of blockchain innovation. Having quite the run and recent pullback, we can most likely expect further turbulence as large investors are starting to get involved. The recent introduction of Bitcoin futures will most likely add to this volatility. Not to mention, a plethora of ICOs have raised billions of dollars with merely a website and an idea. Many have turned out to be scams or have since failed. Going forward, we can probably expect a reasonable retreat in valuations and more stringent investment criteria. Investors are looking for a working product or an existing business. With that being said, I think the outlook of crypto is very good but it will take some time to nail down the regulatory aspect in the U.S. Blockchain technology has many amazing applications, and we feel like it is the technology of the future.

What is your outlook for the economy?

The economy shows no sign of slowing down for the short term. The unemployment rate has been on a constant decline. The International Monetary Fund recently upped its U.S. growth forecast for 2018 to 2.9%. However, U.S. debt levels are above $21 trillion and climbing and although the stock market keeps hitting new highs, it makes me think how long until the party is over. I think that’s partially why Bitcoin is growing in popularity. Bitcoin provides hope for those that don’t believe in our current system.

What keeps you up at night?

Crypto investors have been on quite a wild ride. If you got in early you may have seen a 10000% return and if you got in late you may have lost your shirt. The price changes are big and come quick. We have a motto: Traders profit off of volatility... the exchange profits off of traders.

Elana Margulies-Snyderman is an investment industry reporter and writer who develops articles, opinion pieces and original research designed to help illuminate the most challenging issues confronting fund managers and executives.

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