Bitcoin, ether: should you be afraid to invest in cryptos?

About 20,000 dollars, or “only” 19,000 euros. On Wednesday, June 22, the price of bitcoin sails far, very far from its peak. Its valuation is no longer equivalent to a third of what it was on November 9, 2021, the date of its all-time high of $69,000. And the queen of cryptocurrencies is not the only one suffering. At just over 1,000 euros, Ethereum has seen its price drop by almost 70% since the start of the year. Adding in the collapse of Terra Luna and its stablecoin, UST, all the lights seem to be red for cryptos.

In such a context, a question arises: is crypto dead? For Stanislas Barthelemi, consultant at Blockchain Partner, a consulting firm linked to KPMG, and first guest at the “Grand rendez-vous de l’épargne” (Capital / Radio Patrimoine), it would be a fast start. “It is not the cryptocurrency that is at stake, but rather the players who have built service offerings on it, who have mismanaged their risk,” the expert states to explain the cascading liquidations in the crypto world. “The underlying technology is not called into question. We are witnessing a crash because there is a paradigm shift, a macroeconomic context which has worsened considerably, much more inflation, with risky assets under pressure”, exclaims Quentin Soubranne, journalist at Capital and responsible for the 21 Million Newsletter , other things. guest on our show.

>> Discover 21 Million, Capital’s cryptocurrency newsletter. Decryptions, advice and analysis of weekly prices to support you in your investments in crypto assets

Adopt a real investment strategy

Words that are likely to reassure investors… who may still be worried about their portfolio being exposed to extreme volatility. But nothing surprising, according to Stanislas Barthelemy, who compares cryptos, and more specifically bitcoin, to “stocks on steroids”. The challenge therefore consists in positioning oneself in the medium term in order to neutralize – partially – the risk. For a layman who would neither have the time nor the skills to manage his investment on a daily basis, the specialist therefore recommends “to go for bitcoin or ether, with a time horizon of 2-3 years and not look at your wallet”. Another recommendation: invest gradually to “average your acquisition costs and smooth out volatility”.

Forget the prices and volatility associated with these assets. Also, forget the qualification of digital gold attributed to bitcoin, according to which the queen of cryptos would protect against inflation. A theory linked to its relative rarity – 21 million tokens at most – but undermined by recent events. “From this scarcity, people thought that bitcoin would become a bulwark against inflation. Except that in the last 6 months we have seen that inflation has exploded and that bitcoin has fallen sharply”, says Quentin Soubranne.

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Our report on the blockchain school

But the understanding of cryptocurrency is not limited to price variation alone. It is above all a matter of assimilating the technology it is associated with: blockchain. This is the purpose of Alyra, the blockchain school that trains people in ecosystem subjects. In the “Reportage” sequence of our program, its founder Jérémy Wauquier presents the various training courses offered by the school: developer, consultant and specialist in decentralized economy. Funding as many skills as possible with many funds including the Personal Training Account (CPF).

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On the way to a clean-up in the market?

And lay crypto investors must take the same approach. Since we must be interested in the company whose share we buy, it is essential to understand the blockchain behind the currency. Because for our guests, only the best of them survive, like the hygiene observed on technology stocks in the late 90s. Internet bubble on technology shares”, emphasizes Quentin Soubranne in this connection. A comparison that makes sense, according to Stanislas Barthelemi: “A large part of the companies had disappeared, but the concept of the Internet has remained”, he recalls. Perhaps a happy omen for our investors, provided of course we make the right choices.

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Pierre Sabatier’s crush / rant

As every month, Pierre Sabatier, president of the Primeview company, attributes his favorites and… mouth. The economist appreciates the interest rate on Italian government bonds, which is approaching 4%, and which, according to him, offers a great opportunity. Except, of course, in the event of a eurozone crash, a scenario he doesn’t believe in given the European Central Bank’s stance. Under these conditions, “it is a return/risk pair that seems interesting to us”, he argues.

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His rant, on the other hand, is aimed at investment professionals who need to change their analysis software at all costs. Because the central banks have changed their discourse: they will no longer be the saviors of last resort. Therefore, there is an urgent need to have “new glasses. The real issue is to learn to identify the good students and especially the bad students”, pleads the expert. Active management, which has been neglected in recent years, can thus make a comeback.

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The “It concerns you” section.

In the last part of the program, the experts from the “Grand rendez-vous de l’épargne” answer your questions as they do every month in the sequence “It concerns you”. Stéphane Absolu, associate director at Pyxis Conseil, thus informs a reader whose husband has benefited from life insurance and who wants to know if part of this amount will be returned to him in the event of their divorce.

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Life insurance, retirement savings: the product that pays the most according to your profile

Next, Nathalie Couzigou-Suhas, a notary in Paris, explains the current property tax rules (IFI) for people who have a lifetime right to live in the main residence in the presence of children from different beds. Finally, Charlotte Thameur, consulting director at Yomoni, describes the different types of fees applied to life insurance contracts and pension savings schemes (PER), as these fees must appear in an overview table on each individual page from 1 June 2022. insurer and distributor of these products.

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