In late 2017 when the price of bitcoin and other digital assets embarked on a journey to the moon and FOMO swept across the crypto space, Viswanathan Shankar, the CEO of Gateway Partners Limited, a Cayman-based private equity firm that invests in growth opportunities across a number of continents reportedly warned investors to “steer clear” from cryptos.
With the blockchain-based digital assets price crash of 2018 that saw the pioneer cryptocurrency shed more than 80 percent of its nearly $20,000 value two years ago, the Gateway chief now boasts that his predictions have come to pass, reported Nikkei Asian Review on January 3, 2019.
Hodl Biscuits, not Bitcoin; Cryptos Have Potentials but too Risky
Per sources close to the matter, Shankar warned investors in 2017 to be wary of pumping their hard earned money into three major portfolios, i.e., bitcoin, Argentina bonds, and Tesla, three investments for which he coined the “BAT” acronym.
While the experienced tycoon admitted he believes distributed ledger technology (DLT) could revolutionize the global financial system, he, however, made it clear that the super volatile nature of cryptoassets makes it a no-go area for him and his firm.
“Our investment strategy focuses on the basics, investing in sectors that fulfill people’s primary needs,” Shankar stated, adding:
“I’m not against cryptos, and I firmly believe financial transactions will be transformed by technology at every level. But digital assets are too risky and I don’t see the essence.”
Crypto Adoption Steadily Increasing
Of a truth, the early adopters of bitcoin who joined the cryptocurrency movement before 2017 and even those who caught the fever at the beginning of 2017, are still very much in the green, as the flagship cryptoasset has gained more than 3,000 percent since its launch a decade ago.
However, Shankar and several other heavyweights in the traditional finance industry still see nothing good in the burgeoning digital asset class, with highly reputed businessman, Warren Buffett, the CEO of Berkshire Hathaway, and Bill Gates, the founder of Microsoft, leading the crypto haters bandwagon.
Even with the cryptocurrency market downturn of 2018, it’s worth noting that a significant number of forward-thinking startups integrated digital assets into their operations, with still others planning to join the movement this 2019.