Old School Investors Are Now Mainstreaming Crypto Investments

Cryptocurrencies have undoubtedly increased in popularity over the last three years, but not everyone talking about them has been taking them seriously. It seems like that is bound to change now, what with the influx of old money entering the cryptocurrency space.

In the last quarter of 2021, Warren Buffet’s Berkshire Hathaway invested a whopping $1 billion in Nubank, a Brazilian-based crypto-friendly player that allows users to invest in crypto exchange-traded funds. This comes after Buffet’s emphatic contempt for crypto-based assets, calling Bitcoin a ‘rat poison squared.’

It’s no surprise that there is an influx of old money in cryptocurrency; they have surged so much that their total value is currently at around $2 trillion, rivaling Apple Inc. At this stage, cryptocurrencies are simply too big for anybody to ignore.

In a world with constant innovation and progress, investors need an ever-evolving mindset to identify projects with real potential. This know-how doesn’t come without a fair amount of knowledge in old-school investing. This knowledge has also helped old-school investors understand why cryptocurrency is the better option today.

For one, cryptocurrency is an entirely new asset class that offers enormous potential for growth. Unlike stocks and real estate, which are subject to macroeconomic trends, cryptocurrency is still in its early stages of development and has the potential to offer investors massive returns.

Another reason cryptocurrency may appeal to old school investors is because it offers much more flexibility than traditional asset classes. Investors can choose to invest in a wide range of cryptocurrency assets, from established coins like Bitcoin to up-and-coming altcoins. This means that there’s something for everyone, no matter the investment goals of the individual trader.

Additionally, cryptocurrency is becoming more and more mainstream, with major financial institutions now beginning to invest in it. This increasing institutional interest is another factor that encourages old school investors to take cryptocurrency more seriously, making it go from a punchline to a valuable asset in an investment portfolio.

Of course, it also helps that cryptocurrency is a valuable hedge against inflation. The value of cryptocurrency is derived from the same basic economic principles as traditional assets like stocks, commodities, and fiat currencies; when there is more demand for an asset than there is available supply, the price of the asset goes up.

The cryptocurrency market may still be young and immature, but it is growing at an astonishing rate. The total supply of most cryptocurrencies like Bitcoin is capped, meaning there will only ever be a limited number of tokens in circulation. This makes cryptocurrency a deflationary asset, almost similar to gold, increasing its scarcity and thus driving up the price. So while cryptocurrency prices are still volatile and subject to change, they are not subject to inflation like fiat currencies.

It’s no wonder that the likes of Warren Buffet, who has always been against cryptocurrency, are now realizing the true potential of cryptocurrency as an asset. As more and more old-school investors take the plunge, it becomes vital to have a platform that empowers and enables anybody to open an asset account and allocate capital to any assets using one crypto wallet.

Duet Protocol’s platform allows users to open such an account from anywhere in the world, borrow synthetic assets against their assets in seconds while still maintaining anonymity, and conduct transactions with strangers without worrying about being cheated, among other things. Thanks to blockchain technology, these privileges are already a reality, but Duet Protocol offers better risk management, transparency, and programmability on its platform.

Duet Protocol has listed synthetic assets of traditional financial assets, which users can mint through collateralization of crypto assets like BTC or USDT. They have also made sizable investments in synthetic assets, or dAssets, including dUSD (Stable Coin), dWTI (Oil), and dXAU (gold). This is offered as liquidity to the users when they need it against the collateral they put in the Duet App.

In addition, their hassle-free diversification model helps users diversify their investment portfolio across asset classes, thus minimizing their risk like old school investors do while still keeping everything in one convenient crypto wallet.

Platforms like Duet Protocol pave the way for new and seasoned investors to enter the crypto market without compromising their existing folio and offering them opportunities to participate and expand. While old-school investors may have their experience in stocks, bonds, real estate, and mutual funds to help them enhance their yields, Duet Protocol’s algorithms and models offer the same chance to those just stepping into the world of investing and cryptocurrency.