Why to invest in ARB6 Oct 2020 11:43
In response to all the negativity and naysayers I thought I'd try and piece together why I invest in ARB.
All IMO DYOR.
So in terms of my crypto exposure positions I have 60% crypto / 40% crypto miner.
Here is my rationale and questions we should all ponder:
1. How convinced should we be that crypto will garner mainstream adoption and be a major player of the future financial landscape?
- My feelings are this is almost a certainty. In a currency printing landscape, rising inflation, geopolitical unrest and much more, I see crypto (mainly BTC) as the main beneficiary. Capped supply, portability and a store of value with ever increasing trust. Adoption by major players (paypal, Visa, Mastercard etc. the list keeps growing) will keep this process going.
2. What time horizon is there for this to take place?
- I cannot see this happening in 24-48 months. Potentially the next 10 years. Hence my long term stance in crypto and ARB.
3. Should I invest in crypto ?
- My feelings are this is down to risk and time horizon, and how this impacts each individual. Crypto is still risky and one in which you should only invest in if you have full conviction in its success.
4. Why a miner?
- Well - As we all know ARB provides one of the best value shares in this sector. It is under the radar as we all know, in a crypto naive market with significant growth. It does not provide a hedge to the BTC price, but it does provide a hedge to BTC/crypto price volatility. People investing here as a means to track the BTC price should not be here. I expect ARB to be weakly correlated in the longrun. If BTC is 20k, ARB should be in profit, if BTC were 3k, ARB should still be in profit. The reasons for this are energy efficiency. That's the beauty of invisting in a crypto miner over directly in cryptocurrency. Now ARB have to keep spending to achieve this and it requires capital, so we all hope that we do not stay stagnant in the market for too long, and consider further acquisitions in the near future.
- Tax implications (just wait for an ETF and then you will see people aware of this stock).
5. Why is the SP languishing?
- We are correlated to the traditional markets, and are yet to decouple. This should happen in the next 12-24 months in my mind.
- We are investing from the UK. For everything the UK markets provide, tech stocks are not it. Hence why we are ahead of the curve here.
- People are losing patience and selling because of the lack of movement in SP should reconsider. This could move fast next week or in a year from now. Depends when people
6. Should I sell out to invest direct in crypto?
- No, because of the above mentioned. Also I see price appreciation better here than in BTC. Just think the direct to miner investment as only existed for about 5 years (ARB even less). It's a brand new investment opportunity!
Again - GLA DYOR.
I see this moving rapidly very soon. I cannot see much downside with monthly operational updates.
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