RE: Confidence27 Feb 2021 15:34
ST, from your posting it looks like you are quite new to investing. If you waited until 225p to buy, let it drop 33% and only then ask what is good about the investment then any lack of confidence is likely just a reflection of your approach. Understand the investment case first, then look to buy the shares.
The case for KR1 is simple and makes the following assumptions. The BTC mining reward halves every 4 years causing a subsequent tightening of BTC supply which leads to a major bull market in the price of BTC. The price of BTC by and large follows the stock to flow model and the long term power law. These suggest BTC is headed significantly higher over the next few months. Other cryptos referred to as altcoins act much like derivatives of BTC, moving up and down with BTC but with a much higher gearing creating much bigger upward moves particularly at the tail end of bull markets in a period known as altseason.
Unlike previous bull markets where investors appeared to buy pretty much all cryptos, interest this time round seems much more focused on projects forming the backbone of Internet 3.0 and a decentralized financial system and these assets have by and large been the best performers. Given that KR1's portfolio of investments is essentially a basket of altcoins focused primarily in these two sectors, they look to be positioned perfectly for the current crypto bull market.
The fact that major corporations are now starting to put BTC on their balance sheets, top tier payment providers like VISA, Mastercard and PayPal are planings to add crypto to their systems and established banks like BNY Mellon are beginning to offer crypto services suggests a paradigm shift is underway as crypto finally crosses the Rubicon into the mainstream. If you think the outlook for BTC and crypto is strong then KR1 looks to be in an excellent position to reap big rewards from a move higher across the sector.
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