For several years, cryptocurrency has been infiltrating the investment landscape. But, what is it and who’s actually buying it? Digital transformation expert Andrew Au tackles cryptocurrency — what it is, who wants it and why — in a recent interview with Bay Street Bull.
Andrew is the president of Intercept, a strategic millennial and digital transformation consultancy, and is an expert on millennials, navigating disruption, and future-proofing organizations with the power of big data and transformative ideas.
What Is It?
He defined cryptocurrency as a decentralized, digital-only currency that isn’t governed by traditional institutions. Instead, crypto transactions are recorded by a single public ledger that is permanent and a matter of public record. Copies of the ledger are stored and distributed across a cryptocurrency network to maintain its accuracy and integrity.
Who Wants It?
In a recent national millennial study that his firm completed, Andrew learned that almost 75 per cent of millennials believe in the concept of cryptocurrency, with 65 per cent predicting that it will displace traditional currency in the next 5 to 20 years. He says,
“Millennials are empowered with more choices and greater transparency. Their belief in cryptocurrency stems from the idea of a decentralized currency that isn’t controlled by institutions — the very institutions responsible for the 2008-2009 financial crisis. The underlying blockchain allows for a single public ledger where transactions are verified by ‘the people’, not the banks. Theoretically, an incorruptible model.”
And Why?
What are some of the advantages of investing in cryptocurrency vs. traditional investments? Andrew says there are several.
Big potential upside: With big risk comes big reward. With swings that range from 10-30% from week to week, you don’t need to invest a lot to yield a significant return compared to traditional investments.
Shorter Investment Cycles: Theoretically, you can generate and realize gains within a short period of time. Not without hurdles however, as there are buy/sell limits and timing delays to consider.
Greater Confidentiality: You choose exactly what information you share with the party you are transacting with. You no longer need to share intimate financial history to qualify your financial position.
Read Andrew’s full interview about cyptocurrency here.
Andrew is among the few Canadians to be named to Forbes’ 30 Under 30 list. Referred to by Forbes as a “millennial expert”, he is a modern business leader who helps global blue-chip brands respond to digital and millennial transformation.
Interested in learning more about Andrew and what he can bring to your next event? Email us at [email protected].
