Investing in Crypto seems to be risky at first. Much more volatile than the stock market or other investments. Double digit loss / gain within hours is possible.

Looking into the Bitcoin (BTC) volatility against S&P500 VIX for the last few years.

 

Then why are some Investors, including Fund Managers, compelled to invest in it? Many reasons, some are:

 

1. Digital currency

Bitcoin (BTC) is increasingly being used as digital wallet by individuals, with the recent adoption by El Salvador, and by several e-commerce companies.

 

Ethereum (ETH) is increasingly being used by large corporations for transactions.

 

 

2.  Rapid Growth

Despite its volatility and all the doubts, Crypto is still cruising at an unprecedented pace.

 

The top cryptos’ valuation has even surpassed some countries’ GDP.

 

 

BTC (Bitcoin) alone took only 12 years to reach $1 trillion market caps in 2021 before pulling back recently.

 

 

3.  Currency hedging

Investors can expect not only capital gain, but also using it as (natural) currency hedging since Crypto is mostly denominated in USD.

 

Note: the gain / loss from investing in Crypto is negligible, since the IDR currency is very stable over the past few years.