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Crypto Myths Prevail Despite Industry Interest And Growth

In July, Fidelity Digital Assets published a study which said, "Seven in ten institutional investors expect to buy or invest in digital assets in the future, and more than 90% of those interested in digital assets expect to have an allocation in their institution's or clients' portfolios within the next five years."

Despite the heavy interest in the asset class - and the extraordinary media coverage that it receives - myths remain, and a new paper from London-based digital assets investor Aaro Capital analyses and attempts to dispel these.

Busting Common Crypto Narratives and Myths, written by Aaro Capital CEO & Co-Founder Peter Habermacher, covers a range of narratives including the widely rehearsed set of arguments around Bitcoin, Gold and the Store of Value, the relationship between inflation and cryptoasset appreciation, whether bitcoin and other cryptoassets are an effective inflation hedge, currency competition and the replacement of fiat by crypto, Distributed Ledger Technology (DLT) and decentralisation, marrying economic theory with a fundamental analysis of these narratives in an attempt to dispel some of these myths.

Myths will no doubt continue for a while, as is to be expected from an asset class that is so nascent; regardless, Aaro Capital is unsurprisingly bullish about the bigger picture for digital asset investing. 

"While the initial idea behind cryptocurrencies was digital cash, the evolution of the technology in second and third generation crypto platforms now enable something far more powerful, Web 3.0. Crypto is a next-generation, value-based internet," says Habermacher in the paper. "Looking at the bigger picture, DLT and cryptoassets are key to the Fourth Industrial Revolution and its use cases are intertwined with technologies such as the Internet of Things, Big Data and Artificial Intelligence. While DLT is the technological Innovation, cryptoassets the economic innovation and they go hand in hand. DLT and cryptoassets have the potential to disrupt virtually every industry and has applications throughout many different value chains."

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