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Interview: We are yet to see the full impact of Bitcoin halving, says David Wigger of LIAN Group

By:
on Apr 30, 2024
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  • For investment, It's imperative to weigh factors such as risk tolerance, objectives, and time horizons.
  • Diversification serves to spread risk and holds the potential to bolster returns over the long haul.
  • AI models could be useful to predict price fluctuations and refine trading strategies within crypto markets.

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The Bitcoin halving event has finally taken place and the world of crypto is still weighing the opportunities and uncertainties it presents for investors. Historically, such events have sparked significant interest and volatility, influencing market dynamics and investment strategies.

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We spoke to David Wigger, Managing Director at LIAN Group to understand how Bitcoin’s reduced rate of new coin creation might impact prices and how investors might adapt their strategies in response. Wigger also discussed broader investment approaches in the cryptocurrency sector, examining effective diversification techniques and the role of emerging technologies like AI and blockchain in shaping future investment landscapes.

Invezz: How do you expect BTC prices to respond to the Bitcoin halving, and what investment strategies would you recommend?

We are yet to see the full impact of Bitcoin halving, but throughout history, these events have often triggered heightened attention and volatility in cryptocurrency markets.

This event entails a reduction in the rate of new Bitcoins being created, potentially fostering scarcity, and exerting upward pressure on prices.

However, market dynamics are subject to considerable variation, influenced by diverse factors such as macroeconomic trends, regulatory shifts, and investor sentiment.

When crafting investment strategies, it’s imperative to weigh factors such as risk tolerance, investment objectives, and time horizon. Diversification is typically advocated to mitigate risk, not solely among different cryptocurrencies but also across asset classes like equities, bonds, and real estate.

This strategy of diversification serves to spread risk and holds the potential to bolster returns over the long haul.

Diversification is key

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Invezz: Can you describe your approach to diversifying investments in crypto? What key factors do you consider?

In diversifying investments in crypto, key factors to consider include:

* Asset selection and diversification between a blend of well-established cryptocurrencies such as Bitcoin and Ethereum, alongside promising alternative coins boasting robust fundamentals and distinctive value propositions (underlying project).

* Evaluating the risk-reward spectrum of each investment and modifying portfolio allocations accordingly to manage risk effectively.

* Cautiously observing market trends, sentiment, and advancements within the cryptocurrency realm to make well-informed investment choices.

* The environment must be monitored and updated on regulatory and compliance mandates across various jurisdictions to alleviate potential regulatory risks.

AI’s role in investment strategy

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Invezz: How do you incorporate AI and blockchain into your investment strategies, and what impacts do you foresee from these technologies on investments?

AI and blockchain can be integrated into investment strategies in various ways:

* AI algorithms can be used to scrutinize market data, detect patterns, and formulate investment decisions grounded in data.

* Harnessing blockchain technology to ensure secure and transparent transactions, especially concerning tokenized assets and smart contracts.

* AI models could be useful to predict price fluctuations and refine trading strategies within cryptocurrency markets.

Invezz: What criteria does LIAN Group use to select tech startups for investment, and how do you support their growth and technological advancements?

As for LIAN Group’s investment criteria for tech startups, it likely involves factors such as:

* Innovation and technology are evaluating the originality and potential influence of the startup’s technology or product.

Market potential depends on assessing the scale, growth prospects, and competitive environment of the target market.

People are a key factor to take into consideration, and furthermore their expertise, experience, and past performance of the startup’s founding team.

Scanning for scalability, sustainability, and strategy for monetization of the startup’s business model.

Invezz: Which tech sectors or innovations is LIAN Group focusing on within private equity, and how are you positioning your investments in these areas?

LIAN Group likely supports the growth of invested startups through various means, including strategic guidance, networking opportunities, access to resources and expertise, and potentially follow-on funding rounds.

In private equity, LIAN Group may focus on sectors such as:

Artificial Intelligence and Machine Learning: Investing in startups developing AI-powered solutions across various industries.

Blockchain and Cryptocurrency: Backing innovative projects and platforms leveraging blockchain technology for applications beyond cryptocurrencies.

Fintech: Supporting startups revolutionizing the financial services industry through technology-driven solutions like digital payments, lending, and robo-advisors.

Healthcare technology: Investing in companies developing cutting-edge technologies to improve healthcare delivery, diagnostics, and patient care.

LIAN Group likely positions its investments in these areas by conducting thorough due diligence, actively engaging with portfolio companies, and staying abreast of technological advancements and market trends.

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