Dubai: Stability in Bitcoin prices post the launch of futures contracts has triggered temporary movement of money into other cryptocurrencies like Litecoin, Ripple and Ethereum, experts say.
Market capitalisation in smaller cryptocurrencies like Ethereum, Ripple, and Litecoin have witnessed tremendous growth and participation from mom and pop investors, while market cap of Bitcoin has seen stagnation.
For example, Ripple has a market cap of $100 billion (Dh367 billion), half that of Bitcoin.
“People are looking for returns in other places after making money in Bitcoin, but this does not mean that Bitcoin has stopped its ascent,” Alexander Wallin, chief executive officer at SprinkleBit, told Gulf News on the sidelines of Dubai Blockchain Summit.
Through SprinkleBit, investors can invest in stocks, bonds and cryptocurrencies.
“A lot of people are talking about the bubble and Tulip Mania, but if you go to Holland today, their biggest export is the tulip and the second biggest revenue is from tourists, who go and see these tulips,” Wallin said.
“The bubble or the hype is people just speculating in the beginning figuring out which one will be the winner,” Wallin said.
Local launch:
SprinkleBit is also talking to three UAE banks to offer stocks and other cryptocurrencies to domestic investors.
“Our goal is to launch within this year, but I can’t give you an exact date,” said Wallin, adding “our core focus is to get people to invest into stocks and those types of securities and now we are adding that access to cryptocurrencies.”
Buy items:
Earlier the demand used to be driven by people who understood technology, but now everyone wants to come on board, according to Zi Bin Cheah, chief executive of Pundi X.
Cheah wants more people to use cryptocurrencies to buy items through a blockchain payment network than just trading for a profit.
