[TOP STORY] Expectations for crypto in 2022

The fact that ‘governments and central banks around the world are … really worried about this new digital-currency asset class … [is] essentially validation in many respects’ Revix CEO and founder Sean Sanders.

SIMON BROWN: I’m chatting now with Sean Saunders, CEO and founder of Revix. Sean, I appreciate the time this morning. There are a couple of things to chat about. The first, I suppose, is that in crypto today we are seeing pressure. We’re seeing pressure everywhere, truthfully – markets, everything except commodities. Crypto [is] part of that.

As I’m looking at this, Bitcoin is just under $39 000 per token. Where are you’re looking for this [to go] towards the end of the year? We’ve had this before – crypto selloffs and then rallies. Your expectation for 2022?

Read: Bitcoin’s correlation with tech strengthens as risk appetite returns

SEAN SANDERS: Morning, Simon. Thanks very much for having me on again. There is something unique happening in the crypto space right now, and that is that yesterday Russia came out and proposed a blanket ban on crypto trading and mining. That’s very similar to what China did toward the end of 2021.

This is just a proposal, and yesterday the market seemed to shrug it off, and today the market obviously pulled back. You see Bitcoin down roughly 8%, Ethereum down 7%. But this is part of the course. The fact is that governments and central banks around the world are scared and really worried about this new digital-currency asset class actually being able to challenge their monetary authority. That’s essentially validation in many respects.

At the end of the day you obviously don’t want to have governments completely outlawing this digital asset class. At the same time it does provide that really, really important validation, and it is due to the growth of crypto. If you’re looking over a one-, three-, five-, 10-year investment horizon, cryptocurrencies reign supreme. They’ve been the top-performing asset class. So over a one-year horizon you know as well as I do you can never say exactly where crypto will end up.

But if you look at the longer-term price chart and the brain drain, I think that’s probably the most important thing to look at – a number of developers, a number of really smart individuals from finance literally ranging the spectrum, going from other industries, going over into the crypto space, building decentralised apps and all the rest; that’s what I’m looking at. That’s what’s exciting me the most about the crypto investment opportunity over the much longer term.

I think this space is going to get a lot bigger.

SIMON BROWN: And of course we’ve been here before too. You mentioned the China ban on crypto. At that point, China was the miner in the world, and Bitcoin was like, okay, no problem. It kind of shifted territory, I suppose. That’s part of its DNA.

Taking your point, and I like your point there, where will crypto be in a year? Ah, not sure. Where will it be in 10 years? Probably a lot higher and hence investing in this market becomes trading crypto. I’m a trader and I’ve traded crypto, and your fingers are at risk at all times. It really is about saying, ‘let’s do this long-term’ and that then plays into baskets as well, I’ve got to say.

SEAN SANDERS: Exactly. That’s what we stand for, really. We are saying the most volatile of volatile asset classes being cryptocurrency, it’s the most important asset class to diversify in, and that’s why we launched our bundles.

For listeners who don’t know, we’ve got three different crypto-bundled products, and essentially what they are is … very much like an ETF or a mutual fund. You’ll come along, you’ll arrive at the platform, you’ll sign up. It’s really simple and quick to sign up and verify your account, and then you can make an investment with as little as R500. You get access then to a ready-made basket of cryptocurrencies.

We are not trying to actively outperform the market at Revix; we’re not trying to test individual cryptocurrencies. We’re giving you index-based exposure. So if the market goes down, your investment goes down; if the market goes up, your investment goes up. But you don’t get the fees and you don’t get the complexity that goes along with trying to build a really complicated portfolio yourself and keeping up to date with those very fast-evolving markets. At the same time, you’re just getting forward-based exposure at an already low cost.

If you think about another big narrative which, Simon, I’m sure is exciting you as well, four years ago you didn’t have any value locked in DeFi [decentralised finance] days. DeFi wasn’t even a term. The term ‘decentralised finance’ really started growing and becoming more ubiquitous in 2021.

Now there’s $270 billion that is sitting in DeFi protocols. I think this is an area of crypto that’s going to become a lot bigger. So just watch that space.

SIMON BROWN: And then, of course, we’ve got the whole metaverse, the NFTs [non-fungible tokens], online gaming. Truthfully we’ve kind of had this before – Second Life almost 20 years old, World of Warcraft. These were kind of metaverses, but of course technology, code and the like have moved on, and we are starting to see the sort of merging of them.

SEAN SANDERS: You are. You’re seeing the metaverse, you’re seeing NFTs, you’re seeing online-gaming casinos. All of this is coming together, and crypto and blockchain in particular sort of providing the backbone or the architecture, really, for these different industries to coexist.

I find it really fascinating. It you go into the metaverse right now, you can go to a Samsung store, you can actually use crypto to purchase virtual items. That’s absolutely remarkable.

You can actually take out a virtual loan decentralised. This is like mind-blowing stuff and we are right at the beginning of this, which is really exciting.

I love the fact that it is weird and it’s quirky and people still kind of don’t understand where this is going to head. But I just look at the use case of blockchain technology and the use case of cryptocurrency, and all of these emerging areas –  and this just gets me excited. We’ve built a business in this area and there’s just so much going on.

SIMON BROWN: Yeah, that is so. Parts of it look crazy, parts of it look less crazy; parts of it looked like [when] I was playing Second Life almost 20 years ago.

SEAN SANDERS: Sorry to interrupt quickly. I think if we went back, I don’t know, let’s go 10, 15 years, and we were saying to each other, ‘Hey, listen, we’re going to be jumping into these cars with strangers and be taken around,’ we’d be going like ‘that’s absolutely nuts’. And then I’m going to be standing, taking a selfie, and the moment I take the selfie – which would’ve been really weird back then by itself – I’m then going to share it with all my friends. That’s normal to say [now], but remember that was weird back then.

I think we are sort of looking at this idea of having virtual avatars in office spaces and all the rest in much the same way. I mean, who knows where this all goes, but it’s going to be weird and it’s going to be exciting.

SIMON BROWN: Yeah, it is. I’m a big fan of VR [virtual reality]. I’m a huge proponent of VR.

A quick last question – you’re running a new promotion. Give us a quick highlight of that.

SEAN SANDERS: Yeah, sure. If you are a new customer to Revix, and you go ahead and you sign up and verify your account, you must just use the promo code Revix 500. So that is Revix – the same name as our company – 500. Once you’ve then made an investment of R5 000 or more, you’ll receive R500 straight into your investment account, provided that you invest with us over one month. So it’s really that simple. You sign up with the promo code Revix 500, you verify your account, you make a deposit of R5 000 or more, and you get an immediate 10% return guaranteed.

SIMON BROWN: Okay, so Revix 500. That’s the important part. We’ll leave it there. Sean Sanders, CEO and founder of Revix, I appreciate the early morning.

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