A MAJOR INVESTOR’S THOUGHTS
Interview with David Drake, 200-million dollar crypto-investor
Bitcoinist, the Bitcoin news portal spoke to David Drake, Chairman of LDJ Capital. LDJ manages a $200 million dollar crypto-currency fund. David Drake has also been involved in TMT (technology, media, telecoms), realty and energy investments for more than 20 years. Because of his leading work in this space, he represented the US Commerce Department at the EU Commission in Brussels and Rome in 2012 and was invited to the White House Champions of Change ceremony in Washington, D.C. and as a speaker at the UK Parliament in 2013.
We thought that his words and his predictions, as a businessman who represents a major crypto-currency investor, might be worth reading.
Bitcoinist: Is your fund involved in cryptocurrency trading?
David Drake: Yes, we’re involved in investing in crypto trading, as well as long-term investments but I’d say 80% of our trading you buy and hold /…/.
Bitcoinist: What are your thoughts on crypto in 2018 so far? Typical January price correction across the board or something more serious?
DD: I think we will have Regulators stirring up the marketplace several times a week for the next two months until the SEC comes out with a direction and institutions are starting to invest. At that point, prices will go off and I think that’s going to happen around March and April. /…/
Bitcoinist: How about China banning ICO’s and clamping down on its mining industry? Is this the end of China being a dominant player in crypto?
DD: The Chinese moved their business to Japan, Korea, Hong Kong and Shanghai. Chinese exporters are getting paid in foreign fiat so they’re still very big exporters of capitals as they export their product. This is not the end of their play in the industry but they’re certainly not going to be a top three player at the end 2018.
Bitcoinist: Regulations are also looming in major crypto markets like South Korea and India, for example. What kind of regulatory approach should nations follow? The hardline Chinese or the accommodating Japanese model, for example?
DD: Absolutely Japanese, and that’s exactly what they will be doing by guiding, how to deal with crypto-currencies and initial coin offerings.
Bitcoinist: Bitcoin price has dropped over 50% since December, but most altcoins have dropped even more. Is diversifying in altcoins pointless? Should traders simply sit out in fiat during these types of downtrends?
DD: Traders certainly are cashing out and they’re sitting and waiting for the correction; and, we see this happening every 2 to 3 weeks constantly. They are making money on our fear.
Bitcoinist: Besides Bitcoin, what crypto-currencies would you recommend to your clients?
DD: The contenders against Ether such as EOS and Stellar. They are upcoming contenders for the top three spots and I am very eager to see how quickly they will grow /…/.
Bitcoinist: Where do you see the crypto industry in 2-5 years? Is crypto here to stay? Will traditional traders keep flocking to crypto?
DD: It’s here to stay and it’s a permanent force that’s going to be a 10 trillion dollar market.
Bitcoinist: So what can investors do in the meantime?
DD: It’s half-price, so go shopping.
You can read the whole interview here: http://bitcoinist.com/interview-david-drake-ldj-capital-fund/