Cryptocurrencies will continue to fluctate between a range in the near term, says Mudrex co-founder

Edul Patel, CEO and co-founder of global algorithm-based investment platform Mudrex, said thatcryptocurrencies will continue to fluctuate between a range in the near term due to the uncertain global macroeconomic environment, rising inflation and interest rates. In an interview with Business Today, he said that uncertainty takes money out of riskier assets and the same has been seen in the global stock markets in the recent past.

Patel said that they looked atcryptocurrencies as a long-term investment tool, like 10 years or 20 years. The market value of cryptocurrencies dropped to around $1 trillion from the $3 trillion hit in November last year.

Patel said there were no free lunches in the financial world due to the risk-reward ratio incryptocurrencies. There is an inherent risk behind it, if something is giving you high returns.

You can only get returns without understanding risk, and that is the absolute wrong thing. He said that most people don't intuitively understand that.

Patel said businesses that keep innovating thrive in the midst of uncertainty and succeed in bringing a fundamental shift to the ecosystem. The new spheres of finance are the use of cryptocurrencies andBlockchain. Both of these technologies are going to stay in the long run. The constant urge of different players to keep innovating in this space is inspiring. Patel stated that only strong investment options will stay despite the fact that a couple of criptocurrencies have gone out of the game in the recent past, and that founders of cripto exchanges are moving out of India. He said that he believes that a cycle has been going on for every single consolidation phase in every industry and 95 per cent of the founders of criptocurrencies he knew are still in India.

He stated that truth is far away from the hype. I think people are looking for more favourable jurisdictions with better taxation policies. More jurisdictions are opening up that are building out better and better regulatory systems and that are attractive to certain businesses, certain founders, certain people, and that is why they might choose to move out, said the Bengaluru-based entrepreneur who has over 3 lakh investors.