Talking of correction in the financial world, I wanted to highlight the role of money flow into a specific investment vehicle/strategy and its subsequent appreciation. In 1990s venture capital was hot and funds flew into this sector left and right, once dot-com bust took place, hedge funds became hot since investors wanted absolute returns rather than relative returns. Then came the private equity wave and money shifted from hedge funds to private equity firms. Now, that private equity froth has all been skimmed away, money is flowing back again into venture capital firms.

In all this, as digital currencies continue to become more mature and mainstream, it is conceivable that money flow will shift into digital currencies. I am thinking of digital currency as a completely different asset class that different investment managers will focus on (under pressure to produce returns). Why so? Because in all the above money cycle shifts, money sought to get into an asset class/strategy that was in its infancy and thus had potential for huge returns. This holds true for digital currencies.