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The only difference in investing in currency than other asset classes is that the value of currencies is entirely relative to other currencies in ways other ass
by kasey_junk 5y ago
The only difference in investing in currency than other asset classes is that the value of currencies is entirely relative to other currencies in ways other asset classes aren’t.
In practice that doesn’t make a difference because all the mechanics are the same as any other form of investment decision.
- melenaboija 5y agoFirst of all I should be convinced that cryptocurrencies are currencies and secondly I don’t see how this asset can be used by treasury to hold any cash for operational purposes. Besides I am not sure that is investing per se.
- kasey_junk 5y agoI personally wouldn’t hold crypto as part of an forex portfolio mix for a corporate treasury largely because they are currently not really currency equivalents but there might be treasury groups that do & the mechanics of holding them isn’t much different than any other fx holding. As far as whether treasury asset allocations are investing or not is largely in the eye of the beholder but companies very frequently prefer to hold “cash equivalents” beyond their immediate operational requirements. If a treasury buys us tbills that is both a traditional investment & a fx position (in that it’s a usd we are viewing preferentially over other currencies in our portfolio).