Skip to main content

Crypto Investor, the newsletter from TheStreet Crypto, recently talked to David Rubenstein, the author of the new book How to Invest: Masters on the Craft, on crypto trends and why the war in Ukraine is helping drive crypto investment. Rubsteinstein is a billionaire investor and co-founder of one of the world’s largest private equity firms, the Carlyle Group. His book came out this month and imparts time-tested advice for how to invest long-term in crypto and other assets.

Rubenstein.

Rubenstein.


Although the book has an entire section devoted to investing in crypto, Rubenstein warns readers to exercise caution when placing a bet on who might win in the nascent industry, as the task might be a fool’s errand: “Trying to pick the ultimate winner, or winners, is an extremely difficult task,” Rubenstein says.

The businessman once saw crypto as a risky bet, and subscribed to a belief that it lacked any underlying value. But today, Rubenstein believes that even the current bear market and war in Ukraine cannot stop the growth of crypto as an emerging industry. “Today, I believe crypto is more likely to be around longer than I initially believed,” he tells Crypto Investor. Take a read:

You’ve mentioned the war in Ukraine as one reason to stay optimistic about crypto. Tell me why that is.
Rubenstein: My view is that many Russian oligarchs put their assets in very visible forms of wealth (homes, boats, art) which are easily confiscated by governments.. [But] crypto is less easily confiscated, as governments may not know what is owned or how to access it. Therefore, those who want to hedge their bets may put increasingly larger amounts of their net worth in crypto assets which, theoretically, cannot be as easily confiscated by governments.

We are currently in a period of economic turmoil for crypto. How do you diagnose the current moment, and what do you see as the next step for investors holding on to — or worrying about — their crypto assets?
Rubenstein: The biggest mistake investors make is selling when asset prices are down and buying when asset prices are up. Right now, prices for cryptocurrencies are down compared to their heights, and it’s likely many investors are shedding those assets. History shows investors are better off buying more when asset prices are lower, or not selling when they think a market is near a bottom. It is better to hold on and benefit from a rebound that may be inevitable.

What do you think is important for investors to understand about the promise — and threat — of regulation?
Rubenstein: Members of Congress are putting modest pressure on regulators right now. Supporters of the crypto industry are lobbying members of Congress to ease up on excessive regulation. Therefore, I do not expect a large number of new regulations, as there is not much pressure to regulate. Until there are large scandals, or massive multi-billion-dollar lawsuits brought by average investors, I do not believe Congress is likely to do anything that will upend the current regulatory apparatus.

This post originally appeared in the Crypto Investor newsletter.