Kenny, one of the most iconic characters from South Park, gets killed in almost every episode, only for him to make a comeback in the next episode. Dennis Lynch, Jr., who also goes by Marshall Lynch, is the Head of Counterpoint Global at Morgan Stanley. He is an industry veteran with over three decades of diverse experience in various roles. Dennis Lynch compares bitcoin to Kenny from South Park, as they both seem to go dead, but they keep coming back.
Over 300 million people around the globe invest in cryptocurrency, with over 46 million Americans who have invested in bitcoin, one of the most popular cryptocurrencies. Dennis Lynch has been a supporter and investor in crypto. In his work for Morgan Stanley, Dennis gets to work with several disruptive investments that offer high-risk, high-yield returns. This has allowed Lynch to gain valuable experience in volatile and risky investments. According to Lynch, bitcoin is here to stay — and it will be the next frontier for fund managers.
About Dennis Lynch, Jr. (Marshall)
Raised in Rumson New Jersey, Dennis Lynch, Jr. (Marshall) earned his B.A. degree from Hamilton College and his MBA from Columbia University Business School. He joined J.P. Morgan as a sell-side analyst as he made his way up to Head of Counterpoint Global for Morgan Stanley. During his 27 years in the industry, he gained valuable experience in different roles. His work has earned him an AA rating from Citywire and Fund Manager of Year recognition from Morningstar.
Why does Dennis Lynch believe bitcoin won’t die?
It is his extensive experience and outstanding success in risky and disruptive investments that have Dennis believing that bitcoin won’t die. He believes it will not be a smooth road for bitcoin, as it will continue to repeat its cycle of crash and soar, but it will survive, just like Kenny from South Park.
Dennis Lynch believes that there are some key reasons why bitcoin will survive. One of the reasons is that Bitcoin has scarcity. With only 21 million bitcoin in the world, the value of bitcoin goes up due to scarcity. Second, bitcoin is antifragile. That means when there is chaos in the market and other conventional investments crash, bitcoin remains steady. Third, bitcoin is the ideal investment to hedge your bets. This means if an investor is looking to diversify their portfolio, investing in bitcoin allows them to have a non-conventional investment in their portfolio. Last, the ongoing pandemic has increased the trust in cryptocurrency. People are looking at alternative currency after the decrease in dollar buying power due to the pandemic.
What do other mutual fund managers think about cryptocurrency?
Not everyone in the financial investment industry is all-in on bitcoin like Dennis Lynch. There are fund managers who remain skeptical about bitcoin and other cryptocurrencies. You get to see four types of approaches to crypto investment by fund managers:
- A wait-and-see approach is being used by investors and fund managers to invest a small amount in bitcoin to check how it performs. This approach allows them to be part of the bitcoin craze without taking too much risk.
- Some fund managers have taken a firm anti-crypto approach, where they have decided not to invest in any crypto at all.
- The technology-first approach is taken by fund managers who are more interested in the technology behind crypto, which is blockchain technology. They are investing in crypto as they believe blockchain technology has a bright future.
- The crypto diversity approach is taken by fund managers who like to invest in a variety of cryptocurrencies, such as Ethereum, to diversify their crypto investment.