Hello Monaco magazine Spring-Summer 2018 - issue HM03 | Page 53

INVESTORY

The Crypto market is expected to grow rapidly— possibly as much as 20 billion dollars of new Crypto money( ICOs) in 2018. It is an increasing source of venture capital.

can multiply your original stake many times, but at the same time it’ s best to prepare for the worst-case scenario, where you lose everything. Don’ t Be A Forced Seller— Don’ t treat this like money you need quickly. A big price swing down can wipe out 25 %, even 50 % of your investment in a single stroke. If you are patient and exit wisely you will not have to worry so much about the roller coaster ride. Don’ t Buy The Hype— Every time the price of Bitcoin moves up brokers will tempt you with the pot of gold at the end of the rainbow. ICO’ s often sell successfully on sentiment using slick marketing campaigns. That doesn’ t make you money in the long term; usually only short-term traders benefit. Don’ t fear missing out. Don’ t Forget Your Secret Code— All your Crypto funds are attached to access codes. Don’ t lose this code, or share your code. And don’ t forget your code when getting rid of old computer. James Howells in Wales lost 7.500 Bitcoins after he binned his university computer. His secret code is lying in a rubbish dump somewhere!

Five Reasons Crypto Investments are Here to Stay

Crypto investments are an increasing source of venture capital( and particularly for Blockchain ventures). After recent regulatory involvement and being approved for futures trading, they are on the cusp of being a recognized asset category by institutional investors. This would make Crypto investments truly mainstream and the herd will follow. Governments and banks continue to lose trust. By circumventing the role of banks, Cryptocurrencies( like Bitcoin) have become increasingly popular as a way to « cut out the middle man ». Many believe Cryptocurrencies to be more efficient, cost effective, secure, and less subject to corruption than banks. This movement to eliminate or reduce the role of intermediaries has moved from the guerrilla phase to a determined insurgency! It’ s growing. Powerful Players with big stakes in the game. Investors like the Winklevoss twins are going to use every tool in their arsenal to maximize their investment and protect the Crypto market. Not just the rich countries can benefit. Humanitarians make the case it could play a role in enabling many people in third world countries to make financial transactions who are ignored by the banking world. They also make the case it would be a cost-efficient way for a small country to have its own currency. Lauded as a democratic financial system, it challenges authoritarian regimes’ control on their monetary system. But it also has the potential to reinforce their control and potentially help them raise taxes. Anonymity attracts the good and the bad. And currently many investors in Bitcoin have been able to remain anonymous. This may change with coming regulation. There is a lot of money looking for an anonymous haven.

Where is this Fast-Moving Market going?

While we can’ t tell you what the price of Bitcoin or Etherium will be next year, we can predict it will continue to be a roller coaster ride for most Cryptos. The Crypto market breaks new ground nearly every month and sentiment will still create market gyrations. And start-up businesses are risky whether funded by venture capitalists or ICOs. Over half of ICOs fail within 12 months, a few make new millionaires and even billionaires. Funds are pouring in for the potential high rewards from the winners. We don’ t have a crystal ball, but when we look into the future here is what we see: The Crypto market is expected to grow rapidly— possibly as much as 20 billion dollars of new Crypto money( ICOs) in 2018. Capital for New Ventures— the next wave of digitization will throw up enormous demand for capital funded by ICOs. There will be a continued stream of investment opportunities like Telegram, many linked to the new Blockchain technology, which promises to impact nearly every industry. Institutional investors will enter the market— Cryptos will continue on their journey, initially an investment mainly for enthusiasts, then becoming a speculative investment for a broader group of investors. The current trend is for ICOs to be an asset class like equities with segments of different qualities and volatility. Institutional fund managers will offer funds with baskets of ICOs. You will still need to be on guard against unscrupulous promoters and for every winner there are going to be losers. Bitcoin will not replace your euros or dollars— but it will be interesting to see if autocrats or smaller countries or a smaller Central Banks adopt it.

200

150

100

50

0

$ 200M

$ 160M

$ 120M

Number of ICOs by Month

Dec, 2016 Jan, 2017 Feb, 2017 Mar, 2017 Apr, 2017 May, 2017 Jun, 2017 Month

Top 2017 ICOs

0

Aragon Polybius Storj

Jul, 2017 Aug, 2017 Sep, 2017 Oct, 2017 Nov, 2017 Dec, 2017

$ 95M

$ 153M

$ 200M $ 208M

Hello Monaco Spring – Summer 2018 / 51