Hello Monaco magazine Spring-Summer 2018 - issue HM03 - Page 51

INVESTORY © depositphotos.com The world has changed since HelloMonaco brought you news of Bitcoin’s roller coaster ride to $20,000. The billion-dollar question of «Boom or Bust» has been put to the test. In this edition, we have put together some Dos and Don’ts and the risks you should know about when investing in Crypto Assets to help guide you through the Cryptocurrency tempest. Мир не стоял на месте с тех пор, как мы впервые рассказали своим читателям об американских горках под названием «Биткойн». В зимнем номере HelloMonaco мы попытались дать ответ на вопрос, что означает ралли этой криптовалюты — бум или крах. В этом выпуске мы собрали некоторые «плюсы/ минусы» и риски, которые вам следует знать при инвестировании в Crypto Assets, чтобы помочь вам справиться с бурной криптовалютой. B Bitcoin: The Crypto Roller Coaster itcoin was always a roller coaster ride. The pace at which it reached new highs created a drumbeating rally and media frenzy that swiftly erased the memories of each wild downturn.  But after the recent stagnation, the question on everyone’s mind is whether Bitcoin will still hit the speculated $50,000, $100,000, or the ultimate million-dollar mark. The Winklevoss twins we introduced in the last issue, who invested their 65 million dollar settlement from Facebook in Bitcoin, have been talking it up. And for a time the market supported them. But after the frenetic pace to record-breaking prices, that pattern ap- pears broken. So is Bitcoin going to be important in the long- term? Does it have any real value? Will it become worthless? When it fell from $20,000, halved in price and then appeared to be crashing below $8,000 — the naysayers came out of hiding.  No one is an oracle in investment matters, but Bit- coin has had an important role in our economy. Not only did it spur a financial revolution, it has several market segments of support and reasons to exist.  Indeed, Bitcoin has spawned a whole new category of assets, Crypto Assets or Cryptos. They first ap- peared as copycat virtual currencies like Liteсoin. Now it’s a term for a wave of start-ups, financing businesses rather than currencies. They are often based on the breakthrough technology Blockchain, the technology under-pinning Bitcoin.  The World Economic Forum has predicted that, by 2027, 10 percent of global GDP is likely to be stored on Blockchain platforms. This is a mini- boom in itself and these start-ups raise capital by issuing coins. That is why you are seeing a wave of ICOs (Initial Coin Offerings) from a wave of technology companies seeking to raise capi- tal. This wave is continuing to grow and inves- tors are committing billions of euros to these new ventures.  Know the Risks Possibilities for investment are endless, but it you are attracted to the allure of Cryptocurrencies, there are some special risks to be aware of with Crypto Assets: Volatility (big swings in price). Be prepared for a roller coaster ride as Cryptos can be ten times Hello Monaco Spring–Summer 2018 / 49