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