New Year's letter: these are not the times to turn your back on crypto

Dear investor,

2018 started with hysteria, but in the end it wasn’t much of a celebration for crypto. Unfortunately, it is the reality that investors in this segment still have to deal with. In fact, with an average loss of almost 80%, 2018 was one of the worst years for crypto ever.

But here is the thing: this momentum can also offer a lot of beauty.

Such volatility simply isn’t part of large, established powerhouses. No, it is an inevitable consequence of young, new developments. Where the valuation still goes up and down at lightning speed.

The crypto market is still very similar to the first generation of Internet stocks in the early 90s. Those stocks were also skyrocketing at the time, and then went to the bottom again.

Exactly what we see with crypto today. And the relative volume is also comparable. Because just as Internet stocks represented barely a fraction in the capital market at the time, the share of crypto is also negligible today.

The big players in the capital market hardly have exposure to crypto, as you can see in the above visualization.

-> 5 billion USD versus 110 trillion USD!

In other words, 0.0045% of the institutional capital market is dealing with crypto... If you want to find the dot in the square, you have to use a magnifying glass. So small is that percentage.

In short, the emerging financialization of the crypto sector has yet to gain momentum.

Crypto is still in a 'research & development' phase. A phase in which the institutional market mainly is probing, but does not yet strike. Everything is currently being prepared for the big investors to make their entry into crypto. Crypto is simply the future of online transactional management. Tokenisation will soon be an integral part of our lives.

Remember, twenty years ago nobody had heard of terms like ‘e-commerce’ or ‘social media’. Nowadays, they have become part of modern-day life. They have become fundamental concepts.

That is what you want as an investor ... to witness a brand new trend. After all, the big money is not yet present, so the future valuations can still increase significantly.

And what if you can buy your favorite coins at 80% of the previous top prices? Amazing, right. These are not the times to turn your back on crypto, but to approach it full of hope. With optimism, but also realism. Passionate and full of conviction.

Good luck and happy 2019!