Dutch crypto investor maintains confidence despite crash
Since December, the price of crypto coins has fallen significantly. Despite the correction, the number of Dutch crypto owners has remained the same. At the end of the price fall, approximately 865.000 Dutch people (6,7%) still own one or more coins. This is evident from the Cryptocurrency Monitor, a market research by Multiscope into payments, investments and savings in a new economy.
Half is lost
In mid-January, three-quarters of crypto owners were still profitable. By mid-February, only 51% had a positive return. The Dutch do not invest large amounts in crypto coins. The average investment is only € 200. They also do not appear to take major risks. Six in ten bought Bitcoins or other digital currencies with money from their current account. Less than 1% invested in crypto with borrowed money.
In for the long term
The Dutch are in crypto coins for the long term. About 71% buy crypto coins for long-term returns. This group is also known as 'hodlers.' The low investment amount and the fact that they are in it for the long term is a possible explanation why few owners got out during the decline.
Very high expectations
The cryptocurrency owner has a very high expectation of the future return on the investment. This expectation has been tempered considerably by the recent price drop. In January, owners were still aiming for a return of 11x their investment. In February, the target return fell to 6x the investment.
Return on what, of what? It's just gambling anyway. You can do almost nothing with a cryptocurrency except bet on an increase, despite the fact that it has been around for several years. More and more countries are going to ban cryptocurrencies because of this gambling element and no substantive application of the cryptocurrencies. And the Dutch who invest an average of 200 euros, ha ha what a mega investment, how do they even think about the long term when most cryptocurrencies have only been around for a few years. Time to lecture the ignorant people in the Netherlands.
Well, that you couldn't do anything with it or that it could never replace the current technology was said of more new techniques in the early days. And time and time again, history proves otherwise. Indeed, there are many shitcoins among them, but also a number of promising blockchain techniques and investing in them can still be lucrative. You just have to be patient a little longer. Just look at ethereum, neo, icon, and so on.
Funnily enough, I am currently making so much from bitcoin that I finally have enough to make some major changes to our house. A year ago I had already written about bitcoin in particular, which is now worth ten times as much as in January 2017.
Many predictions not only came true, but were even higher. The crash is part of that. It is not a crash, but a correction, mainly due to all those who helped ensure that bitcoin experienced a rather unhealthy rise in December.
People make illogical decisions. Once bitcoin (and all other cryptocurrencies) passed a certain point, more people started buying, which meant that its value also rose. That was the unhealthy speculative part. This also ended at an unnaturally high setting. The same people who bought bitcoin at this high value got scared and started selling quickly to limit their loss.
The value came to a halt at an almost 50% loss. That's where it should have been without the speculators, but with the normal consumers. Because the trading volume is small compared to the Euro or the Dollar, the rises and falls are also felt more quickly. Nevertheless, the value continues to rise slowly and steadily.
When I add up the number of users in the companies I know, you quickly get to over ten million users.
That's my rough estimate, probably much higher.
The increase in value is, in my view, a reasonably certain increase in the long term.
Certainly there are countries that are afraid of this form of value. On the one hand because they are being deprived of a position of power, on the other hand because people also want to protect their population against a copying of the many ICOs (initial Coin Offerings), of which almost 80% are doomed to disappear, with the money people have invested in them.
I could really say more, but I'm tapping my tablet with one finger…
What I can say now is this. I have been following the developments of cryptocurrencies and especially bitcoin for over a year now. There's a lot I don't know yet. But a few things do. Kryptocurrencies and the blockchain remain. Decentralized cryptocurrencies such as bitcoin have the most value globally and can never be abolished by a government.
We are still at the dawn of a new era and the wild ride has only just begun.
The crypto currency system does not work like the centrally controlled monetary system and the outcome will always be different from what most financial experts predict. It is like a footballer trying to explain the rules of rugby using the rules of football. That does not work.
It's not a gambling game, but you have to know the rules and it's still not for everyone. But it will most likely come to that.
"You can do almost nothing with a cryptocurrency except bet on an increase, despite the fact that it has been around for several years"
I think you should do a little more research on the matter before you just shout something:
http://www.bitlex.win/2018/02/the-government-of-thailand-will-release.html
I know enough about it, just gathering information. On February 12, I read in the Bangkok Post, the Central Bank of Thailand banned banks from working with cryptocurrencies in any way, both for banks and with their customers. Also, all transactions with which payment is made in public in Thailand have already been banned, so checkout is also prohibited.
Said article by Raymond is only about an investigation. Now most people know that Thailand likes to be at the forefront of modernization, but on the other hand it is still a country in many areas where basic needs are lacking.
Indeed, I've read this too. However, that does not mean that cryptocurrencies are prohibited in Thailand. I buy and sell my bitcoin on coins.co.th and can do so via online banking. The bank does nothing more than send my money to coins.co and has nothing to do with whether I buy a gadget from Lazada or from coins.co.th bitcoin. The other way around as well. Coins.co.th sends Thai baht to my bank account. This is all within the law..
The bank ITSELF is not allowed to trade with cryptocurrencies.
After reading that article, I asked coins.co.th myself and it was explained to me that way. Here the English text:
According to the latest letter, we believe that people may interpret it differently or may misunderstood. However, the actual letter did not enforce people to stop all trading activities relating to cryptocurrency, but rather ask for collaboration from financial institutions themselves, which including commercial banks to not to conduct or create cryptocurrency platform themselves. Since, all cryptocurrency exchange platform in Thailand did not consider as financial institutions. At the end of the letter also remark that there is no official public hearing has been conducted for the letter.
It is simply that crypto platforms are not seen as financial institutions and that is why the banks are prohibited from offering this. Just as well, the banks are not allowed to sell a refrigerator.
@ Ger Korat,
Shall we also lecture the Dutch with the stock market, slot machines, lotteries, etc?
youtube is full of it
https://www.youtube.com/watch?v=61i2iDz7u04
https://www.youtube.com/watch?v=KTf5j9LDObk
These two videos really don't make sense now. Bitconnect was a ponzi and scam and disappeared more or less overnight a month ago and thousands of people lost their money. The only thing this system had to do with cryptocurrencies was that they took bitcoin from you, gave you their own cryptocurrencies in return, which then miraculously increased in value and earned you in dollars. A crypto that is set up by a company and is not decentralized has only the value that a company sells. As long as things went well, their Bitconnect was worth a lot, but when the company went out of business, the value of the bitconnect also fell like a brick.
That is not the case with bitcoin. There is no company behind it. The value is determined by the people who buy and use Bitcoin. The enormous increase was due to the speculative effect, which was quickly corrected. I seriously hope this is finally over now. That many people who bought bitcoin to get rich quickly fell on their nose and do nothing with it anymore.
That will only benefit Bitcoin. In any case, the value rises much less quickly, but it continues to rise over a longer period of time.
Rather watch these movies, where you get decent information. Not as insanely intrusive as the videos you showed, which, as I said, provide nothing, absolutely nothing, of good information:
https://www.youtube.com/watch?v=pIsxE6DBxus . This is an interview with Andreas Antonopoulos. One of the few people you can take seriously when it comes to bitcoin. It's a bit older, but in general it's still true.
And you claim that you didn't buy bitcoin to get rich? So then you must have used it to buy things, or you have inside information from a company that makes or wants to buy the technology. If not, then you're just a speculator, just like all those people who wanted to get rich quick.
No, I use my bitcoin and I also save at the same time. Or is that not allowed? If you want to call me a speculator, that's fine, but I'd be crazy if I didn't. I'd be even crazier if I thought I could get rich in a year. I started a renovation this week and this is paid for with the money I earned using bitcoin. The companies I work with mine bitcoin and other currencies and I earn good money from it. It's that simple.
And what I don't need, I leave.
With the App Plus500 you can gamble, invest, invest, day trade, speculate to your heart's content, whatever you want to call it. You can also anticipate a fall in prices. Choose an account with fake money and you will not run any risk. When Bitcoin fell, I quickly doubled my 50.000 virtual money. Now I have nothing left and can only continue playing if I deposit real money. I'm not doing that just yet.
Funny that people who have absolutely no idea about it and do not know at all what the underlying idea is (decentralized digital currency without the intervention of a 3rd party - bank) call everything and anything (bubble, is air, has no value).
Cryptocurrency is only a small part of the blockchain. We are only at the beginning of the blockchain revolution.
These will probably have been the same pessimists who were whining about the PC (only for large companies) or the internet (what are we supposed to do with that?) at the time.
Even more amusing is that people obsessed with the big money are blowing all the warnings and well-meaning advice to the air. Other people who reason soberly, or who really know about it professionally, are labeled as pessimistic or stupid by these people. Of course it's a bubble, but that doesn't have to be the worst. There have been bubbles before, the last one being the precious metal silver, about 10 years ago. Everyone really knew about it and everyone bought, the price went sky high. Suddenly it went down hard and many suffered great losses. But now comes the difference between silver and cryptocurrency. The silver price fell sharply to a bottom formed by the value for industrial applications. Silver will never end at €0,00, industry demand will continue. It is almost no longer necessary for photography, but telephony (screens) and flat TV have replaced it. Even before the day that silver mining is no longer financially viable, the price will go up. The outlook is very favorable in that regard. Now the Crypto currency. The value is only based on speculation, no underlying value applies. The moment large batches take profit by selling, panic sets in and no one wants them anymore and therefore there is no getting rid of them. There is of course no interest whatsoever from the industry either. As a result, the price goes to the absolute bottom, in this case close to € 0,00. At that point, a chocolate coin will have more value. I hope for Raymond that I am wrong……. A well-known large investor said about it; “the moment you hear talk about crypto coins at the bakery, you are too late.” One big speculation bubble.
Peterdongsing, you are partly right. You can say: greed eats your mind.
There really needs to be a big difference here between the get-rich-quick system and people who will use bitcoin and other currencies because of their specific capabilities. Bitcoin and other serious cryptocurrencies such as ethereum, dash and monero were not created to make as much money as possible, but as a replacement for money within a certain system.
That people start speculating is in the nature of man and that 90% are doing it wrong and lose money with it, is obvious.
You are also right, that about the famous big investor (wasn't that Warren Buffet?)…
We also have such a nice proverb: hear the bell ringing, but don't know where the clapper hangs...
Just like in the pub, people start talking about cryptocurrencies or bitcoin and halfway through the wrong media they catch something and add their own fantasy. These people will also be the first to call Bitcoin a ponzi and a scam. And that it is cheating. Why? Because they simply know nothing about it, but think they know everything.
Raymond writes a little less than I do, but I am convinced that he knows what he is doing. However, those who react so negatively know next to nothing about it, because they also only respond to one aspect and the very thing that suddenly brought bitcoin so much attention from the media.
As I wrote before, I am glad that many fell on their faces when they only bought bitcoin when it was at $15000 or even higher and immediately sold it again when it went down.
There was nothing wrong with buying Bitcoin at this price, but then you have to be willing to experience the rollercoaster until you start making a profit. The price will most likely go above 20.000 or even 40.000 and maybe even this year, but it will also fall well below that value many times over. The trick is not to let the media drive you crazy and especially not by your friends, family and acquaintances or by some of the negatives on this blog. Did you buy it expensive and now you think you have lost a lot of money, leave your bitcoin and wait... it is not a speculation bubble, it will involuntarily go to that value.
Again, before you get started, you should first delve into the technique behind it. Read about blockchain, study the whitepapers and follow the news (twitter).
I started with cryptos there last September (then the bitcoin was at $ 7500).
I then built up a nice portfolio of coins (bitcoin and altcoins) and sold half of my portfolio at the all-time-high (January 2018). bitcoin almost 2x and some altcoins 60x. So I already have my bet out 10x.
Then came the dip at the beginning of this month. Everyone panicked, but I loved it. Bought bitcoins and altcoins from half of my profit (in euros) and I leave them until there is an all-time high again. This is how capital is built up.
The moral of the story:
1. Before you start, immerse yourself in the matter (isn't it true with everything)
2. Buy on a dip
3. Sell a share (at least the money you put into it) at an all-time-high
4. Set clear goals and don't get greedy (always use your common sense and don't let your emotions guide you)
5. And this is actually the most important thing: never speculate with money you can't afford to lose!
And yes, if you start like a headless chicken and buy super expensive, you shouldn't be surprised if you lose money.
Oh yeah,
'There is of course no interest whatsoever from the industry either'
Total FUD again, based on ignorance/ignorance. All major companies (or industry) are joining the blockchain
See:
https://www.fool.com/investing/2018/01/29/5-cryptocurrencies-that-have-brand-name-partners.aspx
Buy low, sell high. It can be that simple. 🙂
The big money and the urge for more. The temptation and ultimately the suffering that many inflict on themselves and with the help of the graduates. Yet another way to bring more suffering to the world. Again not punishable, just like the nicotine cigarette. Own fault big bump theory applies here again. Despite the money specialists and wolves. One thing is for sure I won't earn a penny from it but won't lose it either. I watch this pathetic event from a distance and think my own of it.