Stefan’s weekly: Happy New Year / Crypto and Tangibility

I wish you a very happy and prosperous new year! May most of your wishes come true!

Just before the year end 2017 we published the first edition of our quarterly crypto research report. I hope as many as possible of you have had a look at the links in my weekly mail, registered their names and read through the report.

I had received a lot of feedback, mostly positive, but some people, I would call them “concerned investors with a bias to tangible investments” wrote to me that they were wondering why Incrementum of all research and asset management houses would enter the crypto currency field.

Ladies and Gentlemen, I think this is a very valid question. Why would Incrementum AG, a company known for being conservative and geared towards tangible investments take up crypto currency research.

Of course, we understand that crypto currencies are as far away from tangible assets as they possibly can be. Most “Cryptos” are totally intangible (some offer knowledge or goods in exchange for tokens) and therefore and like in many other cases it comes down to a question of perception if something, in this case crypto currencies, has value to people, (i.e. consumers, speculators, investors) or not. If people believe others will see at least the same value in them as they do (whatever this value may be) it will work. The very day this perception changes the value will drop.

However, to me it is fascinating to see how the technology evolves and an industry builds up on it, having the potential to revolutionise business, capital markets, documenting, etc.

Looking at a slightly simplified example showing how crypto currencies can revolutionise for example capital markets the example of an entrepreneur who needs funding for a business idea is very interesting. “Our” entrepreneur can “tokenise” his idea (i.e. issue “tokens” of a virtual currency) and sell via internet his tokens to a global crowd of investors who believe in his idea. Such investors will in exchange for their “investment” participate in the success of that very idea. It is a bit like equity in a company without having to go through all the costly and time consuming legal and regulatory issues and with the potential of reaching a truly global investment crowd.

To sum it up and come back to the initial question why Incrementum would enter this field, it is because we believe the technology is interesting and we noticed an information vacuum which by entering the field we are trying to fill in an unbiased and neutral way.

And as always, if you want to share any of your thoughts with me, please feel encouraged to do so but please don’t forget (instead of hitting the reply button) to send your messages to:

smk@incrementum.li

Many thanks, indeed!

And now, Ladies and Gentlemen I wish you a great day and weekend!

Yours truly,