The at F5 Crypto Capital Team wishes you a happy New Year!

2018 has been an exciting year in crypto. We’ve come off the heated December 2017 and have seen a full year of bear market. But did our predictions for 2018 come true? What else happened? And what are our predictions for 2019? Let’s find out.

2018 Predictions

When our Team met in December 2017, the price of Bitcoin had just jumped to $11600. Florian, Paul, Johannes and Arne sat down for lunch and made some bold predictions for the price at the end of 2018.

Florian Doehnert
Florian Doehnert
$16000
Paul Otto
Paul Otto
$11600
Johannes Magar
Johannes Magar
$18000
Arne Gewert
Arne Gewert
$60000

The 2018 Bear Market

The price of Bitcoin reached its maximum during its hype cycle in December 2017. Just a week before Christmas there was a sharp drop in price. It finally hit a low of $3236 on December 15th 2018. All in all, the closest prediction came from Paul at $11600. No one from our team had expected the long downturn!

Price Decline of Crypto Assets in 2018

The prices of crypto assets declined tremendously throughout 2018. Take a look at the performances of 8 major cryptos:

Coin USD price on 2018-01-01 USD price on 2019-01-01 Performance in %
BTC - Bitcoin 13,657.20 3,843.52 -72
ETH - Ethereum 772.64 140.82 -82
XRP - Ripple 2.39 0.36 -85
BCH - Bitcoin Cash 2,432.54 * 256.99 -89
XLM - Stellar 0.48 0.12 -76
IOTA 3.97 0.37 -91
DASH 1,053.98 81.05 -92
NEM 1.04 0.07 -94
* BCH 164.85 + BSV 92.14
Close prices from coinmarketcap.com

The F5 Crypto Index

In 2018 w were busy building our Index. Data collection, composition rules and smart rebalancing were researched and agreed upon. In collaboration with Professor Elendner, we launched our F5 Crypto Index on August 15, 2018.

2019 Price predictions

On January 4th the F5 Team sat down to make their predictions for the year end Price of Bitcoin 2019. Just like for 2018, everyone seems bullish that we’ll leave the current mark of $4000 to the upside. We can’t wait to see who’ll win this year!

Florian Doehnert
Florian Doehnert
$15000 - $20000
Paul Otto
Paul Otto
$6900
Johannes Magar
Johannes Magar
$6200
Arne Gewert
Arne Gewert
$2800 or $28000

Stablecoins in 2019

The most used stablecoin to date is Tether USD (TUSD). Tether uses an Omni layer token on the Bitcoin blockchain to represent the USD. Each Tether token is backed with $1 in a bank somewhere, although this is clouded in controversy. Through the backing mechanism, all tokens have a stable value of $1. Their trading range is usually between $0.98 and $1.02.

The success of TUSD has prompted the introduction of new stablecoins like the Gemini Dollar. Gemini uses an ERC20 token on the Ethereum blockchain to represent the USD. GUSD is regulated by the NY State Department.

In my opinion, Fiat-backed stable coins represent a half step toward new digital money. Currently the world of finance uses traditional state backed fiat money through traditional financial institutions like banks. The half step of stable coins removes the financial institutions that store and transfer money by using blockchain technology instead. The second half step would be to replace traditional money with blockchain native assets. First bank to blockchain, second USD to BTC.

First bank to blockchain, second USD to BTC.

F5 Crypto Index open for Subscription

From the very beginning we wanted to design a crypto index that’s investable. To achieve this goal, we established filters to remove non-investable blockchain projects. We then chose rules for the constituent’s weights that minimize slippage and fees whilst maximizing performance.

We’re proud to have found Bank Frick; they offer the first financial product that tracks our index’s performance. The certificate is available for professional investors in the EU. Looking ahead, we want our index to continue to outperform all its benchmarks.

 

We hope you achieve your goals this year too. Good luck!