On the occasion of the release of their book “Cryptomoney, understand well before investing”, Marc Michaux and Guillaume Eyssette share their advice for investing in cryptocurrencies by adequately measuring the risks.
Le Particulier: Is it the right time to publish a book on cryptocurrencies?
Marc Michaelux : It’s a perfect time to publish this book because there is a lot of news and buzz about cryptocurrencies right now. On the one hand there is the bankruptcy of the FTX cryptocurrency exchange platform, then the cryptocurrency market tends to drop significantly since the beginning of the year. And on the other hand, there are large groups that invest in cryptocurrencies such as Google, which has invested more than one and a half billion euros in cryptocurrencies. The head of Facebook (Meta), Mark Zuckerberg, has indicated that he will invest 100 billion euros in the blockchain technology on which cryptocurrencies are supported and that he will also invest in cryptocurrencies. There is a lot of news so a lot of questions. This book that we wrote with Guillaume Eyssette aims to answer all these questions and provide the keys to investing in cryptocurrencies.
Guillaume Eysette: Yes, now is a good time to publish a book on cryptocurrencies as it is a very cyclical topic. It’s when we’re pretty late in the cycle that we need to care, because that’s where we do our best business and have the time to learn, understand, prepare to invest for the long term or just take advantage of the next cycle.
I have cryptocurrencies in my wallet, mostly Ether and some Bitcoin. My approach is a long-term approach, so the further it goes down, the more I want to buy. Of course in the long run!
Guillaume Eysette
Who are you ?
Marc Michaux: My name is Marc Michaux and I have been pursuing a career as a journalist and writer for thirty years. In particular, I was a senior reporter at Expansion, which allowed me to write articles and explore economic and financial topics. I also co-wrote an educational book on how financial markets work called “Démarrer en Bourse” which was published in 2019 and reprinted in 2021.
PRACTICAL > Go to the Individual store to consult the book “Cryptocurrencies, understand before investing”
Guillaume Eysette:My name is Guillaume Eyssette and I have been an investment advisor for 14 years long before the invention of cryptocurrencies and I have noticed that this theme is gaining momentum in investor questions and expectations. That’s why we decided with my co-author Marc Michaux to write this book.
Do you have cryptocurrencies in your wallet?
Marc Michaux: No, I have no cryptocurrencies in my wallet. Until now I was more in the role of an analyst engineer and what interested me was the technology supported by cryptocurrencies: the blockchain. How does it work ? Is it wind or reality? What were the opportunities for the economic sector, for society?
Guillaume Eysette: Yes, I have cryptocurrencies in my wallet, mostly Ether and some Bitcoin. My approach is a long-term approach, so the further it goes down, the more I want to buy. Of course in the long run!
How original is the functioning of cryptocurrencies?
Marc Michaux: Cryptocurrencies arrived in a particular context: during the subprime crisis. Traditional finance was spotted and that’s when the first cryptocurrency appeared: bitcoin. Behind this there was a philosophy that had to be able to create exchanges between people through the bitcoin blockchain, bypassing traditional finance. A way to implement a technology that offers an alternative where the user is at the center: user and actor. The blockchain is an open ledger where all transactions can be viewed. Any user can see the transactions of others. It is also a secure technology because every user participates in data protection. It’s a tamper-proof technology. Once saved, the data can no longer be modified or deleted. Finally, it is a decentralized system because there is no financial intermediary. The exchange takes place from user to user.
What can I do on the blockchain?
Marc Michaux: On the blockchain you can do many things. For an individual, the most obvious thing is to buy cryptocurrencies. With this cryptocurrency and thanks to NFT technology, we can buy digital works. With this same technology you can invest in the metaverse and buy a Gucci bag or a Dior dress. There are even more real implications. Thanks to the blockchain technology and in particular to the Smart contract, which allows you to automatically reproduce the actions, you can then sign an insurance contract. For example, a flight cancellation insurance contract or a contract to insure crops. At the administrative level, some administrations authenticate their documents using the blockchain. The documents are then protected. Some African countries, such as Niger or Mali, use blockchain to authenticate property contracts. And countries like the US or Japan also use the blockchain to secure and authenticate a marriage contract, death contract, land registry data. There are still so many things to do, even in the future!
Is cryptocurrency risky?
Marc Michaux: Cryptocurrencies have been around for a short time. The first cryptocurrency, bitcoin, only made its debut in 2009. It is an environment full of creativity, innovation and also bubbly. More than 1,500 cryptocurrencies are created each year. There are currently 14,000 cryptocurrencies in circulation. It is therefore difficult to know whether the cryptocurrency will dethrone bitcoin in 5 or 10 years or if it will disappear in 1 year. For example, the first bitcoin transaction to buy pizza was made in 2010. With 10,000 bitcoins a person bought 2 pizzas worth €30. If he had kept his 10,000 bitcoins, he would currently be in charge of 160 million euros. Who could have predicted such an explosion? It’s a very volatile environment. In the book you will find all the data that will allow you to make the best investments in this market.
Is it a serious investment?
Guillaume Eysette: Yes, it can be a serious investment but it depends on who does it and how they do it. They are not just speculative tools. It’s not just the casino economy, even if it’s perceived as such. In reality, some cryptocurrencies have real fundamental value and lend themselves to real analysis, and you can reasonably, in some cases, dedicate a small percentage of your holdings to them.
Is it a safe haven like gold?
Guillaume Eysette : Proponents of bitcoin put it this way, that central banks can’t print bitcoin just like they can’t print gold. However, gold has a few thousand years of existence. Less for bitcoins. So it’s a safe haven, in the making!
Where and how do I buy it?
Guillaume Eysette : The easiest way for beginners is to open an account on a platform. My advice is to go to the Autorité des marchés financiers website and choose a platform registered in France, to protect yourself from so many disappointments.
Which crypto will explode in 2023?
Guillaume Eysette: Everyone would like to know! 2023 is the return to normal after a rather exceptional 2022. A return to fundamentals: we invest for the long term and are gradually entering the major cryptocurrencies, namely Ether and Bitcoin.