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/ Wednesday, May 11, 2022
How the Amateur-Crypto Investor
Can Navigate the Bear Market Puerto Rico continues as hub for investors and entrepreneurs
T
Zoe Landi Fontana, The Weekly Journal
@Landi_Zoe
he crypto market has been in the doldrums lately. In Europe, the number of crypto app installations was down by almost 20% in the first quarter of 2022, a reflection of the market overall. Before 2021, these apps were fairly uncommon throughout Europe, but they were mass-adapted by European crypto enthusiasts that year. So, what is going on in the cryptocurrency market? THE WEEKLY JOURNAL spoke with David Johnston, Chief Operation Officer at DLTx, to hear more about cryptocurrency market trends, tips for the curious, and Puerto Rico’s contributions to its development. Analyzing the current crypto plunge, Johnston said, “I’ve been in the industry full time since 2012, I’ve been through three market cycles - 2013, 2017, 2021. In that period, adoption went from a few hundred thousand users to 150 million people. The metric that matters is global adoption.” Every four years or so, the cryptocurrency market goes through a correction of about 50%. In a market like the one we’re seeing now - a bear market - the value decreases by half, but with each cycle, the industry has grown so much that the new lows are much higher than the last highs. The global market value of digital assets was around a few trillion dollars back in November. Since then, it’s decreased substantially. Regardless, it’s still early days for the industry. “If it’s the internet, it’s 1997 in terms of adoption,” Johnston explained where we are in the development of cryptocurrency usage and DeFi (decentralized finance) development. “If you look at the Dot-com boom and bust and only looked at the stocks, you would’ve thought it was going away, [but] user numbers and connected devices never stopped growing, regardless of the stock market,” he continued, “Anything with finance, banking - [these are] industries that are being disrupted by crypto.”
A Beginner’s Approach To Investing In Crypto
When asked how everyday people - those who aren’t deeply involved in finance, banking, nor crypto or blockchain technologies - can get involved in the rapidly expanding industry,
Johnston recommended that most people crypto investors and startups, Puerto Rico has an shouldn’t try to become day-traders. opportunity to position itself as a hub and even Investors should buy and hold using dollarreverse the brain drain it’s been suffering over the cost averaging - an investment strategy where past decade. the investor splits the total amount to be invested “I literally get a call every few days from a friend into periodic purchases of the desired asset. By moving to Puerto Rico,” he said of the influx of doing this, they can reduce the Americans moving to the island. He impact of the potential volatility believes that Puerto Rico is wellof the overall purchase. positioned to become a technology “Buy a little every week, and hub, especially within the crypto build a position. Emphasize the space. “I think PR is big enough, blue chips - Bitcoin, Ethereum it’s about the same size as Austin, In Europe, the - the large established players. Texas. It has all the elements, number of crypto Treat it like a savings account, the government has been super app installations was not money you need tomorrow. helpful. [There’s been] an influx down by almost 20% In five years, do you think more of entrepreneurs and young in the first quarter of people will be using internet technologists,” Johnston described. 2022. money? If you answer yes, Act 60 and its recipients can be give it a try. Keep focused on a sensitive subject for many, who the fundamentals,” Johnston claim that the tax incentives exploit advised, “Don’t buy anything the island and bring little value. To you wouldn’t hold for the next this Johnston replied, “Well I think five years.” it’s a misconception, trust me we’re still paying plenty in taxes. What I would love to see is the program expanded into an ‘Act 60 for Everyone’. Puerto Rico, A Crypto Island? I don’t think there should be a difference. It Johnston’s business, DLTx, is a publicly traded would be great if everyone here would be able to technology company based in Norway with an benefit.” office in San Juan. They produce revenues on “I think it’s important for people to understand blockchains, a process that doesn’t closely follow that a lot of this is being built by families,” said the day-to-day fluctuations in crypto values. Johnston, who moved down with his wife, kids, and He’s also one of the founding sponsors of the parents, “I think the demographics have changed. Puerto Rico Blockchain Trade Association (PRBTA). Young, hungry families, entrepreneurs, and people About one year ago, Johnston and his family moving down to build a life. We’re here for the moved down to Puerto Rico, attracted by the long term, We love this place, and we want to see business opportunities and growing technology it get better and better. We’re investing our time, community. With states like New York and money, and effort to see it happen.” California implementing restrictive policies for
In fact,
