Returning to the question of calculating potential investment upside here, there are countless other ways to make projections on the future potential value of bitcoin, and I encourage you to try to make some depending on your personal beliefs regarding the level of success bitcoin might have, and the ultimate utility it might provide to the world. For instance, if you see bitcoin primarily as a way to simplify making international transactions and cut out inefficiencies there, you might look to see what the overall market size is for a solution that might solve that problem and capture that market. Western Union, as one example, is a company with a market cap of $9 billion. Consequently, it might be reasonable to expect that bitcoin’s true ultimate value would be something roughly in that order of magnitude, if this were to be bitcoin’s one true long term use case.
These are cryptocurrencies bound to blockchains that allow for the creation of applications on them, such as Ethereum, NEO, Cardano, Lisk, VeChainThor, and many more. The underlying platforms of these coins create an actual need – and thus a demand – for the coins, as they are needed to make use of the applications and buy into ICOs. In my opinion, these coins are currently the safest and have the largest growth potential, as the blockchains they are built on have the capacity to become the foundation of the decentralized world.
Guy Hirsch, the US Managing Director of the trading platform eToro, recently shared his thoughts on the future of cryptocurrency index funds and ETFs, as well as the different aspects of institutional investment in cryptocurrency in an exclusive interview with ETF Trends. Hirsch told ETF Trends that institutional investors understand blockchain’s potential, adding the U.S. [...]
Lisk is a new altcoin, having launched on 24 May 2016. Lisk is a decentralized network with its own blockchain. It has been launched to enable developers to build a wide range of apps on the Lisk network by developing custom side chains. It has similarities to the Ethereum network, but the Lisk blockchain has not been built with the intention to create smart contracts. It has been built to develop different apps and functionalities using the Lisk App SDK framework. Furthermore, Lisk has entered into a partnership with Microsoft Azure. This means that developers worldwide can develop, test, and deploy Lisk blockchain applications using Microsoft’s Azure cloud computing platform and infrastructure.
This project has all the ingredients required to be extremely successful. The concept is awesome – connecting the publishers and advertiser without the middle man and his commission. People getting paid for their attention (hence basic attention token) and advertisers getting more awareness for their money while also having happy publishers who get more money as well (no middleman fees).
Traditionally, with a legal contract, two parties agree to certain terms with the understanding that if one party reneges, the other party can seek legal recourse with the governmental justice system. Lawsuits, however, can often be inordinately expensive, and in many cases the outcome is far from certain. A good or bad lawyer can make or break a case, and one is also at the mercy of a judge and/or jury and their subjective, possibly mercurial whims. Not the most efficient or foolproof system.
Bitcoin Investment Trust is an entity that was established to give investors a way to get exposure to the bitcoin market without actually buying their own bitcoin. The trust itself owns a substantial amount of the cryptocurrency -- roughly 200,000 bitcoin currently. Each share of the trust works out to just under 0.001 bitcoin, meaning an equivalent net asset value of roughly $6.50 with bitcoin prices near $6,500 per token.
For most experienced Bitcoin traders, gaining as much Bitcoin as possible is still the name of the game. We see this time and time again, mostly after a big altcoin run-up. An altcoin run-up usually causes a fall in the dominance of Bitcoin. Then, once the altcoin run-up seems to have peaked, traders start selling their altcoins for Bitcoin again, which causes its dominance to rise. In the past, there were many incidents in which the total market cap only dropped a little while altcoins suffered. This indicates that most people are selling their altcoins for Bitcoin, but are not leaving the market just yet.
People are getting excited about Hempcoin (THC) because it’s slowly but surely starting to re-surface again and receive some of the media’s attention that it deserves. Even though a couple of competitors recently showed up (PotCoin and CannabisCoin) – Hempcoin is actually the oldest technologies and coins – not just in the industry – but in the crypto world altogether. Hempcoin was founded back in 2014 and its sole purpose is to act as a digital currency for the Agriculture/Farming industry and naturally – the Hemp/Marijuana field.
Understand why the dip happened. Did the dip occur due to some rumor that will likely have a temporary impact? Was the crypto overbought and now it needs some time to cool off? Did it just fail an all time high twice and now we are likely headed for a longer term correction? If you have this answer, then you can better gauge if you should be buying the dip. To this point, also keep an eye on the news. Bad news can cause a correction to deepen, good news could result in a quick turnaround (making it hard to get buy orders in if you are waiting for signs of recovery before buying).
The financial crisis of 2008 highlighted yet another risk of the modern banking system. When a bank goes out and spends the 90% of net deposits it holds in investments, it can often make very bad bets, and lose all that money. In the case of the 2008 crisis, banks in particular bet on high risk subprime mortgages. These were mortgages taken out by borrowers very likely to become delinquent, to purchase houses that were sharply inflated in value by the rampant ease of acquiring a mortgage.
Tom is a cryptocurrency expert and investor from Edinburgh, United Kingdom, with over 5 years of experience in the field. He holds an MA in diplomacy and BA in politics from the University of Nottingham, giving him a firm understanding of the social implications and political factors in cryptocurrency. He believes in long-term projects rather than any short term gains, and is a strong advocate of the future application of blockchain technology. Contact Tom: [email protected]
Also in March, it suddenly emerged that the abovementioned startup Crypto Facilities has been offering futures contracts tied to Ripple’s XRP token since October 2016, without much publicity, for some reason. On May 11, Crypto Facilities exploded another bombshell in the crypto space, revealing ETH/USD futures as their latest offering. And to crown it all, in June the same company unveiled the first regulated Litecoin futures.
In the case of bitcoin, my personal belief is that there is enough to justify the possibility of long term gain based on fundamentals and first mover advantage. If everything goes right, I do see a future in which it’s possible that bitcoin achieves a market cap similar to that of gold’s, given that so far as I can see, it provides all the benefits gold does, and a host of incredibly valuable advantages on top of those existing benefits. I even see a future where it just might be possible that bitcoin goes even further, and becomes a dominant leading global currency. It’s also possible that bitcoin’s blockchain is used to power many future technological innovations, such as smart contracts and even DAOs, and thereby creates and imbues itself with even more value.
You’ll find that different exchanges cater to different markets. Today, most countries have at least one cryptocurrency exchange specializing in their own currency. There are exchanges that can accept New Zealand Dollars in exchange for bitcoin, for example. Other exchanges are known for certain pairs. Bithumb, for example, has particularly strong liquidity in the ETH/KRW (South Korean Won) pair at the moment (and it’s easily the most popular cryptocurrency exchange in Korea).
Steindorff: In 2014 my business partner, Tucker Waterman and I drove to San Francisco to attend Coin Congress. The conference was primarily dominated by Bitcoin maximalists, a colloquial term for those who believed bitcoin would be the only successful blockchain based digital-asset. Simultaneously, there was a small minority group of about a dozen of us with a brewing excitement about the prospect of BTC 2.0. All 12 of us grabbed lunch during the conference and discussed the prospect of alternative digital-asset backed protocols leveraging blockchain technology to establish use cases beyond a medium of exchange, unit of account or store of value. Among these fringe thinkers was Ethereum founder, Vitalik Buterin.
A very cautious investor can buy on an exchange and then store the bitcoin code off the site or even on a piece of paper — that's what the Winklevoss twins and bitcoin early adopters have done, going so far as to cut up their code into pieces and store it in a vault using a system that only they understand to put the actual bitcoin code back together.
It has nothing to do with a well-thought-out investment strategy that will take into account elements such as company results or factors that may affect the stock performance. It is also impossible to pick an appropriate investment strategy without analyzing the investors’ risk tolerance, i.e. the level or amount of capital they are prepared to lose. These are just some of the many things to consider before entering the crypto market.
Dubbed as NXT 2.0 – Ardor is a scalable blockchain platform that natively supports a wide range of features including voting, privacy based coin mixing, account management, blockchain storage, transaction aliasing, and built in marketplace creation. However, Ardor’s implementation of child chains is the stand out feature that makes this platform a truly innovative project.
Hey Jhon, I haven’t found a crypto yet that is really related to my hobbies – Crossfit and backpacking – but I would actually advise steering clear of investing in things linked too closely to what you’re passionate about; whilst insider knowledge of an industry is really valuable, it’s important to trade without emotion and if your trading a coin that is linked to a great love of yours, that becomes harder.
While futures products still carry unique and often significant risks, they can potentially provide a more regulated and stable environment to provide some exposure to bitcoin as a commodity as well. You should carefully consider whether trading in bitcoin futures is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.