Back in January 2011, $100 could buy 333.33 bitcoins. But that same investment as of April 2019 would be worth nearly $1.7 million, accounted for inflation. There are far more ways to capitalize on blockchain than just buying bitcoin or other cryptocurrencies.
Though you can’t invest directly into blockchain, you can invest in companies that you will believe will benefit materially from the new innovation of the technology. Some of those technologies include: mining enablers and traders which provide the “picks and shovels” used for crypto mining mining, or trading platforms and crypto exchanges. There is also blockchain-as-a-service, blockchain users, and emerging industries and disruptors. 48% of executives expect blockchain to change their business in the next upcoming 3.
Another possible way to capitalize on blockchain is to use tools to help the everyday investor. Some tools include: exchange-traded funds which are investment funds focused on blockchain tech, exchange-traded notes which are linked to the market price of a cryptocurrency, digital asset funds which are grayscale bitcoin trust, and futures which is CME Group’s Bitcoin futures contracts.
There are also several different types of crypto asset classes. Cryptocurrencies, or coins such as bitcoin, dash, and litecoin. Security tokens, or asset tokens, represent ownership shares in assets in the real world. Utility tokens grant access to the product, service, or platform. Non-fungible tokens represent a unique digital asset or collectible.
Being smart about your crypto is very important. An important skill is to know when to “HODL”. “HODLing” started as a typo in the Bitcointalk forum, but the name stuck with those in the forum. “HODL” now stands for “Hold On for Dear Life” and it refers to buying and holding crypto long term, rather than trading or selling immediately.
Find more about free crypto, other ways to capitalize on the blockchain, and even blockchain careers here.
Infographic Source: Block Social