Cryptocurrency Investing is Surrounded by Powerful Information.

Let’s take a look at the hiring statistics for Coinbase:

Coinbase is arguably the fundamental route for cryptocurrency new-comers to get into the market. That is not to say that other options do not exist, perhaps better options. Options that spread more of the cryptocurrency universe at your fingertips. Remember, Coinbase currently hosts only four currencies so far: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC).

With the investment world still largely focused on technology firms such as Amazon and Apple, which have tremendous market capitalizations, expansion, and hiring trends, I think it wise to look at the growth of companies and industries surrounding the cryptocurrency market.

The hiring data from Coinbase as it is available on Linkedin.

Coinbase Hiring - Linkedin Stats

Certainly, we can look at this exponential growth as an indicator that this market segment is growing…quickly. In July of 2016, Coinbase employed just under 211. In two years’ time, they have grown at a rate of 170% to a current total of 570 employees.
As an investor looking for cues and educational instruments regarding the growth and stabilizing of an emerging market, employment data of leading companies in the sphere is a good place to start. This is not to say that it is the crystal ball, as we know that companies rise and fall with the times.

Let’s take a look at BlackRock.

This is a July 16, 2018 video clip from an interview with BlackRock’s Chairman and CEO, Larry Fink.

https://www.bloomberg.com/news/videos/2018-07-16/blackrock-s-fink-says-clients-aren-t-looking-to-buy-cryptocurrency-video

After being asked by Bloomberg interviewer Erik Schatzker, Mr. Fink says that none of his clients have expressed any interest in crypto. Meanwhile Schatzker states that Goldman Sachs, JP Morgan, and Morgan Stanley are building out crypto trading desks.
Mr. Fink again states that he has not heard from any clients that they want to be in crypto. You can develop your own conclusion with what he says, but I believe that he may not be showing all of his cards.

The Elephant in the Room: Insurance for Crypto Assets:

Bloomberg published an article recently uncovering the quite side of insurance for cryptocurrency storage. AIG, Chubb, XL, and Aon are a few of the tycoons quietly, and quickly, building their portfolios for insuring the cryptocurrency markets. Read the full article on Bloomberg.

Some quick market research on cryptocurrency topics show that this asset class is quickly becoming an allure to not only the original crew of techies, but to the financial institutions that our economies rely on.

The Final Take:

There is an incredible amount of information and misinformation to be found with regard to cryptocurrencies. From where I stand, I prefer to look at the digital assets underlying use case. Where is the news around not only the coin, but the institutions that play a part in making it available? Even then, some digital currencies exist today, that may not exist in the future. Regulators may come down with one fell swoop and knock some (or many) coins/ICOs/tokens out of existence.

If you are reading blogs such as this, you are obviously intrigued with the idea that the cryptocurrency market is ripe for the picking. It is my intrigue with this new asset class that has me writing this blog and providing the insights that I find.

Read. A lot.

Look for information that allows you to place an educated bet. I can tell you that with the onslaught of new cryptocurrencies and ICOs (Initial Coin Offerings), there are many bogus attempts to lure people’s money into worthless coin purchases. Look at the structure of the crypto asset and use your reasoning to determine which tokens you want to get into.

CoinMarketCap provides an extensive listing of available coins. Currently, there are 1,656 coins listed and prices range from fractions of a cent to thousands of dollars. However, not each of the coins listed is available through the same platform. In some cases, you need to discover an exchange method for purchasing a specific coin. This could very likely mean buying a token on a platform like Coinbase and exchanging that coin for another coin, which you hold in a wallet. This is a major reason why people are finding it difficult to get in the crypto currency asset pool.

My approach to investing in crypto assets will likely be different from your approach. I would never tell someone to do something that they were uncomfortable with or that I would not do myself, so you need to rely on your own judgement when determining the level of investment risk that you are willing to expose yourself to, if any.

The cryptocurrency market is global, but regulated differently by the country you reside in. You may be able to set up some accounts in one country that you are unable to use in another.

For example, DX.Exchange is an institutional and individual trading platform sitting on NASDAQ’s technology. Though NASDAQ is based in NYC, DX.Exchange is based in Estonia and will be regulated by the Estonia Financial Supervision Authority. The regulatory issues keeps the US usability of this platform at zero, as of now.

 

NOTE: As the domain name of this site suggests, the content my blog posts are opinion and not investment advice of any kind. Do your own research before making any decisions to invest (or not to invest). I am not a financial advisor. I am simply sharing information I gather from across the web, news, and media outlets and drawing my own possible conclusions. 

In the Bit-ginning…

Photo by Moose Photos from Pexels

When I first heard about cryptocurrency, I had a gut feeling that it would somehow become something big. The problem was, I was uncertain about how to get possession of it in late 2010, early 2011 when Bitcoin moved to around $1.00.

Fast forward six years when I asked a good friend of mine who works in the tech industry what he thought about Bitcoin, and he said, “I looked into it about 3-4 years ago, but never ended buying into it.” In late December of 2016 when this conversation was had, Bitcoin was around $800.

Even more of a stinger, when I finally learned how to set up for proper investing in the cryptocurrency market, Bitcoin had just touched $17,900…per coin. Hindsight being 20/20, it is the risk-reward scenario that both entices investors and leaves others sitting on the sidelines. The other aspect of sitting on the sidelines is lack of information.

Those that got on board early enough to realize a price swing of $17K in under ten years are the exception. The rest of the investor community can decide to educate themselves and develop an investment strategy early, get into the game late, or not at all. I say set realistic expectations, educate yourself, know your limits, and if you decided to get in the game, go long.

The fact is, in 2011, very few people new how to enter the digital asset market. It was the wild-west of investing and it went square in the face of the regulated banking industry. Investment platforms were unknown, untested, and uncertain in the level of security they provided . Realistically, that was the perfect timing for a decentralized monetary system to come into the picture. Banks, big business, and governments across the world were sinking and when Bitcoin went live in 2008, it was making a statement in a huge way. A decentralized, peer-to-peer currency system. The belief in the banking system was at an all-time low and an opportunity to capitalize on the system’s failure was to be exploited.

We are ten years from the “Great Recession,” and have watched the stock markets rally to all-time highs. When the “whales” decide that they want to take their profits, the house of cards will fall swiftly. We have seen this with the meteoric rise and fall of crypto prices through 2017.

Simultaneously, we are witnessing the dawn of a new asset class: digital.
Remember how I said the early years of cryptocurrency were the wild-west and the digital asset community was standing square in the face of regulated banking? A decade later, we see a concerted effort to bring the digital asset community into the same system of regulation that fails at least once in a generation, if not more. That’s just how it goes. The US government is in play when it comes to the digital currency market with regulations, tax law, and policies. Many in the cryptocurrency world believe that a decentralized approach is best. Other minds see the regulating authorities as the appropriate method to bring economic stability

Fortunately, we are at the very beginning of instituting this new class of investment vehicles, and that can have long-term benefits. We may or may not see the hyper price increase that was seen with Bitcoin over the past ten years. Many would state that the prices were wildly manipulated to achieve such highs. Others, however, believe that we are just at the beginning and the coin market will see a “flippening” where Bitcoin (BTC) loses its current spot as the number one token. I suggest reading the following thoughts on the possibility of a Bitcoin ETF as the SEC prepares to approve or deny its listing in the next couple of months.

 

 

NOTE: As the domain name of this site suggests, the content my blog posts are opinion and not investment advice of any kind. Do your own research before making any decisions to invest (or not to invest). I am not a financial advisor. I am simply sharing information I gather from across the web, news, and media outlets and drawing my own possible conclusions.