In January 2011, $ 333.33 bitcoins could be bought with $ 100. But that same investment would be worth nearly $ 1.7 million as of April 2019, adjusted for inflation. There are far more ways to capitalize on blockchain than just buying bitcoin or other cryptocurrencies.
While you can’t invest in blockchain directly, you can invest in companies that you believe will benefit significantly from the new innovation in technology. Some of these technologies include: mining enablers and traders who provide the “picks and shovels” for crypto mining, or trading platforms and crypto exchanges. There are also blockchain-as-a-service, blockchain users, as well as emerging industries and disruptors. 48% of executives expect blockchain to transform their business in the next 3 years.
Another way to capitalize on the blockchain is to use tools that help the everyday investor. Some tools include: exchange-traded funds, which are mutual funds that focus on blockchain technology, exchange-traded debt securities that are pegged to the market price of a cryptocurrency, digital asset funds, which are grayscale bitcoin trusts , and futures, which are the CME Group’s Bitcoin futures contracts.
There are also different types of crypto asset classes. Cryptocurrencies or coins like Bitcoin, Dash and Litecoin. Security tokens or asset tokens represent ownership interests 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 collector’s item.
It is very important to be smart about your crypto. Knowing when to “HODL” is an important skill. “HODLing” started as a typo in the Bitcointalk forum, but the name stayed with those in the forum. “HODL” now stands for “Hold On for Dear Life” and refers to buying and holding crypto over the long term rather than trading or selling immediately.
Learn about free crypto, other ways to use the blockchain, and even blockchain careers Here.
Infographic source: Block Social