The Global Investors have good reason to be concerned about buying into the cryptocurrency craze. But any self respecting Investor will always have concerns.
Some of the world’s most respected money managers and central bankers have declared bitcoin and its various competing digital coins to be in a bubble, warning buying them is closer to gambling than investing. i have to agree for some of the IO’s and some of the crypto’s but this period is also needed to weed them out.
There is of course some self interest in this and it is easier to say afterwards i was right when staying on the sidelines.
Some investors also do not grasp the concept of investing in something with no physical form and yet have no problem understanding radio adverting. .
The concept that a bitcoin only exists as a few lines of unique computer code makes it hard for them to envision this, yet also here nowadays you deal as they do with larger amounts only with digital money through the bank , just ones and zeroes as no real physical funds are send from one bank to another when a money transfer is being made.
For those not dissuaded by the former by this concept, there is a way to overcome the latter: by investing in producers of the complex machinery required to maintain the cryptocurrency ecosystem.
Here a few examples of Three ways to invest in crypto
Number 1 of Three ways to invest in cryptocurrencies
Before the crypto world ran on specialized ASIC chips, it ran on plain old graphics processing units (GPUs).
Bitcoin and various other coins started with GPUs, which exist in every personal computer to handle the showing of videos and the playing of video games, but have since moved on to an ASIC-based ecosystem.
Yet there are still hundreds of digital coins being supported by GPUs, including some of the largest bitcoin rivals like Ethereum and Monero.
“Crypto appears to be helping Advanced Micro Devices disproportionately,”
BMO semiconductor analyst Ambrish Srivastava told clients in a research note published last month.
According to Mercury Research, nearly four million GPUs were sold in the final three months of 2017 solely to mine various cryptocurrencies and process their transactions.
That amount more than doubled crypto-based GPU demand in the prior three-month period and the BMO report found AMD commanded a whopping 64 per cent of the market for crypto GPUs.
The rising tide of crypto demand for GPUs is raising all boats to some extent, with chief AMD rival Nvidia reportedly hiking prices by more than 80 per cent for its own graphics processors.
one company that is likely to cash on on this new industry !!
Number 2 of Three ways to invest in cryptocurrencies
While this Chinese company remains privately held, it is by far the world’s largest producer of ASIC (application-specific integrated circuit) chips specially designed to mine bitcoin.
It doesn’t just produce and sell those mining units around the world, but the company is also believed to control one the world’s largest cryptocurrency mining operations, built using its own technology.
Right now it takes a high-profile investor – the likes of Sequoia Capital or IDG Capital – to be able to buy a piece of Bitmain, but the company said in August 2017 that it was weighing an initial public offering, so retail investors may eventually gain an inroad.
Number 3 of Three ways to invest in cryptocurrencies
HUT 8 MINING CORP
Outside of Bitmain, there is only one other major global crypto-focused ASIC producer: Amsterdam-based BitFury Group.
Unlike Bitmain, which sells individual ASIC chips, Bitfury sells what it calls a BlockBox: 100,000 ASIC chips crammed into a 40-foot shipping container capable of mining nearly 50 bitcoins per month (based on the coin’s market value at the end of January 2018).
BitFury is also privately held, but a reverse takeover-style agreement struck with Vancouver-based Hut 8 Mining late last year has opened up an opportunity for Canadians to invest directly in crypto mining infrastructure.
Hut 8 started trading on the TSX Venture Exchange earlier this week and is 43 per cent owned by BitFury.
“BitFury is Hut 8, that is the way you can see it,” Hut 8 CEO Sean Clark told BNN in an interview on Wednesday. “No other miner that is publicly traded right now has a guaranteed access to chips.”
The plan is to have 60 megawatts worth of BitFury mining farms operating across Canada by mid-2018, which would more than triple Hut 8’s current capacity. As of March 5th it had mined a total of 645 Bitcoins, but the company’s name implies major ambitions: it comes from the facility in England where famed mathematician Alan Turing broke the enigma code that changed the course of World War II.
so if you do not see that investing in cryptocurrenies is the way to go as you simply cannot foresee which one will actually make it, maybe the way to go is to invest in those companies that offer products dealing with all the cryptocurrencies.