How To Invest In Blockchain Technology? - Blockchain Technology

Best blockchain investments

Blockchain Algorithm / January 15, 2015

Blockchain technology is one of the hottest trends in the finance scene, with the potential to completely transform traditional business models in a number of sectors. Blockchain works similarly to a massive digital spreadsheet, which is shared by all the members of a decentralized network. While blockchain technology is most frequently associated with confirming Bitcoin payments, it can also be used in a number of other ways. Since Bitcoin has become more widely accepted by the mainstream, it has been valued at almost $6 billion.

Along with a rapidly expanding user base, Bitcoin is now being considered by a number of financial services companies. Paramount among the benefits offered by cryptocurrency is the ability to reduce the cost of transferring funds, particularly on a global scale. The impact of Bitcoin, and the technology behind it, on the finance industry has been likened to the disruption that the Internet caused on the music and publishing industries. (For related reading, see: .)

In light of tremendous promise, investors have already begun to look at how they can tap into the profit potential of blockchain technology. Given the nature of blockchain technology, prior to making any investment decisions, there are certain unique factors to consider that differ from traditional investments. The good news is that opportunities for investing in blockchain technology abound, giving investors at every level the chance to leverage the potential offered by this revolutionary technology. How an investor chooses to invest in blockchain technology will largely depend on the amount of risk he or she is willing to incur, as well as the type of yield they wish to achieve.

1. Stockpiling Bitcoin

Just as many investors have taken advantage of the opportunity to stockpile gold in anticipation of the rising price, other investors are taking advantage of the opportunity to stockpile Bitcoin. Although the two assets are different, in that gold is a tangible item and Bitcoin is not, many of the basic investment principles remain the same. For instance, both assets are considered rare. While the rate at which Bitcoins were generated in the early days of the technology was relatively fast, that rate has slowed over the last few years as the technology reached its built-in limit of 21 million coins. (For more, see: .)

It all comes down to simple supply and demand. With limited supply, as demand increases, value also rises. If you are under the impression that the concept of stockpiling Bitcoins for investment purposes is only for speculators, think again. The famed Winklevoss twins once reported they held up to one percent of the total amount of Bitcoins in circulation. With more and more methods for procuring Bitcoin being made available, there has certainly never been a better time to begin a cryptocurrency investment portfolio.

2. Blockchain Penny Stocks

Yes, there are even penny stocks for cryptocurrency. While Bitcoin is definitely the most well-known digital currency, it is certainly not the only option. Other types of digital currency include Litecoin and Altcoins. Over the last few years, some alternative digital currencies were developed in an attempt to compete with Bitcoin, but many others were designed specifically to fill needs not met by Bitcoin. For instance, some cryptocurrencies have been developed for the purposes of enabling digital asset registry, providing increased privacy, allowing escrow services, and more. Bitcoin penny stocks like Bitcoin Shop Inc, Global Future City Holding, and American Green, Inc. offer Bitcoin penny stock investment opportunities. (For more see: )

3. Altcoin Crowdfunding

Crowdfunding is now considered a popular and mainstream method for raising seed capital for all types of investments. If you're seeking to get involved in blockchain technology, one option to consider is a unique crowdfunding method using alternative coins. With this method, total coin supply is pre-mined and then sold in an initial coin offering, or ICO, prior to the network being publicly launched. Bitshares is just one of the many well-known coin networks that used this method to get started. Services and apps using blockchain technology have also utilized this same pre-sale method to raise funding. With this method, investors are given the opportunity to purchase coins with the expectation that prices will increase at some point in the future, if the service becomes popular. (For more, see: )