The Case for Crypto

For digital currency investors, these are exciting times. 

Despite any bearish sentiment, the digital currency market is moving forward at full speed.

In fact, in just the past week, more than a dozen major events have taken place. And each of them speaks to the long-term potential of digital assets and blockchain technology.

And that potential is attracting some big investors. I bet you even know one of them by name: Peter Thiel.

Peter Thiel is most famous for serving as Donald Trump’s tech advisor. That said, Thiel has been in the tech space as an investor and entrepreneur for more than 20 years.

Thiel entered the cryptocurrency space through an investment in Block.one, the company behind EOS, a blockchain platform that went live just a few months ago.

And Thiel isn’t alone in his faith in blockchain.

Multibillionaire Steven Cohen also just took his first steps into crypto, investing in crypto hedge fund Autonomous Partners. Tim Draper, a venture capitalist famous for his investment in Skype, is one of Bitcoin’s biggest supporters.

But what exactly is it that makes these tech gurus and financial masters so confident?

It’s actually quite simple: The blockchain market is growing.

And you strike when that growth is speeding up.

Be Confident: The Digital Currency Market Is Changing

These are crazy times for digital currency investors. And most of that craziness comes from market maturation and growth. 

That is why now is an important time for investors to be keeping an eye on the digital currency market.

By understanding how the market has grown and how it will likely grow in the future, investors will be better prepared to isolate good projects and maneuver the multibillion-dollar blockchain space going forward.

To best understand this growth, you have to look at three unique factors: regulation, application, and accessibility.

In 2017, all three of these factors where a bit of an issue.

When it came to application, everyone was excited, but very few truly understood relevant use cases.

When it came to regulation, there simply wasn’t much of it, and that left investors vulnerable to fraudulent companies.

And finally, when it came to accessibility, there was still a lot to be desired.

People all over the globe had trouble getting their hands on certain digital currencies.

But fast-forward to 2018, and all of that has changed. 

Let’s start with regulators.

1. Regulators Allow a New Market to Learn From an Old Market 

While still murky, the state of digital currency regulation is getting clearer by the day.

And this is a good thing.

A recent article from Forbes emphasized the growing safety of the blockchain space, stating that U.S. agencies have gotten more involved with cryptocurrencies and now have started to track and punish cryptocurrency crime. And one big part of cracking down on digital currency crime is holding illegal initial coin offerings accountable.

In the United States, the Securities and Exchange Commission (SEC) has doubled down on making sure investors are protected against fraudulent characters. This kind of regulation is good for investors who would have otherwise been exposed to fraud.

And it doesn’t seem regulation is in any way slowing the initial coin offering market down.

In 2017, the initial coin offering market equity method raised over $5 billion.

This year, so far, the initial coin offering market has raised over $6 billion.

Many of the initial coin offerings that have taken place in 2018 are for accredited investors and have abided by the rules set by the Securities and Exchange Commission.

All of this means the equity methods and opportunities brought forth by digital assets are still alive and thriving, despite government regulation.

It would seem that digital currencies and blockchain technology can exist alongside traditional methods.

And regulators can take lessons from the older market and apply them to this new market.

2. The World Has a Better Understanding of What Blockchain Technology Can Really Do

Today, the world has a far better understanding of blockchain technology than it did in 2017.

In 2017, “blockchain” was being embraced by everything from your favorite burger joint to your next-door neighbor’s dog-walking service.

And that created a dangerous environment for investors. There were hundreds of blockchain projects with little promise, but they were hard to identify when no one understood the true potential of the technology.

Now, both companies and individuals are starting to understand when blockchain is applicable and when it isn’t.

For example, in the past year, many companies have come forward to start working with blockchain technologies in applicable ways.

In October, IBM announced that it was working with blockchain company Stellar to launch blockchain banking across multiple countries.

And then there is the Enterprise Ethereum Alliance. While the Enterprise Ethereum Alliance was founded a while back, the partnership of corporations has continued to grow.

Today, over 100 companies support the use of Ethereum as a tool for enterprise, including JPMorgan Chase, Microsoft, Intel, MasterCard, and BP.

In short, companies are starting to see the way digital tokens and blockchain can be used to improve existing systems. Blockchains can be used in health care, finance, supply chain management, the Internet of Things, for security, etc.

We understand the far-reaching potential here.

3. Digital Assets Are Easier to Get Than Ever Before

In 2018, it is much easier for people to access a wide range of digital assets.

Both Coinbase and Gemini have launched or are in the process of launching new digital tokens this year.

In fact, Coinbase just announced last week that it was considering not one, not two, but five new digital currencies.

These currencies include Cardano, 0x, Zcash, Stellar Lumens, and Basic Attention Token. And more tokens are likely on the way. 

In fact, when I was writing this editorial, news broke that Coinbase was given the green light to start listing tokens that are considered securities. Considering past moves from Coinbase, this really wasn’t a surprise. But it’s still big news.

And it isn’t just the exchanges that are growing. Today, there a handful of ways investors can get their hands on digital currencies without even touching an exchange.

This includes young stock brokerage Robinhood, which allows certain states to trade Bitcoin and Ethereum and will soon be allowing Litecoin and Bitcoin Cash as well.

All of this is pretty big news, and it shows that even when hype is low, the digital currency market is still forging ahead.

If you would like to learn more about the digital currency market, feel free to take advantage of our digital currency education service. Just click here.

Sincerely,

Alexandra Perry

@AlexandraPerryC on Twitter

Alexandra Perry is a contributing analyst for Wealth Daily and Energy and Capital. She has multiple years of experience working with startup companies, primarily focusing on artificial intelligence, cybersecurity, alternative energy, and biotech. Her take on investing is simple: a new age of investor can make monumental returns by investing in emerging industries and foundational startup ventures.

P.S. If you’re ever curious about specific digital tokens, make sure to check out our new FREE digital currency e-letter, Token Authority. Token Authority has a full Coin Index, which we update with information on new digital currencies frequently. To learn more about this e-letter, click here.