You Should Consider Crypto As An Alternative Investment – Here’s Why
Bitcoin has its roots deeply entrenched in the world of cypherpunk. This is the word created to describe privacy and cryptographic means to combat social and political issues. Despite this, it has been gaining traction in various sectors that are seen as “the enemy” to cypherpunks. Large, traditional financial institutions, governments, and blue-chip companies are all jumping in the blockchain bandwagon
It was only in 2017, 8 years after first being created, that Bitcoin’s price made it an asset that really turned people’s heads. More importantly, the technology behind Bitcoin, blockchain is the driving force of cryptocurrency, and it has seen a lot of adoption and innovation since the start of the Crypto Winter.
Multiple Institutional Sectors Driving Growth
Looking at crypto as an investment was not always the case. It was mainly traded, and hodlers were simply those who wanted to hold on as much as possible before selling. When institutional investors get into the game, they look at the big picture, and they have finally come to fore in a sector that was rife with startups and small, agile outfits.
Pension funds are well known as having the biggest pockets of any investment fund in their respective countries. That allows them to shake up markets in ways that even larger mutual funds are unable to do. A recent groundbreaking decision in Canada has allowed FBC Bitcoin Trust to become a legal mutual fund trust. This allows it to dip into the cryptocurrency with pension money and government-registered accounts. Following that news, US pension funds have also started following the crypto money trail.
Another institutional class of investors, Ivy League universities, have started showing appreciable interest. Investing in a particular technology is one thing but changing their curricula as well as a double delight for cryptocurrencies. When schools such as Stanford and Dartmouth start offering cryptocurrency and blockchain focused classes, that is when something simply becomes another tool businesses use as opposed to an interesting development.
Harvard has used its massive 30+ billion dollar endowment fund to invest directly in a blockchain startup. Blockstack Inc is the first blockchain startup that will be issuing tokens based on an A+ certification from the SEC, and they believe that it will help legitimize coin offerings for future blockchain-based startups.
If any more evidence was needed that Bitcoin is close to becoming an investment and not some commodity that is traded for daily profit its that NASDAQ and ICE have both started looking at Bitcoin-based ventures. NASDAQ is launching various products via its platform that will allow buying Bitcoin directly.
ICE, the parent company of the New York Stock exchange, is partnering with Bakkt to become a one-stop shop for all things Bitcoin related. It will not only be an exchange, but also a platform to allow businesses across the United States to accept Bitcoin as payment for services. This is only a fraction of what they are planning.
Blockchain And Business Are Getting Along More Than Ever
The key, however, is blockchain technology. The real revelation behind the cryptocurrency craze was that blockchain could be used for so many different things in so many different sectors. There are startups focused on radically changing supply-chain management and accounting. Banks are investing heavily in blockchain to solve the trust issues that have plagued cross-border payments and remittances for decades.
Auto companies in the self-driving sector have been at odds for years, each guarding their hard-earned data jealously. This has been to the detriment of machine learning with regards to driving, bit no longer. Now data can be freely shared without giving it away, and the companies that own the data will be compensated heavily. Blockchain could finally help us unlock the key to autonomous driving, even if it’s only on the backend of a business deal.
Tech companies such as Google, Microsft, and Apple have all joined in the blockchain revolution. Facebook is creating its own cryptocurrency that will be able to function across borders, and they plan to be a force in the remittance world, rivaling long-standing companies such as Western Union.
However, it is traditional, risk-averse companies that are the most startling participants in the blockchain economy. JP Morgan has invested millions into creating its own blockchain. A bank that has long been known for mistrusting technology until it is sufficiently mature is diving head first so that they are not left behind by a whole new financial power.
Cryptocurrency all runs off of blockchain, and if the protocol is good and long term enough, then it is a worthwhile investment.
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