Mitigating Volatility in Early Stage Blockchain Investments
The promise of a corruption-free financial world is enough to ensure blockchain has a fundamental role to play in the future. It is extremely difficult to ascertain actual losses since corruption is inherently conciliatory, but estimates have consistently shown that it knocks more than 5% off global GDP each year (~US$2.6 trillion), and in some of the worst affected countries, it is thought that as much as 30% of state revenues are lost. Blockchain stands to eliminate much of the opportunity for theft and fraud due to its innate transparency and decentralized nature. The automated ledger technology increases efficiency in business to such an extent that it will render innumerable middlemen redundant.
Gaining exposure to a technology so revolutionary is beyond recommended, but the sheer number of potential investments (many of which are still relatively inaccessible) and the high levels of risk associated with early-stage markets have so far kept the more cautious investor on the sidelines. 2018, however, will be a year of consolidation for blockchain, and new securities are emerging, led by industry experts, which offer exposure to a wide variety of prospective applications. A wider portfolio offers protection when individual holdings run into trouble, but as very few of us financial types are also computing types, the real value of these companies lies in the expertise of the asset managers.
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Global Blockchain Technologies Corp. (TSXV: BLOC) (“Global Blockchain”) has assembled a crack team of five core decision makers supported by six expert advisors to provide holdings of both established and upcoming cryptocurrencies, in addition to the incubation of new cryptocurrencies by offering assistance with such things as development, compliance, and initial coin offerings. The group have an impressive collective skill set spanning all relevant sectors (law, cryptography, fintech, telecoms) with significant investment and startup experience.
The company recently entered into an agreement to acquire Coinstream Mining Corp to acquire distributed mining technologies in anticipation of the predetermined decreasing success rates of mining cryptocurrencies, which, by design, become more difficult to mine over time. Through Coinstream, Global Blockchain will create partnerships with numerous technology vendors to harness the computing power of the internet of things (think refrigerators, gaming consoles, HVAC systems etc), as a distributed network of computing power is required to effectively and sustainably mine cryptocurrencies.
Additionally, the company has three initial coin offerings currently incubating for new cryptocurrencies, set to be announced formally early in the new year. The success of these offerings could set a benchmark for other new cryptocurrencies, creating new opportunities for Global Blockchain to lead more new ICOs. President and COO, Shidan Gouran, believes this is only the beginning, and that the momentum cryptocurrencies displayed in 2017 is representative of what 2018 has in store, only with a higher trajectory. Already having strong connections to the sectors, the company plans to launch tokens for the telecoms, energy, cannabis and entertainment industries. Energy and telecoms are obvious choices since the distributed network technologies that underpin these services are perfect for the blockchain
Blockchain and cryptocurrencies are gaining increasing recognition as valuable investments, and the more that institutions get behind blockchain technologies, the more trustworthy the valuations will become. Furthermore, hedging against such events as China banning cryptocurrency exchanges by having a wide portfolio of holdings is one thing, but the company also deals in blockchain technologies and associated intellectual property and so many of its holdings are not tied to cryptocurrencies at all. Global Blockchain divides its assets equally between four areas: growth coins, equity investments, in-house projects and blue chip coins. Accessing this level of exposure would be near impossible and extremely risky for any individual who managed it, making Global Blockchain Technologies a great option for a 2018 portfolio.