For the past 6 months, where ever I go for either social or business, Bitcoin or any other form of Cryptocurrency is always being discussed by everyone. The phenomenal growth of this commodity is catching everyone’s eyes and attention. Most importantly people always asked me, Did you buy it back in 2013?
Yes, back in 2013, I tried explaining to people what bitcoin was about and how blockchain works. The best way I could simplify it then was a group of players killing monsters in a dungeon and everyone would share the loot, also known as mining. All the currency is virtual which lives on the server which is not physical. Slowly as the years go by, more and more online retailers started accepting this cryptocurrency in exchange for goods and services.
My answer to the above question….
No, I did not get any bitcoins back in 2013.
I would recommend anyone to get BitCoin, Ether or Litecoin today despite the high bloated price. If you have spare money which you are willing to risk 100%, then get some of these crypto coins and hold to an acceptable level then sell for profit. I see Bitcoin soaring to $25,000 in the next few months. Or $35,000 by the end of 2018 if the bubble doesn’t burst. Why is BitCoin so high?
- It is difficult to mine Bitcoin and requires a full-fledged factory to mine, no more home DIY.
- Every time there is a political tension in a country, the sale of bitcoin will soar.
- No one is Selling Bitcoin as everyone is hoarding.
- More and More Bitcoins are reportedly lost making it even more scarce.
- Blockchain technology has been accepted and is underdeveloped for future usage.
- It will take another 24-36 months at least before a bank or government deploys an accepted crypto or blockchain commodity which is accepted for trade.
- Buying and Selling Bitcoin has a risk during the transaction process which makes it so exclusive.
If you get Bitcoin today at >$15,000 you will be looking for a double or potential triple at most in my own personal opinion. I think there is more likelihood of these shares below doubling and tripling in the next decade.
I am recommending three sectors which you can own as there are profiting from the bitcoin and cryptocurrency Boom! Even if BitCoin folds tomorrow, these companies will still grow with other industry to keep moving forward. Therefore the risk is a much lesser.
1. AMD & Nvidia
AMD and Nvidia are key components for bit miners to increase the hash-rate efficiency to mine the coins at a shorter rate. If you bought Nvidia back in 2013 with $1,000. You would have $16,000 today. For AMD, they are less fortunate and would only quadruple in the last 5 years. That is still a healthy profit.
BitCoin and Crypto Mining are not the only drivers for these two companies success.
- ESports and Future of Gaming are driving these industries forward. Esports are expected to replace sports such as FIFA and NBA in ten years time. With the rise of ESports events and viewers, its a matter of time before the world accepts it as a main key event globally.
- Artificial Intelligence. All the major companies from Amazon, Tesla, Google, Adobe, Salesforce are all creating farms of Nvidia and AMD graphics cards to solve complex problems in a quick turn around time to self-learn complex customers requirement, predictive models for future products, etc.
Crypto Currency is not the only customers for AMD and Nvidia. Honestly, the future for these two companies is much brighter than BitCoin, simply because they are not in a “Bubble”. They are actually generating income!
2. Square Inc.
Square Inc is basically PayPal’s rival to the cashless transaction in the western world. Square is created by the same fellow who created Twitter (Jack Dorsey). Square started for merchants with low fees regardless of cards presented from customers. Simple interface with minimal hardware requirement.
Squre Inc now allows users to buy bitcoin from your mobile phones. Meaning you can use any bank or credit card to buy bitcoin without trying to do a bank transfer directly from your bank. Trying to buy Bitcoin can be quite painful. Using bank cards or credit cards you need to pay fees towards the transaction. Bank transfer is only available with certain accepted banks. With Square hopefully users can buy bitcoins directly from one another using a simpler and low fee platform.
Square Inc shares have dropped recently to under $40. Many recommend holding until it drops below $35 before buying and investing again. As long as the US economy stays healthy, Square Inc is here to stay and grow. With the potential expansion to EU and South America, Square may have plenty of room to grow.
Out of the three recommendation, Electrical supplier companies are the best value to buy just now with good paying dividends. With the world economy growing pushed by stocks, more defensive stocks such as power and utilities are losing appeal to investors. Therefore causing stocks such as National Grid and SSE to drop in 2017 London FTSE market. Dividend growth is still expected and these dividends are greater than 5% now. Similar goes or Duke and Engie in the USA. Similar to EON and Engie in EU.
The demand for electricity has definitely soar globally in 2017 due to the boom in cryptocurrency. We may have seen YouTube videos in Mongolia, Russia and China running these crypto farming where electricity is cheap. In the US, UK and EU, there are still plenty of Homebrew miners hoping to gain a few bitcoin in exchange for high electricity usage. If you are a smart investor you should piggyback and receive some nice generous dividends from this high capital companies.
Final Words. If you are a cautious investor, you should consider these three sectors which I have recommended in your portfolio for long-term growth. I am a believer that blockchain technology is here to stay for along term and looking forward to its future applications.