With the mass adoption of cryptocurrencies recently it seemed like a good time to take my cryptocurrency portfolio a little more seriously. This thread will be for the deep dive research I’m doing behind various cryptocurrencies on the market, with the goal of making solid long term investments. If anyones thinking of getting into the crypto market, consider this a basic guide on how to get started. Although this isn’t investment advice, I’m just sharing the various plays I plan on making. Please do your own due diligence and if you plan on playing the crypto casino, only invest what you’re prepared to lose as all of this could easily come crashing down at some point and you’d be left with nothing. With that caveat out the way, lets begin…
Bitcoin has surged to $40,000 dollars recently and I’m putting it down to 3-4 main factors.
The announcement back in October 2020 that Paypal was going to integrate Bitcoin and crypto spending in their online wallet (https://www.bbc.co.uk/news/technology-54630283). This was inevitably going to drive prices up, just through simple supply and demand, once this opens up fully to the general public. The forbes article from June 2020 stating Bitcoin could reach $300,000 is entirely within the realm of possibility (https://www.forbes.com/sites/billybambrough/2020/06/08/bitcoin-could-hit-300000-in-five-years-even-without-institutional-adoption/?sh=72bd8b0152c6). Although a more conservative estimate in a Bridgewater sensitivity report estimated that if 50% of the markets gold reserves moved into Bitcoin, the price of Bitcoin could reach $85,000, which is probably more realistic.
Bitcoin had been steadily climbing in price since the October article above was published. The 2 days following the US election however, Bitcoin saw a sudden bump in price of $1500 and has been climbing rapidly ever since. The biggest increases coincide with censorship crackdowns as more people are seeking alternatives to the standard ways of conducting themselves and their business online. People flocking to gab.com after the twitter purge probably saw a dramatic increases in Bitcoin prices as paying in Bitcoin is one of the only ways to pay for a Gab pro account.
Buying and spending cryptocurrencies on physical goods has become easier than setting up a new bank account. More and more companies are issuing their own crypto debit cards backed by VISA that enable you to purchase products online without first having to withdraw your funds back into fiat currency. https://monolith.xyz allows you to keep control of your own private keys, and the funds that go in it—while still using their card to buy on the VISA network, which means you don’t have to leave your money in the hands of a private company that could cut you off from your funds for any transgression of their cancel culture politics. bitpay.com is soon to announce their first debit card while already allowing bitcoin to be transferred directly into Amazon gift cards.
Certain alt-coins allow you to generate savings income when you ‘stake’ them. Cardano (https://cardano.org) is one of the popular coins at the minute which when staked earns roughly 4-5% APY. Algo (https://www.algorand.com) earns 7% APY. Cosmos (https://cosmos.network) earns 9% as of writing. Staking these coins is as simple as pushing a button. Then there's the recent creation of the futures trading market built on the Ethereum infrastructure enabling margin and futures trading of alt-coins to be conducted the same way you'd trade on the forex market.
My personal wallet of choice for my crypto portfolio is exodus.io (https://www.exodus.io). It’s an easy and simple interface with educative videos under each crypto coin to describe some of the technology and goals of what those particular companies are attempting to create. For those of you based in America you can purchase Bitcoin directly in the Exodus app with your ApplePay and then effortlessly exchange those Bitcoin into a huge variety of other alt-coins. For those outside of America, like me, it won’t process ApplePay purchases directly in the app, so, I first have to purchase Litecoin from Coinbase.com then transfer it to my Exodus wallet. I buy Litecoin because it has one of the lower transaction fees when transferring between wallets compared to Bitcoin (which can be excessively expensive). It’s also quicker to transfer, Litecoin can show up in the exodus wallet almost instantly whereas Bitcoin can take up to 30 mins.
With the basics of where to acquire cryptocurrencies and what to do with them once you’ve got them out of the way, lets look at which particular cryptocurrencies have the potential to be a good long term investment. It should be noted I’m not looking to profit from the volatility of crypto coins, I’m not day trading for rapid profits, I’m more looking for those coins where you can invest a minimal $100 today and then maybe 5-10-15 years down the road that $100 might be worth $10,000. Finding the right coins for that goal means backing the technologies behind the coins that will eventually be adopted en-masse and become a crucial part of the Blockchain global infrastructure. While decentralised people powered coins could be a good investment, finding the coins that are backed by the big globalist companies seems like a more secure way to invest whatever pennies you’re prepared to invest in the crypto field. The same way a secure hedge fund would invest in the established behemoths of traditional brokerage accounts like ‘unilever’, ‘boeing’, ‘microsoft’, ‘Amazon’ etc.
So what coins are the top globalist firms investing into and why?
We’ll start with one of the most pervasive globalist companies most people have never heard of, a company deeply invested in the blockchain space and a company who already process 80% of all credit card transactions worldwide, the rebranded Thomson-Marconi French firm, Thales Group.
As the old Thomson-Marconi name might suggest, Thales is one of those companies whose expertise is in secure communications systems, which means they have a vested interest in ensuring the success of the particular crypto-currency technologies that are necessary to build out the cyberspace infrastructure that enables them to achieve their company goals.
What are their company goals? Ever heard of 'The Internet of Things'? Smart cities? Artificial intelligence? Deep space exploration? Battleship communications systems and railway signalling, among other things. Thales is a true megacorp with eyes on building the infrastructure of the future.
Its a safe bet that whatever cryptocurrencies Thales Group are backing and investing in are going to have a huge importance in the cyberspace infrastructure that we see being built out over the next 10-20 years. So, in Thales own words, what crypto assets and companies should we be paying close attention to moving forward:
Thales Blockchain Partners
Thales has partnered with industry-leading blockchain and cryptocurrency partners to provide enterprise-grade solutions for securing transactions. Together with partners such as Ledger, BitGo, and Symbiont, Thales is protecting the way industries are conducting business, bringing efficiency and establishing trust. Thales also supports multiple blockchain applications including Bitcoin, Hyperledger, Ethereum, Altcoins, Monero, and more.
First a quick look at the companies Thales has partnered with, starting with Symbiont.
Lots of notable and highly influential financial institutions seem to be engaged in the blockchain infrastructure projects.
The other company BitGo:
BitGo’s mission is to make digital currencies usable for businesses in a regulated economy. BitGo’s technology solves the most difficult security, compliance and architectural problems associated with blockchains, enabling businesses to integrate digital currencies into their existing financial systems. Processing more than $1B monthly, BitGo customers include the largest cryptocurrency exchanges and application providers in the world. Headquartered in Palo Alto, the company was founded in 2013 by veterans in online security and financial technology.
"BitGo customers include the largest cryptocurrency exchanges and application providers in the world." So what exactly are the coins being traded by the largest institutional cryptocurrency markets?
I created an account an BitGo to find out...here's the list of coins they have available.
Considering BitGo have been in business since 2013 and received their authority to act as a bank in 2018, there offering list of 15 secured cryptocurrencies--out of the thousands currently on offer--is actually a rather conservative portfolio. This is great for us since it helps us narrow down on what could be hugely profitable investments. And while many of those coins are already established in the alt-coin market, there's also several that are as yet largely undiscovered by the masses and trading for less than a dollar. It's these less than a dollar crypto that can be snapped up with a modest investment for huge potential growth, as Thales and their associates continue to build out the cyberspace infrastructure of the future.
As of writing their current values are:
Bitcoin Cash ($474.88)
Bitcoin Gold ($12.8868)
Bitcoin Sv ($188.05)
Mainnet Hedera HBar ($0.09832)
In part 2 we'll take a closer look at the technology behind the 4 emboldened alt-coins in the above list to ensure these coins have the potential for longterm growth and investment.