Member Article

With The Depletion of Cryptocurrency Is Blockchain Technology Going To Survive?

I have been writing for several blockchain tech news websites plus I have securely invested into cryptocurrencies in partnership with a friend who runs a private hedge fund. The one thing I am most impressed about is the progress of disruptive technology over the last year.

When most people look at crypto markets, they see red arrows or declining graphs. Who could blame them for turning their nose up at the chance to invest in digital currencies?

I have plenty of friends that started to invest in cryptocurrencies, and most of them were posting regularly until 2018 kicked in. Suddenly the graphs and numbers started to turn against them. Now they seem to have all gone quiet, which comes as no surprise because their investment and excitement both wained away with the recent downturn in the major cryptos like Bitcoin (BTC) and Ethereum (ETH), which have lost 65% and 70% of their value respectively since Q1 of this year.

From the outset I knew few of these people had any knowledge of financial investment, and most noticeably their own financial management in day to day life was clearly not managed in a sensible manner. In short, like many bad business managers, they set themselves for an early exit from blockchain investment.

Therefore, learning for their mistakes and from my own, I am going to very briefly point you in the right direction by giving you some valuable information, so this does not happen to you. You can then go out there and make up your own mind.

Now, before I begin, I have to say that even after only a year of investing in the crypto marketplace, I feel like I have fumbled my way through my investments to get where I am now. Admittedly, I had some luck at the very beginning, some major losses in the middle because I failed to diversify, and mow moved onto a portfolio that is now rising 10% per month.

I pledge my current success to the fact that I have a habit of never giving up!

There is More to Blockchain Tech Than Cryptocurrencies

Here is the thing about cryptocurrencies. There are those that create monetary solutions to solved transactional issues, and there are solutions that solve real world business issues. For many, the former has outweighed the latter.

In reality, cyrptocurrencies are unlikely to become mainstream for at least another 10 to 15 years. In that time more tokens will have been mined and the overall market captilization of those tokens needs to be spread across those tokens effectively devaluing each one.

However, in the future, once the maximum circulation of tokens for cryptocurrency has been reached, then scarcity will kick in and these tokens could potentially rise in value. For now, investment in cryptos such as Bitcoin Cash (BTH), Bitcoin Gold (BTG), Bitcoin (BTC) and Ethereium (ETH) should remain a low priority in anyone’s portfolio.

Start To Take a Risk On ICOs That Solve Real World Business Problems

The last 4 months have been my successful cryptocurrency investment period ever. My portfolio has grown considerably and helped me land journalism jobs that pay in ETH, which I can then invest into my favourite ICOs at this time.

My advice is to start diversifying your portfolio by investing in solutions that are backed by large companies. Also, ICOs that are close to solving a problem that will benefit a particular industry. Usually you will see news out there whereby you here of a particular solution being adopted by in industry leader.

Now, this is not easy because the average joe has only very heard of around 1% of the world’s biggest companies. The rest you would probably only have heard of if you work within that industry sector. Therefore, you will need to read a lot of news to dig deep. While you are doing this, look our for keywords such as “Leading company with truck weighing systems” or “Pioneer company in plastic injection moulding machinery”. These are the unheard of million and billion pound companies that are going to pilot an ICOs blockchain tech and make it famous.

It is these ICOs are going to make you money in the future. Now I am not saying this without any back up, and I wish I could post a URL on here to send you in the right direction, but for some reason this platform keeps blocking them. So, what I would suggest is that you lookup research performed by Juniper Research and another company called SharesPost Research.

You can also get the full story of both of these written by me on Livecoinwatch - just look for posts by James Donaghue (Jim is my nickname by the way).

Both these research groups surveyed consumers, investors and businesses in the real world. One of the focal points of the researches was to find out how many businesses have heard of blockchain technology (not cryptocurrencies) and furthermore discover just how many of these businesses are planning on deploying blockchain based solutions in the future over the next 5 to 10 years.

Have a look at the results because they were overwhelming in favour and had belief that blockchain tech was inevitably going to become an integral addition to their current IT platform.

Be Prepared For At Least Some Failure

Now, remember you will not always get your investments spot on. For example, I really believed the south Korean and Chinese backed Walton RFID solution was going to make a major breakthrough, and for a while I was right. Then, suddenly it just dropped and is now lower than when I invested.

On the other hand, I am invested in around 10 other ICOs that the majority have increased month by month, and I bought in to these for next to nothing, so any sudden drops do not hurt me. These are all ICOs I found reading and researching websites such as Reuters, Bloomberg, Livecoinwatch, Blockchainland, Coinbase, Forbes and other trustworthy sources.

At the end of the day, the future of the blockchain should not be judged by the depressing downward trends the overall market data charts show you every day. There are thousands of ICOs out there, you just need to find them.

This was posted in Bdaily's Members' News section by Jim Donaghue .