Investment Opportunities Using the Blockchain Technology

For investors, you can consider two broad areas: businesses that are developing and are incorporating blockchain technology into their system and pure bitcoin plays. Nevertheless, bitcoin is currently considered for use by various companies across the globe, giving plentiful opportunities for investment.

How an investor chooses to invest in blockchain technology is normally proportional to the amount of risk they are willing to endure.

The following are 3 investment opportunities in bitcoin technology.

Stockpiling Bitcoin

Bitcoin is finite and rare. An investor can decide to stockpile bitcoin with the anticipation of its value w rising. In the early days of technology, bitcoin was generated fast. However, the rate has slowed down over the years as the number in existence reached 21 million, the built-in limit.

In turn, bitcoin has been subject to the law of supply and demand. When the supply of a product is limited and the demand increases, its value is forced to rise.

Angel Funding and Start-Ups

Angel funding isn’t a new concept. However, investing in start-ups built on blockchain is a new phenomenon. Since several mainstream businesses are increasingly accepting bitcoin, entrepreneurs interested in cryptocurrency technology have skyrocketed.

You can provide funding to start-ups who are into this technology. You never know the start-up’s fate as it could be the next Apple or Google, or not. It’s a trial and error thing.

Weigh into the pros and cons before funding any venture.

Crowdfunding

Crowdfunding has become a mainstream method for raising seed capital for all types of investment. You can consider the crowdfunding method that uses alternative coins to get involved in blockchain technology.

Here, the total supply of coins is pre-mined and then sold in an initial coin offering (ICO) before the network is publicly launched. One of the coins that use this method is Bitshares.

Apps and services have used blockchain technology and for pre-sale to raise funding. Investors are often given a chance to purchase these coins hoping that prices will increase if the service becomes popular.

Depending on the degree of risk you can tolerate, blockchain technology investment can be an excellent source of great potential returns.

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