Bitcoin has become a familiar discussion topic in investment and internet forums. The digital currency technology has introduced a slew of technological innovations and created overnight millionaires.
Banyan Hill Publishing crypto currency editor Ian King, sees the disruptive potential of the new currency/technology on financial transactions.
Technologies that simplify existing processes and increase interactions between people tend to revolutionize their industries, King points out.
And, as an exchange medium, bitcoin more than satisfies this criteria by removing the need for a middle man in transactins and introduces the ability for remote individuals to engage in secure business exchanges, anonymously as well as creating an electronic record of that transaction that is public and indisputable, King adds.
Noting its potential, financial institutions are racing to patent their own proprietary implementations of the underlying blockchain and smart contract technologies.
As one case in point, JPMorgan has been reported to have acquired instruments tied to crypto currencies to enhance their clients’ portfolios, following their investors’ requests for exposure to the profits in crypto currencies.
Ian King observes that the digital currency market is satisfying the 3 criteria by which he evaluates the viability of an investment opportunity.
- It solves a real world problem.
- The limited supply of bitcoin coins creates a store of value for investors holding long positions.
- Volume trading increases in the crypto currency suggest a favorable technical indicator strength.
By following these guidelines himself, King was able to realize 1000 percent gains with his investment in litecoin, a digital currency similar to bitcoin.
He forecasts that the growth opportunities in crypto currencies will be far larger than the first wave of dot com startups.
King bases his prediction on where the digital currency market is in its development and acceptance phases. Because of its strong libertarian philosophy, it grew by the strength of the like minded community, remaining off the radar of large institutions while it grew to its $600 billion market capitalization earlier this year.
The group of private investment that entered the crypto markets in 2017, though large, was just the first round of large growth. Financial institutions, followed and they continue to pour investment dollars into the crypto realm. As the crypto marketplace presence increases, additional private investors will follow.
Pointing out that crypto currencies are just one form of a broader category of crypto assets with disruptive potential across several industries, King adds that the investment potential of new crypto currency launches tied to a business model, known as ICO, Initial Coin Offering, is just one example of how the technology opens investment opportunities to private individuals and financial institutions simultaneously. For more updates, follow:https://twitter.com/IanKingGuru