(Ed. note: we wrote this guide for investing in cryptocurrencies, tokens, ICOs and blockchain stocks)
The top tech investment trend of 2017 and 2018 is … blockchain. We consider cryptocurrencies part of the blockchain technology trend, as crypto is ‘running’ on blockchain platforms.
Blockchain, in technical terms, is a digital ledger in which transactions made in a cryptocurrency are recorded chronologically and publicly. The applications (use cases) are numerous: peer to peer electricity exchange, peer to peer money exchange, digital rights management, crowdfunding, and so on. Basically every time there is a transaction between two parties that has to be recorded without an intermediary you can make use of blockchain.
The reason why the growth potential of blockchain is huge is because it covers an area that is largely untouched by the internet: intermediaries, notaries, brokers, etc. In short, the middlemen. Really, what is their added value in the digital age?
Blockchain tech investing trends in 2017
By far the most interesting tech investment trend in 2017 has been Ethereum. And it is not over yet. The price of Ethereum keeps on rising, and there are good fundamental reasons why InvestingHaven’s research team believes that the 2017 price forecast for Ethereum is $550 (double from where it stands, and 4-fold from when we published that forecast).
There is still plenty of upside potential in Ethereum, no matter whether the above chart looks over-extended. Based on fundamental data we really see that both usage demand and investment demand keep on rising, and basically have plenty of potential.
Ethereum may be hard to invest in, as you need a wallet (not an easy process to find a reliable one and get verified). An even less accessible way to invest in blockchain is in ICOs, Initial Crypto Offerings. Apart from being hard to access it also comes with plenty of risks. So although this is a very hot trend we do not recommend to go all in with ICOs unless you really know what you are doing. Nevertheless the potential returns, long term, can be stellar.
Third, there are not many IPO’ed blockchain stocks out there, but the ones publicly available have done remarkably well in 2017. It should not come as a surprise that InvestingHaven readers have profited, and we get many ‘thank you’ messages, as we have covered and continue to cover blockchain stocks extensively this year, with a series of spot-on calls:
- BTL Group Could Disrupt Finance With Blockchain. Can It Become The Next Amazon?
- Blockchain Stock BTL Group Explosive Rally, Higher Prices Coming
- One Blockchain Stock With Multi-Bagger Potential
- Blockchain Stock Global Arena Holding 10-Bagger Now Breaking Out
- Blockchain and Bitcoin Stocks Go Ballistic As Bitcoin Price At All-Time Highs
- 3 Nano-Cap Technology Stocks With 10-Bagger Potential In 2017 And 2018
Indeed, it pays off to closely follow InvestingHaven.
Blockchain: also the most profitable tech investing trend of 2018?
We are truly convinced that blockchain, including cryptocurrencies, will be very hot in 2018. More and more startups will mature their technology and company, work towards an IPO, and become successful small-cap and mid-cap technology companies in 2018 and 2019.
As blockchain will grow in 2018 it is mandatory to identify the stocks and cryptocurrencies that have intrinsic value. With intrinsic value we mean services that are used in real life, that solve real life problems, that have good demand among one or several customer segments, and that show growth in terms of usage.
It really pays off to closely follow the blockchain space. A bubble could be in the making but as long as you are invested in companies or cryptocurrencies that have intrinsic value you are good on the (very) long term.
We forecast that the price of Ethereum will continue its rise, along with some other cryptocurrencies like Ripple and Zcash (potentially Stellar Lumens). We also forecast that blockchain stocks like BTL Group could do very well. We expect to see new IPOs.
When it comes to ICOs we are very cautious, and recommend to only pick one or two in a year to invest in, given the very high risk associated with it, as well as the lack of legal framework (think of property rights).
Blockchain will be a very hot tech investing trend, maybe the hottest tech investment trend, of 2018.
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