Start here-investing-in-cryptocurrency

Start Here Investing in Cryptocurrencies
© 2017 Cryptocurrencies Investing News 2
Table of Contents
Why Invest in Bitcoin? ...........................................................................................................3
How to Invest in Blockchain...................................................................................................6
Why Consider Investing in Ethereum?....................................................................................9
7 Blockchain Technology Stocks ...........................................................................................12
Is Bitcoin the New Gold?......................................................................................................16

Why Invest in Bitcoin?
The price of bitcoin has reached all-time highs several times
already in 2017–is now the time to invest in the cryptocurrency?
As a currency, bitcoin has proven advantages. Its
digital nature makes it hyper-portable, divisible,
durable, and unconsumable. Its decentralization
means that it isn’t beholden to the vulnerabilities of
national currencies and is perfectly transferable
across nations.
In other words, bitcoin isn’t a currency that is kept in
banks–which many believe gives the cryptocurrency
leverage–because there’s no limit on how much you can spend. Other reasons include
that international transactions are done relatively quickly, and that bitcoin is one of the
cheaper ways to spend international payments.
With that in mind, you might now be asking yourself: why invest in bitcoin? Here, the
Investing News Network (INN) breaks down the essentials, what the market currently
looks like and its future outlook.
Why invest in bitcoin: regulations coming in place
Bitcoin has come a long way since being faced with resistance from both governments
and potential consumers. The US Internal Revenue Service took action in 2014 to
discourage the use of bitcoins, by ruling that “general tax principles applicable to
property transactions apply to transactions using virtual currency.” In practice, this
means that the fluctuating value of bitcoins could trigger capital gains tax for
consumers.
Since then, however, it’s been reported that several US states are in the process of
working on bills that accept or promote uses of bitcoin–and blockchain. One state in
particular that has already passed the digital currency into law is Vermont, which
Bitcoin.com states that bitcoin will now be recognized as a “permissible investment” for
money transmission operations.
Furthermore, CoinDesk.com reported that Arizona is also getting in on the action, having
passed a bill that recognizes blockchain signatures and smart contracts.
Abroad, cryptocurrency regulations are underway as well. CryptoCoinsNews alleges that
India is looking to manage bitcoin, including other forms of digital currencies, as its
population increases. In China, Bitcoin Magazine reported that the digital currency as a

“virtual good” is being met with certain challenges, specifically from the People’s Bank
of China.
A translation of the statement from the bank reads, “Bitcoin is not a currency and
shouldn’t be viewed as such. Those who invest in bitcoin should accordingly be aware
of the risks it poses and protect their investment.”
On that note, other reports suggest that Beijing is looking to regulate digital currency
trading to prevent bitcoin platforms from becoming money laundering sites.
Zhou Xuedong, operations director at the People’s Bank of China, was quoted saying,
“There needs to be a clear bottom line for the management of bitcoin trading platforms
and websites. A blacklist should also be set up.”
“Activities such as trading or financing on margin and market measures such as
commission-free trading must be banned,” he continued.
Over in Japan, bitcoin has officially been recognized as a method of payment since April
1, 2017–and even saw its valuation rise above the $1 billion mark–while Russia is
making steps to accept it is a method of payment. For example, the country’s largest e-
commerce retailer, Ulmart, plans to acceptbitcoin as payment starting September 1, 2017.
Why invest in bitcoin: soaring price
Bitcoin reached its first all-time high on November 29, 2013, when it was valued at
$1,137. Since then it has experienced various highs and lows, but 2017 is certainly
shaping up to be the year of bitcoin.
On May 10, the price of bitcoin reached its third-all-time high in just a week, rising well
above $,1 800 for the first time in its history. According to CNBC, its surging price increase
added $3 billion to its market cap in only four days to $29.53 billion. Overall, the bitcoin
price has surged 81 percent year-to-date, up from $997 in January.
If you’re still asking yourself “why invest in bitcoin?” perhaps consider this. With the
rising price of the cryptocurrency over the last couple of years, bitcoin has begun
rivalling safe-haven assets, such asgold and silver. Case in point, bitcoin surged ahead of
the gold price for the first time ever in March 2017 (at the time, bitcoin was $1,268 while
the precious metal was $1,233 an ounce).
As such, analysts have even suggested that bitcoin might be the place to put your
money instead of gold. Chris Burniske, blockchain products lead with ARK Investment
Management, is one of them.
In an interview with CoinDesk, Burniske said that global supply of the yellow metal has
“clandestinely increased” one-to-two percent over the last 100 years or so.

“If you were to ask people what gold’s supply schedule looks like over time, they
probably wouldn’t draw you something that looks like an exponential curve,” he said.
“With gold being sneakily inflationary, it’s not set up to preserve value in the way that
bitcoin is.”
Of course, there are certainly advantages to gold that bitcoin doesn’t have, and vice
versa. Noted by Forbes, bitcoin supply is limited at 21 million, while gold supply increases
as its price does, which could be a motivator for miners to mine the yellow metal.
Still–bitcoin’s price increase is certainly impressive and worth noting–making it a clear
indicator that it is here to stay.
Why invest in bitcoin: market outlook
Moving forward, there’s certainly a growing number of opportunities to be made in
bitcoin. For those who genuinely believe in the potential of bitcoin to become a major
international currency, this may constitute an excellent time to invest in the
currency. Further on that, it’s possible the digital currency could become a global
currency sooner than you might think, while the potential for bitcoin ETFs is looming on
the horizon as well.
Indeed, it’s easy to see just how much the cryptocurrency has grown in just a short
amount of time (relatively speaking). With that in mind, bitcoin has certainly positioned
itself as an exciting space for investors to jump into–for now, and the long term.

How to Invest in Blockchain
Interest in cryptocurrency has been on the rise. Here's how to
invest in blockchain.
While it’s likely that many are unfamiliar with
blockchain it’s been around a lot longer than one
might think.
In short, blockchain is an underlying method of the digital
currency, bitcoin, which allows for permanent records to
be had of the blocked transactions. As described here, “at
any time people can see those changes in real time,”
giving blockchain a sense of transparency.
As it goes with other areas in the world of technology, interest in cryptocurrencies–such
as blockchain–has gained traction over time. According to Seamus Cushley, a PwC expert,
over $1.4 billion was invested in blockchain startups in the first nine months of
2016. With interest in the sector growing, here the Investing News Network (INN)
breaks down the basics of how to invest in blockchain so that investors can better
understand how to step into this space.
What is blockchain?
Before asking “how to invest in blockchain,” it’s important to know what the
cryptocurrency is first. As mentioned above, blockchain is technology that enabled the
digital currency bitcoin to be safe and transferable. The story more ore less starts in
2008, when Satoshi Nakamoto published a paper detailing bitcoin and its ability for two
people or companies to transfer payments without the need for a financial institution. To
guarantee the payment a blockchain ledger was created, connecting the transactions to
a digital signature. This was then verified by complex algorithms allowing the new
currency to be trusted.
A blockchain begins with a genesis block which births other blocks, or bundles of
transactions. The parent block is always the previous block. The ‘tip’ or ‘top’ is the most
recently added. Then, the chain becomes fossilized under layers of children and
subsequent generations of grandchildren.
More specifically, there are a number of examples of different uses of blockchain.
Unsurprisingly, banking is one one of them. As noted, Swiss and UK banks have begun
testing blockchain as acceleration methods as tasks in the back-end back and
settlements. The publication further examples payment or money transfers, uses in
cybersecurity, networking and the internet of things, and online music as areas that
have begun implementing blockchain.

How to invest in blockchain
As the technology continues to grow there will be many opportunities for investors.
There will be growth from banks and financial institutions that are leveraging the
technology successfully. Blockchain is not a physical asset you can purchase but you
can buy stock in fast growing public companies who are selling solutions leveraging
blockchain technology.
To that end, there are a variety of ways for investors who are looking to the answer on
how to invest in blockchain, detailed below.
Stocks
Investing in stocks is the obvious place to start when thinking of “how to invest in
blockchain.” While the list of blockchain stocks is relatively short, there are at least
several for investors to choose from, including:
• BTCS (OTCQB:BTCS), which is the first publicly-traded blockchain company in the US.
• Global Arena Holding (OTC:GAHC), who invested in the Blockchain Technologies
Corporation and is looking to applying blockchain techniques to ATM services.
• HashingSpace (OTCMKTS:HSHS) is working towards providing tools needed for future
blockchain technologies.
• DigitalX (ASX:DCC) uses blockchain to develop fintech products to build secure ledger
systems, particularly in mobile bill payments.
• BTL Group (TSXV:BTL), whose blockchain services are used in a variety of industries,
including banks and fantasy sports.
• Coinsilium Group (ISDX:COIN) develops as well as invests in blockchain companies. It
was the first blockchain company to file an IPO.
• First Bitcoin Capital (OTCMKTS:BITCF) focuses on acquiring bitcoin startups and
funding companies through developing bitcoin software and hardware.
Crowdfunding
While it may not be an immediate choice on how to invest in blockchain, crowdfunding
platforms are an attractive way for investors to jump into blockchain investing. As Ameer
Rosic, CEO of Blockgeeks describes, crowdfunding is an easy way for innovative
projects to obtain money.
This is where blockchain steps in. Rosic states blockchain crowdfunding allows startup
companies to come up with their own digital currencies to sell.
Examples of blockchain crowdfunding platforms include:

• BnkToTheFuture, whose platform allows for investors to invest in fintech companies and
funds.
• QTUM permits the execution of “smart contracts and decentralized applications.” It also
provides easy ways for standardizing the workflow of business and smart contract
development.
• Waves, which is a crypto-platform for token assurance, transfer and blockchain trading.
Putting it simply, the increase in demand from companies who are putting blockchain at
the heart of their operations and consumers demanding the faster and cheaper services
blockchain enables continues to drive growth of the sector and, in turn, more
opportunities for how to invest in blockchain.
How to invest in blockchain: market outlook
Looking ahead, blockchain’s future outlook is certainly a bright one. As research
conducted by Market and Markets suggests, the blockchain market is expected to be
worth $2.3 billion by 2021, representing a compound annual growth rate of 61.5
percent between 2016 and then.
Another research firm, Grand View Research, suggests the market will grow to $7.74
billion by 2024, citing the financial sector continuing to adapt new technologies–and
healthcare, for that matter–fuelling that growth.
That said, in 2017 it’s expected that at least 15 percent of banks will adapt blockchain
technologies, with that number increasing to 66 percent by 2020.
In short, it’s clear to see that the cryptocurrency market is here for the long-haul, which
should ease the minds of those who have been wondering on how to invest in
blockchain.

Why Consider Investing in Ethereum?
Ethereum is currently one of the hottest cryptocurrencies out
there, rising nearly 3,000 percent so far this year. Is now the time
to invest?
In terms of cryptocurrencies, most often people
immediately think of bitcoin–and understandably so. Out
of all the digital currencies, bitcoin currently has the
largest market cap of $43.8 billion and is priced at
$2,671.54. Not that far behind, however, is ethereum with
a market cap of $29.7 billion–and arguably the hottest
cryptocurrency on the market right now.
Year-to-date, the price of ethereum has climbed nearly 3,000 percent–from $8.24 on
January 1 to its high of $369.03 on June 20. While the digital currency has tumbled
slightly to $325.27, there is still a strong case to be made for considering investing in
ethereum.
With that in mind, here the Investing News Network (INN) provides a breakdown of what
the cryptocurrency is, what’s making it a hot commodity, and a look at its future outlook.
Investing in ethereum: what is ethereum?
Compared to its rival digital currency, bitcoin–which has been around for nearly a
decade–ethereum is relatively new. According to Investorpedia, ethereum was developed
to “augment and improve” bitcoin. While ethereum was proposed in 2013 by Vitalik
Buterin, a cryptocurrency researcher and developer, its initial release wasn’t until July
30, 2015, with 11.9 million “premined” coins for the crowd sale.
That said, the digital currency has been compared to bitcoin, although it certainly has its
differences. Asdescribed by Blockgeeks, Ethereum is a publicly distributed blockchain
network–much like bitcoin. That said, bitcoin is used to track the ownership of the digital
currencies, while Ethereum Project describesethereum as a blockchain that runs “smart”
contracts, or applications that run exactly as programmed with no downtime,
censorship, fraud or third party interference.
Blockgeeks further states that in ethereum, miners “work to earn” Ether, which is a
crypto token that is “used by application developers to pay for fees or services on the
ethereum network.”

Investing in ethereum: the initial coin offering craze
In simple terms, an initial coin offering (ICO) are funds that are raised for “a new
cryptocurrency venture. Like Investorpedia states, ICO’s are generally used by startup
companies to bypass the typical regulated capital-raising processes that venture
capitalists or banks require.
“In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the
project in exchange for legal tender or other cryptocurrencies, but usually
bitcoin.” CryptoCompare states that ICO’s are one of the “easiest and most efficient
methods” for companies to fund projects, or for investors to “invest in projects they see
value in.”
So, where does ethereum fit into the ICO equation?
In an email exchange with INN, Kevin Hobbs, CEO of Vanbex Group, said 2017 seen a
massive increase in ICO’s, with most of them done on ethereum.
“To date, there has been over $500 million in ICO investment so far this year, and
growing,” Hobbs said. “Due to the need to use Ether to invest in these, ICO’s has
caused the single most demand for the token, hence the incredible rise in price.”
Case in point, in mid-June a start-up company raised over $150 million of ether–in under
three hours–in exchange for its own token, called BNT. Similarly, another start-up called
Status raised more than $100 million through an ether-ICO, while Brave–a new web
browser–also raised more than $35 million in ICO that sold out in 30 seconds.
Indeed, it’s easy to see that initial coin offerings are all the rage right now–and for the
foreseeable future–but Hobbs said there needs to be regulations in place to protect
investors.
“What that will be is still in discussion,” he said. “There are many benefits to ICO’s that
we don’t have in traditional funding. You get instant liquidity as the tokens are traded on
exchanges, it’s inclusive and anyone can invest you don’t have to be accredited (There
are some models where you do need to be), the ROI on ICO’s are much more
appetizing than traditional investment.”
Investing in ethereum: future outlook
Looking ahead, Hobbs said that there is “no sign” of ICO’s slowing down, and that most
of them are done on ethereum–which needs ether.
That said, Hobbs stated that at some point, companies will “have to pay the bills” and
sell their Ether for Fiat currency, which he said will result in price drop. Still, Hobbs said
he expects ethereum prices to “level off” somewhere between $200-$250 before it goes
up again, which could bring it to the $400-$500 range by the end of the year.

While the price of ethereum has had a bit of a setback, its gains so far in 2017 are
nothing short of impressive, and an overall sign that the price forecast for the digital
currency is still “bullish”–which bring some comfort to those who may be considering
investing in ethereum.

7 Blockchain Technology Stocks
Banks, financial institutions and many others are adopting
blockchain technology faster than anticipated. INN takes a look at
public companies taking advantage of this rapidly-growing sector.
It’s getting harder to ignore the fact that blockchain is
on the rise, particularly as more banks and financial
institutions are adopting the technology faster than
anticipated.
Case in point, IBM (NYSE:IBM) released a report in
2016 suggesting that 15 percent of all banks will be using
the technology in 2017. By 2020, the firm states that 66
percent of all banks will have blockchain in commercial production.
On a broader scale, a Market and Markets report states that the blockchain technology
market size will be worth 2.3 billion by 2021, increasing at a compound annual growth
rate (CAGR) of 61.5 percent. In other words, there’s room for plenty of opportunities for
investors to benefit from in this exciting–and expanding–market.
Global Blockchain Technology Market’s research report is a little more conservative,
projecting that blockchain technology will grow at a CAGR of 55.59 percent between
2017 and 2021.
The banking and finance industries aren’t the only ones adopting blockchain
technology. For example, it has been used in securing elections, and big companies are
also making the leap into blockchain; Capital One has confirmed a blockchain project,
partnering with Gem on healthcare claims.
Putting it simply, there’s a wealth of opportunity to be had in the blockchain industry,
and it’s only getting started. As such, here is a look at 7 publicly-listed blockchain
technology stocks for your consideration.
1. BTCS (OTCQB:BTCS)
Market cap: $1.41 million; current share price: $0.08
The first of our blockchain technology stocks is BTCS. The company is also the first
blockchain-focused public company in the US, and was ahead of its time in exploring
digital currency ecosystems. The company self-describes itself as an “early mover” in
the digital currency ecosystems sector.

The company’s CEO, Charles Allen, was interviewed by Bloomberg explaining the
company’s mission to “gather a currency that can be spent on goods and services”,
using bitcoin to buy products like televisions.
2. BTL Group (TSXV:BTL)
BTL is a Vancouver-based company that offers blockchain solutions across multiple
industries–from banks to energy, and even to fantasy sports. BTL has a money transfer
platform using distributed-ledger-technology and smart contracts, called Interbit.
On that note, the company announced on June 5 that it is “taking steps towards a go-to
production phase” of the Interbit, having completed its European energy trading pilot. As
noted in the press release, the 12-week pilot included building the framework on an
energy trading confirmation solution to BTL’s platform, which was tested in 8 different
scenarios.
“At BTL we truly believe that, by using blockchain technology and our proprietary
platform, Interbit, there is a better and more efficient way for enterprises to build
applications,” Guy Halford-Thompson, cofounder and CEO of BTL said. “Having
demonstrated the reductions in risk and cost savings that are achievable we now have
an opportunity to deliver the first successful blockchain based application to the energy
market. We are also very excited that the pilot has enabled participating companies to
better understand the benefits of Interbit and identify other areas in their organizations
where they can apply it.”
While the company’s headquarters are in Vancouver, BTL Group also operates in
Calgary and Canary Wharf in London, England.
3. Coinsilium Group (ISDX:COIN)
Market cap: GB$4.5 million; current share price: GB$4.13
Coinsilium Group is a London-based blockchain technology investor that develops and
invests in blockchain technologies, aiding new fintech applications. The company is the
world’s first recognized IPO for blockchain technology company and lists on the NEX
Exchange, a recognized investment exchange as per the Financial Services and
Markets Act 2000.
According to its website, Coinsilium is relatively new in the blockchain field: the
company has been actively involved in “accelerating seed-stage blockchain tech
ventures” ever since 2014.

4. DigitalX (ASX:DCC)
Next on our blockchain technology stocks list is DigitalX. The company develops fintech
products and services using blockchain technology and a secure ledger system for the
global digital payments industry, specifically in mobile bill payments and remittance.
More specifically, its mobile product AirPocket provides consumers secure cross-border
payments and remittances from over 30,000 payout locations in 14 countries with a
heavy presence in North America and South America.
5. First Bitcoin Capital (OTCMARKETS:BITCF)
First Bitcoin Capital, fifth on our blockchain technology stocks list, bills itself as the first
vertically integrated consolidator in the bitcoin and crypto-currency arena. The company
is focused on the acquisition of bitcoin startups and funding companies developing
bitcoin software and hardware.
Although bitcoin is blockchain’s favourite child, blockchain is no longer living vicariously
through it. Although blockchain is most understood as the backbone of bitcoin, it is now
standing tall in different spheres of applications.
With that in mind, the company is working on a number of projects, including: COinQX,
Bitessentials, BitClassTravel, Bitcoin.cc & Bitcoin ATM.
6. Global Arena Holding (OTC:GAHC)
Global Arena Holding acquires companies and patents that use the blockchain crypto
technology. They invested in Blockchain Technologies Corporation, a startup
accelerator who have developed a patent pending voting technology. They are also
working on applying blockchain technology to ATMs. Smart contracts can be used in
wills, eliminating the need for estate executors, triggering a chain of events starting with
verifying the death and subsequent asset distribution. CEO John Matthews claims “the
Blockchain will evolve to be as crucial as the Internet itself and many time more
valuable.”

7. HashingSpace (OTCMKTS:HSHS)
Rounding out the blockchain technology stocks list is HashingSpace–a company that is
undergoing restructuring, the new management stated that it is going to focus on
providing the tools needed to develop future blockchain technologies.

Is Bitcoin the New Gold?
Bitcoin is one of the hottest cryptocurrencies out there, and has
even been compared to gold. How do the two stack up against
each other?
Initially, it might seem absurd to compare gold and
bitcoin. One is an age-old metal, the other a relatively
new cryptocurrency.
However, despite these outward differences, the two stores
of value actually have a lot in common.
Here’s a breakdown of bitcoin versus gold, how they compare, and a look at why bitcoin
might be giving gold a run for its money.
Bitcoin versus gold: what is bitcoin?
Bitcoin is a type of digital currency, or cryptocurrency, that is produced and held
electronically. Units of the currency are created by “mining” for bitcoin on a distributed
computer network.
Unlike traditional forms of currency, like gold or dollars, bitcoin aren’t tied to any tangible
store of value. Everything happens digitally when it comes to bitcoin.
Next to being entirely digital, bitcoin’s other most distinguishing characteristic is the fact
that it’s decentralized. While extra dollars can be printed by a central bank to create new
money, bitcoins can only be created by a worldwide network of computers who are all
mining to product more bitcoin.
This means that no single bank or institution is in control of the bitcoin network, making
it a particularly appealing currency during periods of political instability, inflation or
insecurity.
Bitcoin versus gold: how they compare
As the term “bitcoin mining” suggests, there are numerous similarities between bitcoin
and gold—many of them consciously self-fashioned by the bitcoin community.
For one, bitcoin’s value isn’t tied to a government currency. This means that if some
form of government instability does occur, bitcoin will remain unaffected or even benefit
from the situation. Therefore, for individuals who are skeptical of traditional banking

institutions, nervous of war and other conflicts, or just wants to keep their finances
distinct from a fiat currency, bitcoin is an incredibly attractive option.
The same, of course, can be said of gold. Mined directly from the ground, the gold’s
worth is distinct from the currencies that it backs. While more money can be printed, the
amount of gold available in the world is finite, making it—for some individuals—seem
like a much safer investment.
However, gold differs from bitcoin in that the metal has an actual use value. Meanwhile,
bitcoin is only ever worth as much as the market says it’s worth.
Bitcoin versus gold: transfers and fees
For all of their similarities, bitcoin does have some advantages over gold. For one, it’s
entirely anonymous. While this may have some possible drawbacks (for instance,
bitcoin’s popular adoption on the black market), it is also a core benefit in some
scenarios. This is because the digital currency is also completely transparent. A record,
called the blockchain, backs up every transaction ever made, making it a useful
preventative action against fraud.
Furthermore, bitcoin is incredibly easy to transfer. While physically transferring gold
bricks is an awkward way of exchanging value, bitcoin can be transferred in seconds
online.
Additionally, the transaction fees for exchanging bitcoin are miniscule compared to
conventional fiat currencies, making the cryptocurrency a particularly attractive option
in remittances markets.
Bitcoin versus gold: long term outlook
So far in 2017, bitcoin has outperformed gold–and virtually every other currency–since
the start of the year. Since the start of the year, the price of bitcoin has risen from
$997.69 to a high of $3,018.54 on June 11. Following that, the digital currency has
taken a bit of a step back, hovering around the $2,600 mark. In total, bitcoin’s price
increase represents roughly a 162.5 percent increase.
Gold, on the other hand started 2017 at $1,159.20 an ounce and reached a high of
$1,297.30 on June 6. Like bitcoin, the yellow metal has tapered off since then, falling
somewhere near the $1,220 an ounce mark. Still, the gold price has increased roughly 5
percent since the start of the year–although not nearly as impressive as bitcoin’s price
gain.
In terms of how bitcoin and gold compare as long term investments, there is certainly
more than enough reasons to consider one or the other–or both.

If an investor is considering bitcoin, Spencer Bogart, analyst at Blockchain Capital, told
CoindDesk, “if we think about the qualities that make gold a respected ‘money’ or store
of value,’ bitcoin is actually superior in many regards.”
Gold, however, is indestructible, as noted by Forbes.
“Gold is also anonymous, in a way that no digital currency could ever be, even if it tries,”
the article continues. “Gold is relatively easy to transport and trade,” highlighting that a
kilobar of gold can easily fit into one’s pocket and is worth thousands of dollars.
All told, bitcoin is never going to erase the value of gold. Rather, it’s helpful to see
where these stores of value line up and diverge in order to become a more educated
investor.
For individuals looking for unexpected currencies or unique stores of value, both gold
and bitcoin fit the bill.

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