Bitcoin has out-performed any other financial investment, up 1,500% just this year. Kevin Hua looks at where the meaningful investments are behind this rally.

The following information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.

 

We’ve written about how cryptocurrencies are up 1,500% over the last 9 months. That performance has eclipsed all other financial instruments and leaves investors asking whether it’s a raging bull market or a bubble waiting to pop?

CLICK BELOW to listen to the interview (listening time is 7:40 minutes)

Key points:

 

What’s a cryptocurrency?

  • A digital currency where encryption technology regulates the generation, use, transfer and verification of a transfer of funds without the need for a central banking system
  • Examples are Bitcoin or Ether.

Many media articles say cryptocurrencies are for drug traffickers, hitmen and arms dealers. Is there more to it?

  • Cryptocurrencies have legitimate commercial applications
  • All cryptocurrencies consist of a network of peers. Each peer holds a ledger of every transaction made by a digital currency and the balance of every account. This is called a blockchain.
  • The blockchain ensures autonomous, instantaneous and reliable accounting of Bitcoin transactions using digital encryption.
  • It can be a reliable method of instantaneous transactions with the ability to settle in real time with no counterparty risk and reduced transaction costs

Examples of commercial application

  • By banks and investment managers to settle trade in real time
  • In law to create “smart contracts”
  • In manufacturing to automate payments and supply chain processing

The future of Blockchain – is it a buying opportunity or speculative bubble?

  • Risks – concerns around entering a bubble and regulatory risk
  • e.g. Last week Chinese government made plans to ban trading of Bitcoin on domestic exchanges. China accounts for 25% of bitcoin trades.
  • Safer way to gain exposure is by investing in companies focusing on cryptocurrencies and managing blockchain like IBM and Microsoft
  • AtlasTrend’s Big Data Fund has been constructed to capture the long-term structural trend of big data and invests in companies with exposure to the Internet of Things and cryptocurrencies.

 

Listen to more interviews in this series:

The Rapid Marriage of Off-line and On-line Shopping from Amazon

Big Data: What, How and Where to Invest

Disney and Netflix are Parting Ways

Investment opportunities from the growth of Online Shopping

Listen to AtlasTrend’s June 2017 Global Markets, Trends and Performance Wrap Up

Nike Sprints Ahead with Amazon and Instagram

Amazon’s Tuition Costs US$13.7bn for a Food-ucation

Alibaba – The Growing Goliath

 

AtlasTrend manages a global share fund investing in companies driving or benefiting from the big data trend. For more insights on big data as an investment trend and access to invest in the AtlasTrend Big Data Big Fund, sign up for a free 30 day trial.

Sign up to AtlasTrend for Free

 

 

About Kevin Hua

Kevin Hua is a Co-Founder of AtlasTrend, an online investment platform that makes it easy for anyone to learn and invest in trends transforming our world. Kevin has over 19 years experience in financial markets including as Senior Portfolio Manager at Atrium Investment Management and Stark Investments.