“The secret to investing is to figure out the value of something – and then pay a lot less” - Joel Greenblatt
Did you ever repent not investing in Amazon.com, Inc. (NASDAQ: AMZN) or Microsoft Corporation (NASDAQ: MSFT) or AirBnb while they were just getting started? I am sure many of you have (and still do). If you had invested even a small amount of $1000 in Amazon and Microsoft on the first day they publicly traded, the investment would have now grown to almost $1.84 million currently.
Such investments are a no-brainer today, but at the time when they were getting started and were available for peanuts, not many believed in them. And, this is the main problem, i.e., overlooking the great investment opportunities. Not many people have the foresight, knowledge, or the courage to bet on new tech. Generally, people tag the new concept as risky if they don’t understand them. But, this is not how the things should work.
When Amazon was getting started who would have thought that an Internet-based online bookseller would one day hit a market cap of over $800 billion, bigger than the GDP of many countries. Same goes for Microsoft as well. It started as a computer company at a time when not many knew about the computers. More recently, AirBnb – a hotel chain, which was rejected by big institutional investors, has grown its revenue to $2.6 billion without even owning a single property.
There are many more examples like this where the companies were initially rejected for being ahead of time, but the same names went onto to have a cult-like following years later (Apple is a big example). The whole idea of talking about these missed opportunities is not to make you feel sad, rather make you alert so that you don’t miss any such opportunity now because a similar (or even bigger) opportunity is currently knocking on your door – Blockchain.
Hearing the word Blockchain, the first thing that may have crossed your mind is Bitcoin (again a missed opportunity). However, Blockchain is much bigger than Bitcoin. Almost all will have the heard the Blockchain, but probably don’t understand it. Don’t worry you are not alone. Understanding the technology fully is not mandatory if you realize its investment potential.
So, in this article i won’t be explaining to you what Blockchain is, but will talk about the massive (read it gigantic) potential that this relatively new concept holds, and how you could make the most of it so that you don’t lament any missed opportunity again.
Blockchain is surely the most revolutionary technology that the world has seen in the past three decades. “From Silicon Valley to Wall Street, technologists and investors alike are buzzing about the blockchain’s potential to revolutionize… well, everything,” Investment firm Goldman Sachs said previously.
Talking of its investment potential, the technology, as of now, is expected to generate over $1.6 trillion (according to one Harvard academic), in new wealth. So, an investment now will give you a claim to participate in that new wealth. And, believe me, even if you invest now, you are not among the first to bet on it. Some of the world’s biggest names have already invested a massive amount of money in technology.
Venrock – the Venture Capital firm founded by the Rockefeller family - is investing in the technology. The venture capital firm made massive money by investing early in companies like Apple Inc. (NASDAQ: AAPL), Intel Corporation (NASDAQ: INTC) and more. Another big name bullish on the tech is George Soros, who has already committed part of his personal wealth and his fund to the technology. Another rich family – the Rothschilds, are also betting on the technology.
Apart from these, some of the earliest investors in the tech are billionaire Richard Branson, Apple co-founder Steve Wozniak and Paypal Holdings Inc (NASDAQ: PYPL) co-founder Peter Thiel. Even Amazon’s Jeff Bezos and Microsoft’s Bill Gates are a big fan of Blockchain.
There are many more names that have already invested or are planning to invest in the Blockchain. Even Trump administration has reportedly doubled its commitment to the Blockchain. And, the Department of Homeland security is believed to have invested millions in several companies working on developing this technology. Also, nine of ten government organizations are considering investing in the technology.
It is possibly for the first time, when the world leaders, the tech leaders and the world’s richest families are betting on the same technology at the same time. And, with such names in the list, you can only guess the amount of money at stake.
Along with being rich, these names are also among the smartest investors on the planet. They won’t just throw their money at anything unless they truly believe in its potential. So, a question that naturally arises is why these mega-rich are putting their money in the technology now?
Well, the answer is that they understood the two most important things about the technology that many still don’t. First, the gigantic potential of the technology and second is the small time window left before big institutional investors also start piling up their money in the technology. Once, the institutional investors start pouring their money in, the Blockchain technology won’t take much time to realize its potential - atleast in the valuation terms.
Institutional investors are surely interested in the technology and are currently waiting on the sidelines studying it actively. Morgan Stanley CEO James Gorman referred the technology as “more than just a fad…” In February, JPMorgan suggested that cryptocurrencies will play a significant role in everyone’s portfolio.
Investment management firm BlackRock with over $5.7 trillion in assets under management also believes in the potential that this relatively new tech holds. Further, Wellington Management, which has more than $1 trillion in assets under management, is also considering adding crypto to its portfolio.
A point to note is that these huge funds with trillions of dollar at their disposal can easily make or break any asset. For instance, what if BlackRock decides to invest just 5% of its asset under management into the cryptocurrency market - it would double the size of the market overnight. Or, if BlackRock diverts some funds to a relatively new cryptocurrency - the price of that cryptocurrency will rocket instantly.
Now that you are aware of the potential and the little time that you have for investing in Blockchain, the next important part is how to invest. Currently, cryptocurrency and Blockchain are used together, but the truth is that Blockchain is a full ecosystem of which cryptocurrency is only a part.
The Blockchain technology has practical applications outside cryptocurrencies as well. Last year, IBM revealed that it is working with major food companies like Walmart, Unilever, Tyson Foods, Dole, and Kroger to explore the use of the Blockchain in their supply chains. The United Nations is using the cryptocurrency vouchers to aid refugees.
Like with the Internet, where there are companies that take care of mails, social networking, e-commerce and more, the Blockchain ecosystem will also have its own heroes. And, many of these heroes (or companies) will give you a chance to make even bigger money than you could ever make with a cryptocurrency.
So, if you find the right company, its technology may have far greater application than any other crypto, resulting in far bigger profit potential (bigger even than Bitcoin) – called the “Crypto Effect.” And, one such “Crypto Effect” could be GH Capital Inc. (OTCQB:GHHC), which is a diversified FinTech holding company.
Late last year, OTCQB:GHHC first announced that its online payment service subsidiary, ClickDirectPay (CDP) will come up with their Bitcoin and alternative coin payment processing service. Over the past few months, the company has been regularly updating investors over the development of the service, and there are some encouraging signs.
Last month, the company announced that the service has already gained over 850 merchants. Further, to expand the scope, four new cryptocurrencies were added to service - Monero, Dash, Zcash and Verge. The currencies added are primarily used for payments and commerce, rather than a store of value. So, it will lead to more volume. And, last week, OTCQB:GHHC announced that CDP is rolling-out more tools for the online merchant to accept the cryptocurrencies more easily and quickly.
With the amount of investment expected in the Blockchain industry and application of the tech across other industries, one can only imagine the volume of transactions then. And, with CDP gradually adding more and more features, it is quite clear that the service is creating the foundation upon which it will develop its services for handling the future Blockchain-based transactions.
Squeeze Report Inc.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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