Connect with us

Business

Why You Must Buy The Brand Names

Published

on

No matter if you are a developer with deep knowledge of technology or a prospective first time investor, your choices are pretty mind-boggling. This year started with 1384 cryptocurrencies. More are coming every week.

Literally billions are being made but how to choose the right one. If it means spending you life buried in complex technical blogs trying to understand both the obtuse technical language and then the writers jargon, you may decide to bail.

Putting Perspective on The Technology

There are loads of folks who understand the different technology between bitcoin and Litecoin or between Ethereum and Cardano. My perspective comes from analyzing dozens of businesses over more than four decades and cryptocurrencies is one of the most promising yet.

Simple Solution

Here is a solution that will help you cut through the complexity. Buy the best brand name. Classic investment risk management dictates a completely different strategy. Every certified investment advisor will recommend risk diversification and clearly cryptocurrencies are about as risky as you can find.

However, after digging through all 1384 cryptocurrencies, you will be fully diversified by owning just two brands. The couple that we are talking about is bitcoin and Ethereum.

There are other choices in the top ten like Ripple, bitcoin Cash, Cardano and Litecoin. Each brand is worth researching but none offer all the combined benefits of bitcoin and the Ethereum Network.

ICOs Don’t Need To Be Confusing: Look To Ethereum

 In the past year some huge returns have been chalked up by initial coin offerings. Here we are talking about companies seeing their value go from fractions of a penny to dollar multiples in no time. The challenge is how to choose the right one.

Consider what you are dealing with. Initial coin offerings allow companies that are at pre-venture capital stage to get started. So the risks here are higher than investing in a blind pool venture capital fund.

The accepted formula by VCs is to aim for a success rate of 2%-5%. This means that 95% of the companies that are much further developed than most ICOs will fail. With your chances of finding the dream ICO generously placed at 1%-2%, why bother.

In 2017 more than 1,000 ICOs raised about $4 billion. According to ICO Watch List, 78.7% of those used the Ethereum platform. So if you want to play the ICO game, why not simply own the gas the powers the network: Ether.

 The Ethereum Brand: Think Microsoft Corp

In a recent CNBC interview Ethereum co founder Steven Nerayoff made the comparison of Ethereum with the early stages of Microsoft Windows. Along with Bill Gates, Microsoft is one the world’s most ubiquitous brands. Side note: Microsoft didn’t reach Ethereum’s present value until after ten years of Windows.

Nerayoff cites billions of dollars being poured into as many as ten times the number of projects in 2018 over the previous year. From his vantage point these projects include a wide breadth of industries starting from financial tech, oil & gas, gaming, travel/resorts, government and various creative areas.

According to Jeremy Millar, cofounder of the Enterprise Ethereum Alliance (EEA), CEOs across the world are clamoring for blockchain technology. Millar believes most CEOs require a heavy dose of education about the new technology and that means there will be a natural demand for the largest supplier with the biggest brand- Ethereum.

A key to Ethereum’s brand leadership started last February when the EEA to connect Fortune 500 companies with Ethereum experts. Now with almost a year under their belt membership has grown to over 300. This is brand leadership in the most important market for Ethereum. Nobody else is close.

The Bitcoin Brand

Think of bitcoin as a brand like MasterCard, Visa, American Express or even Crest toothpaste. Each of these names enjoys instant consumer recognition thanks to million invested in advertising, marketing and image development. Bitcoin is unique in the sense that not a single bitcoin has been spent to advertise its usefulness.

One source claims there are well over 10,000 merchants that accept payment in bitcoin. Headliners include Microsoft Corp, Subway, Whole Foods, Intuit, Expedia, Bloomberg, Dish Network and Overstocked.

Ask First Data, Fiserv or any other payments processing company and they will attest to the difficulties of changing client habits in accepting payments. Any newbie attempting to enter the payments business will have to answer the dual questions: what makes you better, faster and cheaper then bitcoin and do you have greater consumer acceptance? Right now, bitcoin has a lead of at least two year and they aren’t sitting still.

The Bitcoin Moat Is Being Built

 Bitcoin is the king of digital currencies but the king is not perfect. There are those shortcomings like volatility and slow speed.

The start of a bitcoin futures market began on December 18. The CME and CBOE are giving everyone the ability to hedge. The prospect of reduced price volatility will attract additional mainstream retailers.

No more than a few days after futures trading began on the CME, one of the largest luxury used car dealers in Japan announced the acceptance of bitcoin. Since then the giant investment bank Goldman Sachs has created a research team and issued a glowing report on the cryptocurrency outlook. The tipping point for bitcoin has taken place.

The bitcoin moat is being built even wider by Bitcoin Lightning Network, which was released this week both increasing speed and resulting in dramatically lower fees.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
12 votes, average: 4.58 out of 512 votes, average: 4.58 out of 512 votes, average: 4.58 out of 512 votes, average: 4.58 out of 512 votes, average: 4.58 out of 5 (12 votes, average: 4.58 out of 5)
You need to be a registered member to rate this.
Loading...

4.4 stars on average, based on 114 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto.




Feedback or Requests?

2 Comments

2 Comments

  1. douglash

    January 13, 2018 at 11:13 am

    Wow, are we paying to subscribe to Hacked to get the advice, “Just buy ETH and BTC for full diversification”?

    A more sophisticated approach to diversification would be to think about various token functions as ‘sectors’ and buy 2-4 high class offerings within each sector. Example:

    Store of Value coins: Bitcoin, Diamond
    Convenient Transaction coins: Dash, Litecoin, Bitcoin Cash
    Smart Contract coins: Ethereum, NEO, QTUM, Cardano, EOS, Lisk, Ethereum Classic
    Business-friendly coins: Ripple, Bancor, Neblio, Modum
    Functionality coins: Raiden Network, BlockCat,VeChain, Walton Coin, Quantstamp
    Exchange coins: KuCoin Shares, Binance Coin, COSS, Spectre, Kyber Network
    Blockchain for the Masses coins: Everex, UTRUST, NEM, Stellar, Omise Go
    IOT coins: IOTA, IOT Chain, Golem, SPARK
    Privacy coins: ZCash, ZCoin, ZClassic, Monero, Pivx, Zen Cash
    Masternode coins: Dash, Pivx, Diamond, Crown
    Change the World coins: SALT, Substratum, Civic, ARNA
    AI coins: Deep Brain Chain, Neurotoken, Red Pulse

    I could call out a few more sectors, but you get the point. There are key differences in utility of these blockchain ecosystems. Targeting high quality coins within each sector is a far better approach, to me, than just loading up on ETH and BTC. It’s a lot of coins, but the great thing about being diversified is that you really don’t need to trade often. Every day you’re having a good day in some sector.

  2. douglash

    January 13, 2018 at 11:15 am

    *sorry, Golem and SPARK were supposed to be under AI coins.

You must be logged in to post a comment Login

Leave a Reply

Business

Uber: $120 Billion IPO?

Published

on

Uber Technologies Inc., the global ride-hailing giant, is reportedly eyeing an initial public offering (IPO) worth as much as $120 billion. According to The Wall Street Journal, the IPO could take place early next year, giving investors ample time to prepare.

More Valuable than the Auto Giants

The $120 billion value proposal was delivered to Uber last month by Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS), two of Wall Street’s largest banks. The banks were presumably advising Uber on how to position stock offerings to potential investors before underwriting the IPO.

The new valuation far exceeds the one Uber received from Toyota Motors Co (TYO), which priced the ride-sharing service at %72 billion.

At $120 billion, Uber would be worth more than the General Motors Co (GM), Ford Motor Co (F) and Fiat Chrysler Automobiles (FCA) combined. The Detroit auto giants have seen their valuations rise in the wake of the financial crisis, buoyed by a prolonged recovery and increased appetite for automobiles. However, their growth has paled in comparison to Uber’s, which was founded in 2009.

Uber’s expansion hasn’t been without growing pains. The company has been mired by regulatory bottlenecks, workplace scandals and the alleged theft of trade secrets from Alphabet Inc. (GOOGL), Google’s parent company.

It is not entirely clear what metrics the Wall Street banks used to evaluate Uber’s potential value. The company reportedly told Morgan Stanley it won’t be profitable for at least another three years, though annual revenues are expected to reach up to $11 billion this year. That’s a marked rise over the $7.78 billion generated in 2017.

While there’s no guarantee that Uber will go public in the proposed timeframe, it must issue a public offering by the end of 2019, according to WSJ sources. That’s the agreement it has in place with investor SoftBank Group Corp.

Uber by the Numbers

Uber’s startling growth over the past nine years can be represented by a few statistics. As of May 8, 2018, the company had 19,000 employees. This doesn’t include the more than 3 million drivers who are getting paid through the ride-hailing service. Since inception, Uber drivers have completed some 10 billion rides. This averages out to about 15 million rides each day. Gross bookings in 2016 alone amounted to $20 billion.

As of June, 75 million riders were using the Uber app. In the U.S. alone, adult users are projected to reach 48 million by the end of 2018. The Uber app is installed on 21% of U.S. adult Android devices.

Currently, Uber owns up to 87% of the U.S. ride-hailing market. The growth and widespread adoption of the service has opened the door to other competitors, with Lyft being the biggest. Founded in 2012, Lyft is available in about 220 cities across the U.S. as well as in major cities across Asia.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 647 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Business

Argo Mining as a Means of Diversification

Published

on

Buying Bitcoin (or any cryptocurrency) is something we talk about a lot, but earning crypto is just as interesting. There are many ways to earn crypto that allow for arbitrage-like opportunities, but the focus of this piece is on mining companies.

More specifically, Argo Mining, which is the first cryptocurrency mining company to IPO. That might not sound like a big deal, but it gives Argo a critical competitive advantage over other companies.

The Mining Industry

One thing is clear right now, the mining industry is still very opaque. Users are constantly worried about being scammed, which is very similar to how it was when trading exchanges were popping up left and right. There are numerous options out there for companies that will help you mine cryptocurrency, but it isn’t always clear what the best choice is.

You can go one of two routes: have a mining application operate on your computer, or pay for a rented service. Honeyminer is an example of a native application that works well and pays out cryptocurrency, and Argo is an example of a “shared service”. Argo operates much like Amazon Web Services does. You pay to rent computational capabilities, but your goals end up being slightly different. The business models are sound, but very different.

Where Argo’s Advantage Comes From

Argo is the first mining company to IPO, which adds a level of trust that no other company can currently command. There are so many potential risks for users that they tend to shy away from these companies. They are worried about their payment information being ripped off, withdrawal of the coins, and the costs being greater than the revenues.

By raising $32 million in their June 11th IPO, Argo has alleviated many of these worries, and added a degree of trust to their brand. They started off mostly mining altcoins such as Bitcoin Gold, Ethereum, Ethereum Classic, and Zcash, but have recently announced Bitcoin mining packages as well.

The overall goal of Argo, as stated by their CEO, Jonathan Bixbay, is to democratize mining so everyone can participate. Right now, most of the mining is done by a select few of the elites, and Argo is enabling the wealth to be spread here.

Can Argo Actually Make You Money?

The big question to answer about Argo is whether you can actually make money doing this. The costs per month could potentially be higher than the value of the crypto you mine. Sure, you don’t have to pay trading fees on them, but it is important to calculate exactly how much you are coming out ahead.

It depends on the package, but you could potentially end up paying more for the fees than you earn. The trick is to remember that the crypto market isn’t like other markets – it isn’t perfectly efficient – and there are always arbitrage opportunities if you look hard enough.

An Alternate Route to Being Long Crypto

With much of crypto mining currently being done by elites because of the massive investment involved, it is clear that Argo has tapped a massive market. The company had a waitlist of 50,000 in September, and with the funds from the IPO, they can finally finance the expansion of their operations in a way that will speed up the number of people they can bring online.

If you believe Bitcoin (or cryptocurrencies in general) is coming out of a rut soon, then this is a good way to diversify into the market. Do your own tests and make sure that you are coming out ahead after the fees, but it should be a simple way to make some extra money in what is currently an inefficient market.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.1 stars on average, based on 41 rated posts




Feedback or Requests?

Continue Reading

Altcoins

Ripple Price Analysis: XRP/USD at Risk of September Bull Run Being Completely Deflated

Published

on

  • Ripple’s native token XRP is at large danger of totally giving back the big September bull run gains. 
  • XRP/USD is capped to the upside at $0.6000. Vital near-term support seen tracking from $0.4550-0.4350.

Ripple’s native token XRP price has further been sent down to the burning south. This comes after the chunky and excessive bull run observed at the back end of September. XRP/USD had run higher by some 190%, from lows of around $0.27. Bulls managed to see a spike up, just short of $0.8000, within the early $0.7900 territory. Since this initial big trek to the north, up to mentioned highs, the price has dropped around 40%.

September Recap

There was not one catalyst behind the rocket move of around 195% in September for Ripple’s XRP. A few developments are worth recapping. Fintech heavyweight in Japan, SBI Holdings, announced their plans to launch a Ripple-powered mobile payment application known as MoneyTap. Elsewhere, London-based firm TransferGo announced they are using Ripple’s blockchain. This will be to facilitate digital currency transfer from Europe to India.

Furthermore, the litigation between R3 and Ripple Lab announced that they have reached a settlement of all outstanding litigation between the parties.  To top all the above, there was huge anticipation ahead of the xRapid product launch. This is now live, available for commercial use, allowing both individuals and businesses to access instant liquidity and low fees, using Ripple’s XRP. This trumps the traditional process of a 2-3 day wait. A sense of buy on the rumor sell on the fact was definitely observed here.

Technical Review

XRP/USD is on its journey south, looking to completely give back September’s run higher. Starting off with resistance, as can be seen the price upside has been capped at $0.6000. There hasn’t been enough momentum since the exhausted rally, to clear this chunky supply cap. Firm rejections have been observed at the mentioned resistance block since the bull run. If life kicks back into the bulls, they will need to comfortably settle around $0.7500, before then conquering $0.8000. Ripple’ XRP is still a long way away from of reclaiming the big psychological $1.00, with much supply even seen within the early to mid $0.9000 region.

XRP/USD 4-hour chart

Given current downside momentum, near-term support is now eyed from a range of $0.4550-0.4350. This is a demand zone, having proven to be the case during the fall on 25th September. The price managed to receive a bid within this area, moving back towards the $0.6000 resistance, before again faltering. Should the demand zone fail to hold, there will likely be a very fast move, back down to 0.2700-0.2500 area. XRP/USD had been within consolidation mode, for much of September, it was floating around this territory.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
3 votes, average: 2.33 out of 53 votes, average: 2.33 out of 53 votes, average: 2.33 out of 53 votes, average: 2.33 out of 53 votes, average: 2.33 out of 5 (3 votes, average: 2.33 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 31 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending