Are you investing into cryptocurrencies? Consider investing in it’s infrastructure.

December 1, 2017

Cryptocurrency is here to stay. What we do not know, is which cryptocurrency will win. And if one does, when will itself get disrupted. The fiat system is now being disrupted. Just like our governments’ fiat currencies, it is just a matter of time until Bitcoin BTC is disrupted. Etherum ETH from my understanding has been created to improve upon the old BTC code. While I’m not saying ETH is better, and there are more out there, what you might want to know is that they may always be changing.

As a person who builds software for a living, I can’t imagine technologically…BTC will likely be the end all crypto… because like most software, it eventually becomes out of date. That does not mean that legacy software like BTC can’t stay around awhile. It could still be dominate for quite some time. Email is a perfect example of a legacy system, that could be updated. It’s an open protocol that anyone can use. Even though it’s archaic, it works good enough. It’ll continue to be used unless our world chooses to create and use better open protocol for communicating freely through the internet. As developers, and humans as a species, we always strive to be better and improve, so it wouldn’t be unreasonable to assume that the email protocol too some day will be replaced by something else.

So if you’re investing into BTC or any currencies, also consider this…

One way to play the game, is to not buy any cryptocurrencies at all, but invest in something entirely different. There is a famous quote by someone who made a fortune during the San Francisco gold rush. He never mined gold himself. He became a multi-millionaire though, and back then, that was an extraordinary amount of money. “The money is in the shovels, not the gold”, he said and created an empire selling shovels. He sold the underlying tools, services… the infrastructure needed for businesses to pursue their gold mining opportunities. Like Cisco Computers, they sell routers and switches that support our entire internet’s infrastructure.

To participate in selling shovels to cryptocurrency opportunity seekers, it could be as simple as investing into the companies that are support this entire business, miners, software, wallets, platforms, etc etc, there are many companies in the space racing to compete in this business. What services does the entire cryptocurrency services need to operate?

The second and most common way play the game is to continue buying the currencies themselves. Ideally finding the currency you think will be the best performing asset that fits your personal investing style & portfolio goals.

The third way, is to do a mixture of both. Investing in the both infrastructure and the actual currencies if you believe in it all.

I believe in cryptocurrencies and the positive impacts they can bring to our world. Which currency will be the best, I really have no clue.