12-08-2021, 06:03 AM
(12-07-2021, 09:49 AM)Scooterd Wrote: Though I may not invest in Crypto, I enjoy reading the thoughts and comments of those that do.
I guess my question to all that do is - are the coins available today even going to be viable 10 years from now?
Is it better to invest in the underlying blockchain technology and sidestep investment in any individual coin?
I am by no means an expert on crypto. I know the basics but that's it.
However, in my limited understanding, it would be quite hard to indeed invest in the underlying technology without investing in the coins.
Everything else is kind of reaching for it. Lets for example look at the ETF BLOK, which is the first name that came up when I tried to find a blockchain focused ETF.
-Top holding is Nvidia. Can nvidia be related to blockchain? Sure. But as far as I know they are only manufacturing the GPUs used to provide computing power for mining. And it's a small, small part of their overall business.
-A lot of mining companies there. So basically just owning a company that produces coins. (mostly bitcoin)
-A lot of service companies, such as coinbase, which just offer an exchange where you can trade coins.
It's a confusing world, but I think all those three types above are more companies that benefit from the crypto boom, rather than companies that enable the technology to work.
Regarding if the coins will be viable, I think so yes. By that I mean the 1% of them that are actually good. 99% will fail since they have no use. But the thing is that these coins keep evolving too. Ethereum is pretty much the king in blockchain technology, with thousands of different coins (many with real usages, such as in-game currency) using their network. I can't think of another way of investing into it apart from just buying ETH, which is their native currency.
Again, I am by no means an expert in these matters.