The end of 2017 and into the beginning of 2018 has brought new terminology into the mainstream. That terminology is Blockchain and Cryptocurrency (or “crypto” as the kids are calling it). The market went through its typical hype phase where merely mentioning either of those buzzwords would see blockchain stocks soar to unthinkable heights.
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Now that investors have had a taste of this sector and have become much more familiar with the market, it comes as no surprise that what “crypto 2.0” will bring is a waive of traders using due diligence and investigative research to make investment decisions. This is in stark comparison to simply depending on hype as many cryptocurrency & blockchain-tech investors did early on.
The rising market cap of cryptocurrencies and initial coin offerings, greater demand for simplified business processes, transparency as well as the ability to handle faster transactions has greatly added to the attention on this new industry. Surely the digital currencies have become more mainstream, but it has been blockchain technology that has taken center stage to become the next global disruptor.
Blockchain-as-a-Service is also showing to be able to fuel the growth of this market. The further adoption of blockchain for communication service providers, the growth of international trade, supply chain management, and greater acceptance of blockchain for payments, has created real opportunities for the advancement of this market. This has been a main reason as to why investors are doing much more research into the real viability of some of the underlying companies.
The Informed Investor Will Be the One to Profit
Unlike companies like Long Blockchain Corp (LTEA) who literally changed their business model over night to capitalize on the hype phase of the market early on, you’ve also got companies like Block One Capital (BKPPF) (BLOK.V) who are making a real play at the ground floor of the blockchain/crypto opportunity.
It’s important to keep in mind that the global blockchain market size is expected to grow from $315.9 million in 2015 to $20 billion by the end of 2024 according to research from Transparency Market Research. The demand for what’s known as “distributed ledger technology,” has increased based on the technology being capable of greatly reducing total costs of business transactions, for example.
Where Block One Capital has come to play is dually in the technological advancements of blockchain technology in addition to capitalizing on the rising prices for cryptocurrencies by leveraging digital mining options. Right now the company has three key divisions that could be very ripe for revenue generation:
Finzat Block LLC: A Blockchain Solution for the US Mortgage Industry
Block One acquired 40% of Finzat Block LLC. The company is a New York based mortgage blockchain company and they are looking to streamline as well as digitize the US mortgage market. By using blockchain technology, they plan to deploy applications that will create a system which is Simple, Auditable, Fault-tolerant and Efficient or “SAFE”.
Since the mortgage industry is nearly a $10 trillion business, leveraging the blockchain could drastically evolve the marketplace to put in further controls. Block One Capital could quickly transform the US mortgage collateral and compliance marketplace as we know it.
TG12 Ventures Inc.: Cryptocurrency Mining
Block One has acquired the majority share interest (90%) of TG12 Ventures Inc. The company is a cryptocurrency mining company that is in the process of bringing online a cryptocurrency mining operation in the Mid-Western United States.
As blockchain technology continues to evolve industries of scale, TG12 will be taking advantage of the more near-term opportunity with cryptocurrency mining. The company has already received the first shipment of miners and expects that 1,000 miners will be operational by the end of March. Think about this for a moment: the global cryptocurrency market is over $300 billion, and you have things like Bitcoin that have paved the way for exponential growth of other digital assets across the globe.
CUIPO: A Social Initiative for Rainforest Preservation
Block One acquired “up to 40% of OMAAT LTD. dba CUIPO.” This is a company is based in London UK and uses blockchain technology to digitize and democratize the purchase and preservation of natural land assets. It’s a interesting market in and of itself whereby the distributed leger system could play a vital role.
CUIPO specializes in developing technologies and infrastructure to save and protect endangered lands. The initial target is to scale the company via its registered brands: Cuipo, Dance for One Meter, and CuipoCoin to protect 1 billion square meters of rainforest.
The Future of Blockchain Technology Is Closer Than You Think
But as many have come to find, explaining the future possibilities of blockchain today is like trying to explain the future possibilities of the internet in the early 90s. This is still a very obscure industry yet the opportunities for blockchain technology to infiltrate and enhance every day life are greatly abundant.
A recent IBM commercial about how food safety is improved when food can be tracked on the blockchain does little to educate anyone on what that technology is but it has brought this idea into the mainstream.
North America is expected to be a key driver to the increased global revenue of the blockchain technology market in the coming years. The general acceptance and appeal of blockchain technology in the United States is also likely to boost the regional market in the coming years.
Also keep in mind that you’ve got Asia-Pacific on the heels of universal adoption of cryptocurrencies and further advancements in blockchain applications. It would clearly stand to reason that the entire world is on the verge of a real paradigm shift with blockchain technology taking a leading role.
Right now, there are numerous early stage opportunities that are presenting themselves that could later lead to a healthy mergers and acquisitions climate via possible roll-up strategies by larger companies like IBM, Cisco Systems, Oracle, and even Apple. Just like the dot com boom at the beginning of the 21st century, small, key players could offer the greatest opportunities for investors willing to take on some near-term risk.