Editor’s Note: Matt and Wayne are presenting today at an investment conference in NYC called Finovate. They'll be revealing the latest version of CrowdabilityIQ, the world's first "stock-screener" for private companies. So today, we'll be re-publishing a popular article from their archives--an article about a smart way to get involved in a new type of alternative investment: Bitcoin.
Bitcoin’s had a rough go of it lately.
In November 2013, the digital currency traded at nearly $1,000.
Today, it trades at about $250 — that’s a 75% plunge.
Could two major events in the coming weeks serve as catalysts to propel bitcoin’s price higher?
But as you’ll learn in a minute, we’ve identified an even better way for you to profit from bitcoin’s potential.
If you wanted to buy bitcoin today, you’d go to an online “bitcoin exchange.”
These exchanges are just websites – and while they’re useful for small trades, they lack the level of technology and compliance functionality that institutional investors like JP Morgan or Goldman Sachs require.
As just one example of a compliance “mishap,” look at what happened to Tokyo-based Mt. Gox:
Mt. Gox used to be the largest bitcoin exchange on the planet.
Then, late last year, Mt. Gox was suddenly forced to declare bankruptcy.
It soon admitted that more than $409 million in customer funds were lost.
A Noble Partnership
But now, thanks to a recent partnership between the NASDAQ and a New York-based company called Noble Markets, everything is set to change for the better.
The NASDAQ has agreed to license Noble Markets its core securities exchange technology. Noble Markets will use this technology to power a sophisticated new bitcoin exchange.
Noble is headed up by an industry veteran named John Betts. Formerly, Betts spearheaded the development of electronic trading platforms at Goldman Sachs, Morgan Stanley and UBS.
Once this new exchange is launched, many folks believe that individual investors might find the confidence to enter (or re-enter) the bitcoin market – and it’s possible that institutions might finally start getting involved, too.
If this scenario plays out the right way, this potential influx of new capital could provide a substantial near-term catalyst for higher bitcoin prices.
But there’s also another short-term catalyst that could cause bitcoin prices to go higher...
Bitcoin Goes Public
Next week, a new bitcoin fund is set to begin trading.
It’s called the Bitcoin Investment Trust, and it will trade under the symbol “GBTC.”
The fund currently holds over $100 million in bitcoin.
It will allow investors to speculate on the price of bitcoin – and they won’t even need to hold the underlying currency.
Technically, GBTC isn’t considered an ETF (it’s more like a closed-end fund), but it will be the industry’s first exchange-traded vehicle that tracks the digital currency.
Many are calling it “bitcoin’s golden moment” – the moment when bitcoin finally goes mainstream.
A Better Way to Play Bitcoin
While either of these announcements might cause an upswing in bitcoin’s price, we’ve identified what we believe is a better way to play the digital currency trend...
The excerpt below is from a recent research report we published on this unique opportunity:
Mine for gold, or sell picks and shovels.
History has shown that you can make money doing both...
But selling picks and shovels provides solid returns with less risk.
To employ the “picks and shovels” strategy with bitcoin, you’d invest in one
of the hundreds of companies that have cropped up to service this explosive,
new market – from new bitcoin exchanges, to secure applications that store
If you believe in the long-term potential of bitcoin, but can’t stomach the
short-term volatility, this is precisely where you should be looking for
In this research report, we provide readers with a specific investment idea they can use, right now, to invest in a basket of these bitcoin “picks and shovels” companies.
And to thank you for being a loyal Crowdability reader, we’re giving you access to this report today, for free.
We hope you enjoy it!
Please send us your feedback and questions in the comments below this article.