Back in August 2016, I wrote an article titled “Rise of the Crypto Currencies”, at the time, Bitcoin was trading at $585 per coin, whilst Ethereum (the second largest cryptocurrency by market capitalisation) was $11.32. Since then, cryptocurrencies enjoyed a spectacular rise in late 2017, followed by a spectacular crash in early 2018.
Many mainstream commentators saw the 2018 cryptocurrency crash as vindication for their years of extremely negative commentary on cryptocurrencies. However, the lowest level that Bitcoin traded during the 2018 crash was still more than $3,000 USD per coin.
As someone who’s been watching the cryptocurrency space for quite some time now, I’ve learned that its nearly impossible to kill off any particular cryptocurrency, let alone the whole concept of cryptos themselves.
It is no surprise then, that cryptocurrencies have started to rise once again, breaking the downtrend formed over the past 15 months, with bitcoin recently rallying back above $5,000 USD per coin.
There has been relatively little news that could have spurred the current upwards move in cryptocurrencies, other than perhaps a technical break of the 2018 downtrend. Additionally, there has been a gradual but palpable pickup in the use of blockchain technology by existing businesses and institutions.
There is a strong chance that first generation cryptocurrencies are replaced at some point, with many extremely intelligent people constantly trying to think up improvements. However, there is a strong likelihood of digital currencies continuing to grow into the future, especially with the inherently depreciating nature of fiat currency.
Whilst it can be daunting using a cryptocurrency exchange (especially with some of them facing issues in the past), there are other options for those looking to gain exposure to the crypto space. For example, there are several ASX listed companies that enjoy some exposure to blockchain technology, and cryptocurrencies themselves:
DigitalX Limited (DCC.ASX): This is a blockchain and cryptoasset finance company with offices in Perth, Sydney and New York. The company offers advisory services for new token offerings, asset management focused on blockchain and crypto assets, and development and media services.
As of the 28th of February, the company also held around $2.5 Million USD of digital assets, primarily Bitcoin, which is likely to have appreciated in value since then.
Animoca Brands Corporation Ltd. (AB1.ASX): publishes globally a portfolio of mobile games and subscription products including several games and e-books based on popular intellectual properties such as Garfield, Thomas & Friends, Ever After High, Doraemon and many more. The Company is based in Hong Kong and Finland. They have recently started incorporating crypto technology into their games.
Fatfish Blockchain Limited (FFG.ASX): is a Southeast Asian and Australia based Internet venture investment and development firm. They have an interest in several blockchain technology ventures.
There are several other companies as well for those interested in the space, with listings such as MBM.ASX, YOJ.ASX, 8CO.ASX, and many others. With cryptocurrencies starting to rise again in price, it is unsurprising that some of these companies are also starting to rise as well.
It is worth noting that cryptocurrencies are extremely volatile in their price movements, and any investment into the crypto-space should be considered as high risk.