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Should you invest in Blockchain or Bitcoin?

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I felt that it was time to write this article. In recent weeks we have seen the price of Bitcoin and similar cryptocurrencies rise for what seems like no specific reason. Sure, there were news of Russia investing in Bitcoin and various other news articles of similar “bullish” manner. Collectively, these may have been the fuel that has led to a $40B USD increase in the total market capitalization of cryptocurrencies YTD. Similarly, we have seen the price of Bitcoin go from the stagnant levels of $3700 of which it was hovering for months to the $5300 level at the time of writing this article.

While I am still not impressed by this 43% increase in Bitcoin’s price in the past three months, I am impressed by how well blockchain technology has become accepted. Before I go further, I must say why I am not investing in Bitcoin or any other cryptocurrencies for the time being. The reasons for this are as follows. First, nothing has changed. The space is still highly unregulated and highly manipulated. The powers that be are able to swing prices up or down 5-10% as they wish. I cannot tell my readers to invest in something that is so highly manipulated because there is no technical or fundamental analysis that can be used to predict these price actions unless you are a member of these “whale groups”.

Secondly, the institutions AKA the “smart money”, have decided that they like blockchain technology but don’t really care about Bitcoin per se. I do not need to dwell into reasons as though why, but the enthusiasm surrounding this sector diminished quickly. Once these guys realized that the space is essentially in the hands of greedy, and in most cases, uneducated few who have essentially have destroyed the space thanks to their greed. These are the reasons as though why NASDAQ decided not to go forward with their cryptocurrency trading platform.

Next, most of these “coins” really did not have a purpose. If you recall our research, we essentially focused on companies that provided solutions instead of random coins that were involved in pump and dumps. Lastly, one thing that I have never been a fan of has been that the value of all of these coins is tide to just one. Bitcoin. This has always been something that did not sit well with me. Yes, stocks are tied to the value of a dollar. However, the value of the dollar does not fluctuate 5-10% on a given day. Your hard-earned money shouldn’t be tied up in such a crazy web that is very hard to maneuver.

Some may suggest buying stocks of companies that are involved in the Bitcoin/cryptocurrency space. Companies such as Riot Blockchain Inc. (RIOT) and Grayscale Bitcoin Trust (GBTC), which strongly advise staying away. Why? Look at their charts. These are NOT good investment opportunities. Most of these stocks are simply pump-and-dumps or their value is a reflection of the current price of bitcoin which is also highly volatile.

So how do you invest in Blockchain?


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Dr. Tiam Feridooni

Written by: Dr. Tiam Feridooni MD, PhD, BSc Dr. Feridooni, graduated from Dalhousie Medical School in May, 2018. Prior to enrolling in medical school, he completed his Bachelor of Science with Honours in 2010 in Biochemistry. He then obtained his PhD at Dalhousie University in Pharmacology in 2014, with a focus around regenerative medicine and stem cell transplantation. Dr. Feridooni has been published numerous high impact journals and has also co-authored a few books.

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