Portfolio Strategy

Bitcoin, Ethereum, blockchain, cryptocurrency – these are all terms you have probably been hearing more of in the last few months. You will hear many news agencies, family members, and social media outlets throw around these terms, but most do not understand the technology. The emergence of a new market is upon us and it is in its infancy.

We here at Robinhood Strategy understand the volatility and the sheer risk that is involved when investing in the new blockchain technology that is sweeping the globe. However, we also understand that every portfolio should have its share of high risk, high reward investments. A $100 investment this time last year would have seen your investment not just double or triple, but in fact could have increased by over 9000%. Those gains cannot be ignored. The big question investors must now ask themselves; is it too late to invest in Bitcoin, Ethereum, Litecoin and other cryptocurrencies? Lucky for you, Robinhood Strategy is here to help.

What is the Blockchain?

Some of you are completely new to the term “blockchain” and have no prior knowledge on what the the blockchain is or what it does. The blockchain is what cryptocurrencies like Bitcoin, Ethereum, and Litecoin run on. To spare you some time and possible confusion, we will do our best to simplify the concept. Blockchain is a peer-to-peer network that stores information on a decentralized platform consisting of many individual nodes. We lost you already didn’t we? To simplify even further, the blockchain uses computers (AKA nodes) to store its information on a decentralized network consisting of hundreds, to thousands, to even millions of computers all at the same time. This means no more servers to house mass amounts of information. Why does any of this mean anything to you?

Almost all of you are aware of the Equifax breach that occurred earlier last year. Millions of Americans’ most important information was stolen by hackers to which was no fault of their own, but rather the fault of trusted information to a third party source. The blockchain would essentially solve this problem by creating a system that decentralizes all of its information to every node (computer) on the network. This information cannot be defrauded or altered in any way, simply due to the nature of which the blockchain works.

In not only providing a safer and more trusted decentralized network, it allows for faster and cheaper transactions because it no longer has to go through a third party. There are plenty of benefits that blockchain technology could provide in the future, see the video below for more details.

The Power 5

There are still endless opportunities available to investors who know where to look. We have seen a rise of a few cryptocurrencies that have amassed incredible returns, but we believe that there is more to be had. We refer to them as the “Power 5.” We call them that because we believe that these 5 currencies could provide return on investments that rival investing in Amazon and Google during their IPO’s. Don’t believe us? See for yourself, and happy investing.