What are cryptocurrencies?
CRYPTOCURRENCIES
Cryptocurrencies are digital currencies that exist on decentralized computer networks. They allow anyone to freely exchange value and information without the need for third parties, facilitating peer to peer exchange without any central points of failure or control. The underlying technology that has made this possible is known as blockchain or distributed ledger technology.
BLOCKCHAIN
Blockchains are decentralized computer networks, consisting of participants that verify, maintain and secure all transactions and changes made within the network. It is this decentralized verification system that enables the free transaction of value and information without a trusted third party like a bank or a notary.
The blockchain explained
The blockchain is a public ledger where all transactions and changes are grouped in blocks. Together these blocks form a chain, representing the complete history of the ledger. This is where we get the term blockchain from.
This short video explains what a blockchain is and what different innovations we can expect utilising this technological breakthrough.
Why we invest in cryptocurrencies
The practical applications of cryptocurrencies are boundless. There has been more than a billion dollars invested in companies building new businesses on top of these cryptocurrencies. However, we believe that there is more potential value in investing directly in the cryptocurrency networks themselves as opposed to investing in these various companies. After all, every successful business built on top of a cryptocurrency will add value to the entire network.
PROTECTION
During times of economic crisis and uncertainty cryptocurrencies tend to thrive. As an independent store of value, cryptocurrencies can act as a good hedge against currency instability.
FLEXIBILITY
Cryptocurrencies can be traded at any moment in time, the market never closes. This high degree of liquidity makes our cryptocurrency portfolio highly flexible.
GROWTH
Developments are moving extremely fast and are constantly gaining more traction. We also expect an increased adoption of the different applications of cryptocurrency over time.
DIVERSIFICATION
Diversification is an important aspect of a good investment strategy, as it spreads risk and reduces volatility. Cryptocurrencies offer diversification for any investment portfolio.