Bitcoin is ‘95% speculation’? Understand why big companies invest more and more in blockchain and cryptocurrencies and see how to profit from the 5 most promising

This week, Neel Kashkari, chairman of the Minneapolis Federal Reserve, said at a press conference that he sees no use for the bitcoin, the world’s largest cryptocurrency by market value. Furthermore, he said that this segment of assets is one of the ones that contributes the most to scams and frauds happening and that “95% of cryptocurrencies are fraud, speculation, noise and noise”. Really?

Kashkari’s speeches on Wednesday (18) even impacted the price of bitcoin, which fell by more than 5% in the hours that followed the statements. But after that, the The world’s most famous cryptocurrency recovered. This Friday it rises 8%, being traded at more than US$ 48.5 thousand.

As much as the Fed director’s claims are weighty, those who follow the crypto segment consider them somewhat unfounded. Proof of this is that big companies are investing heavily in front of the blockchain, developing solutions with this technology intrinsically linked to cryptocurrencies.

Global retail giants Walmart and Amazon, for example, recently announced openings seeking blockchain and cryptocurrency experts. “Having significant knowledge of the cryptocurrency ecosystem and the players involved in the sector is a differential,” says the supermarket chain’s announcement.

Are these leading companies in the market investing and spending time on something that “has no use”? I understand that these companies do not give “no knots”.

Kashkari’s opinion ends up showing a limited point of view – and one that could make him miss the technological revolution tram. Large companies already know this, so much so that they are making contributions to the sector. You, as an investor, have a choice to make: to invest or not in cryptocurrencies?

If you’re not convinced that cryptocurrencies are the future, you can simply stay out of it. If you’re right and they turn to dust in the next few years, ok, you’ve avoided losing money. But what if you’re wrong? How will you feel knowing that a small investment, something like R$500, could make you rich? Remember: whoever invested only R$ 10 in bitcoin eight years ago is now a millionaire.

See now possible scenarios of what would happen if you invested a small portion of your equity in cryptocurrencies. Again, something like R$500 or even a higher amount, as long as it is not very representative in your portfolio.

  • Worst scenario: cryptocurrencies turn to dust and you lose R$500. It’s bad to lose money, but it doesn’t compromise your equity.
  • Best scenario: cryptocurrencies prove to be a technology of the future and you get an expressive appreciation, something like what happened with bitcoin in the past. You become a millionaire with something like R$500 or R$2,500 reais.

Anyone who doesn’t follow the trend can see ships and lose the opportunity to profit….

Just as companies are eyeing blockchain technology, those interested in investing in cryptocurrencies should also pay attention to transactions.

On August 30, André Franco, specialist in cryptocurrencies at Empiricus, will release a list of 5 cryptocurrencies that have the potential to transform an investment of R$ 500 into R$ 1 million (more information here).

These are currencies that bring technological innovations and, in André’s view, have “the potential to change the way we live”. Some of them are already catching the attention of big companies. I suggest that you at least try to find out what it is about. Just sign up for free here.

Blockchain technologies can revolutionize the world and make new millionaires

Anyone who follows the Money Times must be tired of seeing the example of Axie Infinity, or AXS, around here. This digital asset was a big bet for André Franco – since the analyst placed the asset in his portfolio, on January 20, it has appreciated by almost 11,000%. Those who invested R$ 500 now have more than R$ 50 thousand reais (yes, this multiplication took place within a period of less than a year).

And the result of this cryptocurrency in recent months – which is much higher than that of the great cryptoactives such as bitcoin and Ethereum had in the same period – is due a lot to a technological revolution that it provided.

AXS is linked to what has been considered a “revolution” in the way of online gaming and payment systems in virtual reality environments. That’s right: the asset appreciated because it was tied to a game.

Previously, most game companies tried, as much as possible, to inhibit transactions between users within games involving real money. This is for an obvious reason: they had no way of controlling the negotiations and gained nothing from them. And it is precisely this problem that technology blockchain resolves within Axie Infinity, the game that uses the AXS currency.

The company responsible for AXS profits from the transactions made between them players. Instead of inhibiting the market between players, AXS gains with it, using, precisely, the blockchain system.

Anyone who has played online games knows what I’m talking about. Commerce between players involving game products and “real world money” has always existed, but the developers never provided ways for this to take place – transactions were always on mutual trust.

Now, the blockchain allows players to carry out their trades safely, without the risk of being deceived by the other, and even allows the company to profit a little from it.

Last year, the games market had a turnover of US$ 126.6 billion and, according to data from the Nielsen consultancy, US$ 200 billion in 2023. It is a sector that is on the rise. And now it’s another one of the billion dollar industries that cryptocurrencies and the blockchain are moving into.

Discover other technologies

AXS is just one of the cryptocurrencies associated with possible – not to say likely – technological revolutions.

So as not to go too far in the text, I will present another marry which, this year, is also proving to be a success: Solana is a cryptocurrency that, in 2021, has accumulated an increase of more than 4,300%.

It is attracting the attention of large companies for several factors. First, because it optimizes the negotiation of decentralized finances, the DeFis. Second, because your blockchain allows you to create apps. Finally, it stands out for having great scalability.

For those who don’t follow the tech world, terms like “DeFi” and “scalability” are hard to understand. I will try to explain here briefly.

As for scalability, it is a way to avoid overloading the network of blockchain, responsible for carrying out any operation involving the cryptocurrency.

Imagine a bank, for example, that has to have a large provider to process all customer information and to check all customer payments and transactions all day long. Cryptocurrencies do this too, and blockchains such as bitcoin still have difficulty processing a very large amount of data.

Solana is advanced in developing solutions for this. Its network excels at processing information compared to other cryptocurrencies.

DeFi is an abbreviation for the term “decentralized finance” – decentralized finance, in free translation. Simply put, the idea is to offer financial services without the need for intermediaries. Need a loan? The blockchain will be responsible for executing the contract between you and the lender. Do you need to make a negotiation contract between the two parties? Same thing: a code on the network will mediate the move.

Can you imagine how these technologies are interesting for some big companies?

In Brazil, recently, we have seen a number of retailers advancing into the financial market.

Magazine Luiza, this past week, launched a new machine, which will offer credit to retailers. Via Varejo has banQi, a digital bank. Mercado Livre operates directly in the sector through Mercado Pago. These are just a few examples.

Retailers offering credit is understandable: many people need this service to go shopping. In addition, these companies, when going into the finance sector, end up being able to profit from two points: charging for the loan and profiting from the sale.

Now, perhaps, it is clearer why the global retail giants Amazon and Walmart, as I mentioned above, are so interested in blockchain.

Investing in crypto and future technologies involves risk (but staying put too)

These two billion dollar industries – gaming and retail – are examples of how technology blockchain it can change the whole way we live.

It is clear that some sectors are unhappy… And that is one of the risks of the business.

O blockchain and cryptocurrencies are proving to be a revolutionary technology with huge potential to improve the business environment for some companies, but at the same time threaten to end others.

It’s what economists call “creative destruction”: when a technology threatens to wipe out companies or other people’s work. Remember how taxi drivers reacted when Uber arrived in Brazil. Perhaps this is the easiest way to illustrate the greatest “risk” to cryptocurrencies.

Banks, for example, may not be so happy with DeFi, since the idea of ​​the technology is precisely to decentralize the service they offer and make them available through algorithms, making part of the bureaucratic apparatus unnecessary.

Despite this, not to be left behind, most financial institutions are also investing in the study of the blockchain and cryptocurrencies. In case there is a consolidation, whoever invested in these technologies, without a doubt, will be ahead.

Nobody wants to “miss the train” of innovation. History shows us that people can even rebel against new technologies, out of fear that they will harm them. Positive changes, however, usually win. Take the case of Uber, which faced resistance from taxi drivers, but which today is a consolidated collective and shared means of transport.

In this case, the chance of winning is also yours, betting on technologies that only in the future will we know if they are winners or not. Is there a risk? Of course. But there’s also a brutal opportunity to turn a small amount of money into a hefty sum in your account. It’s like investing in the lottery, but based on fundamentals and more chances to win.

By not accessing André Franco’s event, you may be missing an opportunity… My suggestion is that you just listen to what André Franco has to say on the 30th. pity or not to buy the cryptocurrencies indicated by him.