The evolution of blockchain and cryptocurrencies in our society will have a huge impact on the global economy.
The payment network Visa announced a couple of days ago that it will allow the use of the cryptocurrency USD coin (USDC) as a payment option with them.
This announcement has a massive positive impact as it has sent the crypto market back to its all-time top value.
This is another important decision from the biggest Financial companies, including BNY Mellon, BlackRock and Mastercard, which have accepted some digital coins. In fact, 42 companies now collectively hold more than $65 billion worth of bitcoin.
Since bitcoin’s launch in 2009, the largest cryptocurrencies price has enjoyed a growth of 200% a year, making it the best investment of the last decade.
Today, Bitcoin has become the point of reference to measure all the other cryptocurrencies. There are more than 4 500 cryptocurrencies as of March 2021, compared to the few ones existing in 2013.
This shows the amount of development and energy being pushed into this new technology built around the blockchain, allowing transactions to happen and be permanently recorded without an intermediary or centralised database.
Our world changes every minute, but you don’t have to sit back and watch it happen. By putting your money to work, you can help support and gain from the growth of different industries and sectors. When you want to go into crypto for the first time, the first obstacle that you face is that you do not know where to start, given the multiple crypto options that exist.
Revix.com has solved that problem by creating what they call “Bundles” that are baskets with a top selection of cryptocurrencies that allows you to own a bit of all of them.
The fintech is backed by JSE-listed financial services group Sabvest and has been operating since 2018 in the South African market.
For example, Revix’s Top 10 Bundle is invested equally across the 10 largest cryptos, as measured by market value. This takes the guesswork out of trying to pick the next big winner in the crypto market since you own the 10 largest cryptocurrencies.
The crypto “Bundle” is automatically rebalanced each month to ensure the investment is distributed 10% in each of the top 10 largest cryptos.
What is a rebalance?
Revix’s monthly rebalancing is performed by established algorithms. This is a fully automated process that buys and sells cryptocurrencies on your behalf based on predefined rules. This process ensures that your crypto selection stays up to date with the fast-paced market. Every month, the Revix team performs a full review of all significant cryptocurrencies within their Bundles. As part of this process, they re-evaluate all major cryptocurrencies’ potential risks and recalculate the rankings to ensure the Bundles obtain the most highly valued projects on the market.
Had you invested in the Top 10 Bundle over the last 12 months, you would have seen a gain of 878%, as against an already extraordinary 627% had you simply bought and held bitcoin.
These returns are so important that many people believe they have missed the opportunity and that it is too late to invest, but history suggests this is not the case.
“When looking at past performance data, we see that each time cryptocurrencies like Bitcoin and Ethereum hit a new high, they go through a period of consolidation before hitting yet a new high. This has been the story of cryptocurrencies over the last decade,” says Sean Sanders, CEO and founder of Revix.
As value investor Bill Milner wrote, “[bitcoin] gets less risky the higher it goes” because it is still early in the adoption cycle. That’s the opposite of what happens with most stocks.
Adds Sanders: “While there are always sceptics to new technology and an investment category that has produced amazing gains, one thing has become ever clear over the years: cryptocurrencies are here to stay in a more digital world.
“Blockchain technology is one of the asset classes paving the way into the fourth industrial revolution (4IR). It has allowed people to build decentralised applications, with a multitude of use cases such as peer-to-peer financial transfers without an intermediary.”
The source of returns
Over the past 5 years, the cryptocurrency market capitalisation has grown from $19.6 billion to over $1.6 trillion: an 8 461% growth. Of this, bitcoin makes up just over $1 trillion, making it larger than the three biggest banks in the world together.
Although bitcoin grabs all the headlines, alternative coins (or altcoins, which are all cryptocurrencies that are not bitcoin) have been having even more impressive returns.
If we exclude bitcoin, the altcoin market has seen a growth of 40 681% over the past five years, which means an annual growth of 233% per year. This growth is partly due to the rise in decentralised finance (DeFi). DeFi is a subsector of the cryptocurrency industry where entrepreneurs are building semi-automated trading and lending systems atop of blockchain networks.
A closer look
The chart below shows the remarkable returns of altcoins like Cardano (up more than 5 000%) over 12 months, Binance Coin (2 490%) and Chainlink (1 486%). Each of these has different use cases. Cardano is building a strong blockchain on which to host a new financial architecture to compete with Ethereum. At the same time, Binance Coin is a cryptocurrency that fuels the Binance Smart Chain, a “centralised” blockchain owned by crypto exchange Binance that is competing with others to become the principal player in this fast-developing space.
With this growth, the total number of cryptocurrencies in existence has increased to over 4 500. In other words, there are only 335 listed stocks on the JSE, and that number is steadily decreasing. This large number of options makes it more difficult daily for investors to consider the investable universe for winners.
How do I pick a winner?
At a glance, the cryptocurrency market can be an overwhelming place, especially for those who do not have experience with it.
Much like the internet bubble of 1990-2000, thousands of blockchain-based projects are being developed. This makes it near impossible to pick the next Amazon or Google of the cryptocurrency world and, more challenging yet, hold onto them for a sustained period.
The best way to gain exposure to this asset class is through a bundle with a top selection with the largest and most trustworthy cryptocurrency projects with supported long term growth potential.
Owning a basket of the Top 10 cryptocurrencies, which currently accounts for 91% of the total cryptocurrency market capitalisation, is an excellent way to invest over the long term in this asset class.
Sanders explains, “Buying Bitcoin is great. But you know what’s better? Buying the next bitcoin. Smart investors know that being early is critical to success, and investing in cutting-edge crypto assets before they hit mainstream media headlines has been a winning strategy. With our crypto Bundles, you own an equally weighted basket of the world’s largest and, by default, most successful cryptocurrencies. You don’t have to try to guess which up, and coming cryptocurrencies will become the next Bitcoin since you’ll only a diversified basket of cryptos that get automatically updated every month based on how the crypto market has performed.”
The crypto market changes quickly
Over the past five years, only four cryptocurrencies have managed to stay in the top 10 (Bitcoin, Ethereum, XRP and Litecoin), and only one was able to significantly grow its market share (Ethereum, which grew its market share from 8.95% to 13.96%).
“We set out to solve this problem of not having to guess which cryptos will be the big winners,” says Sanders. “The best way to ensure that you own the biggest success stories is to own a basket that dynamically and automatically updates with the market’s changes. This is easily accomplished by investing in the Revix Top 10 Bundle. We rebalance the basket of cryptocurrencies each month so that new cryptos that are on the way up will replace those losing ground and knock them out of the Top 10 Bundle. This explains why the Top 10 Bundle delivered higher returns to a direct investment in bitcoin over the last year – because there were several smaller cryptocurrencies that outperformed bitcoin.”
Other ways to intelligently invest in cryptocurrencies
Revix offers another two crypto bundles focused on specific investment themes:
Their Smart Contract Bundle tracks those cryptocurrencies that enable smart contract functionality and include several cryptocurrencies that are looking to challenge Ethereum’s smart contract dominance.
Revix also offers a Payment Bundle, which provides exposure to the largest five payment-focused cryptocurrencies looking to compete with government-issued fiat currencies to make digital payments cheaper, faster and more global. These cryptos include Bitcoin (BTC), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH) and Stellar (XLM).
You can also buy and sell USDC (a “stablecoin” fully backed by the US dollar) and a physical gold-backed token called PAX gold which provides legal ownership of an ounce of gold through Revix’s online platform.
Revix brings simplicity, trust and great customer service to investing. Their easy to use online platform enables anyone to securely own the world's top investments in just a few clicks. Revix guides new clients through the sign-up process, to their first deposit and first investment. Once set up, most customers manage their own portfolio, but can access support from the Revix team at any time.
To learn more about Revix’s Smart Contract Bundle and Payment Bundle, visit www.revix.com.
This article is intended for informational purposes only. The views expressed are not and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any of the assets or securities mentioned herein. You should not invest more than you can afford to lose and before investing, please take into consideration your level of experience, investment objectives, and seek independent financial advice if necessary.