BTCS Inc. (OTCQB: BTCS) is one of the first U.S. publicly traded company solely dedicated to the blockchain and digital asset sector. This company plans to expand and diversify its existing portfolio of digital assets to provide investors with indirect ownership of compelling digital assets, which are not qualified as securities. Furthermore, BTCS is also developing a digital asset data analytics platform aimed at providing crucial information to users, such as tracking of multiple exchanges and wallets to aggregate portfolio holdings into a single platform to view and analyze performance, risk metrics, and potential tax implications. Additionally, the company is seeking acquisition opportunities in the blockchain space.
A Plan to Follow
The company plans to expand and diversify its digital asset holdings with a focus on disruptive protocol layer verticals such as smart contracts, data storage, and Internet of things (IoT). Unlike the Internet, where the protocol layer (TCP/IP, HTTP, etc.) could not be directly invested in, the application layer (Google, Amazon, etc.) was the only investable option and where tremendous wealth was created. With blockchains, investment exposure to the protocol layer is attainable, and the company believes the protocol layer will grow faster with less risk than any single application built on top of it.
Digital Assets and their respective blockchains can be divided into distinct verticals and potential use cases such as:
- Digital Currencies: Digital currencies, the most well-known, have already proven successful for online transactions, global payments, e-commerce, remittance, P2P lending, microfinance and most prominently as a store of value.
- Smart Contracts: Smart contracts utilize transparent, open ledger blockchains, such as Ethereum and EOS, to enable the creation of platforms for numerous use cases such as digital rights, escrow, and settlement.
- Internet of Things (IoT): IoT typically refers to a network of connected devices that are capable of collecting and exchanging data. Traditional IoT systems are dependent on a centralized architecture; however, blockchain connected IoT devices can function securely and autonomously by creating blockchain-based agreements and rules that are only executed upon completion of specific requirements. This peer-to-peer architecture should allow for greater scalability, remove the risk of a single point of failure, and potentially drive wide-scale adoption.
- Data Storage: Instead of storing files and information on a centralized server, such as a Google Drive, Dropbox, Microsoft OneDrive, platforms like Sia or Storj have begun using Blockchain technology to decentralize data storage. By breaking up files into multiple pieces, encrypting, and sending them to hard drives located all around the world, individuals and private businesses can rent their unused hard drive space to generate income and users can store their data anonymously without exposure to a single point of failure.
Thorough Selection Criteria
The company plans to leverage its over six years of expertise and industry knowledge to apply a systematic approach and thorough selection criteria for evaluating and acquiring additional digital assets. The selection approach will utilize numerous criteria, including:
Organization / Team:
- People – Strong and proven development team and founders
- Operations – Transparent and well-run operations
- Media – Strong and active community following and a positive media presence
- Use Case – Sound and viable business case for the project
- Blockchain – Use of blockchain technology is both necessary and advantages to centralized systems
- Network Effect – Project acceptance should be further driven by network effects
Digital Asset Properties:
- Exchanges – Digital asset listed on established exchanges
- Liquidity – Sufficient liquidity in relation to anticipated position size
- Growth Trajectory – Compelling growth trajectory for asset utilization aside from perceived store of value
- Market Value – Critical size reached and maintained to minimize risk
In addition to BTCS’ other initiatives by focusing on disruptive verticals and applying a systematic digital asset selection criterion, BTCS believes it can offer its investors indirect exposure to digital assets, which may otherwise be challenging to achieve. If you wish to learn more about BTCS, please visit their website.