Note: Now that the holidays are right outside the door, we’re giving Tony two weeks off. You can read his next column of the latest investment ideas on the underlying blockchain technology on Monday, 7. January.
Cryptographic money, including Bitcoin, has been well minted this year. But this has not prevented more and more companies and businesses from accepting crypts as a means of payment.
In fact, Ohio became the first state to accept cryptocurrencies. Businesses there can now pay their business taxes – from tobacco excise taxes to taxes on employees – in Bitcoins.
The states of Arizona, Georgia and Illinois are also considering allowing taxes in cryptocurrencies, but the effort is currently stuck in bureaucracy.
In any case, this is an important victory for Bitcoin, made even more important by the fact that it has official government approval. The message is clear here. Cryptography is a legitimate form of digital money that anyone can use.
Some industries are more prepared than others to innovate with digital currency and cryptocurrencies. No one more than insurance companies.
Insurers are so buried in the mountains of paper and sensitive consumer information that they are perfect candidates for automation.
Innovation is always in small steps, and the far-sighted State Farm has already begun integrating its basic cryptocurrency technology – the blockchain – into its claims, data storage and payment system.
In fact, State Farm is the first insurance company to involve the bloc chain in its “claims transfer” process. This means when one insurance company settles debts with another.
Let’s say you have Allstate car insurance and you have an accident with someone who has State Farm car insurance. When Allstate pays State Farm, it is called a “transfer of claims.”
In a recent announcement about its blockchain initiatives – and how they could speed up claims processing, let alone reduce costs – the company said:
“State Farm is working on a blockchain solution that should speed up the claims transfer process. The company is testing the solution and comparing it with the current claims transfer process to see if it would be a good product for insurance companies and if it would add value to our customers.”
“State Farm is working with another insurer to investigate how the blockchain solution works between different companies and reduces the time it takes to complete the claims transfer process: securely and automatically calculate, balance and regularly transfer individual payments between insurers. lead. “
State Farm may be the first, but it won’t be long before they have a lot of society.
Venture capitalists have also begun to notice.
Venture capitalists, especially Silicon Valley mega-criminals, are among the smartest investors in the world. They need to be, because they usually invest their own wealth alongside high-equity investors.
And right now, venture capital is pouring huge amounts of dollars into the blockchain; basic technology that seeks to turn cryptocurrencies into a secure, safe form of money.
An Outlier Ventures report, “Q3: Block Chain,” said venture capital has invested $ 2.85 billion in 119 deals in 2018 alone. in the third quarter of.
This corresponds to an average annual increase of 316%!
Outlier Ventures is a European company. If you have read my recent Weiss Rating column, you know that the world is abandoning cash and Sweden is leading this attack . The possibilities of blockchain companies have already been written into this starting megatrend.
In the words of one of Outlier’s partners, Eden Dhaliwali:
“This quarter, we saw a significant negative sentiment regarding the tokens used from an investment perspective. Many investors are frustrated by the regulation and valuation of tokenized networks. This is a sign of a new shift back to equity-based blockchain investments until sound business models. “
My idea is simple: Don’t stack cryptocurrencies and blockchains in one investment box. They are VERY different and some of the biggest cryptographic gains can come from investing:
Honestly, I think investing in blockchain stocks can make more money than investing in cryptocurrencies.
Remember, every time Bitcoin crashed like it did recently, financial analysts climbed in the door and window to announce, “Bitcoin is dead.” And they were wrong every time.
And remember, before every big crypt bull market, we’ve seen more and more people actually using crypts – as we now see in Ohio and State Farm. I suggest that we start talking a lot next year about who has received cryptocurrencies next.
When Bitcoin and other digital currencies get back on their feet and their prices start to rise, it’s just a cherry on the cake for the companies that are storing its technological bricks.
In the meantime, find out about the strategy that has surpassed Bitocin 6: 1 in the last two years by clicking here .
Translation: Lucreds Plus OÜ