How To Profit From The Coming Cryptocurrency Regulations

in #investing6 years ago (edited)

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--Regulation Will Happen, Whether You Like it or Not--

So why not buy yourself some insurance?

By investing in a company that is positioning itself to become the detectives of the cryptocurrency market you can do just that. Because more regulations mean more need of the service that Big Blockchain Intelligence provides.


What Happens When News of Crypto Regulation Hits The World?

Cryptos get beat up and drop in price.

I am no Nostradamus, but I see more and more regulation and laws for cryptocurrency in the future.

That's why I think a company such as Big Blockchain Intelligence Group
(CSE: BIGG) (NYSE: BBKCF) might be a good, if speculative, investment to counteract any drop in your cryptocurrency portfolio.

They are forging a path in the emerging crypto-policing field.

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First, they have created a proprietary method to grade crypto addresses and wallets called BitRank. Think of it like a credit score, but for cryptocurrency transaction risk.

See, there is a USA anti-money laundering (AML) law that was designed to lessen money laundering. Banks have to comply with these laws or else suffer the wrath of the Federal Government.

They have to report suspicious financial transactions so as to lessen the ability of income from illegal activities. You don't have to like it, but it is the world we live in.

Now along comes crypto and banks are wondering how to comply with AML and KYC (Know Your Customer) laws as money is flowing into and out of the crypto markets. Some choose not to deal with it and block related transactions. Others allow it but hope the feds don't look too closely at them.

But if they sign up to use Big Blockchain's BitRank rating they can say they are being compliant AND have access to the millions of dollars worth of banking that the cryptocurrency market is demanding.


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Cryptocurrency Forensics

BitRank is really just a commercial product derived from the company's flagship product - QLUE.

QLUE is a full suite of cutting-edge tools that enables the end to end of Cryptocurrency Forensics Investigations. It aids in the fight against financial crime involving Bitcoin, and in the future, other cryptocurrencies.

They have just opened an office in Washington D.C. to ramp up its activities at the Capitol.


Increased Cryptocurrency Adoption WILL Mean More Regulation

All new technology starts wildly free and becomes less so as it gets more popular.

Think about the dawn of the airplane. At first, if you had a plane you could just hop in and fly without any license whatsoever! Then, gradually, more and more laws were put in place. Often these laws were made shortly after negative events such as crashes and other scandals.

It happens with other technologies too. Guns. Cars. Booze. The internet. Heck, most people can't even put a shed in their backyard without a government permit. What would a person from 1810 think of it all today?

I see Bitcoin and the rest of the cryptocurrency market undergoing the standard lifecycle of development… and I believe that will mean increasing government regulation. Similar to car insurance, gun control, internet regulation and all the rest.

Do you remember the WannaCry ransom virus from early 2017? The one that would unlock your computer files if you paid a Bitcoin ransom? Well, plenty of that sort of stuff continues to go on. How long until the populace cries out for the government to increasingly regulate Bitcoin? I see it happening.

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At a current price of 20 cents per share, down from a high of $1.60 in December, I think it may just be worth a small investment.

It is plenty risky at this juncture but with $20 million in cash (no long-term debt) and a current market cap of just $21 million, you are basically buying a dollar for a dollar and getting the business for almost free.

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Plus, the CEO was interviewed by Bloomberg Businessweek and had this to say of Steemit:

If such services as DTube and Steemit are successful enough, their bigger problem may be YouTube’s or Facebook’s cash hoard, says Lance Morginn, CEO of the Blockchain Intelligence Group

If you are curious, you can check your own BitRank by going to BitRank Verified and entering your Bitcoin or Ethereum address.

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@OriginalWorks

I have some money in my ira I’ve been looking to invest I’ll look into this. I think it’s a long shot though

Sure, they have a lot to prove. But since they are trading near just their cash balance I think the risk is lowered.

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Yes, and you already can!

Crypto regulation, don't matter if we like it or not, will increase the trust of the general public in the cryptomarket. Which of course will attract lots of fresh fiat market.
Maybe something like this could trigger the next bull run!

I believe that the crypto market will go lower still before it rises again.

Interesting post @getonthetrain. Thank you.

I haven't started investing yet but I've made a note of it and the Big Blockchain Intelligence Group as a possible place to invest.

Cool. Let me know if you do become an owner.

I agree with you. More regulation is needed before Crypto mass adoption will really take place. Too many stories about people losing there money have scared away a lot of potential crypto users. Looks like a good product too. Definitely worth a look.

In most people's eyes, regulation means "good"

But yeah, crypto is full of scams and crap coins.

so you mean we should go in when there are no regulation and come out to hunt to next one when regulations are there ;)

The more regulations, the more services like what Blockchain Intelligence are needed.

indeed, I agree with you.

Solid analysis as usual buddy!

Thanks, buddy :D

So true about the regulation and a nice angle to get into the cryptospace. I will add the company to my watch list and do some investigation in the meantime....great find.

Speaking of regulations, we will see a surge in security tokens as a result. I love polymath and will make a decent investment shortly. They have teamed up with TZero and will reinvent Wallstreet in the years to come....that's where the real money is at.

Keep me updated!

Thanks @getonthetrain for sharing this. I imagine there will be huge obstacles in the form of tighter Regulations... as you say. I know in India they have seen some of that from what I have gathered

Yeah, you might not like it but it is coming. I liken it to robots taking the jobs. It's coming so why not own the robots?

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