The Bitcoin market continues to expand, and while traditional finance continues to ignore it and the crypto market seeing it as something that needs to be innovated away from, the fact is it continues regardless. We are now passing through our 3rd post halving bull run, and as each bull run sucks in more capital and creates a frenzy, it also creates new paths towards Bitcoin.
Things have seriously changed since the last halving, never mind the previous one, and our opportunities to invest in Bitcoin continues to grow. For some like myself, you still believe the asset is the best place to bet on the growth of Bitcoin, but for others, they may want to look at other Bitcoin adjacent investments.
Either to diversify their holdings or to try and get Bitcoin exposure without having to hold the asset.
Mining operations
In previous years it was still feasible to invest in your own mining rig and join a mining pool. Still, as the industry grew and became more competitive, that opportunity moved towards more industrial operations. Bitcoin mining is now concentrated in places with cheap energy, renewable energy, waste energy or conditions that allow you to conserve energy.
As the industry becomes more robust and business starts to get involved, there is an opportunity to invest. As people invested in Gold miners to get access to the future returns of that gold, so too can you invest in Bitcoin mining operations.
As with gold operations, Bitcoin mining operations carry risk, and managing your expenses and balancing when to sell to secure more capital is a delicate process.
There are also options like the Blockstream Mining Note, an STO that allows you to buy a certain amount of hash power; that hash power will eventually be paid back to you in Bitcoin.
Private equity
As more companies look to Bitcoin as the new financial system, they’re building platforms, services and products around it. These companies range from Neo banks, exchanges, dapps and wallet providers, for example. You could capitalise on their growth by investing in Bitcoin-based companies while still small and undervalued should Bitcoin become a world reserve currency.
Public equity
Crypto is moving out of its primordial ooze phase, and the Coinbase direct listing was proof of that. They may be one of the first, but they surely won’t be one of the last crypto companies to list on a stock exchange. You could secure their shares and enjoy the price appreciation over time or the dividends they may be paying.
Besides, you could grab stocks in Bitcoin-friendly companies like Microstrategy, Square, Tesla or PayPal.
ETFs and paper Bitcoin
For those who don’t want to spin up wallets, hold their own keys or deal with exchanges and their possible liquidity issues, there are now paper Bitcoin products you can look into, like the GrayScale Bitcoin Trust or Skybridges Bitcoin fund. We’ve also seen a Canadian and Brazilian ETF which means you can own this in your personally managed funds.
Bitcoin investing is coming for you
Whether you like it or not, the asset has performed remarkably well under these conditions, and more investors are FOMO’ing in and capitulating. As products like the ones I mention above continue to grow in popularity, we will only see an improvement in Bitcoin services and products, making the ecosystem that much better.
