The options are growing for investors who are excited about the cryptocurrency trend but don’t want to invest in individual names like Bitcoin (CRYPTO: BTC).
In this video from “The Virtual Opportunities Show”, registered on December 21, 2021, Fool contributors Asit Sharma and Demitri Kalogeropoulos highlight another investment choice, which focuses on blockchain infrastructure projects.
Asit Sharma: It was on CoinDesk.com. The title is “Peas Parachains Go Live, Capping Yearslong Tech Build for Ambitious Blockchain Project. “Now I think that’s part of what Demitri was talking about. Either you spend a lot of time in this space to understand all the terminology, the various investment opportunities, or you are a bit slow to discover this space. the title itself, which I probably would have understood a little a few months ago, let alone a year or two ago but I’ll explain it.
Basically, Polkadot is a technology behind different blockchains, it links them together. It has a technology called parachain, which basically consists of creating a network that runs along a mainnet so that it can differentiate itself from the characteristics of the main blockchain, while remaining compatible, always harmonious. This in some ways solves the problem of one blockchain technology over another. East Ethereumtechnology superior to Solanatechnology ?
These are large-scale battles, but there is a lot of space in the digital asset arena for blockchain technologies to have different versions of themselves alongside. They basically worked on five of these parachains, these parallel networks. They are called Acala, Moonbeam, Parallel Finance, Astar, spelled ASTAR and Clover.
I think that’s a difficult name, that last name, Demitri, because there is a really good little coffee company that Starbucks bought, who had designed a super advanced coffee machine with lots of variable controls. I think they bought this to take out their competitor, but it’s called a shamrock. You can still order shamrocks from various biggest Starbucks around the world and also to fund corporations so I’m not sure why they took on such a common name that already has different brands and uses associated with it.
Nonetheless, these are really interesting names and the parachains are really centered around DeFi, so financial investments and decentralized lending according to this article. I wanted to talk about this just to say that this gives you an example of the innovation that takes place in space, and that it doesn’t have to be an environment where everyone wins. You don’t have to try to solve this huge question. Will Bitcoin ultimately be the primary digital asset, or will Ethereum be the primary digital asset, or will it be Cardano or Solana become the dominant assets in which everyone wants to invest? I think there is room to diversify over time into a number of different blockchain technologies, different digital assets that will remain. I think some of these technologies really build ecosystems that are investable.
They attract capital like you were talking about, Demitri, they attract enthusiastic early adopters, they are design engineers, and as they build they are also a little bit aware of the different kinds of regulations that pike. at one point. Some of the newer technologies are really trying to design themselves, so when that big hammer falls, they will continue. I guess my post is very similar to yours in this first post I wanted to share.
There is a lot to learn, you can take it easy. My little addition to yours is that it’s not the winner who takes it all. If there is one part of the digital asset world that really catches your interest as an investor, if you are interested in, for example, decentralized finance, then maybe something like a Polkadot is right for you. and there are other companies that are leading the way in decentralizing finance.
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