Four Major Crypto & Blockchain Strategies for Italian Businesses
Potential entrepreneurs think that in the 2019 framework, Italy will create economic value from distributed ledger technologies. Now, there are 4 potential entrepreneurial strategies, with various risk profiles and levels of value creation for the Italian scheme – in terms of acquisition, transfer of knowledge and job creation. The four strategies include:
1. Speculative investment in cryptocurrency
A large population in Italy has heard of crypto, especially Bitcoin (BTC), the flagship digital currency globally. Recently the news broke out on many media platforms claiming that “the BTC bubble has broken out,” since the market value of BTC and several other significant cryptoassets went through a strong collection in the past one year, which many people would dub a breakdown.
The crypto investor must know the golden rule of all investors, that is to say: invest only in something that is clearly known, of which the basis is understood.
The crypto market is still comparatively small. The present market cap of Bitcoin is around $63 billion USD, which is 1/10 of Apple’s cap and 100th of the gold market. Because of that, the market is vulnerable to manipulation by big actors and characterized by lofty volatility in comparison with the traditional assets.
Also, crypto asset trading is not regulated, hence making it very easy for risky inside trading manipulations.
Therefore, the value created in the Italian scheme by a clear speculative strategy is indeed close to zero: depleted acquisition of know-how & pathetic job creation
2. Creation of products & services where distributed ledger technology (DLT) adds value
The most lucrative opportunities for a dynamic entrepreneur now are those that are associated with the ‘tokenisation’ of products and services. In summary, tokenize a product means to form one or more DLT tokens which represent rights associated with the asset itself.
When an asset possesses a lucid market value but with low liquidity, connecting the ownership of the asset to a DLT token enables the buyers to expand significantly and can soar the liquidity of the asset.
Good examples of tokenisable products include software licenses, e-tickets, certificates of ownership of collectible & valuable tangible assets, and elements of video-games.
The commercial enterprise strategy leads to the development of innovative startups which leads to the creation of massive value in the Italian system.
3. Contribute to the operation & maintenance of blockchain tech
Contributions to the operation of a DLT, in particular, the dependable certification of transactions, are compensated in encryption. Taking part in these operations is thus a way of investing in the crypto option to direct financial investment.
Bitcoin and Ethereum (ETH) use a type of certification basing on the rationale of Proof of Work (PoW). In summary, the security of these cryptos is connected to the use of a huge computing power to execute certification. And since certification is too expensive, sets it to be virtually impossible to modify existing certified transactions.
The key selection criterion is a high level of DLT know-how and the potential to form important software to support users and offer great contributions to the enlargement of the ecosystem.
Accordingly, from the point of view of a startup interested in entering the decentralized proof of stake (DPOS) world, the ability to obtain know-how and form skilled jobs is very high.
4. Provide blockchain advice
Firms which will attempt to get knowledge and create value in the aforementioned strategies 2 and 3 will be positioned to benefit in the future from the market for the supply of training and advice in the DLT space.
The opportunity is tremendous: now, virtually all giant firms resort to outsourcing IT services & consulting.
The coming of DLT, in which financial institutions, exchanges and e-commerce bulls are investing huge amounts of funds, will cause a significant demand for training, consulting and management services in the blockchain technology field, according to a report by Econopoly, a local news outlet.
Read more news about blockchain and the cryptocurrency industry of Italy in the Italian language at www.it.coinidol.com
Jan 24, 2019 at 16:17
Author Coin Idol
Heiko Closhen, Entrepreneur