Investing in cryptocurrency is a risky business, whether you are purchasing tokens for exposure to the market, their utility, or to earn returns from the success of a project.
While many people made a lot of money from the cryptocurrency boom in 2017, many lost their investments due to the volatility of the market.
In addition to these risks, the world of cryptocurrency is littered with false projects, exit scams, and con artists – making the market treacherous waters for new investors.
To gain perspective on the matter, MyBroadband spoke to Civic CEO and “Bitcoin Oracle” Vinny Lingham about how he values a cryptocurrency investment, and whether blockchain projects are a good investment for young South Africans.
Lingham has extensive experience in the blockchain industry and has invested in multiple projects, in addition to creating his own blockchain-based identity verification project named Civic.
Civic was funded through an initial coin offering (ICO).
People and utility
Lingham said that while he is actively investing in blockchain projects, he would not advise others on their investment practices.
“I’m an active technology investor focused primarily on blockchain projects, so I do believe cryptocurrency is a good investment for me,” said Lingham.
“However, I’m not in a position to advise others on what they should or should not invest in.”
He said a blockchain-based project’s potential depends greatly on the people behind the startup.
“For my own investments, I believe the people behind the crypto startup are what matter,” said Lingham.
“I also look for cryptos that can become public utilities.”
When asked which project he was most excited about at the moment, Lingham said he was very interested in the potential for decentralised storage project Filecoin.
“I think the next blockchain project I’m personally most excited for is Filecoin, a decentralised storage network that should go live later this year,” said Lingham.
“I invested in 2014, and I’m a big believer in the technology, the team, and what they are doing.”
Lingham is also excited about the potential of his Civic blockchain application, which could be used as a global solution for identity verification on the blockchain.
“We are working with a number of South African companies and will add more to our public partner list,” said Lingham.
“In general, I don’t think blockchain and cryptocurrencies are country-specific, but rather global solutions that can be adapted locally based on infrastructure, legal framework, and the immediacy of the problem it is going to solve,” he said.