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A couple of times now I've told you not to start buying Bitcoin again yet – but let me reiterate…
We're not counting Bitcoin or cryptocurrencies out.
Despite the recent extreme turbulence, there are many fundamentals behind the best cryptos – and the blockchain technology that backs them up could be the most disruptive tech innovation to come along in years.
This is a phenomenon you must keep up with. And we will.
While Bitcoin's price is determined the same way a stock's price is – through price discovery on an exchange – just like stocks, many other factors cause things to get much more complex.
So a lot of catalysts went into driving Bitcoin's price up close to 2,000% during 2017. And a whole 'nother set of factors drove it down from north of $19,000 in mid-December to around $11,800 today.
I'm talking about threats of regulation, actual regulation, comments from this or that government official, market manipulation, and good, old-fashioned hype.
These issues are going to get ironed out. And when I feel the time is right, I'll give you the "go" signal to get back in.
Meanwhile, current Bitcoin owners should – as the kids say – "hold on for dear life"… for the highly profitable forks that are going to keep on coming. And for Bitcoin's virtually guaranteed resurgence.
And for those of you new to cryptos or wanting to stay in on the action, there are ways to profit from this market without having to buy Bitcoin or any other crypto coin.
I showed you one way a couple of weeks ago.
And today I'm bringing you another…
The Flip Side of Crypto Investing
When we spoke back on Jan. 19, I recommended Microsoft Corp. (Nasdaq: MSFT) as a profitable way to play cryptocurrencies without the roller-coaster rides.
That's because Microsoft has made blockchain technology a key part of its Azure cloud computing platform. The system even comes with easy-to-deploy templates that allow users to plug into the most popular crypto ledgers. Microsoft also says Azure's built-in blockchain is designed to help developers write enterprise-wide applications that can integrate into existing cloud services.
But there's a flip side to "pick-and-shovel" crypto coin investing.
See, Microsoft gives us great exposure to the cloud-based software integral to the field.
Now, what we want to do is round out our crypto investments and "Buy" some hardware.
Here's the thing. Bitcoin and other cryptos are "mined" on very advanced computers with a lot of raw processing power.
Silicon Valley Breakthrough: This tiny company's revolutionary new device is expected to "change the world on a scale hardly seen in human history." It could hand early investors a $78,000 windfall in the process. Here's how to get in…
While the equipment required now is just too expensive for regular folks, when I first got involved in this field in early 2013, it was still possible to mine Bitcoin on your home computer.
Granted, you needed to buy a powerful machine and spend hundreds more to upgrade the processing power. But you really could mine your own crypto.
That's because Bitcoin mining then involved solving cryptographic math problems that a really good semiconductor could handle. But as the number of transactions and people accessing the Bitcoin network grew exponentially, the network shifted to even more expensive graphics cards.
These are the devices that make computer gaming and virtual reality so immersive. Yes, they're powerful, but not even these devices could keep pace with growing demand and the ever-increasing complexity of the cryptographic problems.
That's where my "pick" today comes in.
It's a Silicon Valley semiconductor leader whose programmable chips are being scooped up left and right by industrial-grade Bitcoin miners.
And it's a firm whose crypto mining chips recently helped it report record sales in its ninth straight quarter of rising revenue…
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.