Investing in Blockchain Technology

What is a Blockchain?

A blockchain is basically a digital and decentralized ledger that can record virtually any type of transaction between 2 parties in an efficient, verifiable, permanent, and secure way. The first blockchain was conceptualised by Satoshi Nakamoto in 2008 and implemented in 2009 as a core component of the digital currency Bitcoin, where it serves as the public ledger for all transactions. 🙂 Since the creation of Bitcoin, the tech community has found other potential uses for blockchain technology. It can also assign title rights by providing a record that compels offer and acceptance.

The Rise of Blockchain Technology

Each of the Big Four accounting firms is testing blockchain technologies in various formats. Ernst & Young has provided cryptocurrency wallets to all (Swiss) employees, installed a Bitcoin ATM in their Switzerland office, and accepts Bitcoin as payment for all its consulting services. The CEO of Ernst & Young Switzerland stated, “We don’t only want to talk about digitalization, but also actively drive this process together with our employees and our clients. It is important to us that everybody gets on board and prepares themselves for the revolution set to take place in the business world through blockchains, [to] smart contracts and digital currencies.” PricewaterhouseCoopers (PwC), Deloitte, and KPMG are all currently testing private blockchains.

Buying Cryptocurrency

One way to ride the blockchain train is to invest in cryptocurrencies that use this technology. There are many to choose from, but the most popular ones are Bitcoin, Bitcoin Cash, Ethereum, Ripple, Litecoin, and Dash. They are all a little different. Bitcoin, for instance, is mostly used as a payment platform and may not be particularly scalable beyond being used for payments. However, Ethereum may have considerably larger aspirations because it’s an entire platform that enables savvy developers to build and deploy decentralized applications and smart contracts. With no central point of failure and secured using cryptography, applications are well protected against hacking attacks and fraudulent activities. The digital token used to buy for services on the Ethereum network is called Ether. There’s a saying that Ether is to Bitcoin as silver is to gold.

So last week I decided to buy 4 Ether. 🙂 I think the Ethereum platform has a lot of potential, but speculating in the nascent cryptocurrency market is akin to gambling due to its high risk nature. This is why I didn’t buy much.

I am now the proud owner of Ethereum. Yay! 😀 Maybe I will buy more if the price of ETH drops lower someday.

According to the, the Enterprise Ethereum Alliance (EEA) was created earlier this year in February. Its goal is to allow companies to take advantage of the scalability, security, and confidentiality of Ethereum’s blockchain technology. Some of the founding members include JPMorgan Chase, Microsoft, Intel, Accenture, BP, and Credit Suisse.

Since inception, the EEA has “grown into the largest open-source blockchain initiative in the world. As of July 18, total membership in the Enterprise Ethereum Alliance exceeded 150 organizations.” The newest brand-name members to embrace the Ethereum platform include Cisco Systems, Scotiabank, and MasterCard. 🙂

Support from large corporations helps legitimize blockchain technology and the digital currencies that run on it. I regret not buying Ethereum earlier. At the start of 2017 Ethereum was trading at $8 US. But by June it had climbed to $408. 😮 Screw me sideways! That’s a 5,000% gain! It has dropped a lot since then because the Chinese government decided to crack down on cryptocurrencies and initial coin offerings (ICOs). As of the past few days Ethereum is trading around $250 US.

Owners of Bitcoin, Ethereum and other digital currencies have experienced a rough roller coaster ride so far this year. It’s hard to know where cryptocurrencies will go from here. But in the long run I think they will become even more popular. 😀


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09/18/2017 7:01 am

I think the main appeal of bitcoin is not the technological plateform (block chain) but the fact that there is a hard coded limit on the amount that will be generated. As a store of wealth this ensure that you don’t lose purchasing power to inflation.

Ethereum doesn’t give that kind of protection :

When bitcoin was introduce, it offered a non inflationary currency outside the control of an central organisation. That is the important part, the blockchain is just the technological support.

09/18/2017 7:23 am

What exchange did you use to buy ETH?

09/22/2017 7:31 am

Big fan of your blog! I found your site a couple of years ago when I was heavy into traditional trading. Now I’m primarily a crypto trader. Really great to see that you’re exploring this world and sharing your experiences! I think QuadrigaCX has some of the highest rates out there. It’s a great place to sell but not to buy. I would suggest looking into Kraken. It’s not the most user friendly for beginners however I find it is one of the most reliable exchanges with lower transaction fees. Looking forward to following your crypto journey! -Zina

09/20/2017 12:58 pm

Where did you buy ETH? I am checking
Once I buy it how easy it is to sell and the sell proceed is deposited as cash to the payment method i originally provided? can you please share some idea. Thanks!

09/21/2017 9:29 am

Thank you very much. Appreciate it!

09/22/2017 7:42 am
Reply to  dipu

@dipu Coinbase is probably the easiest way to purchase ETH, BTC, or LTC. If you don’t mind the commission fees. (I think the base rate is about 4% on all transactions). It is super easy to cash out to fiat (aka cash) on Coinbase.
Just go to the “sell” page and enter the amount you wish to sell.
Select the wallet you wish to sell from (This would be your ETH Wallet).
Select the account you wish to deposit to (in this case, it would be your linked bank account)
Confirm the order is correct and click Sell! (Make sure you confirm all the details are correct when making an order – if you make an error in the info, especially your wallet info – there is no going back so make sure to double check.) And Voila, you’re all set. I use Coinbase for quick purchases – it’s a great place to start! Hope this helps.

09/24/2017 7:20 am
Reply to  WarriorZ

Thanks so much for the information but isn’t 4% transaction cost expensive? Also coinbase is in USA is there any difficulties to open account and buy/sell for canadian investors any idea?

09/25/2017 5:39 am

Hello fellow F35 followers!
If you are going to use Quadriga, (best fees), please feel free to use my referral link. 🙂

Thank you! Best wishes on your own journey to FI.

10/12/2017 9:03 am
Reply to  LiquidFan

Hi, I opened the account at quadriga using he link . i funded my account and putched ETH howvere i dont know how to see the details of its performance daily/weekly. I am also not sure what is this wallet thing? where can i get more information on this.Any help is appreciated

12/13/2017 7:31 am

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