Selectcoin: Don't Invest In Bitcoin; Invest In Bitcoin Infrastructure
Summary
I am neither bullish nor bearish on the current Bitcoin bubble, but I am bullish on blockchain and the underlying Bitcoin infrastructure.
Robert Herjavec said it best: "Companies that invest in the infrastructure of converting cryptocurrency to a physical form" offer the greatest investment opportunity in this sector at this time.
Fintech Select has recently opened several physical locations to buy Bitcoin through its Selectcoin brand and plans to open thousands of locations across Canada.
Fintech Select is a microcap company that has been operating for many years but has yet to pull a consistent profit and has racked up substantial legacy debt.
If FTEC is successful in opening thousands of locations, it will not require a lot of activity per location to become a cash flow positive company.
By now, just about everyone who is familiar with the capital markets knows about Bitcoin (COIN) and the Bitcoin Investment Trust (OTCQX:GBTC). Some people are pounding the table as a buy, convinced that Bitcoin coupled with blockchain will represent the first leg of a permanent paradigm shift in the way the financial system operates. Others see it as nothing more than digital asset play money in a bubble that is about to burst.
If Bitcoin is going to replace or at least challenge fiat currency, it needs to be a perfect substitute for that fiat currency. The three functions of money are as a store of value, a unit of account, and a medium of exchange. Bitcoin has succeeded as a store of value, moving from pennies to over $10,000 per coin, making some early miners and speculators millionaires. Only time will tell if that continues. Bitcoin's volatility makes it a little bit difficult to be a unit of account as one day a Bitcoin will buy you a used Honda and the next day it will buy you a new Tesla.
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