May 20, 2015

Five Reasons to Invest Digital Currency


In January 2015, NIN Ventures let Bitcoin owners attain liquidity via SnapCard in return for investment in the NIN Ventures Technology (QP) Fund. Given the popularity of that initiative and the momentum behind other digital currencies, we have now opened doors for Litecoin and Dogecoin owners to invest in NIN.VC.

Bitcoin is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence. Bitcoins current market capitalization is approximately $ 3.31 billion.1

Litecoin is a peer-to-peer cryptocurrency and open source software project released under the MIT/X11 license and inspired by Bitcoin. Litecoin differs from Bitcoin in aspects like faster block generation rate and uses a proof of work scheme. Litecoin has a current market capitalization of approximately $ 57.17 million.2

Dogecoin is a peer-to-peer open source digital currency and falls under the category of altcoins. Dogecoin is scrypt based (i.e. based on a password key) and enables fast payment to anyone across the globe. Dogecoin has a current market capitalization is approximately $ 13.33 million.3

So why should digital currency owners invest?

Digital Currency Instability
Bitcoin has plummeted about 80% in value since its peak just over a year ago and has been gradually declining ever since. At it’s peak on November 30, 2013 the price of Bitcoin was roughly $ 1,124.76 and on May 19, 2015 the price was $ 232.79.4

At its peak on December 4, 2013, the price of Litecoin was $ 39.59 and on May 19, 2015 the price had dropped to $ 1.45, which is a 96% decrease in value.  Litecoin is also gradually declining in value given it is highly influenced by Bitcoin.5

At its peak on January 21, 2014, the price of one DogeCoin was $ 0.0019. A year later on May 19, 2015, the price was $ 0.0001, which shows a 94% decrease in value, as it follows Bitcoin and Litecoin.6

There are many vendors that accept Digital Currency eg. Target, Apple, Tesla, but NIN Ventures is a unique opportunity for them to invest or attain liquidity instead of just spending it.

Tap into Venture Capital 
Investing in Venture Capital means investing in groundbreaking technologies that have tremendous growth / return opportunities. Traditionally, venture capital had been the domain of the wealthy and institutions but with NIN.VC digital currency owners can now tap into the venture capital asset class with a low minimum of $ 100,000.

Return on Investment
All digital currencies experience a high degree of fluctuation, thus investing your digital currency can result in a higher degree of stability and / or returns. An individual's traditional portfolio consists of stocks and bonds. Historically, if you look at United States Venture Capital Index and S&P 500 you will notice the USVC Index tends to outperform the S&P 500 and they also have an inverse relationship. Thus adding venture capital to ones portfolio will help mitigate that risk and yield higher returns.

Harvard & Yale are the biggest and best performing Endowment Funds. Their long-term approach and investments in alternatives (e.g. Venture Capital) allow them to achieve true diversification and help mitigate the risk involved in having only a stock-bond or digital currency portfolio. With NIN.VC digital currency owners can now invest like Harvard and Yale.8

     To invest in NIN Ventures using Bitcoin, Litecoin, or Dogecoin via SnapCard, one must first sign up on and verify accreditation. The next step is to complete the subscription documents, then select payment with SnapCard and the type of currency i.e. Bitcoin, Litecoin, or Dogecoin. Given the daily fluctuations in digital currency pricing, the settlement price will be based on the day of the initial / final close of the fund.

 Market Cap,
 Market Cap,
3  Market Cap,
 Historical and Closing Price as of May 19, 2015,
5  Historical and Closing Price as of May 19, 2015,   
6  Historical and Closing Price as of May 19, 2015,
7  Cambridge Associates LLC, Dow Jones Indices, Standard & Poor’s, and Thomson Reuters Datastream. The Cambridge Associates LLC U.S Venture Capital Index is an end-to- end calculation based on data compiled from 1,420 U.S. venture capital  funds, including fully liquidated partnership, formed between 1981 and 2012. 
8 Harvard and Yale 2008-2013 Endowment Report