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Making money by guessing the future

One of the more interesting ways of making money is by investing in niche technologies. I did this back in 2012 after reading about Bitcoin for one year and saw impressive gains over the next couple years.

If you are nervous about buying bitcoin or haven’t – thinking that you may have missed the boat, know that there are many people who don’t use Bitcoin simply because they don’t see why they should yet.

Bitcoin is a long game; short-term investors will be disappointed. When over a long time period people really get that Bitcoin is not dropping to 0 the following day, its volatility is comparable with major government currencies and its more convenient to use with longer operational hours, they will want some.

However, inside of Bitcoin there are even more opportunities to make significant returns (and losses).

When you see technologies that solve problems in Bitcoin and are unlikely to be adopted by its core developer team, I buy it with the knowledge that people looking for better tech will buy it too.

Technologocal problems Bitcoin has today (that seem unlikely to be fixed in the near term future) are:

* Miner driven blocksize
* Deanonymisation (blockchain analysis)
* Centralisation of mining

Monero is a new monetary technology with a focus on privacy that solves these problems. More about that later.