U.S. Global Investors was one of the sponsors for the Benzinga Global Small Cap Conference that took place on December 8-9, 2020. The information contained in this article in no way represents investment advice or opinion on the part of Benzinga or its writers and is intended for informational purposes only.

CEO of U.S. Global Investors Frank Holmes was on the ground floor in the creation of HIVE Blockchain Technologies in hopes of creating a cryptocurrency ETF that allowed investors to invest in digital assets via the capital markets as opposed to directly into crypto.

Because of logistic hurdles, U.S. Global was unable to launch a crypto ETF, so the company made a major investment in HIVE which offers investors exposure to a company that mines both Bitcoin and Ethereum. Much like investors have long been able to invest in gold or silver-mining companies, HIVE is offering that same exposure to investors for blockchain and cryptocurrencies.

Holmes, who now serves as interim CEO and Executive Chairman of HIVE, explains that there is an advantage to investing in a company that is mining the cryptocurrency as opposed to investing directly in the currency.

“In a bull market, you can expect the returns to be greater from a mining stock than the security itself,” Holmes said in an interview.

He explained this is because with a crypto mining company, such as HIVE, you have things to take into account such as positive revenues and improved earnings, in addition to the value of the commodity.

What Is Blockchain Technology?

Blockchain is a relatively newer technology that combines an algorithm of coding tests with a database that stores and houses the solved solutions of those tests. Millions of programs are run simultaneously to solve these tests, by participants in the blockchain process. Whatever program successfully solves the program is rewarded with a Bitcoin.

Potential Benefits Of Blockchain Technology

Decentralized finance, or “DeFi” for short, has become the new hottest buzzword in finance. Satoshi Nakomoto, the anonymous group or person who invented bitcoin and blockchain technology, saw a need for a more decentralized control of money. In the wake of the 2007 financial crisis, Nakomoto wanted to create a system for everyday people to have power of their money.

One way that blockchain provides this decentralization is its inherent transparency. Anyone involved in the blockchain process can see that when a transaction takes place, a code is solved and so on. It’s impossible to alter information or for the purchases or transactions to get hacked.

Hive In The Future

Like Bitcoin, blockchain and DeFi are becoming a part of our everyday vernacular. As such, HIVE sits poised as a company ready to grow. While other companies may be scrambling to catch up to blockchain technology, HIVE will be able to teach them how the technology works. To learn more, visit hiveblockchain.com.

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© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



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