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Blockchain Technology and Cryptocurrency Markets are Projected to see Continued Growth

T.MOGO, GBTC, BTCS, RIOT, MGTI

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, October 30, 2017 /PRNewswire/ --

According to a report published by MarketandMarkets, the cryptocurrency market is expected to grow from USD 541 million in 2017 to USD 2,902 million by 2023, and at a Compound Annual Growth Rate (CAGR) of 32.31 percent during the forecast period. The market is growing rapidly due to people's strong enthusiasm in the digital currencies. According to industry website CoinDesk, the price of bitcoin has gained over 470 percent this year. The cryptocurrency market is segmented into peer-to-peer payment, remittance, e-commerce and retail, media and entertainment, and others on the basis of end users. The report indicated that peer-to-peer payment segment held the largest market share in 2016, due to the surge in cryptocurrencies' price since 2014. Mogo Finance Technology Inc (OTC: MOGOF), Bitcoin Investment Trust (OTC: GBTC), BTCS Inc. (OTC: BTCS), Riot Blockchain Inc. (NASDAQ: RIOT), MGT Capital Investments, Inc. (OTC: MGTI).

The market for Blockchain technology, which are used to manage the databases that records cryptocurrency transactions are also expected to experience rapid growth. According to a report from Research and Markets, the global Blockchain market is valued at USD 210.2 million in 2016 and is expected to reach USD 2,312.5 million by 2021 along with a GAGR of 61.5 percent during the forecast years. The report indicated that infrastructure and protocol providers segment held the largest market size in 2016, while the application and solution providers segment is expected to have the highest growth rate during the forecast period.

Mogo Finance Technology Inc (OTCQX: MOGOF) also listed on the TSX Exchange under the ticker symbol "MOGO". Just announced breaking news this morning, "one of Canada's leading financial technology companies, today announced that it has added dedicated blockchain capabilities to accelerate its plans to integrate Bitcoin and other cryptocurrencies into Mogo's digital account as well as future new products and features based on blockchain technology.

"It's hard to overstate how disruptive and transformative blockchain technology can be for banking, as it enables a faster, more secure and trusted way to transfer data. In fact, many believe that blockchain will be as disruptive to the financial system as the internet was to the media industry," said David Feller, Founder and CEO of Mogo. "Developing new products and features based on blockchain technology and cryptocurrencies is a natural extension for Mogo as we continue to build a digital banking experience for the next generation of consumers."  

"Canadians, especially tech savvy millennials, want a safe, trusted and easy way to own and ultimately use Bitcoin and other cryptocurrencies," said Greg Feller, President and CFO of Mogo. "Mogo's app was built to provide consumers with an easy way to manage their financial health. Adding these capabilities, to our existing multi-product mobile account, will provide a compelling value proposition that is unique in Canada. Perhaps most importantly, we plan to leverage the power of our technology platform to reduce transaction costs and make these products accessible to more Canadians."

"We've invested more than $150 million building what we believe is the leading mobile-first digital account and banking experience in Canada. We have close to half a million members and one of the country's largest dedicated and experienced fintech teams of over 250 people, including a technology and product development team of almost 100 people," continued Greg Feller. "As a result, we believe Mogo is uniquely positioned to offer consumers the ability to own and use cryptocurrencies in a simple, transparent and trusted way."

Today's announcement includes the recent addition to the Mogo team of Wayne Chen, who joins as a Senior Product Manager to lead the development of Mogo's blockchain initiatives. Chen has significant blockchain and cryptocurrency experience, having previously held the position of Senior Director, Head of Product at nTrust, where he designed and developed a Bitcoin wallet and Exchange.

"We are pleased to welcome Wayne to the team as we continue to expand our capabilities in this area," continued David Feller. "Blockchain technology will clearly have a profound impact on the next generation banking experience and we are excited to begin adding this into our product and platform roadmap. We've also formed a strong legal and compliance team to support our evolution as a digital platform, and we will continue to build out this competency as the regulation of blockchain further evolves."

Bitcoin Investment Trust (OTCQX: GBTC) are the first publicly quoted securities solely invested in and deriving value from the price of bitcoin. The BIT enables investors to gain exposure to the price movement of bitcoin through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping bitcoins. Grayscale Investments, LLC the sponsor of the Bitcoin Investment Trust and the Ethereum Classic Investment Trust.

BTCS Inc. (OTCQB: BTCS) is an early mover in the blockchain and digital currency ecosystems. On August 21, 2017, the company announced it announced that it signed a non-binding Letter of Intent to merge with Blockchain Global Limited, an Australian blockchain company. BCG operates four distinct business lines, an institutional exchange platform, transaction verification services (bitcoin mining), a blockchain start-up accelerator, and a blockchain technology consultancy. BCG generated AU$5.9 million (approximately US$4.4 million) revenue in FY16, a 300% increase over FY2015 revenue.

Riot Blockchain Inc. (NASDAQ: RIOT) leverages its expertise and network to build and support blockchain technology companies. On October 17, 2017, the company announced it has entered into a definitive purchase agreement to acquire a 52% ownership interest in Tess Inc. TESS, based in Toronto, Ontario, has a team of seven engaged in developing a blockchain-based payment service for wholesale telecom carriers. The purchase reflects Riot Blockchain's efforts to own or control companies who are contributing to the development of the blockchain ecosystem. TESS is a technology company whose current business is focused on developing a guaranteed payment system using a blockchain-based escrow service for wholesale telecom carriers. Immutable blockchain terms and protocols guarantee payment and provide an alternative to the traditionally written legal agreements where it is difficult to assess financial risk profiles. The TESS platform will provide a flexible and transparent ledger that is recorded securely on a blockchain.

MGT Capital Investments, Inc. (OTCQB: MGTI) ranks as one of the largest U.S. based Bitcoin miners. Further, the Company continues to focus on an expansion model to grow its crypto assets materially. On October 12, 2017, the company announced that it has executed a new purchase order with Bitmain Technologies for an additional 2,000 S9 Antminer mining rigs, with shipment expected by the end of fourth quarter 2017. Stephen Schaeffer, President of MGT Crypto-Capital Strategies, stated, "We believe having a mix of fully-owned and investor-owned mining rigs will allow us to appreciably expand our crypto currency footprint with less equity dilution. We plan to shortly update the investment community and shareholders with further details."

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