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Blockchain Fortunes

The document discusses blockchain technology and its potential to revolutionize the financial system and other industries by creating a permanent, unalterable digital record of transactions. It also discusses how blockchain led to the creation of cryptocurrencies like Bitcoin and how companies are investing billions in blockchain adoption.

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0% found this document useful (0 votes)
59 views9 pages

Blockchain Fortunes

The document discusses blockchain technology and its potential to revolutionize the financial system and other industries by creating a permanent, unalterable digital record of transactions. It also discusses how blockchain led to the creation of cryptocurrencies like Bitcoin and how companies are investing billions in blockchain adoption.

Uploaded by

Ralf Hinzel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Blockchain

Fortunes:
The Company That Could Make You
15 Times Your Money
Blockchain Fortunes:
The Company That Could Make You
15 Times Your Money

I
N 2008, the United States faced the most devastating financial crisis since the Great Depression. It all
started when corporate banks began using their customers’ hard-earned deposits to fund risky mortgage
loans for people with poor credit histories.
Banks pooled these subprime loans and sold them as securities to investors. And for a while, everyone was
happy.
But then the housing market started to slump and interest rates shot up. Homeowners could no longer
afford to pay their expensive mortgages, so many simply stopped and waited for the banks to reclaim those
properties.
And that’s when things really went sideways.
Under normal economic conditions, banks could have resold those foreclosed-upon properties and
recouped their losses. But an oversupply in housing paired with struggling home values caused banks to take
heavy losses on their initial investments.
To make matters worse, all the money banks took from their customers to fund these bad loans
had disappeared — with no way to pay any of it back. People literally stood in line at ATMs to make
withdrawals only to walk away with their wallets empty.
“Too big to fail” banks like Lehman Brothers eventually went bankrupt, while others had to take massive
bailouts from the government. People lost their homes, their jobs and, in some cases, their entire life
savings. In fact, it’s estimated that banks lost some $16 trillion in household wealth in the aftermath of
2008.
But the most devastating loss didn’t have a dollar value assigned to it. You simply can’t put a price tag
on trust and peace of mind, and people no longer trusted the U.S. government or the financial system it
followed.
After all, what was to stop banks from once again taking customer deposits and using them to invest
in riskier investments, creating another economic disaster? With this thought in mind, people started
brainstorming ways to cut out the financial middleman.
And that’s how the idea of decentralization was born.

Blockchain: A Better Alternative


Following the financial crisis in 2008, a little-known “white paper” called “Bitcoin: A Peer-to-Peer
Electronic Cash System” released that same year. In it, writer Satoshi Nakamoto laid out the framework for
blockchain, a financial database, to autonomously manage data using a peer-to-peer network.
This database would contain digital records, or blocks of transactions, using a secured method of
cryptography. In fact, the codes used to conceal these records are so advanced, it would take the world’s
most powerful supercomputers more than 1 billion years to crack them!

1
In one neatly packaged article, blockchain offered people a way to gain back the trust they’d lost to the
traditional banking system. That’s because blockchain functions as a digital financial ledger. It records every
transaction in an unalterable public space.
It’s also accessible to anyone, so long as you can connect to the internet.
Picture it like this: You and an unlimited number of friends make copies of every single record you have on
file. Then you encrypt that data and store it on your own computers all around the world. That way if one of
your computer files is ever hacked or stolen, not only can the thief not interpret your data, but you have an
unlimited number of backup files saved on your friends’ computers.
That’s how blockchain works. Each computer, or “block,” connects with a series of other computers to
create a network, or “chain.” Once the blockchain processes through the information, every computer in the
network locks it in at the same time, creating a permanent, unalterable digital record.
Once the data is locked in, no one can change it … not even the companies that design and operate
computers for the blockchain database.
As you can imagine, this technology is a game-changer. For the first time in human history, we can create a
permanent record of every transaction, governed by the immutable laws of mathematics.

2
In the words of PC Magazine:
Think of blockchain as a historical fabric recording everything that happens — every digital transaction;
exchange of value, goods and services; or private data — exactly as it occurs. Then the chain stitches
that data into encrypted “blocks” that can never be modified and scatters the pieces across a worldwide
network of computers…
This impenetrable “fabric” makes fraud, hacking, data theft and information loss impossible. And that’s
what makes blockchain such a good platform for transactions.

The Rise of Cryptocurrencies


Back when blockchain was first introduced to the public, a digital currency called bitcoin was proposed
along with it. A lot of people think that both terms are synonymous, but that couldn’t be further from the
truth.
Remember, blockchain is a digital ledger. Bitcoin, on the other hand, is a cryptocurrency (also called digital
currency) that allows peer-to-peer transactions without the need of a third party.
So, the blockchain records bitcoin transactions just like any other purchase made with a digital currency.
Created by Nakamoto, bitcoin was the first cryptocurrency to come on to the market. But now there are
well over 2,000 cryptocurrencies people can mine or exchange “real world” money for.
Mining is the term used to describe the act of discovering new crypto coins, but that doesn’t mean people
with pickaxes are digging
through rocks in their
backyards looking for money.
People can mine for crypto
coins with high-powered
computers solving complex,
encrypted mathematical
equations. A miner gets a
“block reward,” which pays
out in virtual coins, when they
solve one of these equations.
As you can imagine, these
coins are incredibly valuable because the process of mining them is so complex and time-consuming. In fact,
crypto encryptions require so much computing power that it would take an individual miner years to solve a
single block of bitcoin.
That’s why miners band together and share their resources. Hundreds, sometimes even thousands, of people
from all over the world participate in groups called mining pools. Each person contributes power and data
processing to the pool, and then gets a cut of the profit when the group earns a block reward.
With so many people now participating in the crypto market, the industry has ballooned since the first days
of bitcoin. At the end of 2019, the total cryptocurrency market cap surpassed $230 billion.
This means that companies contributing to the crypto market are going to see a huge increase in revenue as
demand for better and faster computer technology rises.
But keep in mind that cryptocurrencies serve as only one of the ways that blockchain technology can be
used. Let’s take a look at some of the other possibilities in the works…

3
Creating an Open-Source World
In the future, everything you do … every bank transaction you make, every shipment you track and every
record you keep … will be recorded on a blockchain network.
This technology will replace the decades-old, backward-looking ways of the past.
Think about it. Our economy is still practically stuck in the Stone Age, relying on paper contracts and
proof-of-identity cards for everything — from getting your driver’s license and voting to buying a house and
traveling out of the country.
At best these records are easy to lose track of, and at worse they’re easy to manipulate, leading to issues like
identity theft and loss of income.
Some industries like health care have moved their records online, but even those databases aren’t safe from
professional hackers.
The point is, our personal identities aren’t anywhere near as safe as the government would like us to believe.
But blockchain offers a solution. With it, we can change the way we store personal information and make
transactions for goods and services.
Blockchain will make life simpler and safer at the same time. Hence why the biggest companies in the world
are all scrambling to become early adopters of this new tech.
In fact, my research shows that a combined $2.7 billion have already been put toward the adoption of this
technology, with money flowing in from companies such as Google, Overstock, JPMorgan Chase & Co.,
Reuters, Intel, Walmart, Nestle, Amazon, Facebook … just to name a few.
IBM has also openly pledged to lead this technological revolution.
Microsoft has launched a multimillion-dollar project to promote this new tech, stating: “We are seeing a lot
of momentum and excitement in this space.”
And the CEO of Nasdaq called blockchain “the biggest opportunity we can think of over the next decade or
so.”
But it’s not just tech companies that are taking notice.
America’s 10 largest banks have already invested $267 million into companies behind this innovation. In
2016, less than 15% of all banks used blockchain. In 2020, over 400 banks all over the world are using it.
Add to that 43 governments around the world are already using blockchain technology ... with more
planning to implement it.
And it doesn’t stop there:
• The U.S. Department of Health and Human Services has invested $49 million to build new blockchain
networks into federal health care programs and the Food and Drug Administration is testing the
technology as a way to track and verify prescription drugs, potentially saving countless lives.
• Governments around the world are in the early stages of using blockchain to manage real estate titles. In
fact, the state of Vermont authorized the first-ever real estate transaction on a blockchain.
• Shipping companies already use blockchain to manage their supply chains. Penske, FedEx and
dozens of other companies have signed on to the Blockchain in Transport Alliance.
• Small companies plan to go public and raise capital directly on a blockchain, eliminating the need for
initial public offerings that require them to pay Wall Street’s exorbitant fundraising costs.
• Blockchain networks could even process fundamental government functions like voting and recording
marriage licenses in just a few years.
Like I said before, the possibilities that blockchain offer are nearly limitless. But there is one catch — and it
has to do with the computers that give us access to the blockchain network.

4
The Key to Unlocking Blockchain
Every computer has the same basic parts, like a motherboard and a memory chip. And while these
components are important, they pale in comparison to a part of your computer called the graphics processing
unit (GPU).
GPUs use special programs that help them analyze and store data. This makes them perfect for performing
certain tasks — one of which is figuring out complex mathematical and geometric calculations.
This makes GPUs perfectly suited for crypto mining and running blockchain applications. Because of
this, the GPU industry has exploded as both companies and individual users alike have begun to integrate
blockchain technology.
Industry research shows that GPU growth is going to rocket higher over the next several years. Allied
Market Research estimates that global GPU sales will bring in $157 billion by 2022, growing at a rate of 35%
per year.
However, this figure is largely based off the growing crypto market because, currently, GPUs are mainly used
to mine coins and make crypto transactions. But as I just described, there are many more uses for blockchain
that go far beyond cryptocurrencies.
And as more industries develop blockchain technologies, they’ll need super powerful computers to help
run those applications. In 2019, the entire blockchain industry had a net worth of $2.2 billion. In 2020, it’s
expected to hit $3 billion. But then ... it will ramp up ... to a $39.7 billion industry as new tech develops in
the years ahead.
That’s an incredible 1,223% growth, and the kind of market opportunity that we want to take advantage of.
Remember, large organizations like IBM all the way down to individual crypto miners are all competing
with one another to get on the ground floor of the blockchain revolution. And that means they’re all vying for
the fastest GPUs on the market.
Right now, only two companies on the market make GPUs with anywhere near the computing power
necessary to handle blockchain’s complex algorithms at a competitive rate. And this makes them both
incredibly valuable.
However, neither one of these companies would be able to offer these GPU capabilities if they didn’t have
the hardware to make these innovations possible. And I’ve found one company that’s leading the way when it
comes to creating these vital pieces of blockchain technology.

Creating a Bridge for Blockchain


Rambus Inc. (Nasdaq: RMBS) is a technology development company based out of Sunnyvale, California.
Its name is built on the technology it creates to help make data move faster and safer.
The first half of its name — Ram — comes from a computer’s Random Access Memory. And the second
half — bus — refers to the wires or connectors that allow data transfers.
This naming convention drives home RMBS’ commitment to moving semiconductor tech to the next level.
The company specializes in developing and licensing high-speed chip-to-chip interface tech for
semiconductor companies to enhance the performance and cost effectiveness of all kinds of tech.
This includes everything from computer memory and interfaces to security systems to smart sensors and
lighting.
But the most important part of what RMBS brings to the table is that it helps move forward the
semiconductor industry in a meaningful way.
RMBS has a wide variety of divisions that cater to the different needs of semiconductor companies.

5
First, there’s its memory and interface division (MID), which covers its development of semiconductor
chips for computer interfaces.
This combines with its security division (RSD) that focuses on anti-counterfeiting systems and services
to create a fully-focused system of technologies that create the building blocks for the future of what
semiconductors are capable of.
And since the company’s business model is a blend of patent and technology licensing, sales of its products
and services help bring innovative products to market in a way that most investors will overlook.
The main areas of focus in the company’s MID are mobile- and server-based memory, serial link designs and
other custom semiconductor solutions.
I believe that there’s a great deal of untapped potential in RMBS as a semiconductor play, and the market is
still in the dark on how big of an impact this company will have.

Unparalleled Power, Affordable Pricing


There’s no doubt in my mind that the work RMBS is doing to create and develop chips for semiconductor
companies will soon be felt on a global scale, and I
want you to have a chance to get in on the ground
floor of this incredible company. Rambus Inc. Revenue to Grow 56%

As I write this, RMBS has a fair amount of demand In Millions of U.S. Dollars
$350
on the market, trading 67% above its 52-week low. $350
$329 $300
This tells me that the word is starting to spread
$250
about just how valuable RMBS’ contributions are
to semiconductors, and by extension, the future of $231 $200

technology. $150

This tells me that the company wants to see demand $100


for its shares increase, so it reduced the number of $50
shares available on the market. $0
2019 2020 2021
But the most intriguing GoingUpness criteria Estimated
that RMBS meets is its ValueAbility. Looking at the SOURCE: S&P CapitalIQ

6
company’s future revenue projections, it predicts that revenue will increase from $224 million in 2019 to $350
million in 2021.
That’s a massive 56% increase in just two years!
All of these factors make me feel strongly about RMBS’ success on the market as semiconductors become
more and more integrated into our everyday lives.
No one knows a business better than a company’s own management team, so this gives me great confidence
in the fact that we’re buying into a healthy — and sustainable — business.

A Premier Play on the Blockchain Revolution


At the time I’m writing this, Rambus has a market cap of $1.6 billion. I can tell you from over 25 years of
experience that this company is way undervalued.
Even if RMBS ends up capturing a small percentage of its market share, early investors are still going to
see a sizeable return on their investments. I believe Rambus can grow as much as 1,500% in the next five
years, hitting a market cap of $25 billion. Other companies have done it before, and with the technology and
opportunity Rambus is benefiting from, I believe they can do it, too.
But we want to get in on this trend now, before more companies and government bodies start adopting
blockchain into their infrastructure.
That way, as the industry grows and needs more computing power, we get the benefit of RMBS’ stock
soaring to new levels as people turn to its processor solutions.
Action to take: Buy Rambus Inc. (Nasdaq: RMBS).
I’ll keep you informed on the coming blockchain revolution and how it affects RMBS, so make sure to
check your inbox for regular updates on this stock in Profits Unlimited.
Regards,

Paul Mampilly
Editor, Profits Unlimited

7
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