With the evolving knowledge of what is known about cryptocurrencies, various digital assets like Bitcoin have come under limelight. Understanding the basics, cryptocurrency is a digital asset that has been designed to become a medium of exchange using cryptography for securing transactions and enabling transfer of assets. The market is under a great debate on whether the recently known digital assets surging high contribute to a mere bubble or may yield value in the long-term.

In the recent times and by market capitalisation, Bitcoin has been followed by Ethereum, and then what we heard lately is about Bitcoin’s splinter currency, known as Bitcoin Cash, that surpassed Ethereum and became the second most valuable cryptocurrency. Particularly, Bitcoin Cash was seen to be rallying to about $2,500 a coin. However, the rally was just short-termed with the currency falling back to about $1,525. During the end of October also, the prices of cryptocurrencies were quite mixed with bitcoin on a downswing while Ethereum surged high. The trend has been on a volatility.

After a great rally with disagreements about the future, Bitcoin witnessed a plunge of about 25% in last few days from the high of US$7,721 per coin. Particularly, the cancellation of the upgrade called SegWit2x to Bitcoin at the last minute had led to the volatile movement. In fact, the market is eyeing Bitcoin cash with more growth prospects than Bitcoin given the fluctuations and recent sell-offs over the upgrade debacle. Given the scenario, it would be tough to decipher the actual worth of making money through investment in these currencies.

Meanwhile, investors have been buying cryptocurrencies through platforms such as Coinbase or through other internet platforms given the decentralised nature of the currencies. Howeveras, many face the challenge of selling the same over such platforms that lack the ability on selling front but may simply help in transfer.

On the other hand, investors have partly turned their attention to blockchain technology companies, including Change Financial Ltd (ASX: CCA) and DigitalX Ltd (ASX: DCC). DCC had been surging up till now and got a great boost from the continued appreciation in the price of Bitcoin, and has a backing of Blockchain Global Limited, which invested $4.35 million in DCC earlier this year. DigitalX was reported to take $2 million of the investment in Bitcoins instead of Australian Dollars and lately assisted in the first Initial Coin Offering (ICO) raising of about $34 million in cryptocurrency by a Perth-based solar energy trader Power Ledger. However, the stock plunged 14.6% on November 13, 2017 owing to the movement in the sector.

CCA on the other hand, has moved up 13% in last one month (as at November 10, 2017). The group has announced about entering an in-principle agreement to develop an innovative blockchain and cryptocurrency technology to provide solutions for the $1,250 trillion global payments market. The group will acquire a 33% equity interest in a partnership named the ‘Ivy Project’.
 

Market Cap for Cryptocurrency (Source: CCA Company Reports)
 
In contrast to the above stocks, Byte Power Group (ASX: BPG) surged 25% on November 13, 2017, while the group’s securities were reinstated to official quotation after suspension from trade pending further investigation on price movements. The group aims to have a cryptocurrency exchange in Brisbane.
 
The question remains whether blockchain technology that is the basis of the cryptocurrency has the potential to revolutionise the financial services sector. The technology at the moment needs scaling up and more developments in the coming few years will unveil the reality. Further, the technology would call in for multitude of legislative regimes to be undertaken for a full-fledged cover.
 
Meanwhile, investors reluctant to put money in the digital currencies directly can look for some exposure to the stocks dealing in with the principle technology.

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