Blockchain is a type of distributed ledger technology that keeps secure records that are accessible to everyone. Though a difficult term to wrap your head around, knowledge of what blockchain technology is and how it may very well shape the world we live in is important. You need to know what it is if you’re to capitalize on blockchain investments.
9 Ways to Reach Growth Potential Through Blockchain Investments
NVIDIA (NASDAQ: NVDA) manufactures graphics processing units (GPU). GPUs are important in video games, artificial intelligence (AI), autonomous automobiles, and most importantly, the mining of cryptocurrency.
Most experts agree that when cryptocurrency prices rise, NVIDIA stock will rise with it. This makes it a strong stock option to consider over the next few years.
As we move more and more towards a cashless society, Mastercard (NYSE: MA) continues to grow as a result of increases in debit and credit card transactions worldwide. In 2019, Mastercard announced that they had partnered with blockchain company R3. Their partnership consists of the development of a new-cross border payment system.
Blockchain technology can potentially bridge the gap between slow and expensive cross-border currency transfers. And when it does, Mastercard and R3 will have a major competitive edge over competitors.
DigitalX (ASX:DCC) provides services such as AirPocket and Coincast Media. AirPocket is a service that allows for a secure transfer of funds, and Coincast Media is a blockchain media outlet targeted to viewers aged 18 – 34. They’ve also launched a bitcoin fund, making them a company worth watching.
Square (NYSE: SQ) is a commerce ecosystem known for its software and hardware products aimed mainly at small businesses, as well as the person-to-person payment platform known as Cash App.
Square had over $500 million in Bitcoin sales in 2019, and the company has its own Bitcoin developers (Square Crypto). The number of Bitcoin sales is projected to keep growing, and Square stock will grow with it.
5. HIVE Blockchain
HIVE (TSXV:HIVE) connects blockchain and cryptocurrencies to capital markets. HIVE is involved in Genesis Mining and cryptocurrency mining with Bitcoin and Ethereum in their portfolio.
With high growth potential, and having amassed a net income of $3.4 million and digital currency mining of $5 million in their latest quarterly results release, HIVE could be a company to look at.
For those not wanting to get tangled investing into individual stocks, Amplify’s Transformational Data Sharing ETF (BLOK) might be a good option. The BLOK ETF has holdings such as Square, Overstock, and Taiwan Semiconductor.
With annual fees at 0.7%, BLOK is actively managed to keep up with the fluidity of the blockchain market. This makes it an attractive, lower costing option with high growth potential.
The partnership between NASDAQ and Reality Shares birthed Reality Shares NexGen Economy ETF (BLCN).
This ETF focuses on tech stocks in markets around the globe. BLCN holdings include Microsoft, AMD, and Fujitsu Ltd., among others. Annual fees are slightly lower than BLOK at 0.68%.
Similar to BLCN, KOIN is another high-cap ETF with holdings that include Microsoft, Intel, and Salesforce. The expense ratio for this ETF is a bit higher than BLCN at 0.95%.
Most companies on the cutting edge of innovation are not being traded publicly yet because they aren’t big enough. And this creates an opportunity for investors.
If you have the capital, investing in tech startups could prove rewarding with the right research. Every company needs investors to get off the ground, and when these companies do get off the ground, their investors shoot to the top with them. Crowdfunding is an alternative based around the same principle, albeit in smaller increments. It is worth looking into if you don’t have the net worth to invest large sums into a startup.
There are many ways to invest in blockchain such as stocks, ETFs, or investing/crowdfunding. Using the information presented here and understanding your own financial situation should help get you started. Head over to Coin Sick for all of your Bitcoin and blockchain-related information.