The winds of change have become storm forces. The bitcoin craze approached the end of last year, culminating in the bitcoin futures trade. Hysteria has calmed down a bit and the words of blockchain, cryptocurrency and bitcoins have slowly disappeared from the headlines. Until now…
The next phase in bitcoin is the legitimization of the asset class and the spread of blockchain technology. Behind the latest market news about the approximate month of October and the trade wars with China, the land grabbing started in the blockchain world. It is not companies that change their name to attract new investors, its established industries that use technology to cut costs, improve margins and increase profits.
Huge companies like Walmart, UnitedHealth and BMW have adapted blockchain technology to meet their needs. Even the famous Goldman Sachs has announced that it will have a cryptocurrency trading counter. When Goldman gives his stamp of approval, it means that you have arrived. Now the Chicago Board of Options Exchange has laid the groundwork for another cryptual-based futures contract, this time with Ethereum. The revolution is just beginning.
One of the main arguments against cryptography and bitcoin was price volatility. If you've been following cryptography recently, you'll see that the bitcoin has settled well over $ 6,300. This is providing much needed stability.
In this article, I will ensure that you do not hurt yourself chasing false blockchain companies and instead, direct you to investment ideas that are still fundamentally sound and built around real and sustainable businesses. Legitimacy is the new word of order that surrounds the bitcoin a day today. He has the power to take everyday businesses and turn them into the next big thing.
Looking at the cryptocurrency ecosystem, you find that there are many ways to invest in the blockchain. We can divide these stocks into different categories.
1) The "Plectrums and Aces" and the Miners
During the gold rush, the ones who really got rich were the ones that sold the picks and the axes. That is, the companies that provided the tools for speculators to go out and try to find their fortunes. In the world of cryptocurrencies, this refers to companies that produce chips and hardware used for data mining operations. Examples include a series of semiconductor companies.
Then there are the miners themselves. Miners confirm node-to-node transactions by solving the cryptographic problem and are then rewarded in cryptocurrency units. We are already seeing listed companies that "my" cryptocurrency. These companies extrapolate the currency, then sell it immediately on the open market and pass on the gains to shareholders. Think of them as you would with a pipeline in the energy sector. These companies are small now, but could become much bigger over time.
More . . .
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You can still get there early on Blockchain
This revolutionary and incorruptible "Internet of Money" is changing the way the world does business. According to experts, the blockchain is 10 times more valuable than the Internet. And the boom has just begun.
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2) Cloud infrastructure
No other industry has been so dependent on the cloud for its development as it did blockchain. The need to distribute a ledger throughout the world, without centralized control of ownership or authority, plays in the strengths of the cloud. However, the cloud is still at risk here, as blockchain technology can distribute storage around the world, fighting the centralized nature of traditional cloud services. However, this sector can adapt technology to advantage.
3) Processing and loan of payments
Among the most disruptive industries for blockchain is the processing of payments. Rather than your traditional financial intermediary, blockchain technology allows a distributed, open public register, where transactions are confirmed by other nodes in the chain for a commission that is much smaller than the typical commissions that come from more traditional processors.
Blockchain technology is also perfect for lending, allowing a lender to spread his or her risk on thousands of loans in an instant, regardless of the size of the lender. We are just at the tip of the iceberg in this arena.
4) Investors, company development companies and consultancy
There will be a wave of companies looking for ways to incorporate blockchain technology into their existing businesses. Large consulting firms are already starting to offer services that help companies integrate new technology. Gartner even developed a site dedicated to this purpose.
Some publicly traded companies act as incubators for other budding cryptocurrencies. There are currently over 1,600 other cryptocurrencies in the world. These investors and business development companies invest in promising encryption companies before they reach the mainstream.
5) Futures and ETFs
The legitimacy of Bitcoin continues while the futures contracts have begun to trade on two large stock exchanges in the United States. Soon there will also be officially regulated ETFs for Bitcoin and Ethereum. In the meantime, investors used GBTC as a proxy. As mentioned earlier, Goldman Sachs will soon open its trading desk, adding further legitimacy to cryptocurrencies as an asset class.
Bottom line
There is no doubt that blockchain will have a huge impact on almost every area that comes to mind. And as exciting (though unnerving) as the growth of Bitcoin was in 2017, I see an even greater potential for blockchain in the months and years to come. In fact, experts predict that space could increase + 8.500% by 2024.
Just like in the early days of the Internet, some companies are making huge profits. Others will not pass the test of time. That's why I invite you to review our new portfolio service Blockchain Innovators.
We cut the ideas and dig under the hyper-volatile currencies to discover strong, often little-known companies that drive blockchain technology.
Right now, we are holding a selection of actions from the groups I have listed above. We are aiming for big gains without speculating on cryptocurrencies. In addition, I am preparing to add more stocks with explosive growth potential and only a limited number of investors will share them.
Would you like to see the live recommendations in our portfolio?
Also, as a bonus, you can also download my newly updated special report, The Great Disruption: Blockchain in 2019 and beyond. Show how blockchain technology can affect your portfolio in the near future and highlights 4 industries in transformation that every investor should closely observe.
Please note that only a limited number of Zacks members may be allowed to participate. Access to this service will close again Sunday 11 November, so I suggest you examine it right away.
Look at ours Blockchain Innovators stocks now >>
I wish you great financial success,
David Bartosiak
Dave is the technical and dynamic expert of Zacks. A successful encrypted investor, select shares and offer exclusive comments for our new portfolio, Blockchain Innovators.
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