Bitcoin has proven to be an incredibly profitable investment for those who bought early, with prices rising in the second half of 2017 up to a December peak of over $ 19,000. However, 2018 brought the popular cryptocurrency back into the limelight.
The general consensus among cryptographic experts seems to be that Bitcoin will not reach its peak again. However, the blockchain, the underlying technology that drives bitcoins and other cryptocurrencies, still offers many promises to investors.
If you are considering investing in blockchain, you should look beyond the endless flow of Initial Coin Offerings (ICO) and buy into those that are exploring blockchain as more than one digital currency.
Invest in startup blockchain
If you are thinking of investing, it is probably a good idea to turn to the experts for advice.
While all of us have counted our losses while the prices of encryption have plummeted, venture capitalists have looked for new ways to get into blockchain technology soon.
According to a recent report by the blockchain Diar research group, venture capital investments in blockchain and cryptocurrency startups almost quadrupled in 2018, from a total investment of $ 1 billion to $ 3.9 billion.
Likewise, the number of completed operations rose from 211 to 384. This includes the $ 400 million investment by Sequoia Capital in the Bitmain coin-mining maker, the $ 163 million raised by the cloud based computer developer on blockchain Dfinity and the $ 122 million investment in the blockchain banking world for R3 business providers.
According to a report by the Spiceworks technology industry network, about 25% of European companies plan to invest in blockchain over the next 12 months, in addition to 9% of North American companies. This is only slightly lower than the percentage of companies wishing to invest in the Internet of Things (27%) and artificial intelligence (26%), which tend to receive much more attention.
With industries that are increasingly turning to blockchain to simplify operations, ensure transparency and improve security among many other uses, these startups and their technologies will become increasingly interesting in the coming years.
While you will not participate in the short-term trading of highly volatile cryptocurrencies, investing in startups can be profitable in the long run. Suffice it to say that Facebook, Twitter, Instagram and Snapchat were not always multi-billion dollar companies before social media took flight, like Microsoft and Apple before computers.
Sectors that will benefit most from Blockchain
There is no shortage of potential applications for blockchain technology. According to CB Insights, there are more than 42 major industries that blockchain could stop. However, the necessity and feasibility of these implementations vary greatly from industry to industry.
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The large corporate consultancy firm McKinsey has recently evaluated and impacted the impact and feasibility of blockchain technology for 14 different industries to determine if the implementation of blockchain was worth the time and cost to particular industries.
The study found that the public sector would benefit most from the introduction of blockchain technology. Likewise, the implementation of technology was considered among the top three for feasibility, suggesting that it would not be difficult or time-consuming to implement in the industry.
Blockchain was considered the second most promising for the technology, media and telecommunications sectors, and was equally feasible.
While, of course, financial services have paved the way for feasibility, with cryptocurrency already demonstrating that technology can be successfully used in the industry, it has been considered only moderately impactful.
The least impact and the lowest feasibility have been found in the arts and leisure activities sector, and even production was considered unlikely to find a use for technology.
Mining, ownership, agriculture, the automotive industry, transportation and logistics, insurance, retail, public services and healthcare have been found to have moderate use of the blockchain potential, but not all of them have been feasible for feasibility.
Alternatively, invest in ETF blockchain
If you do not feel confident about choosing where to invest your funds, ETFs will do the hard work for you.
There are numerous investment funds that hold collections of shares, bonds and assets related to the blockchain. These investment funds are listed on the stock exchange, allowing anyone to invest in the companies held in the fund.
These managed funds, supervised by people who believe in technology and invest in the right companies, offer an easy path to blockchain investments.