The crypto-boom was probably the most polarizing theme on the market at the start of the year. On the one hand, supporters announce cryptocurrencies as a monetary revolution. A way to eliminate the intermediary involved in all financial transactions. A revolutionary technology that puts power back into people's hands. On the other hand, some very famous and influential investors call it the largest Ponzi scheme in the world and a scam that the world has never seen.
The good news is that it is not necessary to assume the exorbitant risk of cryptocurrency markets to profit from a boom in Bitcoin, Ethereum, Litecoin and others. You do not even have to believe in the long-term sustainability of any of these coins.
You just have to recognize the game and find a way to profit from the underlying technology. That underlying technology, which powers every cryptocurrency on Earth, is blockchain.
When bitcoin futures started trading at the end of last year, crypto-madness was in full swing. Bitcoin prices have skyrocketed and the craze has begun. That craze has diminished somewhat, but now we are entering a new phase: the legitimacy of the crypt as a class of activity and the widespread use of the blockchain. As companies have adopted the new technology, cryptographic prices have stabilized. In recent weeks, Bitcoin has just leveled over $ 6,500. He is now trading above his 50-day moving average, threatening to move higher in the medium term.
Wall Street's famous investment bank, Goldman Sachs, has examined derivative products for cryptocurrencies that it intends to sell to hedge funds and other institutional investors. Walmart has patents for autonomous delivery vehicles that use the blockchain. Even automakers like BMW are working together to implement blockchain-based systems to track vehicle mileage. The legitimacy of the crypt is happening now. There has never been a better time to take advantage of it.
What is Blockchain?
In the digital world, a block is a digital list of records, which acts like a ledger that can hold information of any kind. When these blocks are connected together, they are protected by encryption to form the blockchain. This blockchain is a non-erasable record of all transactions that are replicated on all computers on the network. If the information in a new block can not be verified by all other blocks in the chain, it is discarded. In the case of the best cryptocurrencies, the currency network is made up of millions and millions of computers all over the world. This makes it unreachable, since a hacker would need to hack all the computing power simultaneously, a seemingly impossible task.
Keep it going . .
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Will you miss the Blockchain Boom?
According to experts, it is 10 times more valuable than the Internet. This "Internet of Money" is already changing the way the world does business. It is expected to skyrocket from $ 706 million to $ 60 billion by 2024.
Now Zacks is targeting blockchain technology that drives cryptocurrencies like Bitcoin and others. The goal is to ride the growing boom without the whirlwind volatility from investing in the criptos themselves.
Hurry up, only a limited number of Zacks members can take part in this thorough search for huge profits. The door closes midnight on Sunday 11 November.
See our stock blockchain now >>
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At this point the question inside this topic is generally: what does the blockchain have to do with the currency? Everything. But to understand, we must separate our thinking on the criptos from the traditional legal currency. While the fiat currency is used to buy cryptocurrency, once purchased, the encrypted are independent. Moreover, the aspect of the smart contract (more on this later) allows cryptos to be much more than an exchange of money, they are a valuable exchange. In a sense, these currencies are "Internet of Value".
To simplify, blockchain is a public register of goods and transactions that tells us who owns what. These transactions are often referred to as smart contracts, as they are registering a contract between two people, whether it is a transfer of currency or a good or service.
You can see how this new innovation could be disruptive to traditional businesses out there. Rather than complain about this potential interruption, you are in a unique position to profit from it. How do you ask? Investing in the various areas of the market where the blockchain makes noise. There are several corners here.
The "choices and axes": 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.
Consulting: 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.
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. Companies that offer cloud-based hosting services may be affected, while those that help facilitate this decentralized network will benefit enormously.
Payment process: 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.
loan: We're just on the tip of the iceberg here on loan. Blockchain technology is perfect for lending, allowing lenders to spread their risk on thousands of loans in an instant, regardless of the size of the lender.
Trading plans: The legitimacy of bitcoin continues while futures contracts have begun to trade on two large stock exchanges in the United States.
miners: Miners are the most important part of any blockchain and probably the most misunderstood. Miners confirm node-to-node transactions by solving the cryptographic problem and are then rewarded in cryptocurrency units. We are already seeing companies that quote "criptovalute" listed on the stock exchange. 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 larger over time.
Investors / BDC: Some publicly traded companies act as incubators for other budding cryptocurrencies. We talk about bitcoin a lot but there are over 1,300 other cryptocurrencies in the world. These investors and business development companies invest in promising encryption companies before they reach the mainstream.
ETFs: There are already ETFs that buy securities with blockchain exposure, however, there will soon be officially regulated ETFs for bitcoin and Ethereum. These ETFs will transfer dollar to dollar with an index, they will not exchange huge prizes to the underlying cryptocurrency like those available on the market today.
There are many other companies coming, but how do you know how to separate the pretenders from the contenders? Which of these emerging companies will rely on solid technology and what will be the tricks? Just as Dot Com Bubble brought with it several names that added ".com" to their names to get into action, companies added "Blockchain" to their names, some very ruthless.
There are several ways to play the cryptocurrency boom without exposing yourself to the same downward volatility. By spreading your investment on different aspects of the blockchain, diversification can help you make your profits more fluid. Add the proven strength of Zacks Rank and our proprietary system to invest in companies with increasing earnings estimates and you have a powerful one-to-two hit.
How to take advantage now
At Zacks, we observed the blockchain phenomenon very closely. This space has been estimated at $ 706 million in 2017, but it could very well rise to $ 60 billion by 2024.
Many investors have already become very rich, but in my opinion the best is yet to come. To enter "on the ground floor" of this unique opportunity, you may want to look into our new portfolio, Zacks Blockchain Innovators.
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 deployed 2 more titles with explosive growth potential and I plan to add them on Monday morning. You can be on the front line to see them.
As an added bonus, check Blockchain Innovators today and you can download my newly updated special report, The Great Disruption: Blockchain in 2019 and beyond. Show how this breakthrough could impact your portfolio in the near future and highlights 4 industries in transformation that every investor should closely observe.
A word of caution. Only a limited number of Zacks members can participate in this search for huge profits, so I encourage you to look at the portfolio right away. The entrance closes again midnight on Sunday 11 November.
To see Zacks Blockchain Innovators stocks now >>
I wish you great financial success,
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.