Blockchain technology stocks are one of the hottest stocks for investors. Bitcoins and other digital coins are gaining popularity, as well as the blockchain platform on which they are created. Blockchain technology stocks are uncharted territory for most investors, so it’s important to research before buying.
The stock market is responsible for creating wealth for many investors. If you’re a dedicated investor in it for the long haul, the value of your stocks will usually double in ten years. Historically, stocks show a seven percent return per year average after inflation adjustment.
At the beginning of 2017, blockchain technology stocks had a total value of $17.7 billion. By the end of the year, the market totaled $836 billion with 1400 blockchain stocks to make investors money. The 4500 percent increase from the beginning of the year to the year’s end proves cryptocurrency stocks are a boon for investors.
What Is Blockchain?
Explaining blockchain today is like trying to explain the internet during its’ early days. It took time before most people could get used to the internet during the 1990s, but now it’s an indispensable part of everyday life.
Many people have become disillusioned with the banking system. When you transfer money overseas, your payment may be delayed during the bank verification process. This process adds extra time due to a third-party. The delay has nothing to do with you or the person or business receiving the money.
A bank is a third-party processor on most of your financial transactions. Financial institutions take their cut. Blockchain technology has allowed users to buy goods and services with digital coins or sell and transfer coins, with third-party processing transactions.
An encrypted digital ledger records all blockchain transactions to safeguard your information from cybercriminals. The blockchain is often used along with the term “bitcoin.”
Although they are related, they aren’t the same thing. The blockchain is a platform, and bitcoin is the first well-known application that runs on the blockchain platform.
In addition to bitcoin, other cryptocurrencies include Ethereum, Zcash, Dash, Ripple, NEO, and EOS. Only time will tell if any of them become as popular as Bitcoin.
The term “Bitcoin mining” refers to the way transactions are processed and added to the ledger, or blockchain. It also applies to the process during which new Bitcoins are introduced.
Blockchain And Investments
Most large companies are trying to monetize blockchain. Investors should put their money on companies that earn revenues from blockchain and build platforms for additional revenue in the future. The blockchain is the biggest change to the technology world since the internet in the 1990s.
Retail investors don’t need to invest in questionable bitcoin offers from companies that only dabble in cryptocurrencies or gather venture capital. The latest ETFs (exchange-traded funds) make it easy for you to receive a high return from blockchain stocks.
On-Line PLC in the U.K. added blockchain to its company name and experienced a 394 percent increase in its stock in 24 hours. Kodak entered the cryptocurrency field and experienced a 100 percent increase in stock value in one day.
Seed-funded companies Reality Shares and Amplify ETFs increased in value to $40 million from a starting point of 2.5 million in less than a day. They had assets of $1120 million in under two weeks of stock trading.
Shares of Kodak stock increased 245 percent when it announced that it would create its own cryptocurrency and build a blockchain for photographers. No one is sure if Kodak will succeed with the launch, but many investment firms are optimistic about the possibility.
Photographers receive payment through a bank or middleman when using most digital photo warehouses. Kodak’s new service comes with a digital coin that lets users receive discounts.
Blockchain technology has its share of problem companies, like any other industry. Long Island Blockchain was originally a beverage company called Long Island Iced Tea. It changed its name a to Long Island Blockchain in December 2017. After doing so, its stock shot up by 500 percent.
The company hired a new CEO, but details about its blockchain activities weren’t readily available. In 2018, the Securities and Exchange Commission (SEC) started investigating the company.
Always ask your financial advisor about the best blockchain technology stocks, and do your own research before jumping on any new stock. You’ll save money and frustration. The company’s market value is listed as under 5 million dollars as of late 2018 due to the controversy about the SEC investigation.
The Chinese company XNET used to be a video-streaming service. It announced that it was releasing its own cryptocurrency called OneCoin, and the stock price climbed to $25.
However, the company is now involved in class-action lawsuits. XNET is alleged to have made misleading statements about its OneCoin, which is now a mining offering called LinkToken.
Stocks To Watch
Every few years, a hot industry attracts many investors. Blockchain technology has been the new star with investors recently. You may reap the rewards similar to those of Starbucks, Amazon or Microsoft investors back in the day if you buy today’s blockchain stocks.
Some of these companies are involved in blockchain consulting and technology only, while others are older companies branching out into blockchain. If you don’t know how to begin due diligence before investing, hire a stockbroker experienced in technology or blockchain stocks.
IBM may seem old-school to some people, but it is one of the best blockchain technology stocks out there. The company has a blockchain called Hyperledger Fabric. It has 400 clients and 35 networks. IBM employs 1500 people who deal with blockchain technology, and Hyperledger coders have created 5 million code lines.
Walmart, IBM, China’s Tsinghua University and JD.com, one of the country’s e-commerce companies, are participating in a blockchain program designed to improve food safety.
The IBM blockchain has been shown to reduce the time it takes to trace a package of rotten food from the farm where it was produced to the store where it was shipped in two seconds. Before blockchain, the tracing process took a week.
Blockchain adds $7 in share value to the company’s stock. IBM also believes blockchain can help deal with $400 billion worth of disorganization in the market. Bank of America gives blockchain stock from IBM a “buy” recommendation.
Project Concord, a scalable open-source infrastructure for blockchain, is VMware’s contribution to the burgeoning technology. The company’s scalability solutions involve modifications to the algorithm called the Byzantine Fault Tolerance.
The blockchain VMware provides on the computer application Kubernetes lets users create blockchains. Bank of America gives VMware stock a $190 target rate. The stock is expected to show a 15 percent annual rate increase.
Red Hat offers an OpenSource blockchain that helps users build hosted blockchain applications. RH was a co-creator of the multi-project platform Hyperledger. You’ll use the company’s software tools and support services. BlockApps, a BaaS provider, partners with Red Hat. The STRATO platform on BlockApps lets users develop apps and create blockchains with OpenShift. Bank of America gives Red Hat a price of $130.
Blockchain helps move transactions between countries faster than the traditional financial system. American Express is working on a program with Banco Santander and Ripple to facilitate payments over their FX International Payment system to Santander accounts in the U.K in real time. This program will probably be scalable in the future.
Data storage can also be improved with blockchain. American Express has a membership reward blockchain. This network allows merchants to provide rewards on their own websites and apps than through American Express.
The blockchain network will ultimately help American Express receive more retail data while helping merchants make more sales.
Hive Blockchain Technologies
Hive Blockchain is a Canadian technology company owns several mining farms for cryptocurrency at tactical locations. The company authorizes cryptocurrency transactions through blockchain technology. Hive expanded its mining capabilities and added a large mining facility to its cache.
The company was the first cryptocurrency mining operation publicly traded anywhere when it became a member of the venture exchange at Canada’s TSX in 2017.
Hive mines Bitcoin, Litecoin and six other cryptocurrencies and maintains several cryptocurrency operations.
DigitalX is a stock on the American Stock Exchange. It has operated for over four years in Initial Coin Offerings (ICO), blockchain software development and advisory services for blockchain.
The company has excellent funding and makes revenue from consulting, which includes
Cryptocurrency exchanges. DigitalX may also hold Ether coins and Bitcoin from an investment in Blockchain Global LTD.
Penny stocks are sold for five dollars a share or less and offer a great chance for you to invest in a fledgling company before everyone else jumps on the bandwagon. Penny stocks for blockchain companies are less expensive than other startup stocks and offer higher rewards than those you’ll see with large capital stocks.
Investing in blockchain penny stocks requires more research on your part since companies are lesser known, and there’s no track record to examine. Remember that companies in this relatively new field may be more volatile when it comes to stock market fluctuations.
Look for blockchain companies that perform many roles in the operation of the chain, such as