Blockchain is one of the technologies with the strongest growth potential by 2050 according to many researchers.
There is no “Blockchain stock” because cryptocurrency in itself works off the blockchain, it is essentially the infrastructure of cryptocurrency.
It therefore contains significant investment opportunities on the financial markets. Inventory of the most interesting side titles.
You must have already heard of bitcoin, this cryptocurrency whose prices soared until December 2017, before stabilizing after a spectacular drop of more than 50% in its value.
Since this famous crash, many investors have fled this cryptocurrency, preferring to focus on its medium: the blockchain.
Blockchain is not bitcoin.
Still unknown to the general public a few years ago, this new technology has established itself in front of all the media and eminent researchers describe it as “technology that will revolutionize the 21st century”.
Concretely, it is a new method of transmission and storage of information designed as a huge tamper-proof and unalterable register.
It therefore makes it possible to authenticate information to millions of users.
The blockchain applications are numerous, it can be used in industry, supply chain management and in particular to facilitate stock market transactions or fundraising.
Some are even already listed on the stock market, and represent real investment opportunities given the growth potential of the blockchain.
In a recent article, Investing News listed 7 publicly traded securities related to the blockchain. We present to you four that have drawn our attention to whether investing in blockchain is an opportunity or not.
It is always relevant for investors to properly conduct their own research.
It’s no different when it comes to blockchain stocks. In recent years, many companies have attempted to inflate their share prices by “taking the blockchain route”. In a few rare cases, the technology has never been and never will be.
Doing the necessary research can prevent investors from facing such potential pitfalls.
Among the companies involved in blockchain, there are several that are listed on the stock exchange. Most of them appeared long before their blockchain-based business. They include:
BTCS is a company listed on the American market offering financial services to consumers wishing to settle their transactions in cryptocurrencies.
Little by little, this platform wants to make cryptocurrencies a means of exchange recognized and accepted by all market players. Between 2014 and 2015, the company experienced meteoric growth of 1000%.
However, the volatility of the sector put an end to the BTCS title by causing a fall of 97% in its value.
It is now only worth around $0.25, which can represent an opportunity in a context of stabilization of the price of cryptocurrencies and facing real growth potential of the blockchain.
Global Arena Holding
Global Arena Holding is a company investing massively in industry capital and particularly the repurchase of patents including the use of blockchain. Its targets are made up of start-up incubators, new processes developed by research laboratories, etc.
It recently made a major investment in the start-up accelerator Blockchain Technologies Corporation.
Between 2014 and 2015, its turnover increased 30-fold (from $28.4K to $961.6K), although it is still struggling to return to its level of income reached in 2013. Global Arena is still in deleveraging phase ($ 4.3 million remains to be filled). However, we can emphasize the dynamism of its debt reduction trajectory.
Since the beginning of 2017, the title of the company has grown by almost 1000%, which is enough to impress investors.
DigitalX Limited has decided to turn to computer software related to financial transactions carried out in cryptocurrencies.
This company is particularly interested in Bitcoin and is also available in mobile form with the AirPocket application. It allows you to transfer funds anywhere in the world in cryptocurrencies in a secure manner.
Between 2014 and 2015, its turnover increased by 31%, and it still accumulates 3.42 million Australian dollars in losses. The stock has declined significantly since then (-77%) and is trading today at around 0.04 AUD.
Coinsilium Group focuses on investing in Fintechs using blockchain technology.
In 2013, Coinsilium caused a stir by being the first company to go public.
The title is traded today around a pound sterling, against an amount ten times higher in December 2015.
Despite the many twists and turns that have enamelled the cryptocurrency sector, there are many opportunities to be seized due to the low prices in the current context.
These 4 companies are “penny stocks”, that is to say small cap stocks which are traded at a very low price, often outside the main stock exchanges. In this sector in particular, caution is advised before making any investment choice.
Many attractive stories circulate on Blockchain stock, but be very careful, especially when faced with investment proposals that may be made to you.
Blockchain stock is for sophisticated investors: a minimum of technical and financial skills is necessary in order to understand the protocol on which it is based and its risks.
In addition to those linked to virtual currencies, other risks are added: loss of all or part of the capital invested, absence of regulations, absence of detailed information, fraud or scam.
Online brokers can therefore offer you to bet on digital assets like Bitcoin in the form of CFDs (contract for difference,) avoiding the technological complexity linked to this purchase.
In this situation, double vigilance is required and it is necessary to first carry out traditional verifications before investing in a traditional CFD: proof of the broker’s approval (investment service provider – PSI), understanding of the functioning of financial contracts, knowledge of the market and the underlying of the CFD.
Beware also of the leverage effects of the CFD which can prove all the more dangerous with an asset as volatile as Bitcoin. CFDs on Bitcoin are highly risky speculative products whose leverage is limited to 2 so that they can be sold to individuals.
Other Blockchain investment proposals can be made to you on the internet, such as the purchase of training or “mining” packs or even a “management mandate” on digital assets. It is very much advised that you take such offers with absolute caution.