Jhe beginnings of blockchain are now behind us. The “Bitcoin Mania” of late 2017 has passed. By now most of you know at least the basics of cryptocurrencies, blockchain and bitcoin. Many of you probably have some sort of exposure to cryptocurrencies. It is easier than ever to own crypto thanks to the recent launch of Bitcoin ETFs. You don’t need to have a wallet or an exchange app on your phone, you can load BTCUSD as easily as buying Nvidia stock.
Now, a new class of crypto has emerged. The space has evolved and the benefits will rise for those who take advantage of it. Those who don’t adapt will be left behind. Exciting new ten bag profit potential themes are all around us. Rather than just chasing bitcoins, money is earned in non-fungible tokens (NFTs) and meme coins like Dogecoin and Shiba Inu, while DeFi (decentralized finance) has become the name of the game. How will you leverage of this context of an ever-changing landscape?
In a world where central banks have turned on the taps and quantitative easing has become the norm, crypto is playing a new role. Bitcoin has seen its legitimization as an asset class. Bitcoin futures volumes have increased month on month. Publicly traded companies here in the United States are beginning to load bitcoin reserves onto their balance sheets. Yes, you read that right. Companies and shareholders are making a conscious decision to diversify their liquidity by adding cryptocurrency. We are not talking about a hundred dollars here or there, we are talking about billions of dollars. In total, publicly traded companies hold more than $10 billion in bitcoins. Between ETFs, countries like Nicaragua, public and private companies, there is more than $64 billion in bitcoins held on balance sheets like treasury bills.
What if this becomes common practice in all publicly traded companies? This increase in demand is likely to trigger a further push above all-time highs.
Behind the recent market headlines about the Russian invasion of Ukraine and the fallout from the sanctions on the invader, the land grab in the blockchain world has begun. It started out as a gimmick, with companies changing names to attract new investors. Now it has evolved into well-established industries using blockchain technology to reduce costs, improve margins, and increase their bottom line. Large corporations like Walmart, UnitedHealth, and BMW have adapted blockchain technology to their needs. And it’s not just fledgling concepts and partnerships, there are real-world applications for blockchain that are already bringing huge changes to industries across the globe. The revolution has only just begun.
Just a few years ago, no one would have thought that these digital assets would be used to buy real-world goods. Businesses around the world are now accepting crypto as payment. You can now use bitcoin to buy a Tesla or even a trip to the movies at AMC. How about a trip to the moon with Dogecoin? No, seriously, you can use Dogecoin to pay SpaceX for an upcoming space mission.
In this article, I’m going to make sure you’re not going to hurt yourself by suing fake blockchain companies and instead, I’m going to point you towards investment ideas that are still fundamentally sound and built around real businesses. durable. Legitimation was a big buzzword around bitcoin. Everything these days revolves around the Ethereum blockchain and decentralized finance. It has the power to take everyday businesses and turn them into the next big business.
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Will you benefit from 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 7,953% from $4.9 billion today to nearly $395 billion by 2028.
Now Zacks is targeting the blockchain technology that drives cryptocurrencies like Bitcoin and others. The goal is to ride the growing boom without boost volatility from investing in the cryptos themselves.
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When you examine the cryptocurrency ecosystem, you find that there are many ways to invest in blockchain. We can divide these actions into five main categories.
1) “Pickaxes and axes” and miners
During the gold rush, those who really got rich were those who sold pickaxes and axes. That is, the companies that provided the tools for speculators to go out and try to strike it rich. In the world of cryptocurrency, this refers to the companies that manufacture the chips and hardware used for mining operations. Examples would include a host of semiconductor companies.
Then there are the miners themselves. Miners confirm transactions from one node to another by solving the cryptographic problem and are then rewarded in units of the cryptocurrency. We are already seeing publicly traded companies “mining” cryptocurrency. These companies mine the currency and then immediately resell it on the open market and pass the gains on to shareholders. Treat them like you would a pipeline company in the energy sector. These companies are small today, but could grow much larger over time.
There are even “green miners” there. These are companies that use renewable energy to power their crypto mining operations. Dividends increase over time because the negative drawdown of electricity costs is not a major factor.
2) The cloud
No other industry has been as dependent on the cloud for its development as blockchain. The need to distribute a ledger across the globe, with no centralized ownership or authority to oversee transactions, plays to the strengths of the cloud. However, the cloud is still under threat here, as blockchain technology can spread storage across the world, fighting against the centralized nature of traditional cloud services. Yet this industry can adapt technology to take advantage of it.
3) Decentralized finance (DeFi)
Payment processing is one of the most disruptive industries for blockchain. Rather than your traditional financial intermediary, blockchain technology enables a distributed, open public ledger where transactions are confirmed by other nodes in the chain for a fee far below your usual fees from more traditional processors.
Blockchain technology is also perfect for lending, allowing a lender to spread their risk across thousands of loans in an instant, regardless of the size of the lender. We are only the tip of the iceberg in this area.
Smart contracts can be traded on these ledgers. These contracts can automatically make scheduled payments. No third-party authenticator is needed. These contracts can also be easily bought and sold on the blockchain, providing quick access and instant liquidity.
4) Investors, business development companies and consulting
There will be a wave of companies looking for ways to integrate blockchain technology into their existing businesses. Already, large consulting firms are beginning to offer services to help companies integrate new technology. Gartner has even developed a dedicated site for this purpose.
Some listed companies act as incubators for other budding cryptocurrencies. There are nearly 18,000 cryptocurrencies in the world with a total market cap of over $1.8 trillion. The total volume of the global crypto market exceeds $77 billion per day. These investors and business development companies invest in promising crypto companies before they go mainstream.
5) Futures and ETFs
The biggest news event of the past year for bitcoin has to be the approval of bitcoin ETFs. This has made investing in bitcoin as easy as buying an individual stock. It’s not just Bitcoin anymore. Ethereum has become the next fully legitimized cryptocurrency. It’s only a matter of time before the SEC finally relents and allows an Ethereum-based ETF to hit the market. Already, futures contracts for each are traded thousands of times on major exchanges in the United States, including the highly respected CME Group.
Blockchain technology is already having a major impact on almost every industry you can think of, and that impact will only accelerate over time. In fact, experts predict the space will skyrocket by +7,953% to $395 billion by 2028.
Just like in the early days when the internet was the new emerging technology, investors have the opportunity to pocket huge gains. That’s why I invite you to consult our portfolio service Blockchain Innovators.
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We are aiming for explosive profit potential and sustained long-term growth from stock selection to ride the blockchain boom from multiple angles – from supplying chips and hardware to fintech companies and processing data. payments.
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Dave is Zacks resident technical and dynamic expert. First successful crypto investor, selects stocks and delivers exclusive commentary for our new portfolio, Blockchain Innovators.
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