As you may know, Blockchain is the underlying technology for Bitcoin and several other cryptocurrencies. However, many investors are unfamiliar with blockchain technology and the best ways to invest in this fascinating technological development. Newbies can get some information from multicoin capital portfolio and coinbase ventures portfolio
Here is a brief introduction to blockchain technology, followed by a list of our favourite blockchain companies and an important concept that all blockchain investors should keep in mind.
What is blockchain technology, exactly?
Blockchain is a ledger system that enables decentralised record storage. It is often referred to as distributed ledger technology. A bank, for instance, can store information (like payment transaction history) on its own systems, but blockchain technology enables the creation of a user-accessible, immutable public ledger. Since blockchain ledgers cannot be modified in the past and may be used anonymously to protect user privacy, they are an extremely secure way to store data.
It is crucial to understand that blockchain and cryptocurrencies are two separate concepts. Although it has a wide range of potential uses unrelated to Bitcoin and other digital currencies, blockchain is the technology that powers cryptocurrencies.
Top cryptocurrency stocks to consider
Numerous publicly traded firms now utilise blockchain technology in their business operations, offer blockchain-related services to consumers, or are active participants in the cryptocurrency market. While some individuals are only interested in blockchain technology and/or cryptocurrencies, others employ blockchain-related products and services to bolster their already successful enterprises. In light of this, here is a list of top-tier blockchain businesses to consider for your stock portfolio if you want exposure to this revolutionary technology.
Nvidia is the leading maker of GPUs, which are required for artificial intelligence, driverless vehicles, and gaming (NASDAQ:NVDA). GPUs are also utilised in cryptocurrency mining. “Miners” employ GPUs to perform blockchain transactions and generate new digital currency. If bitcoin prices rise, Nvidia’s crypto-targeted CMP chips may resume sales. Even though Nvidia does not dominate the market, its other businesses do.
Block (NYSE:SQ), previously Square, operates a payment-processing network for small companies and a personal finance platform, Cash App. The company offers business lending, stock trading, and buy-now-pay-later financing. Square Online Store lets merchants establish e-commerce and omnichannel capabilities. Block has two blockchain features. Cash App makes purchasing and selling Bitcoin easier. The business bought almost $10 billion in Bitcoin in 2021. Block’s Bitcoin developers, Spiral (formerly Square Crypto), have various exciting projects and an open-developer platform for blockchain applications, TBD. Its new name reflects its focus on blockchain technology.
IBM (NYSE:IBM) has recently taken major initiatives to boost growth, notwithstanding its recent underperformance. For instance, the acquisition of Red Hat presented numerous cross-selling opportunities. IBM Blockchain has assisted Home Depot (NYSE:HD), Renault (OTC:RNSDF), and Albertsons (NYSE:ACI) in transforming their offers, among others. If blockchain-based solutions gain widespread acceptance, they could proliferate rapidly. IBM Blockchain enables organisations to construct more trustworthy and effective supply networks.
Mastercard (NYSE:MA) has risen rapidly as debit and credit card transactions have increased due to the paperless economy. Slow and costly international money transfers could be revolutionised by blockchain technology. Mastercard has launched a Crypto Card partner programme with seven of the top cryptocurrency companies in the Asia-Pacific region in order to launch cryptocurrency-funded Mastercard payment cards. Mastercard and Nexo have recently launched the first payment card supported by cryptocurrency.
Amazon (NASDAQ:AMZN) operates Amazon Web Services and the biggest e-commerce platform in the world. Amazon Managed Blockchain enables clients to build and manage blockchain networks on AWS. The vast e-commerce division of Amazon may also employ blockchain technology. Amazon’s blockchain-based revenue is currently modest, but as the technology develops, it may increase.
Coinbase (NASDAQ:COIN), The network touts an annualised bitcoin trade volume of over $1.2 trillion and 98 million verified members in over 100 countries. Coinbase has a total of $256 billion worth of cryptocurrencies. As the value of cryptocurrencies has declined, Coinbase’s revenue has suffered, but the company stands to gain substantially if the assets recover. From the standpoint of a blockchain investor, Coinbase’s greatest value is that it should benefit regardless of which cryptocurrencies lead the way.
