Several times while chatting with no-coiners -people who own 0 cryptocurrency- I was asked a simple question by less risk averse investors who did not want to pour hard-earned money into bitcoin given the natural inherent it brings -security, tax concerns- the question starts with statement that rhymes with "I am a firm believer in blockchain technology, but I don't want to risk money on bitcoin or some scammy crypto made in Moldavia ! So, how can I invest money in blockchain?"
Although I am firm defender of the idea of owning at the very least a tiny bag of any top cryptocurrency, I am able to adopt/adapt to the perspective of my interlocutor, thus, I totally understand the vision of an individual who hate the risk aversion married to bitcoin/crypto. To all those who believe in blockchain and its promises in various spheres of our existences and business, I invite you to read this concise guide.
In 2021, it is obvious that investing in blockchain technology has become popular because of its central role in the databases that govern cryptocurrencies and digital transactions. To sum up my message, you can invest in blockchain technology through shares of companies that offer services related to cryptocurrencies or are developing other industry applications for it. Despite its growth potential, blockchain technology should still be viewed as a high-risk investment; fortunately, ETFs (exchange-traded asset pools) are the safest way to play blockchain investing until today.
Bitcoin often dominates the financial news, fascinating a range of people from the average-joe to savvy investors with its price volatility and potential. However, let's clarify that Bitcoin is the first blockchain application, blockchain being the database technology on which the cryptocurrency is based, which sadly receives far less attention and scrutiny - DYOR: DO YOUR OWN RESEARCH-.
A blockchain is like an electronic ledger, decentralized, recurrently verified, synchronized, independent and transparent. Data can be entered into it, but it cannot be altered or deleted, which gives it its much-celebrated property of permanence. Many blockchains have emerged since the first one that made bitcoin's debut possible in January 2009. Some of these blockchains support cryptocurrencies such as bitcoin. Others support multipurpose digital platforms, such as Ethereum, which function as decentralized versions of more traditional (i.e., centralized) platforms and networks.
Investing in blockchain technology has become a popular topic in recent years, given the fact that blockchain technology doesn't just relate to cryptocurrencies. It also encompasses:
_Companies that offer services related to cryptocurrencies (such as cryptocurrency exchanges, where currencies are exchanged).
_Companies that are building their own blockchains for other industrial/commercial purposes.
A simple way to invest in blockchain technology is to buy shares of any publicly traded company that is using or building this technology, or that works with or invests in cryptocurrencies.
Individual blockchain stocks: publicly listed companies, companies using or working with blockchain technology, some of the most prominent publicly traded companies include:
-IBM (offers blockchain services)
-Amazon (offers Amazon Managed Blockchain service)
-Intel (offers blockchain services)
-Nvidia (sells GPUs to cryptocurrency miners)
-AMD (sells GPUs to cryptocurrency miners)
-Mastercard (working on blockchain-based cross-border payments with R3)
-Honeywell (using blockchain to track sales)
-DocuSign (offering blockchain service)
-JPMorgan (created its own cryptocurrency, JPM Coin, and its own unit for blockchain projects)
-Canaan (manufactures mining hardware)
-Silvergate (offers banking services to blockchain and cryptocurrency companies)
Individual blockchain stocks: cryptocurrency-related companies.
Alternatively, there are some publicly traded companies that offer cryptocurrency-related services or have direct exposure to cryptocurrencies:
-Square (offers Bitcoin payment service)
-PayPal (offers a Bitcoin payment service)
-Grayscale Bitcoin Trust (operates a Bitcoin investment fund)
-MicroStrategy (invests in Bitcoin)
-Intercontinental Exchange (operates the Bakkt cryptocurrency exchange)
-CME Group (operates a marketplace for Bitcoin futures contracts)
-Overstock (digital retailer that accepts Bitcoin)
As cryptocurrency becomes more common in its uses, more cryptocurrency companies are likely to be listed. For example, Coinbase, the largest crypto exchange in the United States, is planning to hold its initial public offering in early 2021.
