Although fortunes have been made in cryptocurrencies and there are opportunities in the system that underpins bitcoin and the rest, blockchain investment opportunities are not limited to cryptocurrencies. We have looked at such opportunities which include ways to use the blockchain for your own business and stocks in which one can invest. When investing in the blockchain realm it is wise to learn how blockchain operates and then consider whose companies are using it to create profits.
What Is the Blockchain?
The blockchain is a distributed ledger technology. It is a way to keep records in many locations, protect them from being changed, and provide access to all who use the system. Because data in this system cannot be retroactively changed it is very secure. Because blockchain use is anonymous it provides privacy to its users. Most people know about blockchain because it is the motor that drives cryptocurrencies. However, that “motor” can have other uses including digital voting, copyright protection, loyalty and reward programs, digital IDs, wills, medical records, real estate transfers and more.
Blockchain Stocks
When looking for blockchain investment opportunities there are several stocks to consider. Some companies provide services related to blockchain. Others work in the cryptocurrency realm. There are also companies that use products and services related to blockchain to run their businesses. The following are companies that offer blockchain opportunities in one or more ways. In general, the most secure investments in this niche are in companies that will profit from blockchain but have other solid assets and ways to make money.
CME Group
This the largest options and futures exchange in the world. Besides derivatives for Forex, indexes, commodities, and stocks CME Group offers cryptocurrency futures. CME Group earns a fee for every cryptocurrency futures transaction as well for all other futures and options trades. Currently, CME Group offers futures on Bitcoin and Ethereum and will likely add others as market interest dictates. This company fits our criteria for making money from blockchain on top of an otherwise solid business.
MasterCard
The blockchain has the potential to make MasterCard’s business more efficient and more profitable. These folks are processing more and more credit and debit card transactions. The blockchain will be useful in speeding up cross border transactions and making them less expensive. To this end MasterCard is partnering with R3, a blockchain tech company. Its Crypto Card program will let it partner with companies in the Asia-Pacific region as it launches MasterCards that are funded by crypto assets.
DocuSign
This company is the leader in the technology for electronic signatures. Their services cut down on the costs of printing, sending, storing paper documents by about $38 per transaction according to the company. They incorporated blockchain in their business processes in 2015 using the Ethereum blockchain. This is an example of a strong and growing company that uses blockchain to increase their efficiency and grow their profits.
Amazon.com
Amazon’s Web Services where they provide cloud infrastructure also provides Amazon Managed Blockchain. This service lets customers create and run their own blockchain network. The revenue stream from this part of Amazon’s operations is a tiny fraction of what Amazon earns but offers a place to start for those interested in using blockchain in their own business. Because blockchain is a tiny part of their business it is not a practical reason to invest in the company but their managed blockchain services can be an efficient way to add blockchain to your own business without starting from scratch.
Blockchain Investment Opportunities – SlideShare Version