Talk of blockchain and people imagine Bitcoin and Ethereum — cryptocurrency. But that’s not what blockchain technology is really about. Blockchain is more than cryptocurrencies. Its a form of ledger technology that store information in a decentralized manner, more secure than that of the banks. Several tech companies now envision blockchain as the “genesis” of distribution ledger technology. So some stocks of these companies are projected to skyrocket in the near future as demand for blockchain technology soars. Here are seven blockchain stocks you have to include on your portfolio in the coming years.
Related media: Why Blockchain Matters More Than You Think
Company: Nvidia Corporation; Stock: (NASDAQ:NVDA)
This is the leading manufacturer of graphics processing units (GPUs) in the world. These are essential components for most technological advance products like artificial intelligence (AI), self driving cars, and gaming consoles. GPUs are now a key hardware component in mining cryptocurrency. Miners use specialized GPUs to process transactions on the blockchain, and are often rewarded with newly minted digital coins. According to a recent report, NVIDIA sold roughly $175 worth of its GeForce RXT 30 GPUs to Ethereum miners in the third quarter of 2021 alone — and has driven the price of the cryptocurrency.
How much would you like to invest in NVIDIA?
#2. CME Group
Company: Chicago Mercantile Exchange Group Inc; Stock: (NASDAQ:CME)
This is the largest and leading company in futures and options exchange in the world, offering derivative securities for stocks, indexes, foreign exchange, and more. Its also the only exchange company that has created a market for Bitcoin futures contracts. The interest on Bitcoin is on the rise, and as the potential for the price continues to rise as well, CME Group stands to make revenue as the value of Bitcoin gets to its all-time-high. The company will charge a small fee for every transaction made on its exchanges. So if the interest continues to rise, their futures products and services will be offered on the exchange, eventually.
How much would you like to invest in CME Group?
Company: Square Inc; Stock: (NYSE:SQ)
The largest financial technology company in the world, has two main components: its payment-processing ecosystem for startups, and its Cash App peer-to-peer (P2P) payment platform. It recently launched Square Online Store that seeks to help merchants build e-commerce stores. It has a blockchain service on Cash App that allows users to buy and sell Bitcoin and other cryptocurrencies more efficiently; and has generated over $1.6 billion in Bitcoin purchase in the third quarter of 2020 alone — significantly increasing their productivity. Square Crypto is a team of Bitcoin developers that also have several exciting projects coming up.
How much would you like to invest in Square?
Company: International Business Machines Corporation; Stock: (NYSE:IBM)
Isn’t it a bit surprising that IBM is in the list? In recent years, its performance hasn’t been that bright, however, the company has a few investments to ramp up growth. For instance, its $34 billion acquisition of Red Hat has given them a lot of cross-selling opportunities. Currently, IBM blockchain is already providing transformative services for True Tickets, a ticket authentication company, and several others that could increase productivity exponentially if blockchain technologies continue to rise in the coming years. For now, IBM blockchain is helping customers build a more dependable supply chain during this pandemic.
How much would you like to invest in IBM?
Company: MasterCard Inc; Stock: (NYSE:MA)
MasterCard’s cashless payment processing system has seen tremendous growth over the years. The introduction of blockchain technology has the potential to transform the company’s already existing 191 million users worldwide into a cross-border money transfer avenue that’s been slow and costly. MasterCard recently announced a partnership with R3, a blockchain technology company to develop a new cross-border payment system to enable the company gain a competitive advantage in the industry, and to allow its users send money internationally. In addition, it recently improved its Crypto Card partner program, making it more easier for partners to make payment of cryptocurrencies globally.
How much would you like to invest in MasterCard?
Company: DocuSign Inc; Stock: (NASDAQ:DOCU)
This company is bar none the undisputed market leader in electronic signature technology, and its not surprising that this industry is rising in recent years, (and to see them in this list, too). E-signatures are in high demand since it saves time and money for individuals and companies as such. According to DocuSign, its seen an estimated $36 reduction in the cost of doing business per transaction. Since 2015, the company has used blockchain technology in its business operations that allowed users to record their agreements on the Ethereum blockchain service. DocuSign admits how blockchain would be crucial for the future of the company.
How much would you like to invest in DocuSign?
Company: Amazon.com Inc; Stock: (NASDAQ:AMZN)
Of course, why won’t you include a trillion-dollar company? The world’s largest e-commerce operating company, also operates Amazon Web Services (AWS) — a cloud infrastructure management service. This platform offers Amazon Managed Blockchainthat allows customers to create and manage their own blockchain networks. In addition, Amazon seeks to gain massive advantage by incorporating blockchain technology into its services. Currently, blockchain makes a minuscule percentage of Amazon’srevenue, but in the coming years, its hopes to make potential returns in the technology.
How much would you like to invest in Amazon?
Source: Motley Fool
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Written by: Nana Kwadwo, Wed, Oct 13, 2021.