Blockchain technology is widely adopted in major sectors of the world. The technology’s first application was in cryptocurrencies, which are public currencies issued on the decentralized technology. Today, there are over 7,000 cryptocurrencies that have been issued by different versions of this technology.
Beyond just cryptocurrencies, the technology has spread into mainstream sectors and is now considered as an investment option. This article gathers information on the top 5 blockchain stocks to buy at the end of 2020.
Square is a household name in financial technology. It is one of the top American fintech companies out there with a great potential for growth. The payment industry is one of the fastest growing in the world, and Square is at the forefront of this growth by enabling small businesses access cheap and efficient payment services that allow them to compete with the bigger ones. Square takes care of the accounting needs of these small businesses which places less financial management burdens on them and gives room for faster growth.
The company recently invested $50 million in Bitcoin because the asset aligns with the company’s goals. It is also one of the few mainstream platforms that allow buying and selling of Bitcoin using fiat money. This makes it hardly surprising that it also has one of the top blockchain stocks in the world that has surged significantly over the years, making it one of the blockchain stocks you should consider buying in the rest of the year.
IBM is one of the blockchain stocks with not much to offer at the moment but with enormous future potentials. If you are the patient type and are considering an investment for many years to come, this is an option you should take into account. IBM has distinguished itself with its many big ideas which may not be appreciated immediately. However, it is harnessing blockchain technology to solve longer term problems which many of its peers have not even contemplated yet.
For instance, the company launched a collaborative blockchain platform to help make the global food supply chain more efficient. With the technology, wastage of food items along the supply chain will be dealt with as well as ensure transparency of the process which is what blockchain is designed for. Because of its ability to keep permanent records, it could make IBM’s ideas more relevant in future and this promises potential for its stocks’ growth as well.
Cryptocurrencies are becoming more popular among investors. This has become evident with more than half a million Bitcoins on the balance sheets of mainstream companies. This trend places CME Group in a strategic position for growth, as it is one of the major players in the industry. First, it is the largest futures and options exchange in the world. It is the only exchange on which Bitcoin futures are traded. CME also offers derivative securities for stocks, indexes, foreign exchanges, and more. With its involvement with Bitcoin, the company stands to get significant revenue.
This interest is expected to grow significantly in the future. If you are looking for stocks directly linked to the booming cryptocurrency industry, CME Group may be a top pick for you.
Amazon has a reputation as the world’s leading e-commerce company. With more than 197 million monthly users, the company has indeed distinguished itself. However, what most people don’t know is that Amazon is also a leader in blockchain technology. The company has Amazon Web Services (AWS) which allows its users to create and manage their own blockchains. This is a cloud computing service that is used by companies and governments.
This suit of services has been described by Amazon CEO Jeff Bezos as a fast-growing venture. Launched initially in 2002, AWS has grown to account for 12% of Amazon’s total revenue as at 2019. This can easily translate into the company’s stocks, which is why it is a viable investment option in the blockchain industry. What’s more? It is expected that Amazon will soon incorporate blockchain into its e-commerce business and what happens to the blockchain stocks next is anyone’s guess.
Grayscale Investment Trust (GBTC)
The name Grayscale needs no introduction in the cryptocurrency space. As an investment platform for institutional investors, the company currently has roughly $6 billion of assets under management (AUM). Its investment trusts include the Bitcoin Trust, Ethereum Trust, XRP Trust, and many more top cryptocurrencies. The company currently holds 2% of Ethereum’s circulating supply which is a huge amount of ETH in its hold.
As more institutions start to appreciate and invest in cryptocurrencies, Grayscale stands to see some significant growth also in its stocks. This is a reason why you should consider this as a potentially profitable blockchain investment in the short to medium term.
If you are looking to get into blockchain as an investment in 2020, these are the top ones you should consider. As the industry is growing very fast, the earlier you get in may be the better for you.
Featured image: distel.com