Blockchain Stocks for Investors to Get Started With
There has been a lot of hype around blockchain, which is the technology behind many cryptocurrencies such as Bitcoin. But what is blockchain all about? Is the blockchain trend one worth investing in?
This article will include some background on blockchain, as well as several stocks in the space. Read on to dive in!
In short, blockchain is a shared, immutable ledger for recording transactions, tracking assets, and building trust. The concept was first brought to the public eye around 2008 when research came out proposing the basis for what would become Bitcoin.
However, researchers realized that technology could be used for a variety of applications. The term Blockchain was coined to describe this technology. Digital information, the “block”, is stored in a public database, the “chain”.
Each block stores lots of information, and transactions are kept in a diary of sorts that everyone involved can see. Many computers contain a copy of the same Blockchain, so all of the transactions involved are visible and decentralized. This makes it difficult for people to game the system and steal from each other, for example. This is one of the many benefits of blockchain.
Cryptocurrency is one main application of blockchain technology. People can trade this currency just like they would buy and sell stocks. Overall, the global blockchain market size is expected to grow from USD 3.0 billion in 2020 to USD 39.7 billion by 2025.
If you agree that blockchain technology will continue to grow in use, here are some related investment opportunities.
Stocks to Consider
Square is an American financial services company with a lot going on from its Cash App to payment processing and more. The company has Square Crypto, which is a team of bitcoin developers with their own projects.
Square’s Cash App allows people to buy and sell bitcoin easily, which is why in 2019, it saw over $500 million in bitcoin sales. This means bitcoin is a major part of Square’s business.
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DocuSign is a company that allows organizations to manage electronic agreements. This includes the DocuSign Agreement Cloud along with eSignature. These capabilities save companies an estimated almost $40 per transaction, given the electronic nature.
Dan Springer, CEO of DocuSign, has discussed how important blockchain is for the company. Notably, the business uses blockchain to allow customers to record agreements.
Amazon, the booming technology and e-commerce business that has been taking the world by storm, is also involved in blockchain. For one, Amazon Web Services (AWS) offers Amazon Managed Blockchain. This allows customers to create their very own blockchain networks. Perhaps this will only grow as we move forward.
Blockchain technology inself also has huge potential for Amazon’s e-commerce space, given its transaction nature. The company is known to take big bets and experiment in areas of interest.
Overall, these are exciting times for blockchain. Predictions are that the technology will continue to grow in usage, and we will see how that plays out in the next couple of years.
[Note: This article is not financial advice.]