We cannot begin to discuss blockchain stocks without first giving a brief nod to Satoshi Nakamoto, the acknowledged inventor of the technology. Satoshi Nakamoto is an enigma, and to this day it is not known whether this is the name of a single individual or a group effort, but what’s known is that blockchain technology changed the way money is handled in 2008 when it first hit the market as bitcoin. It continues to allow innovation today. So, what is a blockchain? You don’t need a ton of information about how it works to understand that you are investing in the future of data as we know it. That means everything from bank transfers (AKA money) to personal information. It matters more what a blockchain does than what it is. In essence, a blockchain is a data recording system where every link in the chain has its own data and information from the block both before and after it.
To change the data would change the entire block so it would no longer fit in the chain. To change the chain you need a whole lot of information, and there’s additional protection. Each blockchain is verified many times over by independent ‘miners’ who view and verify the information so that any changed block no longer matches every other copy of that block. In short, a blockchain is an unprecedented level of data security. Think of it as a letter (the data) that you might put in the post and send anywhere (the transfer of data). That letter goes in a clear box, and that clear box goes in a truck full of cameras run by different people, using various sources of electricity, and all those people can see the letter. If anyone messes with the message, everyone can see it has changed.
This is a simplistic and metaphorical view, but it’s enough to explain why a blockchain is valuable and why investing in technologies that run off of it is advantageous. There is some debate as to the definition of blockchain technology. That is an entirely different topic. Whatever your definition, blockchain technology is here to stay, and you can invest in it more than one way. Here are 10 ways that might make sense.
1. Bitcoin (BTCS)
The original and still the most intriguing stock option in the whole blockchain universe. Bitcoin has had massive highs and incredible losses, but if you average it out over time, the trend has bee steadily upward bound for years. This is not an investment for the weak hearted as it has been known to soar and plunge to the tune of thousands of dollars, but those who’ve stayed the course with bitcoin have seen a return that is still growing.
2. Microsoft (MSFT)
Investing in a proven champion is a fish-in-barrel scenario. Microsoft stock may fluctuate slightly over time, but the technology giant isn’t going anywhere but up. Their Azure Blockchain technology has already been integrated by other giants like AT&T (T). If you choose Microsoft as your investment, you’ll want to keep a close eye on Etherium since they use the Etherium framework to build on and that means the two are ultimately tied. Fortunately, Etherium is already a proven system.
3. Etherium (ETH)
If you’re going to go in for a dime, you might as well put in the dollar. Investing in Etherium itself while the prices are still reasonable seems a smart move. Though there’s been a slight downtrend lately, their ties to Microsoft and the overall trend looks positive if you’re in for the long haul. It’s just our opinion and observation, but lately, whenever bitcoin falls, the alternative cryptocurrencies seem to see a marked hike in their value. The logical move would seem to be buy-in when bitcoin goes up, and Etherium is down and sell off your stock when the BTC drops.
4. IBM (IBM)
Microsoft’s most direct competitor is another obvious choice for filling out your portfolio. U.Today places this company at the top of their list for blockchain stocks to invest in for 2019. Unlike their competition over at MYSE, this tech giant writes their own framework known as Hyperledger Fabric which gives them a level of self-reliance that MYSE lacks because of their ties to ETH.
5. Alibaba Group Holdings (BABA)
The largest online retailer in China and arguably the world has its fingers in the blockchain pie. Whatever you think of their products, there’s no doubting that the BABA stock has trended upward for the last five years and is on the rise again. They’ve yet to meet the $208 peak seen last June, but it’s not likely that this retail giant is going out of business and more people buy from them every year.
6. Internet of Things Inc (ITT.V)
The stock is way down on this unusual blockchain stock. The prices can’t get much lower, but it seems likely to head back up soon, making this an ideal time to get in on the ground floor so to speak. The company recently partnered with Freepoint Technologies out of China. As a software developer for the Internet of Things technologies it’s entirely possible that they are just ahead of the game in the industry. With IoT predicted to almost triple in the next three years anyone seeking to capitalize on the uptrend in IoT use and blockchain technology is going to want ITT.V or similar stock while it’s still not-so-hot.
7. Fujitsu (FJTSY)
As an information and communications company, Fujitsu is number seven in the world and number one in Japan in their industry. As a blockchain technology company to watch out for, they certainly appear to be one of the potentially hot stocks to watch. They made the Forbes top five blockchains to invest in list, which is no small feat. We think that between their recent selection to develop the Japanese Bankers Association’s (JBA) Collaborative Blockchain Platform and their partnership with Sony to make educational data “Unfalsifiable,” it seems this company has a very bright future as a blockchain leader in R&D.
8. HIVE Blockchain Technologies Ltd (HIVE)
Formerly the Leeta Gold Corp, this company has been around since 1987. They know how to follow where the money leads and in 2017 they switched their focus from physical gold mining to mining blockchains. Though they may have their highs and lows, they also have thirty years of experience to cash in on, and their business acumen is proven.
9. Overstock (OSTK)
Overstock.com accepts cryptocurrency. In fact, they were the first major retailer to see where the blockchain and cryptocurrency market was going, and they got into the game early on (in 2014). Their stock prices surged as a result. The move was a smart one from a company built on good ideas. Thus, OSTK makes our list of blockchain stocks you should consider in 2019.
10. Mastercard Inc (MA)
You already know who they are. Mastercard made the cut on so many different to-buy lists as a blockchain tech company that they deserve an honorable mention even though they don’t yet accept cryptocurrency. We’re glad to see them helping lead the way into the future, but we’re not quite sure what we think about the way they’re holding back.
Like all investing, cryptocurrencies and other forms of blockchain are worthy of more in-depth research. Recent trends indicate that this is a growing industry across the board. As companies develop the technology further, it will likely continue to increase in value, so there’s no better time to add this to your portfolio. Talk to your investment broker about the best ways to diversify your holdings through blockchain stocks.