Investing in Blockchain Technology

We’ve all heard that blockchain technology will change the world. You may have even nodded our your head in agreement.

However, blockchain has transformed from a buzz-word to priority status for many large companies, overnight.

This is an exciting opportunity for everyday investors to get in at the ground floor!

I searched extensively for ways to invest in blockchain. Sadly, Quora answers were less than satisfactory, and yahoo has yet to crawl blockchain. (Just kidding Yahoo, don’t sue me).

Jokes aside, this guide broaches the Technology from an investors perspective with two goals:

  1. Give you the foundational understanding of blockchain Technology.
  2. Explore ways you can start investing in Cryptocurrencies, Building Platforms, and Publicly traded stocks right away.

This section goes over the foundation concepts of blockchain Technology.

(Know it? Skip to the Investment Strategies section.

A one sentence definition of blockchain is: a decentralized and distributed digital ledger that keeps a record of every transaction across many servers and is registered in a way that makes the process irreversible.

Here is a video that explains how this is achieved:


The Promise of Blockchain Technology

The potential of blockchain technology is comparable to the Internet Revolution. The internet was first used only for email, but over time that expanded to the many, many uses we have for it today.

Similarly, bitcoin, currently the most popular use of blockchain technology, is only the first application. Excitement surrounds the technology because of the hundreds of potential uses being identified every month. 

Over the next few decades, blockchain will change business operations drastically.

The major difference between the Internet Revolution and the Blockchain Revolution is the use of the technology. While the internet is used by everyone through programs like Netflix and Amazon.com, blockchains will be used by businesses and governments to communicate internally and externally.


The Applications of Blockchain

Let us consider the impact that this technology could have on the online retail giant Amazon.com.

Stripping Amazon.com (AMZN) of all its bells and whistles (yes, free two-day shipping is a big deal), the core of its business is to connect buyers with verified sellers. 

However, if buyers and sellers are able to verify each others credibility instantly, Amazon’s role in the transaction is diminished to a fraction of its present value. In many cases, buyers and sellers can  bypass Amazon.com altogether.

Any industry that requires a high level of verification and documentation is can simplify business procedures using blockchain. This list includes lawyers, insurance agents, several financial intermediaries and many more.

Read more  on amazon.com on how blockchain could affect their business 😉 (Free 1 month trail on the link below)


Investing in Blockchain Technology

Investing in blockchains is more tangible than most people think. There are three simple ways that an average person can invest in blockchain technology.

All you only need is a smartphone and around $3,000! (One of the books linked above wouldn’t hurt either)

The easiest way to invest is also the earliest use of blockchain – bitcoin and other digital currencies. There are hundreds of cryptocurrencies that operate using blockchain technology.

While bitcoin is the most mature of them, the ideal time to invest in bitcoins was in the the period between 2010 and 2014. New cryptocurrencies are quickly gaining traction the return on investment potential is generally higher. Read more about crypotocurrencies here. Cryptocurrencies can be bought by downloading a wallet, e.g coinbase.

The second most popular investment vehicles are the building platforms such as Ripple, Ethereum, and the HyperLedger Project.

These platforms develop blockchains for specific industries. There are several such platforms of different specifications and levels of maturity.

Ethereum, a platform that has been gaining a lot of attention lately, is a crowd source ventures while the HyperLedger Project is a collaboration of many Fortunate 500 companies.

More information on investing in blockchain platforms can be found here.

The third investment opportunity is for those building on top of the platforms mentioned above. When considering digital assets, companies invest in blockchain technology to be able to safeguard creative rights.

Stocks of publicly traded companies can be bought in anticipation of market capture. Read more about publicly traded companies investing in blockchain technology here.