Blockchain is well-known among investors as the underlying technology that enables security and transparency in the cryptocurrency market. As a result, they are continuously seeking new ways to invest in this industry. Over time, we’ve seen the emergence of many products like cryptocurrencies, DeFi, and NFTs. But there is a new one known as blockchain stocks.
This new trend allows investors to invest in blockchain-based companies instead of purchasing cryptocurrencies or NFTs. Recently, there has been a rising number of firms specializing in blockchain solutions.
This means that investors can avoid the extremely volatile and high-risk cryptocurrency market. And this likely appeals to every investor as they wish to enjoy safer investors. To satisfy this appeal, we have done extensive research to compile a list of some of the best blockchain stocks to buy, according to Wall Street experts.
How Blockchain Will Become a Driving Force on Wall Street
Cryptocurrencies and other digital assets NFTs took center stage in 2021. For example, BTC and a host of other digital currencies set new all-time highs. Also, an NFT project received $91.8 million in an auction. The result were all driven by blockchain technology.
As we go through Q1 of 2022 on Wall Street, there are several signs that blockchain will finally start realizing its potential in the coming months and beyond.
We can see evidence of large corporations around the globe adjusting their business models to accommodate a blockchain-based future. This will enable them to enjoy the liberating effect that distributed digital ledger technology can offer.
So, it’s no surprise that research firms are bullish on the blockchain sector’s future prospects. For example, PricewaterhouseCoopers, one of the world’s largest accounting organizations, believes that blockchain technology would contribute $1.76 trillion to the world economy by 2030.
They pointed out that primary beneficiaries will include financial services, contracts and dispute resolution firms, logistic companies, fashion and mining, and credential and identity verification services.
Furthermore, Fortune Business Insights predicts a 56.1% compound annual growth rate (CAGR) for the blockchain sector by 2027.
Similarly, Markets And Markets expects the blockchain sector to grow at a CAGR of 67.3% between 2020 and 2025. According to the research organization, by the end of 2025, the market would have risen to $39.7 billion from an estimated size of $3 billion at the end of 2020.
Finally, Mordor Intelligence believes that the Blockchain as a Service section of the market, which mostly serves enterprises, would have risen at a CAGR of 15.2% by the end of 2026.
So, what effect does this have on Wall Street? Blockchain is often linked with cryptocurrencies and cryptocurrency exchanges like Coinbase. But the technology is more pervasive and is currently used efficiently across a wide range of sectors.
Blockchain technology has emerged as an excellent funding channel for SMEs and startups. As a result, it can help founders effectively crowdfund their businesses and secure loans more efficiently. While this will have a little immediate impact on Wall Street, it may pave the way for a fresh wave of thriving enterprises to go public in the coming months and years.
Some of the most viable blockchain stocks include:
International Business Machines Corporation (IBM)
International Business Machines Corporation (IBM) is one of the world’s oldest computing corporations. And it has evolved over time. The company used to make PCs but now focuses only on the corporate and government markets.
In this regard, they have a foothold in the blockchain industry. That’s because it offers businesses a secure platform for processing and storing transactions.
PayPal Holdings Inc. (PYPL)
PayPal, a leader in digital payments, has completely embraced cryptocurrencies and blockchain technology. Today, users can buy and trade cryptocurrency through their PayPal accounts. Furthermore, PayPal is also considering creating its stablecoin backed by the US dollar.
Bank of America analyst, Jason Kupferberg is positive about the company’s “super app” approach. He believes the stock’s long-term upside will be a result of the success of its growth efforts. Some of these efforts include cryptocurrency adoption, Venmo monetization, and buy-now-pay-later service.
NVIDIA Corporation (NVDA)
Any discussion of the blockchain or cryptocurrency sector would be incomplete without mentioning NVIDIA Corporation (NVDA). That’s because their graphics processing units (GPUs) are at the core of blockchain processing.
NVIDIA Corporation (NVDA) has been at the epicenter of the Bitcoin explosion, and its fortunes have risen and fallen in tandem with the cryptocurrency. It provides customized GPUs for miners, and its products are among the most well-known in the industry.
Square, Inc. (SQ)
Square, Inc. (SQ), one of the world’s major financial payments processing platforms, has begun to profit from the Bitcoin market, as have other companies. Square, Inc. (SQ) is also one of the top corporations in terms of Bitcoin revenue, having reported that it had made $6.2 billion from the digital currency by the end of the first half of 2021.
Should I invest in blockchain stocks?
Blockchain is a new and innovative technology with potentially game-changing effects for the business sector. Therefore, it’s not surprising that it is piquing the interest of the investment community.
However, a well-diversified portfolio is the standard portfolio advice. Cryptocurrency returns don’t correlate with gold, the market index, and so on. As a result, they constitute a new asset class and should be included in any portfolio.
It is vital to know that most crypto profits are connected with Bitcoin, and Bitcoin price movements are quite volatile. This means that there is a high likelihood of major market retracements. This is not a place for the faint of heart. So, if you detest risk, invest a little portion of your money in cryptocurrency and try not to monitor it every day.
How is blockchain used in finance and supply chains?
A blockchain-based supply chain finance solution, such as smart contracts, will essentially allow all participants in a supply chain finance system to act on a single shared ledger. So, suppliers. manufacturers, and every other participant, can only update their parts of the transaction. This allows for efficiency and an “unprecedented” degree of trust and transparency on an immutable ledger record.
What is the best way to invest in blockchain technology?
There are no ways to invest directly in a blockchain. But, you can invest in firms and technologies that offer services and products that use blockchain. A blockchain is used to tokenize digital securities, and you may acquire securitized tokens to buy stock in a company that tokenizes its shares.
How can blockchain improve supply chains?
The global supply chain is being impacted significantly by recent technological advancements and increasing industry expansion. For example, artificial intelligence (AI) is taking over quality control. IoT devices and drones are monitoring manufacturing and maintenance. And over 1.9 million robots are now in use in manufacturing and warehouses throughout the world.
As the speed of change quickens, boosting the efficiency and transparency of businesses’ supply chains becomes important. Fortunately, blockchain technology can aid in the process’s simplification.
Blockchain has the potential to enhance supply chains by enabling faster and more affordable product delivery, increasing product traceability, boosting partner coordination, and facilitating access to funding.
How do people convert cryptocurrency into the stock market?
Despite what appears to be a natural cross-over between the two markets, direct trading of bitcoin for stocks has been absent.
But, users of platforms like WorldMarkets.io may now use bitcoin to buy shares in Apple, Facebook, Netflix, Ford, Boeing, and 95 other firms. Clients can buy, trade, and hold shares in the whole S&P 100 index using tokenized and fractionalized smart contracts (TFSSC).
Which is a better investment between Crypto and Shares?
Any savvy investor must understand exactly what they are investing in. It is critical to consider the risks and rewards of investing, as well as the factors that will drive the investment’s success.
Here are the most important things investors should know about stocks and cryptocurrencies:
- A share is a fractional ownership stake in a company. It’s easy to lose sight of this if you’re distracted by the fluctuating stock prices. The share offers shareholders a claim on the assets and cash flow of the company. These serve to back up your investment and provide a foundation for its valuation.
- A share’s price fluctuates as investors appraise the company’s potential performance. Investors may become unduly excited about the share in the near term. However, the share price ultimately depends on the company’s capacity to increase earnings in the long run. That is, a share grows in the long run as a result of the underlying company’s growth.
- Cryptocurrency is not backed by any hard assets (except for specialist stablecoins). And, this is true for the most prominent crypto coins, such as Bitcoin and Ethereum. A cryptocurrency may let you execute certain operations, such as transferring money to another person or utilizing smart contracts, which run automatically after certain circumstances are satisfied.
- Because crypto isn’t backed by any assets, the only thing driving cryptocurrency values is speculation fueled by emotions. Prices fluctuate in response to changes in emotion, sometimes dramatically. So, cryptocurrencies are driven by the prospect that someone would acquire them for a higher price in the future.