There are a number of ways you can invest in blockchain technology. You can even lean on the investment strategies of individuals and global companies who have already hopped aboard the blockchain bandwagon. The key is to identify those people and companies that are actually getting ROI on their blockchain investments.
In many ways, any investment in blockchain technology should encompass a short-term, and more importantly, a long-term outlook.
“Blockchain technology investments are different, and are more likely to attract investors who are looking to diversify their traditional equity exposures with established companies — those who want to invest in technologies for the future,” Eric Ervin of Forbes explained.
Can you invest in blockchain technology without overcomplicated Investment strategies? Absolutely. The following can serve as your guide to easily identify blockchain investments that simply make sense.
1. Initial Coin Offering (ICO)
One of the easiest ways to invest in blockchain technology is to back a company raising seed capital via an initial coin offering, or ICO. Using an ICO as a way to raise money for businesses is a relatively new concept, but a powerful one. In fact, $5.6 billion was raised via ICOs in 2017.
This trend is worth looking into while considering ways to invest in blockchain technology. How do ICOs work? Pre-mined digital currency is sold as capital, or equity in the company, with the money used for making the company successful.
Once the company grows and has success, the tokens increase in value. You then have the opportunity to sell your coins and cash out, or make the ICO investment a long-term one.
2. Invest in ETH
Investing in blockchain technology without buying popular cryptocurrency is often the goal for blockchain enthusiasts. However, sometimes that digital currency serves more than one purpose. Ethereum is a good example of this.
Why Ethereum? Ethereum is more than just a cryptocurrency, it is the blockchain and digital currency that supports blockchain technology, such as smart contracts and decentralized applications, also known as Dapps.
Smart contracts and Dapps are revolutionizing a number of processes for businesses, global corporations, and multiple industries, like financial and supply chain. As the second-largest cryptocurrency, Ethereum is potentially worth considering as a blockchain investment.
3. Blockchain Technology Startups
Blockchain technology is very much a new technology. It is not cryptocurrency, or an application of technology. This makes investing in startups based upon these new decentralized tech principles an enticing way you can invest in blockchain technology.
But this can be challenging, since most startups that claim to be “blockchain technology” startups are just supported by the tech, not actually fully integrated. Kodak is a good example.
Kodak does not have a fully integrated blockchain system or solution, nor are they a startup. They do, however, have Kodak Coin and the Kodak One Platform. To truly invest in a blockchain technology startup, you’ll need to find a real one.
Remember those decentralized applications we touched on? Startups like Menlo One are developing Dapps that may have the efficiency capabilities as regular web applications. This is a startup worth considering when looking at investing in real blockchain startups.
Do your due diligence and you are sure to find a startup you can back. There is no shortage of industries primed for blockchain use. From food service to healthcare, the investment opportunities are abundant with a bit of research.
4. Buy Stock in Companies Utilizing Cryptocurrency and Blockchain
Back to the Kodak Coin and Kodak One Platform example. One of the easiest ways to invest in blockchain technology is to invest in already established non-blockchain companies making the switch.
Drawing from our Kodak example, if you invest in Kodak and their fresh tech initiatives, you are essentially investing in blockchain technology. There are other traditional companies, like Kodak, doing the same.
Overstock.com, MasterCard, and IBM all have their tech teams working to implement blockchain into their systems. MasterCard, for instance, has implemented payments via blockchain-based protocols to better secure payments that are subject to counterfeit and fraud under traditional systems.
“Leverage the MasterCard Blockchain and Authorization Network to easily track high value pharmaceuticals, art, luxury goods as they are created, transferred, purchased and resold,” MasterCard developers noted. “For example, use a MasterCard plastic card with a standard payment terminal to record that the asset arrived at a location on the Blockchain.”
Conclusion
Can you invest in blockchain technology? Without a doubt, and there are plenty of ways you can do it. Ways that don’t even involve purchasing a single cryptocurrency. Whether you invest in an ICO you feel passionate about, or simply getting your hands on stocks of a company making moves in the blockchain space, there are options. How will you invest in the future of technology?
