Blockchain is on the rise with banks and financial institutions adopting the technology faster than anticipated. This short article touches on possible ways of investing into blockchain technology.
R3 consortium was created by 70 of the world biggest financial institutions in research and development of blockchain usage in the financial system. It is headquartered in New York City. Currently, one of the members of R3 JPMorgan seems to be leading the blockchain race, as they just announced testing their own blockchain with 2,200 customers using Ethereum decentralized platform for applications.
So the idea is to buy stock in the banks that have joined up with R3, such as JPMorgan (JPM), but also BBVA (BBVA), BNP Paribas (BNP.PA), Citi (C), Credit Suisse (CS), ING Group (ING), Royal Bank of Scotland (RBS), UBS (UBS) and Wells Fargo (WFC). Of course, buying bank stocks somewhat defeats the purpose of a cryptocurrency designed to avoid traditional banks.
The risk of this investment is that even though banks are running their POC’s on Ethereum (Ethereum is a decentralized platform for applications that run exactly as programmed without any chance of fraud, censorship or third-party interference), the R3 blockchain network is centralized in a way because the R3 consortium blockchain is built privately among banking groups and financial institutions. Meaning, that it’s the banks who are in control of such systems any development in an open source world; could later prove more successful and publically more trusted.
Another way of investing into stocks of publically traded blockchain technology stocks, such as following:
BTCS (OTCQB:BTCS) – first blockchain-focused American public company. BTCS Inc., is engaged in the business of hosting an online e-commerce marketplace where consumers can purchase merchandise using digital currencies, including bitcoin and with operations in the blockchain and digital currency ecosystems.
Global Arena Holding (OTC:GAHC) – acquires companies and patents that use the blockchain crypto technology. Global Arena Holding Inc. (GAHI) is a holding company, focusing on financial services and technology software companies. The Company is focused on acquiring technologies, patents and companies having the ability to leverage the blockchain crypto technology.
Although HashingSpace (OTC:HSHS) – focusing on providing the tools needed to develop future blockchain technologies. HashingSpace Corporation (HSC) – The Company provides hosting and block chain transactional services. The company is a wholesaler of Bitcoin mining servers and Bitcoin automated teller machine (ATM) machines.
DigitalX Limited (ASX:DCC) – develops fintech products and services using blockchain technology and a secure ledger system for the global digital payments industry.
BTL Group (TSXV:BTL) – Canadian company that offers blockchain solutions across multiple industries, plus they have a money transfer platform using distributed-ledger-technology and smart contracts called Interbit. BTL Group Ltd. (BTL), formerly Northern Aspect Resources Ltd., is a Canada-based technology company. The Company’s business focuses on developing blockchain technologies to disrupt and transform existing industries.
Coinsilium Group Limited (ISDX:COIN) – blockchain technology investor that develops and invests in blockchain technologies. The company is the world’s first IPO of a blockchain technology company
First Bitcoin Capital Corp. (OTCMARKETS:BITCF) – the company is focused on the acquisition of Bitcoin startups and funding companies developing Bitcoin software and hardware.
And couple of others that were recently mentioned in a global forecast 2016-2021:
- 21, Inc.
- Abra, Inc.
- Chain, Inc.
- Circle Internet Financial Limited
- Digital Asset Holdings
- IBM Corporation
- Microsoft Corporation
For example, as of end of Oct 2016, US $100 can buy:
130 shares – BTL Group Ltd. (BTL) – 100 USD
50,000 shares – GLOBAL ARENA HOLDING INC COM (GAHC) – 100 USD
25,000 shares – HASHINGSPACE CORP (HSHS) – 100 USD
100,000 shares – BTCS INC COM (BTCS) – 100 USD
To conclude, according to a research report, the blockchain technology market size will be worth 2.3 billion by 2021 at a Compound Annual Growth Rate of 61.5 percent. So, either way, you decide to invest, it’ll probably be worth.