At present, big-time investors are looking to fund blockchain companies. Why is that? It most likely has something to do with the fact that they are very profitable. Organizations like Google, JP Morgan, PayPal, and Goldman Sachs invest in projects like Ripple, Digital Asset, Axoni, and so on. And they do it for a good reason. These are only a few examples of profitable companies. What you need to know is that many businesses have succeeded in making huge profits by offering highly secured blockchain solutions. If blockchain is not your cup of tea, you can always invest in companies that leverage this groundbreaking technology.
Understanding the Real Potential of Blockchain Businesses
According to the experts at Hacker Noon, blockchain technology will be worth approximately $60 billion in 2020. This translates into the fact that revenue will experience considerable growth in the following years. If you want to invest your hard-earned money in this cutting-edge technology, there is one thing you need to become aware of. Blockchain businesses have huge potential.
Blockchain Is Making A Great Impact
Blockchain, which is a decentralized ledger, is present in the fields of healthcare, agriculture, government, and utilities. Needless to say, it is relevant to many other fields. If in the past it was an obscure technology, now it is a completely different story. You will want to have your own piece of the pie. The rapid advancement blockchain platforms has made it possible to take full advantage of their groundbreaking potential and manage associated risks.
Financial Institutions Embrace Blockchain Solutions
The banking sector has been eager to welcome blockchain. This is because it offers financial institutions the necessary means for survival. Benefits of adopting blockchain include but are not limited to real-time transactions, better financial products, and enhanced contractual performance. The most notable examples are the Bank of America, Credit Agricole, and National Australia Bank.
Types of Blockchain Investments: Everything You Need to Know
There is no better time than now to invest in blockchain businesses. There are quite a few investment opportunities. Putting your money in a project of this kind demonstrates that you are ready for the success that you want. If you want to invest your money, learn about the various types of blockchain investments:
- Protocols – If you are unfamiliar with the technology, a protocol is the word used for the systems thatare implemented to finalize transactions. Here are some examples: Proof-of-Work, Proof of Weight, and Proof-of-Stake. Apps have become more and more sophisticated, so it is only normal that the need for protocols is great.
- Applications – Let us say that you do not want to buy Bitcoin. No problem. You can invest in blockchain applications. Building stable applications is challenging, but a blockchain development company is capable of creating stable and flexible systems that users will love. Taking into account that many industries are dependent upon blockchain applications, it is a worthwhile investment.
- Infrastructure – Many businesses are dedicated to building and developing blockchain infrastructure. You can invest in companies that are exploring blockchain, such as IBM or Microsoft. These enterprises do not show slow growth. If you ever have the chance to participate in the blockchain infrastructure, do not refuse it.
Myths and Misconceptions of Investing in Blockchain Businesses
Myths and misconceptions can be costly. If you want your investment to pay off, do not believe the fictitious stories the media likes to tell. These are the myths and misconceptions that you need to stop believing:
1. Blockchain Is Totally Free
While blockchain can save users a great deal of money when it comes to transaction fees, it is anything but free. The fact of the matter is that every transaction is verified by a network of computers, which arrive at a single version of truth. Therefore, implementation involves the use of many machines. The Bitcoin network, for instance, uses the power of millions of computers, which need to be paid for. Blockchain can increase utility bills to validate transactions.
2. Tokens and Coins Are the Same Thing
No, tokens and coins are not the same thing, although there are some similarities. A coin represents a means of payment. A token, on the other hand, is a unit of value that exists in the blockchain space. It has several functions and can store multiple levels of value, as opposed to a coin. As you can see, it is not just a matter of semantics. The meanings overlap and sometimes, are used interchangeably, but there is a striking difference.
3. An Advisor Is Not Necessarily an Expert
The role of the blockchain advisor is to inform you about blockchain, Bitcoin, Ethereum, etc. The problem is that not all advisors are willing to go the extra mile. When choosing a trusted advisor, look for someone who can help you navigate through the process, preferably someone who has experience with blockchain development.. Remember that an advisor is not necessarily an expert. If you go to someone for advice, make sure they can provide expert advice.
How to Invest in Blockchain Businesses
Blockchain is not going away any time soon, so you have plenty of time to decide if you want to invest in this groundbreaking technology. It will keep on growing and, needless to say, there will be more and more opportunities. If you need valuable suggestions, you are in luck because we have a few in mind:
- Invest in Blockchain Businesses via Crowdfunding Platforms – If you really want to place money into Bitcoin or blockchain companies, try a crowdfunding platform. Sign up and invest with the organization of your choice.
- Initial Coin Offering – You can raise money with a little bit of planning. Get funding using an ICO. It is possible to raise millions of dollars this way.
- Invest in The Best Blockchain Companies – Measure the innovation potential and prepare for the new venture. Trust only the best blockchain and development companies.
The bottom line is that you should take advantage of the momentum. Blockchain is simple to invest in. It is not a chore. Actually, you will be investing for profit and fun.