Blockchain has proved to be a revolutionary technology beyond its initial application of securing the process of buying and trading Bitcoin on a bitcoin exchange platform. Because of the number of uses that blockchain has the potential to be a part of, it has grown to be seen as a disruptive technology that many investors and savvy businesses are eager to invest in.
Blockchain is a Jack Miller writes, “a shared distributed ledger that facilitates the process of recording transactions and assets in a business network. Transaction data is stored in blocks that are linked together to form a chain. The times and sequences of transactions in the block are recorded with a unique identifier, like a digital fingerprint.” This transaction and ledger technology have already gotten the attention of industries like supply chain and manufacturing and interest in blockchain as a business technology is growing.
Can you buy stock in blockchain without investing in bitcoin?
Is it possible for the businesses who are interested in buying blockchain stock to do so without investing in Bitcoin or other cryptocurrencies at the same time? As the website Benzinga notes, “blockchain technology is so new that few opportunities exist for direct investment. Many of the companies developing the most innovative business applications are start-ups or privately held. Others have been financed by initial coin offerings (ICOs) and trade in a mostly unregulated market on exchanges that are still developing standard business practices.” Even so, there are some solid ways to make investments in blockchain technology.
Understanding how to buy blockchain stock without involving bitcoin.
Here’s what to know about how to buy blockchain stock.
- Invest in the companies who are investing in other uses and applications of blockchain: While the number of practical applications of blockchain today is few, the potential is clear and several businesses are jumping on the opportunity to create wider uses for the technology. Buying stock with these companies or investing in them at the startup level is a good way to get into the blockchain game on the ground level.
- Taiwan Semiconductor Manufacturing Company: Blockchain developers and software companies need computers to create blockchain networks and advanced technology. The Taiwan Semiconductor Manufacturing Company supplies the majority of both ASIC chips and GPUs necessary for computers running blockchain. While over $1 billion of their $32 billion in revenue was related to cryptocurrency customers, they present a viable option for investing in blockchain without purchasing any Bitcoin or other cryptocurrencies.
- Riot Blockchain: While Riot Blockchain does have their own Bitcoin mining operation, they have also been involved in several blockchain projects with varying degrees of success. Their blockchain operation focuses on “unique projects which decentralize markets; combining real-world applications with an active development team, fundamentals, and large addressable market.”
- Invest in companies that use blockchain: Plenty of companies have started using blockchain in their own operations, mostly to create faster financial transactions and make processes like shipping more efficient. This means that the more success these businesses have they have because of blockchain, the better their investors fare. According to Barron’s, “new companies have created exchange-traded funds that invest in a basket of companies that are exploring blockchain. These ETFs, like Reality Shares’ NexGen Economy ETF or Amplify’s Transformational Data Sharing ETF hold a lot of companies you’ve already heard of…Blockchain is still in its early days, and companies are mostly just experimenting with it, so the SEC told the ETF issuers that they couldn’t even use the word blockchain in the names of the ETFs.” Here are some of the businesses who are making the biggest investments of their own in the blockchain.
- IBM: As a software company, IBM is positioning itself to be on the cutting-edge of blockchain technology and resources. They are working on blockchain solutions that can easily be adopted by businesses and improve processes like tracking shipments and food safety.
- Microsoft: According to US News, “Microsoft is an exclusive partner with India’s BankChain, a consortium of banks utilizing blockchain technology to fight money laundering, financial terrorism, and customer fraud.” This kind of software development could be very impactful for financial service organizations all over the world.
- Kodak: Kodak survived the transition to digital photography and continues to pivot its business model, now expressing interest in using blockchain as a way to protect the photographer’s creativity and copyrights. The Kodak CEO said, “Kodak has always sought to democratize photography and make licensing fair to artists. These [blockchain] technologies give the photography community an innovative and easy way to do just that.”
Bitcoin and other cryptocurrencies have proved volatile and some investors are wary of investing in anything associated with the unstable crypto market but still might be interested in the power of blockchain. Blockchain is far from a safe bet, but the promise of the technology is certainly there. Innovators and established businesses have taken the leap into supporting the technology and offered some people and other businesses a path for how to buy blockchain stock and invest in the technologies of the future.