Blockchain technology is the technology behind Bitcoin and other cryptocurrencies. However, there is also a lot of interest in using blockchain as an application for other industries – especially the financial sector, luxury goods, and any other industry where credibility is extremely important.
Introduction
Blockchain allows multiple parties to collaborate without needing absolute trust in one another. In fact, trust is embedded in the technology itself, as there is no single entity controlling the information shared in blockchain processes.
Interesting Blockchain Penny Stocks
Penny stocks are always risky, and those relying on largely unproven technologies are even more so. It’s important to do your homework when buying any stock, but this is especially true for blockchain penny stocks.
Canaan (CAN)
Canaan is a Beijing-based company that manufactures devices that can be used to mine Bitcoin. Canaan also uses its own devices for Bitcoin mining in Kazakhstan. Canaan’s stock closed at $6.28 on October 8, 2021.
Galaxy Digital Holdings (BRPHF)
Galaxy Digital describes itself as a “diversified financial services and investment management company in the digital asset, cryptocurrency, and blockchain technology” sector. It provides asset management and investment banking services to blockchain and digital asset companies. It also has its own Bitcoin mining operations and offers financing to other miners. Galaxy’s stock closed at $18.87 on October 8, 2021.
How Can You Invest in Blockchain Technology?
There are a few other ways to try to make money from blockchain investments. The most obvious and straightforward method is to buy the cryptocurrency itself. The most famous is Bitcoin, but there are many other coins as well. The value of cryptocurrencies has increased significantly at times over the past several years, but that doesn’t mean they are great investments for everyone.
Some companies raise money through Initial Coin Offerings (ICOs). Investors can profit if the value of the cryptocurrency rises after it starts trading. The Securities and Exchange Commission (SEC) warns that ICOs, which are not heavily regulated, can be fraudulent, and the value of coins can be manipulated.
You might also consider buying shares of exchange-traded funds (ETFs) that invest in companies using blockchain technology. Many ETFs, which trade like stocks, track the performance of a blockchain-based benchmark index. Some examples include the Amplify Transformational Data Sharing ETF (BLOK) and the Siren Nasdaq NextGen Economy ETF (BLCN).
Conclusion
Many believe that blockchain technology is the true value of cryptocurrencies, so if you invest in companies that utilize this technology for real industry and this bet pays off, it may be akin to investing in Google in its early days. Only time will tell.
Sources:
– IBM. “IBM Blockchain Solutions: Where Blockchain Meets Business.”
– Hyperledger. “Case Study: How Walmart Brought Unprecedented Transparency to the Food Supply Chain Using Hyperledger Fabric.”
– Canaan. “Canaan Enters the Mining World for the First Time.”
– Galaxy Digital. “Galaxy Digital.”
– U.S. Securities and Exchange Commission. “Highlights on Initial Coin Offerings (ICOs).”
Source: https://www.thebalancemoney.com/investing-guide-to-blockchain-penny-stocks-4163544
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