As I pen this report, there is a bloodbath happening in the cryptocurrency markets. All cryptocurrencies, including Bitcoin, are crashing. With smart money exiting the crypto markets, savvy investors are wondering where it’s moving next. I’ll tell you where. It’s pouring into blockchain—more precisely, blockchain stocks and blockchain ETFs. So, here we present five of the best blockchain technology stocks you need to consider as the rising tide lifts these boats.
But first, let me give you a glimpse into this new craze that’s gripping investors.
Why Consider Blockchain Technology Stocks?
Blockchain, as we all know, is the technology on which Bitcoin and hundreds of other cryptocurrencies are built.
The concept underpinning this technology is decentralization—that is, taking the power to control away from individuals, businesses, governments, and institutions and putting it in the hands of the computer code running the technology.
Blockchain stands to disrupt our established conventions of conducting financial and business transactions. For instance, Bitcoin is vying to replace fiat currency-based banking. Ethereum aims to decentralize businesses. Other blockchain projects similarly tout disruptive goals.
Judging blockchain’s potential, all the big global corporations are now spending money to acquire this technology. Alphabet Inc (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT), Intel Corporation (NASDAQ:INTC), and Cisco Systems, Inc. (NASDAQ:CSCO) all are investing in blockchain in some form.
Now that all eyes are turning toward blockchain, investors are likewise yearning to take a share in it.
The blockchain mania has grown so huge in recent days that the mere mention of the word “blockchain” turns heads. Small loss-making companies have begun adding “blockchain” to their names to see their stock prices skyrocket overnight.
To give you an idea how frenzied investors are right now, take the example of the two recently launched blockchain ETFs—both of which jointly attracted more than $260.0 million in investor funds in just two weeks. An average ETF barely receives a fourth of that in the same time. (Source: “On Closer Inspection Your Blockchain ETF May Be a Tech Fund,” Bloomberg, January 30, 2018.)
It is obvious now that blockchain technology stocks potential is very promsing at this point. So cutting to the chase, here is a list of blockchain technology stocks you need to be watching right now.
List of Best Blockchain Technology Stocks
On our list of blockchain companies below is one world-renowned technology heavyweight, one popular retailer, one century-old company with a household name, one small-cap blockchain-focused dark horse, and one bonus penny stock with promising upside potential.
|Company||Symbol||Nature of Business|
|International Business Machines Corp||NYSE:IBM||Technology company with a blockchain business line.|
|Eastman Kodak Company||NYSE:KODK||Imaging products manufacturer creating a blockchain photography platform.|
|Overstock.com Inc||NASDAQ:OSTK||Online retailer that accepts crypto payments and has a subsidiary focused on investing in blockchain projects.|
|BTL Group Ltd||OTCMKTS:BTLLF||Creator of a blockchain development platform for enterprises.|
|HIVE Blockchain Technologies Ltd||OTCMKTS:HVBTF||Miner of blockchain-based cryptocurrencies|
So without further ado, let’s dig deeper into these five best blockchain technology stocks for 2018.
The Tech Heavyweight Going All-In on Blockchain
First up is the technology giant that begs no introduction. International Business Machines Corp (NYSE:IBM) is probably one of the most experimentative technology companies out there. IBM has been trying its luck in just about everything after its core hardware business went on a decline. Blockchain happens to be one initiative that’s beginning to work out for it.
IBM has launched a complete business line dedicated to blockchain—IBM Blockchain Platform—for enterprises and businesses to create blockchain-based applications. The platform happens to have already served over 400 clients including big corporations like Wal-Mart Stores Inc (NYSE:WMT).
Just earlier this month, IBM has partnered with the world’s largest shipping company Maersk Group to use blockchain for supply chain management. This blockchain project will be a breakthrough for the shipping industry for which data management and timely dissemination of information is a costly ordeal.
Separately, IBM is also creating a cross-border money transfer platform on blockchain—a project that would compete with the global financial industry.
Long story short, IBM is knee-deep in blockchain, making it one of the best bets out there.
One Household Name You Can’t Miss
Next up is the blockchain stock that’s lately become the talk of the town—Eastman Kodak Company (NYSE:KODK). Who doesn’t recognize this name? Kodak’s camera films made it a popular household name through the twentieth century.
Sadly, lack of innovation made Kodak irrelevant in the digitally equipped twenty-first century. But it looks like the company has just found a new path to relevancy. Blockchain is the torch leading its way.
Kodak recently announced the launch of a blockchain-based cryptocurrency KodakCoin. Overnight, KODK stock shot up 400%. Since then, the stock has partly retraced on news of a delay in the launch, thus creating a nice opportunity for interested investors to jump in.
What exactly is the use of this cryptocoin, you ask? It’s very simple. Kodak is creating a decentralized photo sharing platform for photographers. Each photo uploaded will get tagged to the photographer on the blockchain, creating a permanent record of image rights.
This will create a protected photo hub from where cases of copyright infringements will easily be traceable. KodakCoin is the digital currency photographers and buyers will use on this blockchain platform to trade the snaps.
If enough enthusiasts sign up, this is an interesting idea that could revive this company. And considering the fact that its initial coin offering (ICO) got oversubscribed, we’re not betting against it. This is one blockchain technology stock you should be keeping close tabs on right now.
The Popular Retailer That Fully Endorses Blockchain
On to the next pick, which is an online retailer of home goods recognized by all and sundry—Overstock.com Inc (NASDAR:OSTK). This blockchain technology stock makes it to my list for two reasons.
One is obvious; it has blockchain exposure (more on that shortly). The other is Overstock’s chief executive, Patrick Byrne.
Byrne is a visionary who wants to use blockchain for the greater good of humanity. His idea of blockchain is far bigger than just for minting money. I consider him to be the Elon Musk of the blockchain world. Byrne has taken a number of blockchain-focused initiatives and Overstock is his only publicly traded venture.
Overstock, by itself, has direct exposure to blockchain as it’s one of the only major retailers in the world that accepts blockchain-based cryptocurrencies for payments. Overstock currently accepts over 40 different cryptocoins.
Then, Overstock has a blockchain-based subsidiary tZero—a trading platform for initial coin offerings created by Byrne. Remember KodakCoin? That too will exclusively trade on tZero once it’s launched.
tZero is ostensibly the wild card that can win Overstock the jackpot as the infant blockchain industry grows bigger. This is one blockchain stock that deserves a second look.
A Creator of Blockchain with Blockchain
Next up is a unique pick on the list. While most blockchain stocks are tied with Bitcoin and correspondingly move in tandem with Bitcoin prices, this company has completely distanced itself from Bitcoin and cryptocurrencies in general to avoid the volatility in their prices. The company self-assuredly says that cryptos do not affect what it does. So, what exactly does it do?
BTL Group Ltd (OTCMKTS:BTLFF), (CVE:BTL) is per se the pioneer of a blockchain development platform. This Vancouver, Canada-based company has used the blockchain concept to create its own blockchain platform called “Interbit.”
The company calls it the “business blockchain,” since it is a business-grade solution created for enterprises. Interbit allows companies to create their own blockchain-based applications without having to learn complex coding and difficult programming languages. Its motto is to make blockchain development simple for everyone.
BTL has already signed up major clients like Visa Inc (NYSE:V), which is how this small-cap stock has leaped to the forefront. BTL stock is up more than 400% in the past one year and is still trading for $10.00 apiece, making it a steal for investors seeking the best blockchain stocks.
Chart courtesy of TradingView.com
A Bonus Blockchain Technology Penny Stock
My final pick is the bonus stock I promised. This company makes the cut because it has bet all its farms on blockchain.
HIVE Blockchain Technologies Ltd. (OTCMKTS:HVBTF), (CVE:HIVE) is a cryptocurrency miner. It is majority-owned by the largest crypto miner in the world—Genesis Mining Ltd—which is why it enjoys an edge for having access to both Genesis’ expertise and capital.
HIVE is a Vancouver, Canada-based company that has set up its mining rigs in Iceland and Sweden where electricity is cheap and temperatures are cool, allowing the miner to save on costs. I’ve covered this blockchain technology penny stock in more detail here.
HIVE recently upped its game with a newly opened mining setup in Sweden, largely focused on mining Ethereum. Ethereum is the only high-flying cryptocurrency right now as the broader crypto markets face a crash-like situation. The other cryptos this company mines include Bitcoin, Ethereum Classic, Monero, Dash, and ZCash.
HIVE has an early-mover advantage in the industry and a strategic alliance with Genesis Mining—two reasons why this miner beats most other crypto mining companies. This is one blockchain penny stock you mustn’t let slip under your investment radar.
Investors skeptical of cryptocurrencies but still seeking exposure to the cutting edge blockchain technology should consider going for blockchain technology stocks.
However, I must warn my readers that this space is increasingly getting crowded by speculative traders who have pushed stock prices up to giddying heights. Cheap blockchain stocks are becoming rare. Investors must exercise due diligence before jumping on the bandwagon.
Having said that, what we have shortlisted here are some of the best blockchain technology stocks out there. These are certainly worth a second look.