Considering Blockchain Technology Penny Stocks
Bitcoin's price fluctuations last year were quite surprising to say the least. Despite constant warnings from investment firms and experts about the dangers of the Bitcoin “craze”, investors all over the world still showed strong support for the cryptocurrency. Before 2017 ended, Bitcoin’s prices blew up to $19,000. In addition, as mentioned by Penny Stock Dream in a previous post, cryptocurrency penny stocks have been rising by 100% - 1,700%.
While many investors, particularly the veteran investors, are still skeptical about Bitcoin despite its feats last year, what they cannot deny is the efficiency of its framework, the blockchain. The technology initially made a name for itself through Bitcoin mining, and now, it is being researched for other uses. Google, Maersk, and Microsoft -- companies that have no Bitcoin holdings -- are all supporters of the blockchain technology that will someday improve Internet security and revolutionize how digital transactions work.
The early adopters of blockchain include businesses and consumers who saw its benefit beyond Bitcoin. Nadex states that the technology has caught the eye of tech companies who are always on the lookout to improve security. The site notes: “blockchain technology makes transactions on the system that is mathematically impractical to reverse by time-stamping transactions with digital signatures”. With blockchain, each validated transaction is “hashed” into a block of other verified transactions, making its processes systematic and easy to monitor.
Considering Blockchain Penny Stocks
Earlier in January, two new blockchain exchange-traded funds (ETFs) were publicized, namely the Reality Shares Nasdaq NexGen Economy ETF and Amplify Transformation Data Sharing ETF. Both companies have shown remarkable progress with their work as after a week of trading, CNBC reports that the two funds were able to garner hundreds of millions in investments. The secret of both companies seems to be their claim to be blockchain-centered companies.
The ongoing demand to get Bitcoin ETF exposure is augmented by the word blockchain. Investors are drawn to blockchain because the technology it carries is valuable. The risks are great but investors seem to be willing to take it.
Apart from the aforementioned penny stock companies, Riot Blockchain Inc. – a company that was previously known as Bioptix – saw a 20% increase in stock prices according to a report by Fool.com. The company can attribute its recent feat to its decision to change its name and center its operations on blockchain research. With newfound funding, the company can hasten its projects and produce results for its investors.
Blockchain-based penny stocks are taking off, and their investments are allowing them to bring blockchain to new heights. In the next few years, Bitcoin-based upstarts may turn into blue-chip stocks or bigger companies may absorb them. Either way, their prices will augment, and investors who want to get involved with blockchain are advised to invest in penny stocks now.
A word of advice: not all companies that claim to be working on blockchain are created equal. Remember to check the company’s portfolio and the people running it to be sure that the operations are legitimate. In addition, keep in mind that blockchain tech penny stocks are as volatile as cryptocurrencies. Their prices are dictated by demand, and the sentiment of top investors whose insights about the future of blockchain matter.
As the saying in Wall Street goes, “buy low and sell high.” Blockchain-based penny stocks are among the hottest investment assets today. Given Bitcoin’s popularity, and the support of top tech companies to the blockchain technology, it would be wise to consider some exposure from blockchain-based penny stocks.
(image credit: Pixabay)