Blockchain

TSXV:HIVE

The report issued by SharesPost states that blockchain will have a significant impact on industries ranging from financial services, commerce, media, supply chain management and cybersecurity.

Blockchain has taken the world by storm over the last couple of years due in part to the rising interest in cryptocurrencies, but overall applications of the technology itself are projected to “significantly impact” a wide range of industries over the next 10 years, according to a SharesPost report.

Issued on Thursday (June 28), the report estimates during the forecast period, the blockchain sector will exceed US$2.5 trillion with the possibility of creating value in at least 20 different industries.

For investors this could very well mean that now is an ample time to dip into the sector perhaps more than ever.

“Blockchain has always been deemed a disruptive technology, but in quantifying its actual market potential, we hope/plan to showcase the possible impact this technology could have over the next several years,” Rohit Kulkarni, managing director and head of research at SharesPost said in the press release. “As such, blockchain is becoming increasingly important to individual and institutional investors who are looking to enter the markets most impacted by the technology.”

While investing in cryptocurrencies may have been the first child when it comes to the blockchain sector, the report highlights a number of key ways investors can cash in on this growing market, particularly as it relates to publicly traded verticals.

“Investing in publicly traded companies working with cryptocurrencies and blockchain technology offers people a less risky way to access digital assets,” the report reads.

Some of the public companies the report highlights include:

  • IBM (NYSE:IBM): Who is working with a variety of companies with blockchain in supply chain management;
  • Amazon (NASDAQ:AMZN): Amazon is providing blockchain templates to developers through its Amazon Web Services (AWS) to deploy blockchain-based solutions;
  • Intel (NASDAQ:INTC): Next is Intel who is building chips used in carrying out blockchain transactions; and
  • HIVE Blockchain Technologies (TSXV:HIVE): Who is the first publicly traded company focused on mining Ethereum.

In addition to publicly traded companies, SharesPost examples exchange-traded funds (ETFs) as an alternative, but that the US Securities and Exchange Commission doesn’t allow the word ‘blockchain’ to be included in name.

The report currently highlights two blockchain ETFS: the Reality Shares NASDAQ NexGen Economy ETF (NASDAQ:BLCN), which tracks 65 holdings and the Amplify Transformational Data Sharing ETF (NASDAQ:BLOK), which has 51 holdings.

In terms of the overall value potential blockchain will have at an estimated US$2.8 trillion, the report states that while most people associate the technology with cryptocurrencies, blockchain has a “far greater potential to disrupt several industries.”

Supply chain management and IoT tops the list of blockchain’s value creational potential at US$550 million, followed by identity/security at US$420 million, financial services at US$400 million, ecommerce with US$300 million, and infrastructure at US$200 million. The remaining US$950 million goes towards “other” industries in value creation opportunity.

According to the report, this is just 10 percent of the addressable market that spans 20 different industries by helping organizations cut down on costs, increase revenue, or “boost efficiency” without needing as much capital.

“Companies and investors can gradually capture this value over the next decade if central governments can develop effective regulations and consumers and enterprises recognize this technology’s benefits,” the report reads.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article

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