Blockchain is the Latest Emerging Trend for Investors Seeking the Next Big Thing

Blockchain is probably the most disruptive force in the tech industry right now, as it upends the status quo across a wide variety of sectors and industries. It won’t be unreasonable to say that Blockchain is the hottest topic in the fintech market now because of its unique ability to use technology to solve some of the most complex financial problems.

Bitcoin, a cryptocurrency built on blockchain technology has already outperformed practically all other assets with more than 2000% year-to-date gains. Some other cryptocurrencies such as Ethereum and Lite Coin have rewarded investors with decent ROI. This piece looks at the emerging trend of rising interest and investment in cryptocurrencies and other products being built in blockchain technology.

Blockchain Is Birthing a New Trend for Investors

Many startups with products based on blockchain technology are springing up left, right, and center. We’ve seen crypotocurrencies, digital payments, smart contracts, decentralized ads, and personal health solutions among others.

A quick glance at Token Market’s initial coin offering (ICO) calendar shows that 35 blockchain based startups had their Initial Coin Offerings (ICOs) in the last one month. In the next one month, we can look forward to ICOs from about 20 new Blockchain related startups trying to break out into the market with new products.

For instance, Liquid Asset Token (LAT) is one of the blockchain startups coming to the market in the next one month. LAToken, which will begin its crowd sale on August 22, is a blockchain startup with a secondary marketplace for investors and buyers interest in illiquid assets such as artworks, real estate, and precious metals. Investors should watch out for LAToken because it has the potential to make fractional shares readily accessible to investors for fractional investing in illiquid assets.

ICOs are providing investors with opportunities to invest in emerging blockchain solutions from the inception before such solutions realize their true market value. For instance, when Bitcoin launched it wasn’t worth cents on the dollar and it cost 10,000 Bitcoin to buy two pizzas in 2010.

Now, Bitcoin currently trades around $2,826 and those 10,000 Bitcoin spent on pizza are worth at least $28,000,000 today. Bitcoin’s current trading price takes them out of the reach of most investors; hence, it makes sense to look for other new “cheaper” blockchain solutions that could potentially as big or much bigger than Bitcoin down the road.

ICOs provide investors with the perfect opportunity to get on board emerging blockchain ventures. Analysts observe that more than $1 billion dollars has been invested in ICOs) in the first half of 2017 and the number could go much higher before the end of the year.

Final Words…

It is very easy to dismiss blockchain-based solutions because blockchain itself is still in infancy and the hype on cryptocurrency could be heard in a deafening frenzy. However, dismissing all blockchain startups could be a reckless decision that could lock you out of potentially profitable investments. Nonetheless, investors must carry out their due diligence before investing in order to ensure that that they are buying into firm that has strong fundamentals in terms of the quality of their product and the demand for such solutions.