The Blockchain Investment Case
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Known for its role in cryptocurrencies, blockchain technology is driving the digitization of various business sectors. The technology, which increases the efficiency, transparency and security of traditional business systems, is attracting major venture capital funding and interest from the world’s largest companies and investors.
In 2021 alone, $25.2 billion was invested in blockchain technology companies, with the likes of Google, Mastercard and Goldman Sachs investing in the space – the question is “Why is blockchain technology attracting such big players, and should retail investors be looking to add this sector to their investment portfolio?”
What is blockchain technology?
Blockchain technology is a new computer network. It differs from legacy networks as its features provide a more efficient, cheaper and secure platform for users and businesses to operate on. More significant is the fact that blockchain networks are decentralized. In other words, there is no central decision-maker, and all information is stored independently of participants in the network.
For information on Jaltech’s Cryptocurrency Basket, click here.
As the saying goes, “data is the new oil,” and blockchain technology allows data to be stored and moved quickly and accurately within a network, in a way that is instantly verifiable and nearly impossible to hack or alter.
Commercialization of blockchain technology
Blockchain technology is being adopted and implemented by many organizations, including Microsoft (an identity management system), Samsung (in their logistics system), and Salesforce (for users to share data quickly and reliably). Although the biggest impact of blockchain is expected to be in the financial sector, its implementation is happening at a rapid pace in the corporate world.
As an illustration, 27 of the world’s top 100 public companies have implemented blockchain solutions in their businesses and 36 of the top 100 public companies have invested in a total of 101 blockchain companies. These blockchain companies are active across 29 industries and have 83 different applications. In this case, some of the most active investors are Citigroup, Alphabet, Samsung and Visa.
Blockchain Network Activities
According to Fortune Business Insights, the size of the global blockchain market will be worth $160 billion by 2028, up from $315 million in 2021. This is borne out in today’s numbers, with 2.3 million smart contracts created on the Ethereum network from January to June 2022.
Ethereum, Cardano, Solana and Polkadot are some of the leading blockchains for investors to consider investing in. The performance measures for each of these are as follows:
| Name | Market value | 24-hour transaction volume | 180-day income | August high | All-time high per coin |
| Ethereum | USD 197 billion | USD 16.4 billion | USD 2 billion | USD 2013.76 | 4,811 USD |
| Cardano | USD 15.5 billion | USD 15.5 billion | USD 4.4 million | USD 0.59 | USD 3.09 |
| Solana | USD 12.2 billion | USD 829 million | USD 13.1 million | USD 48.18 | USD 259.96 |
| Polka dot | USD 8.7 billion | USD 292 million | USD 381.9k | USD 9.62 | USD 54.98 |
Close behind the established players are the likes of Polygon (market value USD6 billion), Tron (market value USD6 billion) and Algorand (market value USD2.1 billion), with several others positioned at around USD1 billion market value.
For information on Jaltech’s Cryptocurrency Basket, click here.
Which blockchains to invest in?
Investors can research and buy individual blockchain-related cryptocurrencies that they believe will be part of the blockchain revolution. The key before investing is to understand the scalability of each of the blockchain networks, the costs associated with transactions on the networks, the team behind the blockchain, the history of the network and potential use cases.
Alternatively, Jaltech has launched a Blockchain Technology Basket tailored for investors looking for an effortless and convenient investment option that gives them exposure and diversification across multiple blockchain technology-related cryptocurrencies.
Chris McCormick / Jonty Sacks – Jaltech Fund Managers
Jaltech offers investors exposure to a basket of cryptocurrencies that are selected and managed by a team of cryptocurrency experts.
For information on Jaltech’s Cryptocurrency Basket, click here.
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