If you seek to profit from the blockchain technology, you can try crypto trading. While you can make a fortune that way, it’s a dangerous endeavor. However, a far less risky way to profit from the promising tech is to invest in companies that stand to benefit from its adoption. Below we will take a look at two promising blockchain stocks to watch out for in 2020.
Square (NYSE: SQ)
Square’s hardware and software now offer a broad range of internet services, helping small businesses process credit card payments, manage inventory, process payroll, analytics, and schedule staffing. Aside from peer-to-peer payments, this blockchain stock also offers business loans with its Square Capital and Cash App. Square’s exposure to various payment methods is also seen to help the company avoid economic downturns, surpass competitors, and fuel growth.
Dorsey also gave his insight into Facebook’s leap into the world of cryptocurrency. According to him, neither Square nor his other company, Twitter, would create a native token since he thinks that open Internet standards can better serve people than the ones controlled or started by companies, such as that of the social media giant. He also believes that Bitcoin has a very high chance of becoming the basis for all payments made online, acting as the Internet’s native currency.
If you think that Square will slow down after experiencing years of extreme growth, you’re mistaken. As one of the best blockchain stocks, it still has tremendous room for expansion despite. According to the Nilson Report, Global card payment volume will grow to more than $78 trillion by 2027 and Square’s gross payment volume of $95 billion over the past year just represented a tiny fraction of this massive market. Several businesses under the umbrella of this blockchain stock, such as Square Capital, are also seen to have the potential of undergoing extreme growth in the coming years.
Market-wise, Square is currently trading at a price of 36% below its 52-week high. This pullback is an opportunity for investors to buy the blockchain stock at a huge discount and is not expected to last long. Those looking for one of the best blockchain stocks to invest in would never go wrong if they act now.
Grayscale Bitcoin Trust
The Grayscale Investment Trust made its debut on Sept. 25, 2013, as The Bitcoin Investment Trust, a private placement that allows accredited investors to buy and sell public shares of the Trust under the symbol GBTC. The shares are titled in the investor’s name and Grayscale Investments calls it a traditional investment vehicle. Grayscale Bitcoin Trust tracks the blockchain stock Bitcoin price based on the TradeBlock XBX Index.
The success of GBTC is mirrored to that of one of the best blockchain stocks BTC but tends to over- or undershoot performance based on investor sentiment. It is traded publicly on the OTCQX, an over-the-counter market, under the Alternative Reporting Standard for companies not required to register with the Securities and Exchange Commission (SEC).
As of September 11, 2019, GBTC had approximately $2.16 billion in assets under management (AUM) and 2.4 million shares outstanding. If you plan to invest in one of the best blockchain stocks with the trust, it requires a minimum of $50,000 and with an annual fee of 2.0 percent.
In conclusion, these two blockchain stocks are some of the hottest tech stocks to keep an eye for in 2020 and they have the potential to offer investors substantial returns.