The blockchain investment case

The blockchain investment case

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Known for its role in cryptocurrencies, blockchain technology is driving the digitalisation of various business sectors. The technology, which increases efficiencies, transparency, and the security of traditional business systems, is attracting major venture capital funding and interest from the world’s largest businesses and investors.

2021 alone saw USD25.2 billion 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-age 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 decentralised. In other words, there is no central decision maker, and all information is stored independently by participants on the network.

For information about 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 almost impossible to hack or alter.

Commercialising blockchain technology

Blockchain technology is being adopted and implemented by many organisations including the likes of 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 services sector, implementation is taking place 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 use cases. In this case, some of the most active investors are Citigroup, Alphabet, Samsung, and Visa.

Source: blockdata

Blockchain network activities

According to Fortune Business Insights, the size of the global blockchain market will be worth USD 160billion by 2028, up from USD 315 million in 2021. This is born out in the current 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 metrics of each of these are as follows:

Name Market cap 24-hour transaction volume 180-day revenue August high All-time high per coin
Ethereum USD 197 billion USD 16.4 billion USD 2 billion USD 2013.76 USD 4 811
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
Polkadot USD 8.7 billion USD 292 million USD 381.9k USD 9.62 USD 54.98

Closely following the established players are the likes of Polygon (market cap USD6 billion), Tron (market cap USD6 billion), and Algorand (market cap USD2.1 billion), with several others positioned at around a USD1 billion market cap.

For information about 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 transacting on the networks, the team behind the blockchain, the history of the network, and the potential use case(s).

Alternatively, Jaltech has launched a Blockchain Technology Basket tailored for investors looking for an effortless and convenient investment option that provides them with 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 which is selected and managed by a team of cryptocurrency experts.

For information about Jaltech’s Cryptocurrency Basket, click here.

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