The explosion in the prices of cryptocurrencies in recent years has led investors to focus on major names like Bitcoin, Ethereum, Ripple, and Litecoin.
But hundreds of cryptocurrencies have already been wiped out and even major crypto coins have plummeted in price by over 70% time and again.
For smart investors, a better way to play cryptocurrencies may well be the technology underpinning it, which is the blockchain.
Blockchain is set to disrupt and improve upon existing industries from finance to healthcare. So which blockchain stocks are worth buying? The list of blockchain stocks to buy below may be the next high fliers.
And while IBM ceded its industry-leading position to the new crop of technology innovators in recent decades, it has not been resting on its laurels, especially when it comes to blockchain technology.
Few investors know that the IBM Blockchain Platform already serves hundreds of clients across a wide variety of industries. Blockchain-as-a-service (BAAS) is a managed service that leverages the IBM Cloud to help businesses monitor and securely store transactions.
IBM expects its blockchain service will lower costs across a wide variety of private sector industries as well as government. And as businesses and governments strive to lower expenses, IBM stands to increase its top and bottom line figures.
There is no way boring old Bank of America [BAC] could be among the top blockchain stocks to watch, right?
You might be surprised to learn that, along with IBM, Bank of America [BAC] has the largest blockchain patent portfolio of any publicly traded company.
But what’s the big deal about owning patents? In a nutshell, it’s quite a money-maker when done right.
Look no further than Qualcomm [QCOM] to see how many billions of dollars can be made each year by licensing patent intellectual property.
Certainly it’s a surprise to see Bank of America [BAC] outpace Alphabet Inc [GOOGL], Microsoft MSFT], and other tech bellwethers but Bank of America CEO, Brian Moynihan, has been a 5-star steward of the banking giant since taking the helm right after the Great Recession, so it’s no surprise to see him and his executive team spot the opportunity for riches.
Another old-school tech company that could easily be overlooked by investors who chase blockchain penny stocks, like Aerohive Networks [HIVE], Riot Blockchain [RIOT], Marathon Patent Group [MARA], and MGT Capital Investments [MGT] is AMD [AMD].
AMD makes graphics card (GPUs) and develops drivers that are used by cryptocurrency miners.
AMD has stated in its SEC filings that if crypto miners buy fewer GPUs because of a decline in the cryptocurrency market then it could hurt its business.
That’s code for AMD admitting it is selling a lot of GPUs. And the flipside of its disclosure is that higher demand for mining software, drivers, and graphics cards could be a boon for AMD revenues.
If you were to believe that blockchain development is still in its early days then AMD stock price may well ride a higher wave over the coming years.