TM Editors Note: This article discusses one or more penny stocks and/or microcaps. Such stocks are easily manipulated; do your own careful due diligence.
While Bitcoin passes the $8,000 mark and grabs all the media hype, not many opportunities exist to invest directly in the companies providing the tools for cryptocurrencies. One new on the scene way to play the underlying blockchain technology is Global Blockchain Technologies (BLKCF).Â
The small company just completed a large equity offering and ironically hasn’t seen any surge due to the involvement in cryptocurrencies and related technologies. Is the market missing out on an opportunity or is this stock too risky for an investment?
Cryptocurrency Surge
In the last year, Bitcoin and several other cryptocurrencies have soared in value. The top cryptocurrency hit $8,000 last week after starting the year below $1,000. Bitcoin has hit new price milestones nearly every month this year.Â
The market caps of these currencies have soared in value with the top three cryptocurrencies approaching a value of nearly $200 billion.
Source: coinmarketcap.com
Currencies like Ethereum and Bitcoin Cash have increasingly gained attention while token or ICO (initial coin offering) sales have gained momentum. The common theme is investors betting that these currencies will gain in value and prominence.
These coins, though, don’t allow investors to invest in companies that are utilizing the cryptocurrencies or underlying blockchain technology. People buying Bitcoin are investing in the gold rush, but not the shovels and picks used to dig for the gold that offered solid returns at less risk.Â
Blockchains are being reviewed for the use in numerous financial transactions to even voting records. The State Bank of India is testing smart contracts next month that utilize blockchain technology with a consortium of 27 banks while various other firms see potential in blockchain to bring online voting to the mainstream after utilization in smaller elections.Â
