Blockchain, the New Winning Term for Investors with Foresight
Blockchain technology is without any doubt the most disruptive force for this decade. As this decade ends, Blockchain technology is causing a huge paradigm across different parts of the world in very much the same way that the Internet upended the world in the last two decades. Bitcoin is probably the most known application of Blockchain technology and the world is still awestruck by the sheer power of its disruptive ability.
In 2009, when Bitcoin appeared, not many people could have imagined that the cryptocurrency will become a powerful force putting governments and fiscal authorities on their toes. In fact, Wall Street had mostly ignored Blockchain and Bitcoin as another passing fad. After all, it cost 10,000 Bitcoin to buy $20 worth of Pizza in the first recorded transactional use of the cryptocurrency.
Right now, you’ll need $6,288.85to buy just 1 Bitcoin as at the time of writing as seen in the picture below.
Interestingly, technology firms, traditional financial institutions, governments, and investors are realizing that Blockchain technology is a force that can’t be ignored, stopped, or destabilized.
In fact, many traditional financial institutions are working behind the scene to create their own blockchain offerings, even though they make disparaging remarks about Bitcoin in the news. For instance, JPMorgan Chase along with other banks and other Fortune 500 companies are involved in the Enterprise Ethereum Alliance. This piece looks at three Wall Street firms making efforts to harness the power of blockchain technology to disrupt their industries.
Overstock.com, Inc. (NASDAQ:OSTK) is an online retailer that considers itself as an incubator of blockchain technology for the ecommerce industry. Overstock is one of the tech firms making bold investments in the underlying technology backing Bitcoin and other cryptocurrencies.
During the last three years, Overstock CEO, Patrick Byrne has been working on making a unit of the company called Medici Ventures a top dog in Blockchain-related activities. Medici Ventures, which has a majority stake in its subsidiary, tZero, is leading the charge to use blockchain technology to change how we trade stocks and other cryptocurrencies.
Interestingly, investors are not oblivious to Overstock’s huge investments in Bitcoin and Blockchain technology. Tom Forte, analyst at DA Davidson in an interview with CNBC notes that “I think the new story for Overstock is that we should anticipate this kind of volatility that historically was limited to when the company reported earnings… “It is encouraging to see legacy financial services acknowledging the potential of the blockchain to disrupt and transform the financial services industry.”
The increase in investors’ interest is also causing Overstock shares to rise. In fact, shares of Overstock are showing signs of an uptrend proportionate to uptrend in the price of Bitcoin as seen in the chart above.
In the year-to-date, the NYSE Bitcoin Index has posted 617% gains and the Overstock has posted 216.9% price gains. In contrast, the S&P 500 is only up 15.35% and NASDAQ 25.47% is up in the same period. One could logically posit that investors who are scared of direct investments in Bitcoin would find it more comfortable to buy shares of Overstock.
A German firm, NAGA Group (FRA:N4G) is taking a more hands-on approach to be involved in the fast growing blockchain industry. Founded in 2015, NAGA Group is a fintech company with an expertise in building products that bridge the gap between financial services and the end users.
The firm introduced SwipeStox, a mobile trading platform that provides inexperienced investors to access the market by leveraging social trading. The SwipeStox trading platform is utilized by more than hundreds of thousands registered users and today facilitates several over 200 thousand transactions each month with more than 4 billion USD transacted.
Now, NAGA Group is trying to bridge another gap between financial services and end users by leveraging the inherent potential in blockchain technology. The trading and investment industries are under the direct control of banks and traditional financial institutions who have appointed themselves as the gatekeepers of the financial markets. In exchange for their gatekeeping activities, they take their commission from people who trade and invest in the financial markets.
Blockchain based NAGA created a decentralized cryptocurrency that can be used to access the financial markets via the SwipeStox platform. Consumers will also be able to buy virtual goods and pay with cryptocurrency through the Switex platform. And lastly, the NAGA Coin (NGC) will be used to deposit tokens into SwipeStox and SwiteX through the NAGA Wallet.
The fact that NAGA AG is a publicly listed firm on the Frankfurt exchange, provides investors who join the NAGA token sale many opportunities that are not available to investors in other blockchain ventures. In the last three months, NAGA has delivered returns of 393.81% to investors; in contrast, the DAX performance index has only delivered 5.54% in the same period.
In addition, NAGA owns various financial licenses from BaFin and CySEC, including an asset management license. More so, NAGA is on record as one of the fasted IPO in Germany because it went public barely 2 years after it was founded. The shares of NAGA have also delivered an impressive outperformance boasting more than 400% since the IPO in July.[views]