The blockchain is at its heart a decentralized ledger that is distributed publicly. That openness makes it essentially unchangeable due to its distributed nature. It would require a concerted effort of everyone to corrupt it, so to speak. Stocks, especially those related to finance and fintech, have taken an increasing interest in the technology as acceptance has increased. There’s a clear opportunity for overall growth in stocks that adopt the technology. This has led to opportunities for investing in blockchain stocks.
Investors inherently understand that over time the traditional financial system looks increasingly likely to adopt parts of the rapidly evolving blockchain and crypto sector. That implies that firms like those below have a new opportunity for fresh growth moving forward.
Here are three blockchain stocks you should consider adding to your portfolio.
Global X Blockchain ETF (BKCH)
The Global X Blockchain ETF (NASDAQ:BKCH) is one of several prominent ETFs offering more balanced exposure to stock investors. Roughly one-third of its holdings are comprised of top names in the space including Coinbase (NASDAQ:COIN), Riot Platforms (NASDAQ:RIOT), and Marathon Digital Holdings (NASDAQ:MARA).
Individually those names are risky but like all ETFs, when combined risk evens out and represents the overall risk of the sector it represents.
The market capitalization of cryptocurrency has increased by 50% in 2023. Bitcoin (BTC-USD) prices have risen from $16,000 to above $30,000 recently as Bitcoin spot ETF applications by major funds have the markets increasingly bullish. It all points toward increasing acceptance of blockchain technology and cryptocurrency into the traditional financial market.
That’s a very positive thing for BKXH stock which has more than doubled in 2023, moving from under $13 to above $30 recently. The stock comes wth fees and expenses but also includes a $0.19 dividend.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is certainly a ‘Get Rich’ stock in the sense that it has provided massive returns for investors in 2023. It began the year trading at $143 and moved all the way to $430 before retreating slightly recently. That means it more than tripled at its height in the span of about 6 months. This illustrates why investors should consider investing in blockchain stocks.
That massive growth is due to AI. Nvidia is the predominant chip manufacturer in the space and hasn’t even been able to keep up with demand at times. Nvidia also provides chips, GPUs, and hardware used in cryptocurrency mining. It does so although it clearly has issues with crypto and blockchain technology overall.
Back in 2021, Nvidia even released software that artificially constrained its graphics cards from being used in crypto mining in an effort to ensure it went to AI and gaming purposes first. Nvidia let its opinion regarding cryptocurrency be knw, stating that it doesn’t believe it brings anything useful to society. Regardless, its chips continue to be sold for that purpose and that makes it a stock for investors to consider as blockchain adoption continues enmasse.
MasterCard (MA)
Card processing firms like MasterCard (NYSE:MA) are innately connected to the blockchain industry. Blockchain ledger technology offers new utility to payment processors and MasterCard is keen to seize that opportunity.
In fact, MasterCard has filed more than 30 patents related to blockchain technology. The firm has mobilized teams and has resources intent on creating solutions in that regard. MasterCard understands that blockchain technology will lead to greater security in the long run. This helps to show the potential of investing in blockchain stocks.
Rather than avoiding the shift, MasterCard has instead embraced it. This is a logical response as customers will welcome the increased security that blockchain theoretically offers. If the ledger is immutable and distributed, rather than centralized, it’s inherently safer. That should result in greater overall value within payment processors which store valuable information about their customer base.
MasterCard is a solid bet for stock investors in general. Credit card spending is incredibly strong as consumer credit card debt continues to mount. That benefits MasterCard and is one of multiple reasons to consider the stock.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
