Blockchain shares: that's the reason
Blockchain stocks are a relatively new investment trend. We explain what is behind this in this practical tip.
Blockchain shares - an explanation
Since blockchain is a fairly abstract term, you will find a definition in a separate article.
- As a digital investment trend, blockchain technology is now also interesting for banks and financial service providers, since it allows a significant reduction in transaction costs. Companies like IBM or Microsoft also want to take advantage of the benefits.
- Behind the shares are companies that provide advice on blockchain, bitcoin investments or bitcoin mining.
- These companies, or the shares of these companies, are now traded on the stock exchange. Investors expect good returns from this, but some of the companies are extremely low capitalized.
Hype about Bitcoin & Co
Where blockchain is on it, blockchain is not always in there. Some companies try to jump on the crypto train even though they have nothing to do with it.
- For example, the "Long Blockchain Corporation": The American company was not long ago called "Long Island Iced Tea Corporation" - and still produces ice tea.
- In the short term, the share price rose sharply until the background became known. In the meantime, the company has hired at least one developer experienced in blockchain technology.
- Companies that have nothing to do with blockchain but want to benefit from the boom in technology are called "name changers". The aim is to invest in this sector through new capital.
In our next practical tip, we'll explain in detail what a Bitcoin wallet is.