The blockchain era is at hand, and people should brace for the technology that will shape the world in the next decade. Bitcoin made the biggest headline in 2017 when the price soared to US$20,000. The cryptocurrency won’t rise in popularity and gain global success if not for blockchain technology.
We are just in the beginning of the blockchain movement. Aside from HIVE Blockchain Technologies (TSXV:HIVE), another blockchain stock worth watching is HUT 8 Mining (TSXV:HUT). Investors can pick the blockchain stock while the price is absolutely cheap.
The future of blockchain technology
Many are predicting that 10 years from now, most governments in the world will adopt or create a virtual currency. These soothsayers believe that cryptocurrencies are more efficient compared to fiat currencies. There is traceability and significant time saving in settlements.
Governments can also back the cryptocurrency with real assets in the same way as a fiat currency. Controls can be placed to alter prices depending on set policies when regulating the volume of tokens.
Next-generation blockchain technology will be moving in rapid fashion to provide solutions to many complications. Problems such as privacy controls and scaling, among others, can be resolved. Governments can implement a more reliable medium of exchange with price-stable coins.
But the more important aspect of blockchain technology is the capability to provide business value, especially in supply chain. Improving the efficiency of supply chains and eliminating fraud are major concerns worldwide. There is a host of supply chain problems that need to be rectified soon.
As the adoption of blockchain technology becomes widespread, solutions will be created or built to correct all pressing problems. The technology will be the game changer in world trade.
An overview of HUT 8
Hut 8 Mining operates as a cryptocurrency mining and blockchain infrastructure company with two mining sites in Alberta, Canada. The company is headed by co-founded and CEO Andrew Kiguel. He has an extensive experience as an investment banker.
Kiguel sensed that many investors wanted to get exposure in the cryptocurrency market, particularly Bitcoin. But there is fear because of the unpredictability, legitimacy, and safety. Also, they find the mechanics of setting up a wallet and dealing with a crypto exchange as too complicated.
HUT 8 was formed for investors to have a simpler entry into the crypto space. It’s also a safer investment alternative for exposure to Bitcoin. The startup is focused on Bitcoin only. That is why the company partnered with the Bitfury Group. The said group is the largest full-service blockchain technology company in the world.
Kiguel and his team have high hopes for Bitcoin. They consider the “hottest” cryptocurrency as the future of digital money. And the company will be responsible for validating transactions on the Bitcoin blockchain. Kiguel sees HUT 8’s role in the Bitcoin ecosystem to be larger in the coming years.
The addition of another blockchain stock that offers safety to investors interested in Bitcoin is most welcome.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned.