Are you bullish on Bitcoin? The most obvious course of action is the buy Bitcoin directly. But I don’t think that’s your most lucrative option.
A famous and proven investing trick is to buy secondary winners. If you think oil prices will surge, buy oil infrastructure. If you believe population growth will continue, buy land.
With Bitcoin, the secondary winners will be cybersecurity firms, and one stock is ahead of the pack.
Bitcoin requires strong security
Blockchains themselves provide a large amount of built-in security. But that doesn’t mean there aren’t still vulnerabilities. You can secure your home all you want, but if you leave your mailbox unprotected, someone could still access your personal information.
“Most often, hackers reach the cryptocurrency by attacking the endpoints using wallets to create and sign transactions before they are sent to the blockchain,” explains one analyst.
According to one report, malicious actors amassed $1.4 billion in stolen crypto over the first five months of 2020 alone.
This problem will only grow as cryptocurrencies like Bitcoin go mainstream. Even fairly sophisticated users can have their account balances drained due to clever thieves. For example, sim port hacks, which were rampant in 2019, targeted thousands of crypto holders by comprising their smartphones.
If you believe in decentralized currencies like Bitcoin, you should be bullish on cybersecurity firms that protect the billions of endpoints that become vulnerable due to poor tech or simple user error.
This tech stock will win
Most people still think of BlackBerry (TSX: BB)(NYSE: BB) as a smartphone manufacturer. Use this ignorance to your advantage.
In recent years, BlackBerry completely transformed its business, ditching smartphones for cybersecurity. Today, it has one of the best cybersecurity software portfolios on the planet. Its Cylance division, for example, can thwart attacks before they occur by deploying artificial intelligence networks that identify vulnerabilities in advance.
The best part is that BlackBerry has products on the market right now that will defend our Bitcoin future.
As mentioned above, user error or ignorance is the root cause of many crypto hacks. That’s because these users store information to access their crypto balances on their personal devices, including smartphones and computers. BlackBerry is already deploying its solutions directly into these endpoints.
“As hackers use more sophisticated tactics to bypass detection, it’s more important than ever to have built-in hardware security features,” said one Intel vice-president in regards to a recent BlackBerry announcement. “BlackBerry takes advantage of hardware visibility to offer advanced security protection, and we applaud them for this release.”
Bottom line
Bitcoin has built-in security features that make it nearly bulletproof. But that doesn’t mean everyday folks can’t make mistakes. Billions of dollars’ worth of crypto every year gets handed over to hackers.
As crypto goes mainstream, the world will demand better security products. BlackBerry is answering that call.
With respected products already on the market, there’s a good chance we’ll see shares skyrocket in the months and years to come. That’s particularly true considering the stock trades at an 80% discount to many other cybersecurity peers.
