Bitcoin’s Value Lies in Blockchain Technology
It feels like 2017 again. Bitcoin can’t stop making headlines or hitting new highs.
The cryptocurrency has been on fire this year – as I predicted it would be. And this past weekend, it set a new peak price of $28,352!
Year to date, Bitcoin has stormed upward 280%.
That leaves the Dow Jones Industrial Average, Nasdaq and S&P 500 in the dust.
Now, I believe Bitcoin’s run will continue into 2021. And earlier this month, I forecast its price would top $30,000 in the year ahead (more to come on my 2021 predictions on Monday).
Here’s the deal: A lot of investors are charging into the cryptocurrency space.
But this is a fantastic opportunity to remind investors that what’s important here is bigger than just Bitcoin, Ethereum, Litecoin or Ripple.
The most powerful aspect of digital currencies is the technology that makes them possible: blockchain.
“Big Blue” and Mangoes
Blockchain has moved from the fringes to the mainstream. You may not realize it, but every day, your life is being affected – improved – by blockchain. And that’s not just because the value of your crypto portfolio is skyrocketing.
There’s a multibillion-dollar push into blockchain from the biggest names in almost every industry.
Originally, blockchain technology was seen as an innovation that could be useful only in financial services. But now we realize it promises so much more.
In a pilot program that began in 2016, Walmart (NYSE: WMT) partnered with IBM (NYSE: IBM) to protect its food supply chain process with blockchain. With 600 million cases of foodborne illness each year, it’s important to be able to track down contaminated shipments.
Walmart applied this tracking technology to find the origin of mangoes sold in its stores. This process used to take up to seven days. Using blockchain… it took only 2.2 seconds.
Because of this success, Walmart required all suppliers of leafy greens to use this blockchain-based tracking system starting in September 2019.
In July 2019, “Big Blue” gobbled up Red Hat for $34 billion. This was a landmark deal as IBM sought to revitalize its business. After the Red Hat acquisition, the company officially launched a blockchain-enabled supply chain and logistics product.
Amgen (Nasdaq: AMGN), FedEx (NYSE: FDX), Eli Lilly (NYSE: LLY), Pfizer (NYSE: PFE) and 20 other healthcare companies have launched a similar initiative for prescription drugs to stop the dangerous spread of counterfeit medicines.
Chinese tech giant Tencent (OTC: TCEHY) is investing $70 billion in new infrastructure technologies. I’m talking artificial intelligence, cloud computing and cybersecurity. And part of this is earmarked for blockchain.
But this is the next massive wave, as more than 75% of the Fortune 100 companies have already explored blockchain applications.
There are not just millions or billions of dollars at stake…
We’re talking potentially trillions of dollars as companies across a wide range of industries begin shifting parts of their business to blockchain.
Bigger Than Bitcoin
Bitcoin’s market cap now stands at $350 billion. But blockchain’s potential is larger by severalfold.
The global logistics and supply chain industry is merely the first wave of uses.
And you don’t have to worry about blockchain being an integral part of your everyday life in the future… because it already is and you just don’t realize it.
What we will see is a more apparent impact – like in medical records, ownership titles, etc.
So it’s fine to celebrate the new all-time highs on Bitcoin. But investors must understand the real value is in the underlying technology: blockchain.
It’s already changing our world, and that’s just the beginning.
Here’s to high returns,
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