The need for greater computing power and decentralization has spawned the demand for blockchain technology stocks. Blockchain technology enables users to store data on its public ledgers. This information cannot be changed and is accessible to all, providing more transparency and greater user control.
Given the decentralized nature of its network, the potential for blockchain technology remains endless. Some companies use the network to build blockchain products, while others provide financial services through decentralized finance (DeFi) apps. Blockchain is also the underlying network that powers cryptocurrency transactions.
As we enter the Web3 era, blockchain’s immense potential has made stocks in this space an investor favorite. While the future of blockchain remains bright, the technology is still very much in its infancy. Governments’ increasing adoption of blockchain makes companies in the industry well-positioned to take advantage of its long-term growth.
From powering crypto transactions to payment systems, Blockchain is poised to shape the future of financial trading. Investors looking to put their money behind blockchain technology stocks for the long haul will find these three companies a good buy.
Nvidia (NVDA)
One of the most promising names in the blockchain space is Nvidia (NASDAQ:NVDA), a semiconductor company making big bets on artificial intelligence (AI) and cryptocurrency. The company is known for its graphics processing units (GPUs) which play an important role in powering blockchain platforms. GPUs also serve as essential components in several AI-driven products, such as autonomous vehicles. This positions Nvidia as a leader in the AI revolution as investor confidence in the sector continues to grow.
Nvidia’s success is evident in its numbers. The company saw a 126% spike in revenue as its GPUs continued to gain widespread adoption. The advanced computational capability of its GPUs has made them ideal for powering blockchain transactions and language models such as ChatGPT, resulting in staggering returns for Nvidia.
The tech giant’s road ahead remains bright as it continues to innovate in the AI space. From powering payment systems to crypto mining, Nvidia’s AI-focused growth will be paramount to blockchain’s success.
Block (SQ)
Formerly known as Square, Jack Dorsey’s Block (NYSE:SQ) is making some big moves in the blockchain space. The CEO of Twitter has always advocated for a more decentralized system, a case that’s evident in Block’s new offerings. The company is primarily known for two services: its payment processing system and financial platform Cash App. While both products have served Block well, its recent launches cater to the growing popularity of blockchain technologies.
In a recent blog post, the company stated that it would introduce a mining chip and its own Bitcoin (BTC-USD) mining system. The new system aims to resolve the drawbacks associated with cryptocurrency mining while solidifying Block’s position in the crypto space. As it stands, the crypto mining market is dominated by Bitmain, making it ripe for disruption. This, combined with the growing need for energy-efficient mining, gives Block plenty of opportunity for growth.
Furthermore, the company has not shied away from its bullish sentiments towards crypto and blockchain. After renaming the company from Square to Block to indicate its shift in focus, the company also rebranded its crypto subsidiary to Spiral. Led by a team of developers, Spiral aims to expand the influence of Bitcoin. The company’s second initiative, “TBD,” is focused on creating a Bitcoin exchange on the blockchain.
The potential for disruption in crypto mining and innovations in blockchain make this blockchain technology stock worth your time.
Coinbase Global (COIN)
As the largest cryptocurrency trading platform in the world, Coinbase (NASDAQ:COIN) is a popular choice among blockchain technology stocks. The company posted some strong numbers in its recent earnings report. Revenue was up 41% quarter-over-quarter, and transaction revenues were up 83% from Q3. While this growth is impressive, to say the least, Coinbase’s crypto exchange is just one piece of the pie as its ancillary businesses gain momentum.
According to a recent report by JMP Securities, Coinbase’s participation in the evolution of blockchain presents immense growth opportunities for the company. This includes a recent partnership with BlackRock (NYSE:BLK) on tokenization of real-world assets as well as ventures in Web3 and DeFi. As the crypto exchange continues to invest in blockchain-backed initiatives, the potential for decentralization could prove to be a major tailwind for the company.
For Coinbase investors, the company’s blockchain investment certainly lowers the risk associated with cryptocurrency volatility. This makes the blockchain technology stock an attractive buy for its long-term potential.
On the date of publication, Divya Premkumar 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.
Divya has a background in finance and accounting and had worked in FP&A roles at Fortune 500 companies. She is an avid reader and enjoys writing on a variety of topics including trading, investing, socio-economic issues and global policy.