Even though the current use of bitcoin is still limited, investors see the underlying technology as an exciting topic for the future. Blockchain technology in particular is attracting attention in the world of IT and finance.
Blockchain explained simply
“Blockchain” – the German translation for blockchain – is all about linked blocks of data by which transactions can be digitally recorded and recorded in a decentralized manner. Encrypted and anonymous data blocks protect sensitive data against unauthorized access, hackers have almost no chance. The revolutionary thing about blockchain technology is that it makes transactions possible without a central authority that records and verifies the processes. The system generates transaction reliability and security almost by itself.
For example, with bitcoin payments, banks or payment processors can be completely eliminated. The payment process takes place directly between the computers concerned. Transactions can not only be processed faster, but also much more cost effectively. Bitcoin and most other cryptocurrencies are based on blockchain technology. However, the range of applications is wider.
Blockchain is revolutionizing data traffic: application examples
Blockchain-based platforms and networks enable many applications for smooth processes between institutions, businesses and consumers. The possible applications therefore extend well beyond the financial sector. In principle, all business models in which mediation takes place are affected. Do you want to renew your identity card or officially register your car? Blockchain saves you the trip to the citizen’s office or the vehicle registration office. All of this should be happening from your home in the near future.
Industrial processes could also be improved by blockchain, such as the traceability of supply chains. Here, the blockchain can be used to sign contracts and verify the provenance of products. Another possible application is that of platforms for exercising voting rights. With a blockchain-based voting system, citizens could in the future vote securely and anonymously directly from their homes. With the growing convergence of the digital and physical worlds, there will always be practical uses for blockchain.
The potential of blockchain: why invest now?
Blockchain technology is developing at breakneck speed and will change our society forever, especially the finance and transportation sectors. Decentralized and secure storage and processing of data is becoming essential in many areas of business and IT. Companies that promote this blockchain technology can establish themselves as the first in the market and thus operate very profitably in the future. For a long time, investing in cryptocurrencies was the only way for investors to participate in the development of blockchain technology. However, direct investment in cryptocurrencies is associated with very high risk.
to You can therefore invest in Robo Advisor invest in companies that have implemented blockchain technology in their business model. According to Statista, the volume of global investments (venture capital, public entities and mergers & acquisitions) in blockchain technologies and cryptocurrencies amounted to approximately 30.2 billion US dollars in 2021. The previous year, the investment volume was approximately 5.5 billion euros. Those who invest now in the technological revolution can obtain high returns in the long term.
How to invest in the blockchain?
As already mentioned, a direct investment in cryptocurrencies is associated with a very high risk. You also need a digital wallet where transactions and shares are stored. In addition, it is currently not yet possible to invest in Bitcoin on the stock exchange via exchange-traded funds (ETFs) without any problems.
An interesting alternative to direct investments and ETFs, on the other hand, is an investment in companies that have implemented blockchain technology in their business model. This is the approach that robo advisor investify is taking with the new blockchain technology theme.
individuality and performance participate in portfolio construction with the digital asset manager invest in accent. This is why the robo advisor uses so-called thematic investments in addition to the basic ETF investment. If you decide to customize your portfolio, your investment consists of the broad base ETF investment and the topics you have chosen yourself, such as blockchain.
With a choice of Over 20 thematic investments, you can fulfill your wishes and beliefs in the investify portfolio. The practical side: You only have to select your subjects, investify ensures the optimal weighting in the portfolio. Individually selectable topics and trends include: Blockchain, Investor Frank Thelen’s 10xDNA Fund, Dividend Kings, Big Date and many other high growth topics.