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Finding millionaire-maker blockchain stocks can be tricky.
Blockchain stocks include all companies investing in the distributed ledger technology. The blockchain allows records to be kept in a decentralized manner and is closely linked to cryptocurrency in general.
There are hundreds of smaller companies and stocks associated with the blockchain. They employ all kinds of business models, many of which are simply mining for leading cryptos such as Ethereum (ETH USD) And Bitcoin (BTC USD). Such companies are not listed below, although they are certainly capable of making huge profits in the long run.
Instead, I have mentioned well-known companies, mainly in the fintech space that are also venturing into blockchain investments. They are firmly entrenched in the current dominant financial system as they invest in the growth that blockchain offers. These are millionaire-maker blockchain stocks that are also safe.
MasterCard (NYSE:MA) is probably not the first name that comes to mind regarding blockchain stocks. It is a payment processing giant that has been doing very well recently as the cashless economy progresses.
Mastercard would be foolish not to believe that credit and debit cards are the last form of value transaction means. Instead, like all payment processors, Mastercard must respond appropriately to a changing landscape impacted by blockchain technology.
Indeed, it has filed more than 30 patents for blockchain technology and has devoted significant resources to developing solutions and teams to move projects forward.
The company readily admits that current technology suffers from flaws that blockchain technology fixes. In the long term, this technology will lead to greater safety.
Mastercard shares are one of many card processors investors should consider in connection with the evolution of the blockchain. Visa (NYSE:v) And American Express (NYSE:AXP) are solid choices as US credit card debt soars.
Block (NYSE:SQ) has not always been known as Block. It changed its name from Square to Block in December 2021 to better reflect its business.
Management believed that the Square branding, long associated with its ecommerce payment solutions for merchants, was outdated. Block better associated the company with growth concepts, as by then the company had evolved to include several other business units, including Cash App.
The Cash app is important for this conversation as it is used by many for Bitcoin transactions. In fact, the Cash app has become the most important part of Block’s business lately. Square grossed $770 million in grosses, while Cash App contributed $931 million.
Furthermore, Cash App’s growth is significantly faster than Square’s. Those results suggest that Block has a long-term strategy in mind that will lead to consistent growth and appropriate investments in fruitful fintech opportunities going forward.
To call IBM (NYSE:IBM) and most investors will probably think of consulting, software and maybe early computers when they are old enough. Far down that list, if it’s on it at all, is blockchain. Still, IBM is a blockchain company. It is also generally a safe company with a diverse business footprint in technology that shields it from the volatility that small, blockchain-first companies are exposed to.
IBM’s Hyperledger Fabric is the modular blockchain framework with enterprise applications. It is based on an open source Linux Foundation project that IBM is developing into an enterprise-level blockchain platform.
It essentially allows users to develop automated smart contracts that dictate executable actions. IBM has noted several enterprise use cases, including an implementation for DIY store (NYSE:HD) that improved supply chain efficiency.
IBM shares are a reasonable enterprise blockchain investment to make. This is especially true for investors who value the income generated by IBM’s high-yield dividend.
At the date of publication, Alex Sirois had positions (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.