The blockchain revolution is underway, and while the price of various cryptocurrencies have somewhat flat lined in recent months, the technology underpinning these digital coins, blockchain technology, remains prized by many in sectors which have little or nothing to do with cryptocurrency whatsoever.
A number of large financial institutions and those looking for ways to maximize the true value of blockchain as a way to open source and decentralize data storage have pointed to companies within the blockchain world as potential drivers of innovation moving forward.
While this sector as a whole is still in its infancy, companies like Vancouver-based Hive Blockchain Technologies Ltd. (TSXV:HIVE) are paving the way forward in terms of blockchain development and innovation, leading to many-a-speculative investment in such a company. Hive has seen its share price and valuation balloon, topping a $1-billion market capitalization at one point; currently, shares of the blockchain firm trade at the $1.10 level, giving the company a market capitalization of just over $365 million.
This space is far too speculative and risky for my liking – I have warned investors in the past of the risks related to the cryptocurrency/blockchain sector in terms of valuation and fundamental investing principles. That being said, delving deeper into companies like Hive in the medium term will be a goal of mine; understanding the technology underpinning such companies is a worthwhile task, in my opinion, as the value proposition for this sector is likely to continued to be reinforced over the long-term.
Invest wisely, my friends.
