The number of blockchain technology investors have increased exponentially in the past year —95% of companies across multiple industries are investing in blockchain technology projects. In 2019, these pilot projects are making their way into the bigger market —the end users.
With all the buzz, it can be tempting to jump on the bandwagon right away. However, this can either be a strategic business move or a disastrous gamble depending on your knowledge and expertise in the blockchain market.
Understanding Blockchain’s Game-Changing Potential
Blockchain technology has now reached new heights since it was first introduced in the market. Institutions are seeing its potential in revolutionising the digital industry and world economy. Take a closer to look at its key traits to find out why.
- Free – Aside from its initial infrastructure cost, blockchain technology is free. You do not need to pay a small fee for every little transaction and correspondence you conduct online.
- Tamper-Proof – Blockchain delivers information from point A to B in a secure and fully automated manner. The data is verified by thousands of computers around the net during transfer, making it virtually impossible to alter or falsify the information in transit.
- Democratised System – Blockchain is open, immutable, and not regulated by any central authority. Its contents are open for anyone and everyone who has access, ensuring transparency and accountability.
- Potential to Replace Fundamental Applications and Platforms – Aside from its impact on cryptocurrency, blockchain’s abilities can revolutionise various systems. They include securities, bank operations, digital rights management, law enforcement, and healthcare among other things.
With its massive applications and virtually flawless system, many billion-dollar companies such as Samsung and Volkswagen have now started to integrate blockchain into their operations. Recent cryptocurrency news is showing no signs of letting up with blockchain migration updates and developments.
The Risks of Investing in Blockchain on Your Own
Despite blockchain’s increasing popularity, carving out a niche in its industry is not an easy task. Specialists are few, and competition is stiff. Information about it is not only limited but also marred with misconceptions. Investing in blockchain without having in-depth knowledge about its trends and processes will make you susceptible to the following risks.
- Choosing an Inappropriate Blockchain Type and Consensus
Each blockchain type and consensus has specific limitations on scalability, processing time, and support. Selecting the wrong ones will impair your operations.
- Making Inaccurate Market Estimations
Making and acting on incorrect predictions about token economics in blockchain can drag down your economic value. In the worst-case scenario, it can lead to your project’s failure. If you lack the knowledge to predict, securing solutions from blockchain technology companies is the best way to obtain accurate estimations of your project.
- Managing Financial Assets Poorly
Balancing profitability and cryptocurrency return is one of the trickiest tasks of blockchain investments. Due to the latter’s volatility, any project can suffer from inadequate financial resources through poor assets management during implementation. It is a challenge most investors do not consider when investing in blockchain.
- Failure to Reinvent the Business Model
To maximize the potential and profitability of blockchain, investors must reinvent their business model so that it can accommodate the technology. However, most investors find it difficult to adjust their model, rendering the blockchain useless or ineffective.
Succeed in the Blockchain Industry with Key Coin Assets
As the UK’s premier digital assets management company, Key Coin Assets can help you carve a secure and profitable niche in the blockchain space. With our expertise and experience in blockchain, we can help you:
- Maximise your digital assets
- Improve your scalability
- Promote your brand’s credibility
- Protect your digital transactions
- Reinforce your data privacy
- Keep up with blockchain trends and developments
Succeed in your blockchain technology investments. Contact Key Coin Assets NOW at 0843.886.9547, and we will take your digital asset ventures to new heights.