How to Invest in the Blockchain Bonanza Without Buying Bitcoin and Other Cryptocurrencies - A Crypto Dilemma

A series on the crypto craze dilemma.

No matter what you think of Bitcoin and competing crytocurrencies, the blockchain is almost certainly here to stay. The technology behind Bitcoin, Ethereum, and other popular cryptocurrencies are already changing the way the world does business, and those changes are only likely to accelerate in the years to come.

Even if Bitcoin crashes and burns and the long-predicted bubble finally bursts, the demise of the cryptocurrency model should have only a limited impact on the blockchain itself. That is because the blockchain idea is backing up much more than virtual currency. If you believe in the promise of blockchain technology but are not ready to sink your money into Bitcoin, there are plenty of other, and potentially more profitable, ways to invest. Here are some ideas to help you profit from the blockchain without the risk of a Bitcoin bubble.

FinTech Startups

Financial technology firms, known in the industry as FinTech, have been quietly making waves, and quickly adopting the blockchain concept to transform everything from traditional banking relationships to online brokerage firms.

There are a number of such firms and many different ways to play them. Investors can diversify their holdings through sector funds, which purchase dozens or even hundreds of fintech startups, or they can seek out the most promising entries and place their own bets. These strategies are risky to be sure, but investing in a promising fintech startup could still be less volatile than buying a Bitcoin.

Tech Giants

Buying stock in a startup company is not the only way to play the blockchain revolution. Old-line tech companies like IBM have also been investing heavily in the blockchain, so buying their stock could help you ride the wave of the future.

The level of blockchain commitment varies widely among tech firms, so you will need to do your own homework and make your choices accordingly. But one of the biggest advantages of this approach is that blockchain is not the only technology these firms are pursuing. Even if the current blockchain phenomenon fizzles out, IBM and other tech firms may have other technologies up their high-tech sleeves.

The Healthcare Sector

Firms in the healthcare sector have also invested heavily in the blockchain, and investing in those firms could be a great way to play the technology. From healthcare administrators and pharmaceutical firms to biotech startups and even hospitals, the world of healthcare is exploring blockchain in a big way.

Once again, sector funds specializing in the healthcare industry could be a smart way to play the blockchain market. If you are a savvy investor and playing with money you can afford to lose, taking a flier on a biotech startup or two could up the excitement factor and the profit potential.

Whether you are an early adopter of Bitcoin or a latecomer to the world of cryptocurrency, the blockchain concept that backs these virtual currencies has a lot to offer. No one truly knows how sustainable these cryptocurrencies will be, or what kind of investments they will turn out to be. What is far more certain is that the blockchain model itself is here to stay, and those with the foresight and courage to invest could book huge profits in the years to come.