As the world is caught in a fervor over bitcoin and other cryptocurrencies, as well as the new blockchain technology, new investment opportunities similarly have started to pop up.
Exchange-traded funds (ETFs) with cryptocurrency and blockchain themes also have soared in popularity. This weekâ??s featured ETF, Reality Shares Nasdaq NextGen Economy ETF (BLCN), is one such fund that is gaining attention.
So, what is blockchain? Simply put, it is a record of new transactions (such as the change in the location of cryptocurrency, research data, voting records, etc.). Once a block of information is completed, it is added to the chain to create a chain of blocks known as a blockchain.
Owning cryptocurrencies essentially means owning â??private keysâ?ť to certain addresses on the blockchain. Since information stored in the blockchain is publicly available, it is comparable to a public ledger of sorts that does not rely on a single computerized server to function. The World Economic Forum predicts that 10% of global gross domestic product (GDP) will be stored on blockchain platforms by 2027.