In the early days, the only way to invest was to go through a broker. This is because brokers had access to all the information and tools needed to trade on the stock market; information and tools that the individual or smaller investor simply didn’t have access to.
As time progressed, new technologies were developed that made it possible for the smaller investor to have access to the same information that only larger brokers had access to previously. Because of this, people were able to start investing through individual traders for specific trades.
Cryptocurrency and blockchain have taken investor’s freedom to an even higher level. At first, cryptocurrencies were seen as a “fad” only to run its course and eventually be gone forever. However, we’ve seen adoption grow year after year, and more and more technologies are being developed that utilize its underlying technology, blockchain. Once institutional investors saw the growth in popularity, they’ve scrambled to figure out how they can implement blockchain into their own investment methods.
In this blog post, Coin Cloud discusses five (5) ways that blockchain is changing the way we invest:
According to a report released by Oliver Wyman, IT and operational costs in capital markets can cost up to $150 billion a year. Of course, all of those fees are passed down to the customers, meaning customers are paying front-end loads and higher administrative fees. With blockchain, these fees are significantly less expensive.
1. Quicker Settlement
Investments made on traditional platforms can take up to 3 days to settle. With blockchain, these transactions times can be sped up significantly, with most transactions taking only a couple hours to settle. If you use a Coin Cloud ATM, you can buy and sell your cryptocurrency within minutes.
2. 24/7 Global Markets
Every country in the global market has an opening and closing time for their markets. Blockchain will enable markets to stay open 24/7 by eliminating the need for a third party to validate transactions.
3. Reduced Fraud
Because all transactions, documents, contracts, etc. that are recorded to the blockchain are final and unable to be tampered with, it drastically removes the possibility for fraudulent activity. Even further, both new and existing platforms are getting on board with banks’ KYC policies (Know Your Customer), making blockchain trading even more secure.
4. Change In Private Equity
Right now, private equity funds pool money from multiple different people to invest in various assets. People trust these funds to handle their money correctly. What if there was a way to remove the middleman so investors could invest freely and safely on their own? Well, with blockchain, this is possible. Blockchain allows investors to invest directly into assets without needing to work through a middleman.
The five (5) points listed above are just a few reasons why blockchain is changing the way we invest. There are several other reasons that exist far outside of this. All in all, the true value of blockchain is just starting to be revealed. Every day, new technologies are being developed that utilize blockchain in groundbreaking ways. Only time will tell just how much of an impact blockchain will have on our society. However, in such a short amount of time, blockchain has already shaken up some of the longest-standing industries and will only continue to do so as the technology grows and matures.
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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