Wall Street bull predicts: Blockchain will help ‘drive the next industrial revolution’

0
223

According to one of Wall Street’s biggest bulls, blockchain will be playing an important role as a driver of economic growth.

Although it is still technically considered an emerging technology, Steve Chiavarone of Federated Investors, is folding the decentralized ledger, which stores cryptocurrency transactions, in his stock market forecast.

“This is going to be one of five key technologies — along with automation, robotics, A.I. [artificial intelligence] and the Internet of things that drive this next industrial revolution,” the portfolio manager said in an interview with CNBC. Chiavarone says he will not allow the growing pains currently affecting the cryptocurrency market shake his bullish view.

Bitcoin, often referred to as the “FANG (Facebook, Amazon, Netflix and Google) stock” of the crypto industry, has been struggling to hit the $10,000 mark—months after hitting a record high of almost $20,000 last December.

As a matter of fact, Chiavarone foresees FANG stocks to eventually reap the benefits from blockchain’s processing power—in addition to areas from health care to financials.

“A lot of investors went to bitcoin first because it was the first way to access blockchain,”Chiavarone said.

“Look, big banks are investing in this heavily. Bank of America boasted at Davos earlier this year that they’re investing the most.”

For Chiavarone, blockchain technology is valuable because it has the potential to transform reconciliation, the act of verifying account balances in the corporate world.

“It has an ability to replace reconciliation, which is expensive and requires back office and time and paperwork with more instantaneous verification.”

“What that means is companies can have more efficient supply chains. They can cut their back and middle office costs,” he added. “And, that will allow business to flow more efficiently and it’ll allow costs to be cut and net savings to be passed along.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here