Who are you going to believe when it comes to blockchain technology? Some know-it-all industry observer like me, OR a collection of the chief information officers who run the largest companies in the world?
Well, when we’re on the same page — you can listen to both!
“Is your company currently using
or exploring any blockchain applications?”
That’s the question TechRepublic recently asked a dozen CIOs. Two-thirds of them say they are currently integrating or considering blockchain solutions for their business.
Look, that’s more than just curiosity. This is an unambiguous forecast of how mainstream and how important blockchain will be for American businesses.
However, U.S.-based businesses had better get off their technology butts … and soon. That’s because China is about to run laps around them!
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| Blockchain patent applications tripled in 2017 across the globe. A trio of Chinese companies — Tencent, Alibaba and Baidu — have been granted more than half the world’s blockchain patents. |
A fresh report from Thomson Reuters revealed that 56% of all of the 406 blockchain patents granted in 2017 were to Chinese companies.
The U.S. was a distant second with only 22%.
That lead is even more worrisome when you consider that the number of global blockchain patents more than tripled from 134 in 2016 to 406 in in 2017.
It’s pretty clear China is winning the battle of blockchain intellectual property rights by a wide margin.
Which Chinese companies are leading the charge in the blockchain patent race? That answer is also clear …
Tencent Holdings (TCEHY), Alibaba (BABA) and Baidu (BIDU) — all of which are traded on U.S. stock exchanges — hold a combined 56% of the worldwide total of blockchain patents. Alibaba is the top dog with 90 blockchain-related patents.
Clearly, China is serious about blockchain. But what is especially revealing is that the People’s Bank of China — the Chinese Federal Reserve — is in fifth place on the list of top blockchain patent-holders with 44 patents.
That should tell you that it won’t be long before China incorporates cryptocurrencies into its national banking/finance system.
The U.S. is led by IBM (IBM) and Mastercard (MA), with 89 and 90 patents, respectively. But it holds a pathetic 22% of all the blockchain patents.
I’m not suggesting that you rush out and buy any of these budding blockchain Goliaths today.
As always, timing is everything. So, I recommend that you wait for a buy signal in my Weiss Crypto Investor newsletter. But this table offers a very good shopping list of blockchain-focused stocks to consider.
Bottom line …
Don’t you dare leave Chinese companies out of your potential buy list. I expect some of the most mouth-watering profits to come from Chinese companies.
And like I said above, many of those Chinese companies are listed on the NYSE and Nasdaq, so there’s no excuse to not consider them.
Disclosure: I personally own Alibaba shares in my retirement account.
Best wishes,
Tony Sagami