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Key Takeaways From Snap’s (STVI) Blockchain Investor Event

By M. Marin


Earlier this week, Snap Interactive(OTC:STVI) hosted a blockchain investor event that Zacks co-hosted, Public Blockchain Companies: How to Play the High Growth Blockchain Thesis in the Stock Market. The event was well-attended and featured several knowledgeable speakers who discussed the outlook for blockchain and cryptocurrency. While opinions differed on specific applications or timing, the overall outlook for blockchain and crypto was extremely positive. We present our key takeaways in a company update.

First, blockchain is separate and distinct from cryptocurrency. Although Blockchain is the underlying digital architecture that supports many digital cryptocurrencies, the technology has much broader applications. The event moderator presented a slide outlining the 30 large industries that CB Insights believes blockchain could transform.

Blockchain and digital cryptocurrencies are at extremely early stages in their adoption and development. At this point, significant volatility in trading patterns is likely. Over the longer term, however, the volatility will be seen as mere blips in an overall upward trajectory.

Moreover, public companies are well-equipped to operate in the blockchain world because they are already accustomed to regulatory oversight and multiple administrative functions and are also set up to provide transparency to regulators and their investors.

In addition, many players have entered the blockchain space with no real or meaningful business plan. By comparison, Snap has a blockchain development team and blockchain advisory board to help the company identify and develop blockchain applications. Many, if not most, of the marginal players will ultimately exit the space, which will be good for both surviving participants and investors.

The opinion of several speakers is that there is no true “killer app” yet for blockchain and digital cryptocurrency. For example, one speaker pointed to email as among the original killer apps that drove internet usage. Overall, all participants agreed that such an app will emerge for blockchain and crypto. Finally, the many advantages of the decentralized architecture of blockchain include the difficulty of hacking this type of configuration and enhanced privacy and security, as well as cost reductions that it provides.


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