Blockchain Technology — The Future of Portfolio Investments


Portfolio Investment refers to investment in the form of a portfolio or group, which involves investment in a series of products such as assets, equity, shares, securities, bonds, and more.

Over the past years, the portfolio investment industry has been largely dominated by technology evolutions. New technologies have shown unmatched potential to transform the way investments (trading) are made and managed by us today. Blockchain, being the biggest technology evolutions of our time, is one of the biggest contenders to change the future of portfolio management for good.

As a trader or investor, you must always be at the forefront of change, ready to take the right decisions at the right time. Blockchain can provide ways for investors to more effectively manage their investment portfolios by predicting the market status more clearly and taking better investment decisions based on the actual data and intelligence available at the time.

How is Technology Changing Portfolio Investments?

As of now, the Portfolio investment industry is struggling with a number of issues, low profitability being the major one. Both the investors and traders are affected by the lack of knowledge and awareness which leads them to make wrong investment decisions.

If an investor hires the services of an external portfolio manager, they have to pay a hefty margin for each trade, further reducing the profitability. Similarly, traders are troubled by the lack of knowledge, resources, and technologies to better predict and analyze investment products and take decisions for more profitability.

Advanced technology means such as Artificial Intelligence, Machine Learning, Robo-advisory and blockchain tech are frequently being used by investment institutions and dealers around the world for improving the efficiency of their portfolio management. Blockchain technology, which was created as a way to power secure and global digital transactions, is now seeing applications in a wide range of industries, including investment portfolio management.

Blockchain Technology for Investment Management

There are a number of projects and startups which are utilizing the blockchain tech for improving investment and trading industry. In this article, we will try to understand the importance & benefits of blockchain technology for investment through the example of Hey Bitcoin, which is a blockchain-based solution for portfolio investments.

Hey Bitcoin is one of the few projects that have showcased a successful implementation of blockchain technology in the portfolio investment industry. Here’s how.

The Hey Bitcoin team has created a blockchain-based transparent algorithm which analyzes the performance of investment traders and dealers based on various factors. The algorithm then creates a portfolio (database) of different traders based on their trading performance over time. This database can be browsed by investors worldwide looking for hiring traders for the management of their portfolio investments.

The best part is that investors can select the best traders by using filters such as profitability and risk levels. Based on the options selected by an investor, the algorithm will show the most suitable traders.

The overall aim of Hey Bitcoin is to create a transparent system for ranking and selecting the portfolio traders based on their performance, and not just on the basis of experience. The blockchain technology has been used for creating such a system which provides transparent and verifiable records of traders’ performance. For more details, visit: heybitcoin.io