Kevin Leyes is the Chairman of Leyes Enterprises and the CEO of Leyes Media, an SMM and PR agency, and Team Leyes, an urban jewelry company.
In 2012, a video game developer named John Ratcliff got a bitcoin as a gift; it was worth $13 at the time. When he saw the value of bitcoin rising, he invested $15,000 in 150 bitcoins, each worth $100, back in 2013. In January, we saw Bitcoin reach $40,000 per coin. For Ratcliff, understanding where to invest has allowed him to build a $1.4 million house. He also recently put down a large payment for his new Tesla Roadster by selling just six of his bitcoins.
Ratcliff and others like him have seen huge profits because they saw early on that cryptocurrency was an emerging industry. They recognized its huge potential and are now cashing in. For many, this is the goal. That leaves us wondering where to invest. What industries are emerging today?
What Is An Emerging Industry?
According to Investopedia, â€œAn emerging industry is a group of companies in a line of business formed around a new product or idea that is in the early stages of development.â€ These companies often come about as one technology takes over another, older technology. Itâ€™s important to note that stocks of companies in emerging industries can be volatile. That means that investing in these companies is risky. However, as John Ratcliffâ€™s story and so many like it have proven, great risk can bring great reward.
Where To Invest Your Money In 2021: Six Emerging Industries
1. Artificial Intelligence
Weâ€™ve already seen artificial intelligence (AI) spreading into many areas of society and business operations. This trend will continue as artificial intelligence is continually developed and optimized to help in more ways, making it flexible and adaptable to various industries. AI has already become a part of the automotive industry with self-driving cars and the healthcare industry with virtual doctor visits. AI is here to stay, and its becoming more and more ingrained into our everyday lives.
2. Virtual Reality
While virtual reality (VR) is a natural progression for the (already huge) video game industry, its adaptability shows its staying power. As Forbes reports, Covid-19 has sped up the need for digital collaboration. Weâ€™re seeing augmented and virtual reality integrated into the financial, entertainment, transportation, retail, healthcare and security sectors via their business applications. Weâ€™re also seeing VR push into government and academia, cementing virtual reality as more than a trend.
3. Renewable And Alternative Energy
Although renewable energy isnâ€™t a new idea, itâ€™s finally gaining more traction. Weâ€™ve seen the demand for electricity fall in 2020. Meanwhile, the demand for renewable energy has exceeded that of coal more than ever before (153 days in 2020 versus 39 in 2019.) With the U.S. rejoining the Paris Climate Accord and planning to invest $2 trillion in clean energy, we should see this industry accelerating in 2021.
4. Big Data Analytics
Big data analytics reviews large amounts of data, looking for hidden correlations and patterns. With new technology that can analyze big data and get answers in minutes, companies will be able to move more quickly than ever before. The result? Cost reduction, faster and more informed decision-making, and new products based on consumer feedback. All of these things mean more money for companies that use this technology.
As technology grows and changes, our cybersecurity needs will, as well. It will be more important than ever to protect our information. We can expect to see cybersecurity technology develop and change to meet new needs â€” including utilizing AI in new solutions. The cybersecurity market is expected to grow from $165.78 billion in 2021 to $366.10 billion by 2028.
6. Cloud Computing
Cloud computing as an industry is becoming increasingly standardized and compatible. Hosted private, hosted on-premises and public cloud infrastructure are allowing data streams to be much more mobile and workloads more portable. With this shift, weâ€™re now seeing cloud computing supporting more processes, apps and services. The cloud computing market is projected to hit $760.98 billion by 2027.
Investing in stocks in an emerging market can be life-changing. Emerging markets are very volatile, so itâ€™s incredibly important to research before investing. You need to ensure that not only the industry but also the company youâ€™re investing in has staying power; this will make all the difference. Knowing where to invest your money all comes down to research. From AI to cloud computing to cybersecurity, itâ€™s clear that technology will rule future industries. Where will you invest first?
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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