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7 Blockchain shares to buy to go beyond Crypto
Although cryptocurrencies have revolutionized the investment markets, they are also incredibly risky. I would know. Recently I explained that I had to leave the Bitcoin (CCC: BTC-USD) sector because it was too much. However, for those considering virtual currencies, you may be better served with blockchain stocks. First, I simply do not know where cryptocurrencies will end up as a speculative vehicle. This is one of the reasons I left before the $ 50,000 target I called earlier. Do not get me wrong – I still believe in the continued rise of Bitcoin, and therefore I maintain a modest position. But I also had to get something out of this ride. Otherwise it would be free. Second, blockchain stocks represent investments in the underlying technology of Bitcoin and other virtual tokens. While I’m not 100% sure what the future holds for cryptocurrencies, I’m much more confident in the belief that the decentralized distributed public ledger system will continue. Not only that, the blockchain will foster additional innovations in the world of fintech. InvestorPlace – Stock Market News, Advice and Trading Tips This follows my third point: the innovation that highlights the blockchain stocks represents true financial connection and integration. Bank transfers, for example, are slow and expensive. In addition, it becomes problematic when we are dealing with countries that may not have the strongest economic infrastructure. We need something that is cheap and effective, and only the blockchain has made a reasonable offer. In addition, the friction of peer-to-peer transactions will be mitigated or completely eliminated to help our own economy manage the destruction caused by the new coronavirus. With the possibility of an extensive recession, the number of individuals being forced out of the financial system could increase significantly. Therefore, only technology will solve this dilemma, which favors these blockchain stocks to buy. 7 Investors with overvalued shares do not get tired, as you can see in the list below, the available companies are very diverse, from blue-chip giants to speculative names. That’s why blockchain stocks offer something for everyone, regardless of your risk tolerance. Let’s look: Visa (NYSE: V) IBM (NYSE: IBM) CME Group (NASDAQ: CME) Nvidia (NASDAQ: NVDA) Advanced Micro Devices (NASDAQ: AMD) SolarWorld (OTCMKTS: SRWRF) Bitfarms (OTCMKTS: BFARF) Visa (V) Source: Kikinunchi / Shutterstock.com Initially, many corporate and government institutions viewed Bitcoin and other cryptocurrencies as competing for the global financial system. Nothing can be further from the truth. In fact, blue-chip businesses like Visa can use services that meet the increasing demands of their customers, by taking advantage of blockchain innovation. In the case of the credit card business, management has developed the Visa B2B Connect platform, which processes corporate cross-border payments in a safe, secure and predictable way. This is great for Visa, as virtual currencies as a concept will not disappear anytime soon. Furthermore, Visa shares can benefit from the superiority of blockchain technology. In fact, the platform is more efficient than other alternatives, because the trust component between two parties is not handled by a human (and therefore perishable) entity, but rather by an immutable digital record. If you are not interested in the wild swing of cryptocurrencies, stable blockchain stocks like Visa offer exposure to a relevant innovation that will not let you down. IBM (IBM) Source: Laborant / Shutterstock.com When you hear the term blockchain stocks, you can’t help but think about the wild gyrates in the cryptocurrency markets. More than likely, something like IBM shares does not immediately fit into the profile. Just as a ‘Big Blue’ is a calm for some investors, it is worth considering for safe exposure to this emerging technology. As you may know, the company has established its IBM Blockchain platform to help businesses and institutions deal with various challenges that go beyond financial purposes. A brilliant example of this is the deployment of the vaccine for Covid-19. Thanks to the unchanging property of the blockchain, IBM is able to deliver end-time vaccine traceability. While I hope we never have to hear about Covid anything again in the future, Big Blue will be ready if we experience another health crisis. This is good for IBM shares. 7 Blue-chip stocks that are not a gamble, and like other blue-chip blockchain stocks, IBM has not worked out a number of revenue channels other than the decentralized ledger. In particular, artificial intelligence (AI) and cyber security solutions are compelling under the current circumstances. CME Group (CME) Source: Marko Aliaksandr / ShutterStock.com Although CME Group was not directly one of the blockchain stocks, it gave the entire digital currency complex a major credibility boost. You see, as the world’s largest exchange for financial derivatives, CME offers investors the ability to trade on almost anything. With cryptocurrencies as part of its offering, the sector is now a legitimate sector. In addition, buying CME shares gives you exposure to Bitcoin trading without stepping into the arena. In a sense, owning equity in CME is the stand-alone to sell tickets for the big game rather than betting on one team to beat the other. No, you are probably not going to get rich on CME, but you are probably not going to be left poor. Furthermore, the ability to buy Bitcoin futures and options contracts, the underlying asset provides the constant price movements that allow day trading to take place. Overall, CME Group’s involvement in space is positive for the digital economy, and it should be good for CME equities as well. Nvidia (NVDA) Source: rafapress / Shutterstock.com Technically more of a crypto-mining play, I nevertheless included Nvidia in this list of blockchain stocks because mining makes most decentralized distributed public ledgers tick. Again, the beauty of this platform is that two parties who do not necessarily trust each other have to rely on a third-party intermediary who both may not trust each other. Instead, the intermediary is the blockchain system itself. However, public blockchains require the participation of nodes (computers) to verify transactions that occur within the system. This is where mining comes into the picture, with blockchain users competing for the right to verify such transactions and receive digital tokens as a reward. Winning this competition consistently, however, usually involves intensive hardware. It is likely that Nvidia offers the best processors for mining tasks, which greatly benefits the NVDA stock. 7 shares that Elon Musk loves – and what you need to do next does not have to be a big believer in blockchain shares to appreciate Nvidia. The semiconductor company has been exposed to several relevant ventures, including video games, machine learning, and autonomous solutions. So you really can not go wrong with NVDA stocks. Advanced Micro Devices (AMD) Source: Sundry Photography / Shutterstock.com If I were to name Nvidia on this list of blockchain stocks, I would be required to include Advanced Micro Devices as well. Admittedly, it is part of self-preservation. Otherwise I would get a lot of heat from fans of AMD shares, and I’m already hundreds of emails behind. I no longer need to flood my mailbox. Seriously, though, Advanced Micro deserves more than inclusion as a blockchain / crypto-mining play. Over the past few years, the company has taken it to its larger competitors. Years ago, AMD was an afterthought in the wider manufacturing space for chips. Now it is a legitimate leader in several semiconductor segments, including graphics processing units (GPUs) that satisfy mining operations. You may also be interested to know that AMD shares could potentially be a leading indicator for Bitcoin and major altcoins. It appears that a significant rise in AMD stocks is preceded by robust movements in the cryptocurrency. If this is true, I can not see why the two assets may not be profitable going forward – higher interest rate cryptocurrencies are generally good for both Bitcoin and AMD’s GPU earnings. SolarWorld (SRWRF) Source: Diyana Dimitrova / Shutterstock.com No, SolarWorld has nothing to do directly with blockchain stocks. And no, I lost my head. Just hear me for a moment. Although cryptocurrencies may sound like digital fairy-tale stuff to skeptics, the truth is that the process of exploiting these signs requires real ‘work’. That is, the energy required to withdraw most virtual currencies requires some sacrifice. Of course, sacrifice does not necessarily give them value. However, it would be wrong to assume that cryptocurrencies are realized for free. As cryptocurrencies became more popular, the energy needs needed to withdraw many of these coins became much more intense. And this is where SRWRF shares come into the picture. As a solar energy investment, the underlying product could potentially help make crypto-mining more profitable for newcomers, as it could lower the cost of use. 9 Meme shares that social media will not like are the use of solar energy to exploit cryptocurrencies, not a new concept. However, it can become incredibly popular now that this market has attracted mainstream attention. While SRWRF shares are a speculative trade, it is worth considering with ‘stupid’ money. Bitfarms (BFARF) Source: Shutterstock Gone are the days of mining Bitcoin on your laptop. As the original digital sign increased in value and popularity, so did the mining problems. It can now cost thousands, even tens of thousands of dollars to run a Bitcoin mining business – and you are not even guaranteed to be successful with such a cash outlay! That’s why crypto-mining farms – or dedicated mining centers – have sprung up around the world. Bitfarms is such a mining farm, and conceptually it is interesting. BFARF stocks are an environmentally responsible way to exploit Bitcoin using clean and competitive hydropower prices. The company also operates five mining facilities in Quebec, Canada. Geographically, this seems to be an advantage, as the colder climate should help prevent Bitfarms’ mining equipment from overheating. You would think that this would extend the life of the equipment, and possibly make BFARF stock a smart idea. It’s wild anyway, so do not get involved with money that you can not afford to lose. On the date of publication, Josh Enomoto holds a long position in BTC. Josh Enomoto, a former senior business analyst for Sony Electronics, helped market large contracts with Fortune Global 500 companies. Over the past few years, he has provided unique, critical insights into the investment markets, as well as several other industries, including law, construction management and healthcare. More from InvestorPlace Why everyone invests in 5G. ALL WRONG Top stock voters reveal his next potential winner. It does not matter if you are saving $ 500 or $ 5 million. Do it now. # 1 Play to Take Advantage of Biden’s Presidency The reported 7 Blockchain shares to buy to go further than Crypto first appear on InvestorPlace.