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7 Blockchain stocks to buy to go beyond cryptography
While cryptocurrencies have revolutionized investment markets, they are also incredibly risky. I knew it. Recently, I explained that I needed to leave the Bitcoin sector (CCC: BTC-USD) because it was too much. However, for those considering virtual currencies, you may be better served with blockchain stocks. First, I just don’t know where cryptocurrencies as a speculative vehicle will end up. This is one of the reasons why I left before the $ 50,000 goal I had previously paid. Don’t get me wrong – I still believe in the continued rise of Bitcoin and therefore I maintain a modest position. But I also needed to get something out of this tour. Otherwise, it would be in vain. Second, blockchain stocks represent investments in the underlying technology of Bitcoin and other virtual tokens. Although I am not 100% sure what the future of cryptos will hold, I am much more confident that the decentralized distributed public accounting system will continue. In addition, blockchain will unleash additional innovations in the world of fintech.InvestorPlace – Stock market news, stock advice and trading tips This goes on to my third point: The innovation that underlines blockchain stocks represents true connectivity and integration financial For example, bank transfers are slow and expensive. In addition, they become problematic when dealing with countries that may not have the most robust economic infrastructure. We need something that is cheap and effective, and only the blockchain has put forward a reasonable proposal. In addition, mitigating or completely eliminating friction in peer-to-peer transactions will help our own economy manage the destruction caused by the new coronavirus. With the possibility of a prolonged recession, the number of individuals expelled from the financial system can increase substantially. Therefore, only technology will solve this dilemma, which benefits these blockchain stocks to buy. 7 Overvalued shares Investors just can’t get enough As you can see in the list below, the companies available are very diverse, from blue chip giants to speculative names. Therefore, blockchain stocks offer something for everyone, regardless of their risk tolerance. Let’s take a 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 considered Bitcoin and other cryptocurrencies as competitors for the global financial system. Nothing could be further from the truth. In reality, by using blockchain innovation, top-tier companies like Visa can offer services that meet the growing demands of their customers. In the case of the credit card company, management developed the Visa B2B Connect platform, which processes international corporate payments between companies in a secure and predictable manner. This is huge for Visa, as virtual currencies as a concept will not disappear anytime soon. In addition, Visa’s shares can benefit from the superiority of blockchain technology. Basically, the platform is more efficient than other alternatives because the component of trust between two parties is not managed by a human (and therefore corruptible) entity, but an immutable digital record. If you are not interested in the violent swings of the cryptocurrencies themselves, stable blockchain stocks like Visa provide 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 spins in the cryptocurrency markets. More than likely, something like IBM’s shares doesn’t immediately fit the profile. However, as calm as “Big Blue” may be for some investors, it is worth considering safe exposure to this expanding technology. As you may know, the company has established its IBM Blockchain platform to help companies and institutions deal with a number of challenges that go beyond financial goals. A brilliant example of this is the launch of the Covid-19 vaccine. Thanks to the immutable feature of the blockchain, IBM is able to provide real-time end-to-end traceability for vaccine delivery. Although I hope we never have to hear about Covid again in the future, if we have another health crisis, Big Blue will be ready. This bodes well for IBM’s actions. 7 Blue-chip stocks that are not a game And, like other blue-chip blockchain stocks, IBM has several other revenue channels in case the decentralized ledger doesn’t work. In particular, its artificial intelligence (AI) and cybersecurity solutions are attractive in today’s circumstances. CME Group (CME) Source: Marko Aliaksandr / ShutterStock.com Although not directly one of blockchain’s actions, the CME Group has given the entire digital currency complex a major boost of credibility. You see, as the largest financial derivatives exchange in the world, CME offers investors the ability to trade in almost anything. With cryptocurrencies as part of its offerings, the industry is now legitimate. In addition, buying CME shares gives you exposure to Bitcoin trading without having to enter the arena. In a way, having a stake in CME is the equivalent of selling tickets to the big game, instead of betting on one team to beat the other. No, you probably won’t get rich with CME, but you probably won’t be destitute. In addition, the ability to buy Bitcoin futures and trade option contracts provides the underlying asset with constant price movements that allow daily trades to take place. Overall, the CME Group’s involvement in space is positive for the digital economy and should be a good deal for CME’s actions. Nvidia (NVDA) Source: rafapress / Shutterstock.com Technically more like a crypto-mining game, however, I have included Nvidia in this list of blockchain actions because mining is what makes most ledgers decentralized and distributed work. Again, the beauty of this platform is that two parties that do not necessarily trust each other do not need to rely on a third-party intermediary that both may not trust each other. Instead, the middleman is the blockchain system itself. However, public blockchains require the participation of nodes (computers) to verify transactions that take place within the system. This is where mining comes into play, with blockchain users vying for the right to verify such transactions and receive digital tokens as a reward. However, to consistently win this competition usually requires intensive hardware. Arguably, Nvidia provides the best processors for mining tasks, which greatly benefits NVDA’s inventory. 7 Actions Elon Musk loves – and you should go much further, you don’t have to be a big believer in blockchain stocks to appreciate Nvidia. The semiconductor company has exposure to a number of relevant businesses, including video games, machine learning and stand-alone solutions. So you really can’t go wrong with NVDA stock. Advanced Micro Devices (AMD) Source: Sundry Photography / Shutterstock.com If I am going to mention Nvidia in this list of blockchain stocks, then I am bound to also include Advanced Micro Devices. This is certainly part of self-preservation. Otherwise, I would be heavily criticized by fans of AMD’s shares and I am already hundreds of emails late. I don’t need to flood my inbox anymore. Seriously, though, Advanced Micro more than deserves inclusion as a blockchain / crypto-mining game. In recent years, the company has taken this to its larger rivals. Years ago, AMD was an afterthought in the wider chipmaking space. It is now a legitimate leader in several semiconductor segments, including graphics processing units (GPUs) that serve mining operations. In addition, you may be interested to know that AMD’s shares can be an important indicator for Bitcoins and major altcoins. It appears that a considerable rise in AMD’s stock precedes robust moves in the cryptocurrency. If this is true, I don’t see why the two assets cannot be mutually beneficial in the future – higher interest crypto mining is generally good for AMD’s Bitcoin and GPU revenues. SolarWorld (SRWRF) Source: Diyana Dimitrova / Shutterstock.com No, SolarWorld has nothing to do directly with blockchain stocks. And no, I haven’t lost my mind. Just listen to me for a second. Although cryptocurrencies to skeptics sound like digital fairy dust, the truth is that the mining process for these tokens requires real “work”. That is, the energy required to extract most virtual currencies requires some level of sacrifice. Of course, sacrifice does not necessarily value them. However, it would be wrong to assume that cryptocurrencies have materialized for nothing. However, as cryptocurrencies have become more popular, the energy requirements needed to extract many of these coins have become much more intense. And this is where the SRWRF stock comes into play. As an investment in solar energy, the underlying product could potentially help make crypto mining more profitable for newcomers, as it can reduce utility costs. 9 Meme shows that social media does not stop talking about using solar energy to extract cryptocurrencies is not a new concept. However, it can become incredibly popular now that this market has attracted mainstream attention. Although SRWRF’s shares are speculative trading, it is worth considering them with “dumb” money. Bitfarms (BFARF) Source: Shutterstock The days are gone when you could extract Bitcoins on your laptop. As the original digital token increased in value and popularity, so did its mining difficulty. Now, it can cost thousands, even tens of thousands of dollars to operate a Bitcoin mining operation – and you are not even guaranteed to succeed with such a cash outlay! Therefore, crypto-mining farms – or dedicated mining centers – have sprung up around the world. Bitfarms is one of those mining farms and, conceptually, is intriguing. Using clean and competitively priced hydroelectricity, BFARF’s stock represents an environmentally responsible way of mining Bitcoin. In addition, the company operates five mining facilities in Quebec, Canada. Geographically, this appears to be an advantage, as the colder climate should help prevent overheating of Bitfarms mining equipment. You would think that this would help to extend the life of the equipment, possibly making BFARF’s stock an astute speculative idea. However, this is a wild case, so don’t get involved with money that you can’t afford to lose. On the date of publication, Josh Enomoto held a long position in BTC. A former senior business analyst at Sony Electronics, Josh Enomoto helped negotiate important contracts with Fortune Global 500 companies. In recent years, he has provided unique and critical insights into the investment markets, as well as several other sectors, including legal, construction and health management. More from InvestorPlace Why everyone is investing in 5G Everything wrong The stock picker reveals his next potential winner No matter if you have $ 500 in savings or $ 5 million. Do it now. # 1 Play to profit from Biden’s presidency Post-7 Blockchain actions to buy to go beyond cryptography first appeared on InvestorPlace.