While 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. For those considering virtual currencies, you may be better served with blockchain stocks. First, I just don’t know where cryptocurrencies will end up as a speculative vehicle. That’s one of the reasons I stopped ahead of the $ 50,000 goal I called earlier. Don’t get me wrong – I still believe in the continued rise of Bitcoin, which is why I remain humble. But I also had to get something out of this ride. Otherwise it would be for nothing. Second, blockchain stocks represent investments in the underlying technology of Bitcoin and other virtual tokens. While I’m not 100% sure what the future of cryptos holds, I’m much more confident in the belief that the decentralized distributed ledger system will continue. Not only that, the blockchain will drive additional innovations in the world of fintech.InvestorPlace – Stock market news, stock advice and trading tips This continues to my third point: The innovation underscoring blockchain stocks represents true financial connectivity and integration. Bank transfers, for example, 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 made a reasonable proposition. That aside, reducing or outright eliminating the friction in peer-to-peer transactions will help our own economy manage the destruction caused by the new coronavirus. With the possibility of a protracted recession, the number of individuals forced out of the financial system could increase significantly. Hence, technology alone will solve this dilemma, benefiting these blockchain stocks to buy. 7 Overvalued Stocks Investors Just Don’t Get Tired As you can see from the list below, the companies available are very diverse, ranging from blue chip giants to speculative names. That’s why blockchain stocks offer something for everyone, regardless of your risk tolerance. Let’s see: 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 companies and government agencies viewed Bitcoin and other cryptocurrencies as competition for the global financial system. Nothing could be further from the truth. In reality, by leveraging the blockchain innovation, blue-chip companies like Visa can offer services that meet the increasing demands of their customers. In the case of the credit card company, management developed the Visa B2B Connect platform, which processes cross-border business-to-business business payments in a safe, secure and predictable manner. This is huge for Visa as virtual currencies as a concept are not going to disappear anytime soon. Furthermore, Visa stocks can take advantage of the superiority of blockchain technology. In short, the platform is more efficient than other alternatives because the trust component between two parties is not handled by a human (and thus corruptible) entity, but rather by an immutable digital record. If you’re not interested in the wild swings of the cryptocurrencies themselves, stable blockchain stocks like Visa offer exposure to a relevant innovation that won’t let you hang. IBM (IBM) Source: Laborant / Shutterstock.com When you hear the term blockchain stocks, you shouldn’t help but think of the wild moves in the cryptocurrency markets. More than likely, something like IBM stock doesn’t immediately fit the profile. As calm as ‘Big Blue’ may be for some investors, it is worth considering for safe exposure to this fast-growing technology. As you may know, the company established its IBM Blockchain platform to help enterprises and institutions deal with a variety of challenges beyond financial purposes. A great example of this is the introduction of the Covid-19 vaccine. Thanks to the immutable characteristic of the blockchain, IBM is able to provide real-time end-to-end traceability for vaccine distribution. While I hope we never need to hear about Covid in the future, Big Blue will be ready when we have another health crisis. That bodes well for IBM stock. 7 Blue-Chip Stocks That Are No Gamble And like other blue-chip blockchain stocks, IBM has several other revenue channels in case the decentralized ledger doesn’t come out. In particular, the artificial intelligence (AI) and cybersecurity solutions are convincing under the current circumstances. CME Group (CME) Source: Marko Aliaksandr / ShutterStock.com While CME Group is not directly one of the blockchain stocks, it has nevertheless given the entire digital currency complex a huge credibility boost. You see, as the world’s largest financial derivatives exchange, CME allows investors to trade almost anything. With cryptocurrencies as part of its offering, the sector is now a legitimate one. Moreover, buying CME shares gives you exposure to Bitcoin trading without having to enter the arena. In a way, owning equity in CME is the casual equivalent of selling tickets to the big game instead of betting on one team to beat another. No, you probably won’t get rich from CME, but you probably won’t be left destitute. Furthermore, the ability to buy Bitcoin futures and trading options contracts provides the underlying asset with the constant price movements that enable day trading. Overall, CME Group’s involvement in the space is positive for the digitized economy, and it should turn out to be a good deal for CME stocks as well. Nvidia (NVDA) Source: rafapress / Shutterstock.com Technically more of a crypto mining game, yet I have included Nvidia in this list of blockchain stocks because mining powers the most decentralized distributed public ledgers. Again, the great thing about this platform is that two parties who don’t necessarily trust each other don’t have to rely on a third party intermediary who 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 taking place within the system. This is where mining comes into the picture, with blockchain users vying for the right to verify such transactions and receive digital tokens as a reward. However, winning this competition consistently usually requires intensive hardware. Undoubtedly, Nvidia offers the best processors for mining tasks, which greatly benefits NVDA stock. 7 stocks that Elon Musk loves – and you should do, you don’t have to be a big fan of blockchain stocks to appreciate Nvidia. The semiconductor company has exposure to multiple relevant companies, including video games, machine learning and autonomous solutions. So you really can’t go wrong with NVDA shares. Advanced Micro Devices (AMD) Source: Sundry Photography / Shutterstock.com If I’m going to list Nvidia on this blockchain stock list, I’m required to include Advanced Micro Devices as well. Granted, this is part of self-preservation. Otherwise, I’d get a lot of heat from AMD stock fans, and I’m already behind hundreds of emails. I no longer need to fill my inbox. But seriously, Advanced Micro deserves more than inclusion as a blockchain / crypto mining game. In recent years, the company has taken it to its bigger rivals. Years ago, AMD was an afterthought in the wider chip manufacturing space. Now it is a legitimate leader in multiple semiconductor segments, including graphics processing units (GPUs) targeting mining operations. It may also be interesting to know that AMD stocks can potentially be a leading indicator for Bitcoin and major altcoins. It appears that a significant rise in AMD stocks precedes robust moves in the cryptocurrency. If that’s true, then I don’t understand why the two assets can’t be mutually beneficial in the future – higher interest crypto mining is 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 haven’t gone mad. Just listen to me for a second. While cryptocurrencies may sound like digital fairytale dust to skeptics, the truth is that the process of mining these tokens actually requires ‘work’. That is to say, the energy required to extract most virtual currencies requires a certain amount of sacrifice. Certainly, sacrifice does not necessarily give them value. However, it would be wrong to assume that crypto coins are materialized for nothing. However, as cryptocurrencies have become more popular, the energy needs required to extract many of these coins have become much more intensive. And this is where SRWRF shares come into the picture. As an investment in solar energy, the underlying product can potentially help make crypto mining more profitable for new entrants as it can lower energy costs. 9 Meme Shares That Social Media Won’t Shut Up About Using Solar Power to Extract Cryptocurrencies Is Not a New Concept. However, it can become incredibly popular now that this market has caught the mainstream attention. While SRWRF stock is a speculative trade, it is worth considering with ‘dumb’ money. Bitfarms (BFARF) Source: Shutterstock Gone are the days when you can mine Bitcoin on your laptop. As the original digital token grew in value and popularity, so did the difficulty of mining. Now it can take thousands, even tens of thousands of dollars to run a Bitcoin mining operation – and you aren’t even guaranteed to be successful with such a cash outlay! That’s why crypto mining companies – or specialty mining centers – have sprung up all over the world. Bitfarms is one such mining company, and conceptually it is an intriguing one. Utilizing clean and competitively priced hydropower, BFARF stock represents an environmentally responsible way to mine Bitcoin. In addition, the company operates five mining facilities in Quebec, Canada. Geographically, this seems like an advantage, as the colder climate should help prevent Bitfarms mining equipment from overheating. You would think this will help extend the life of the equipment, potentially turning BFARF stocks into a smart speculative idea. Nonetheless, this is a wild one, so don’t meddle with money you can’t afford to miss. At the date of publication, Josh Enomoto held a long position in BTC. Josh Enomoto, a former senior business analyst at Sony Electronics, has helped secure major contracts with Fortune Global 500 companies. In recent years, he has delivered unique, critical insights for the investment markets, as well as various other industries, including legal, construction management and healthcare. More from InvestorPlace Why Everyone Invests in 5G All WRONG Top Stock Picker Reveals Its Next Potential Winner It doesn’t matter if you have $ 500 in savings or $ 5 million. Do this now. # 1 Play to Benefit From Biden’s Presidency The post 7 Blockchain Stocks To Buy To Go Beyond Crypto first appeared on InvestorPlace.
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