Profit from the Bitcoin bubble with these crypto currency stocks that will benefit well after the bubble pops
Bitcoin prices seem to have lost their momentum and a lot of the other cryptocurrencies are plunging. Does this mean the Bitcoin bubble is about to pop or that you missed your chance to make money on digital payments?
The price of a Bitcoin is down 25% from the December high though it still fluctuates by more than 10% a day. Regulators in South Korea and all over the world are cracking down on cryptocurrencies and many investors are taking their profits and running.
But there’s still huge potential in the block chain technology and even in cryptocurrencies. Bitcoin may be a bubble right now but it might not be long before massive acceptance and usage justifies the price.
I recommended three Bitcoin alternatives last week, stocks that have benefited from the Bitcoin craze in some way but also have other things going for them. These are solid companies with strong businesses and diversified sales.
In fact, one of those stock picks is already up more than 12% in the last week even as the price of Bitcoin has fallen.
I’m wrapping up my Bitcoin video series with two more stock picks and one investment you need to avoid. These last two companies are favorites and I’ve already booked a triple-digit gain in one since investing early last year.
Watch the video or scroll down for more detail on these great Bitcoin stock picks.
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Why I Prefer Bitcoin Stocks to Bitcoin
I regret not investing in Bitcoin years ago. There, I said it. Who wouldn’t regret not becoming a fast millionaire.
But I’m sticking to my opinion that Bitcoin is a terrible investment and here’s why.
Let’s assume that crypto currencies are a store of value, a legit asset class and a currency. They’re not but these are the excuses given by many investors. Let’s just say it’s true.
If it were true then crypto currencies could very well be a great investment. Usage is booming and digital payments will no doubt be a bigger part of the future.
But Bitcoin is only one of more than 1,000 crypto currencies and it’s losing market share fast. Other crypto currencies like Ripple and Bitcoin Cash are taking a larger share of virtual wallets and investor interest.
That means, even if crypto is the future, it might not be all about Bitcoin. Investing now, after the price of Bitcoin has surged on little more than a hope, you not only have to be right about crypto currencies you also have to pick the one currency out of 1,000 that will be the future.
How to Invest in Bitcoin without Bitcoin
Investing in stocks related to block chain and crypto currencies means you don’t have to make that impossible choice.
Block chain technology is huge with implications in security and organization. It will touch just about every industry and companies that have learned to leverage that growth could provide massive returns over the next decade.
We’re getting into a lot of what we talked about in the last article on Bitcoin stocks so I won’t repeat it. Click through to the prior article to read the rest of the reasoning.
Now let’s get to those last two stocks better than Bitcoin and the investment to avoid.
Our first Bitcoin alternative is Advanced Micro Devices (AMD). It’s a semiconductor company that makes a lot of the things that make your computer run faster and operate more efficiently.
The company has been around since 1969 and is benefiting from the Bitcoin surge in the same way that we talked about with Nvidia in our last video. Crypto currency miners are using AMD graphics cards to solve those calculations in the blockchain and to get those Bitcoins.
In fact, demand is so strong that many retailers have sold out of the AMD RX570 and the RX580 cards.
AMD has had a tough time competing against Intel and NVIDIA over the last few years but it could be ready for a turnaround on this new demand and new products. Even without the Bitcoin demand, AMD makes some great components and critical items that make your computer run.
The next Bitcoin investment is Square Inc (SQ), a small business payment application founded by the same guy that started Twitter.
The company is a leader in allowing businesses to accept electronic payments and has recently started allowing users to buy and sell Bitcoin on its cash app. That could set it up to be a leader in Bitcoin and other crypto currencies as a true exchange of value. It could also bring a lot more users to Square and its cash services.
I’ve been a Square investor since early last year and have already booked a 150% gain on the shares. That huge return is going to mean the shares are more expensive than other stocks you might be looking at but it’s still a great way to play that long-term potential in crypto currencies and digital payments.
One Bitcoin Investment You MUST Avoid
There’s one Bitcoin investment you should avoid at all costs. It’s called the Bitcoin Investment Trust (GBTC) and it’s a fund that invests in Bitcoin and let’s investors put money in the fund as an indirect way to get into Bitcoin without the digital wallet.
The problem is that investors are charged a management fee of 2% for investing in the fund. This is an investment in Bitcoin but with an extra fee attached.
If you’re going to invest in Bitcoin, do it directly and save yourself the 2% fee.
We’ve covered a total of five great Bitcoin alternatives you can invest in without the 20% ups and downs you get every day with the crypto currency. All of these are great companies related to Bitcoin or block chain technology in some way that will rise along with them. The companies have great products and diversified revenue not related to Bitcoin so you don’t have to worry about the Bitcoin bubble popping and destroying your portfolio.