For those who have a cryptocurrency in 2017, you may get a good return for your trouble. After the year when the total amount was below 18 billion U.S. dollars, the total virtual currency market soared by nearly 600 billion U.S. dollars. At the end of the year, it was 61.3 billion U.S. dollars, an increase of over 3,300 percent. It may become the best year in any asset class in history.
Earnings like this will surely turn to the head. However, investing in cryptocurrencies usually means that you must use decentralized cryptocurrency exchanges to buy and sell virtual currencies. Some retail investors and many institutional investors simply do not want to have nothing to do with loosely regulated cryptocurrency exchanges that may be located outside the United States. Despite this, this has not stopped the impulse to invest in cryptocurrencies for some retail investors and/or institutions.
Litecoin, the green arrow before bitcoin and ripple digital price readings.
Image source: GETTY IMAGES.
These three stocks are highly correlated with the cryptocurrency market
The solution for these people is to find a middle ground. In other words, find stocks that can be bought and sold on reputable stock exchanges such as the New York Stock Exchange, or in the worst case OTC exchanges, these exchanges are also important to certain cryptocurrencies or markets. Contact. entire. If you want to encrypt currency risk without having to deal with scattered virtual currency exchanges, the following three stocks may be worth your consideration.
Bitcoin Investment Trust
For the highest risk stocks that the cryptocurrency can accept, or I should say Bitcoin, it is the Bitcoin Investment Trust (NASDAQOTH: GBTC). The topic behind Bitcoin's investment trust is simple: It holds a relatively fixed number of Bitcoins in its portfolio and more or less should follow Bitcoin's nominal price. Although its cost rate is as high as 2%, Bitcoin investment trusts should be relatively simple. However, this is not the case for a long time.
As of the end of last week, the market value of the Bitcoin Investment Trust Fund was 2.71 billion U.S. dollars. However, as of the end of February, the value of 181,699 BTC held as assets was worth approximately US$1.74 billion on the evening of Sunday, March 11. The simple method of tracking Bitcoin is currently 56% more than the asset's actual value.
Why premium? This is a problem that experts have asked for more than a year. No one knows yet. This may be due to being able to enter and leave this position, improve liquidity relative to decentralized exchanges, or it may be just an emotionally driven premium. Either way, Bitcoin Investment Trust is closely related to Bitcoin, and it currently has a premium on the assets it manages.
Hard disks and graphics processing units are used to mine cryptocurrencies.
Image source: GETTY IMAGES.
HIVE Blockchain Technology
The publicly traded cryptocurrency mining company HIVE Blockchain Technologies (Nasdaq: HVBTF) is another way to increase the exposure of cryptocurrency through the stock market.
Cryptographic currency mining involves the use of high-performance computers to solve complex mathematical equations that are used to protect transactions from hacked cryptographic results. These equations basically prove a series of transactions, namely a block, to ensure that no two coins cost twice. The first person or business solving the equation block receives a bonus, which is paid by the cryptographic token. Not all virtual currencies operate on this work proof model, but Bitcoin and Ethereum are examples of this.
Although the HIVE blockchain technology is really just starting out, it is insignificant. In the recently announced third-quarter operating results, the company noted sales of nearly US$3.3 million, gross margin of over 72%, and net income of US$149,724. Please note that because of how many shares have been outstanding, the earnings per share is $0.00, but it is believed that once HIV carriers increase their mining centers in Iceland and Sweden, their income will reach 150 million U.S. dollars per year.
The company is also affiliated with some of the coins it has mined. The value of these coins may fluctuate and provide investors with more leverage. However, keep in mind that these fluctuations can occur in both directions, which means that the loss of the value of the encrypted market will adversely affect HIVE's profits. In addition, in the absence of operating cash flow, the company relies on diversified purchases of products to expand its cryptocurrency mining capabilities.
Earnings like this will surely turn to the head. However, investing in cryptocurrencies usually means that you must use decentralized cryptocurrency exchanges to buy and sell virtual currencies. Some retail investors and many institutional investors simply do not want to have nothing to do with loosely regulated cryptocurrency exchanges that may be located outside the United States. Despite this, this has not stopped the impulse to invest in cryptocurrencies for some retail investors and/or institutions.
Litecoin, the green arrow before bitcoin and ripple digital price readings.
Image source: GETTY IMAGES.
These three stocks are highly correlated with the cryptocurrency market
The solution for these people is to find a middle ground. In other words, find stocks that can be bought and sold on reputable stock exchanges such as the New York Stock Exchange, or in the worst case OTC exchanges, these exchanges are also important to certain cryptocurrencies or markets. Contact. entire. If you want to encrypt currency risk without having to deal with scattered virtual currency exchanges, the following three stocks may be worth your consideration.
Bitcoin Investment Trust
For the highest risk stocks that the cryptocurrency can accept, or I should say Bitcoin, it is the Bitcoin Investment Trust (NASDAQOTH: GBTC). The topic behind Bitcoin's investment trust is simple: It holds a relatively fixed number of Bitcoins in its portfolio and more or less should follow Bitcoin's nominal price. Although its cost rate is as high as 2%, Bitcoin investment trusts should be relatively simple. However, this is not the case for a long time.
As of the end of last week, the market value of the Bitcoin Investment Trust Fund was 2.71 billion U.S. dollars. However, as of the end of February, the value of 181,699 BTC held as assets was worth approximately US$1.74 billion on the evening of Sunday, March 11. The simple method of tracking Bitcoin is currently 56% more than the asset's actual value.
Why premium? This is a problem that experts have asked for more than a year. No one knows yet. This may be due to being able to enter and leave this position, improve liquidity relative to decentralized exchanges, or it may be just an emotionally driven premium. Either way, Bitcoin Investment Trust is closely related to Bitcoin, and it currently has a premium on the assets it manages.
Hard disks and graphics processing units are used to mine cryptocurrencies.
Image source: GETTY IMAGES.
HIVE Blockchain Technology
The publicly traded cryptocurrency mining company HIVE Blockchain Technologies (Nasdaq: HVBTF) is another way to increase the exposure of cryptocurrency through the stock market.
Cryptographic currency mining involves the use of high-performance computers to solve complex mathematical equations that are used to protect transactions from hacked cryptographic results. These equations basically prove a series of transactions, namely a block, to ensure that no two coins cost twice. The first person or business solving the equation block receives a bonus, which is paid by the cryptographic token. Not all virtual currencies operate on this work proof model, but Bitcoin and Ethereum are examples of this.
Although the HIVE blockchain technology is really just starting out, it is insignificant. In the recently announced third-quarter operating results, the company noted sales of nearly US$3.3 million, gross margin of over 72%, and net income of US$149,724. Please note that because of how many shares have been outstanding, the earnings per share is $0.00, but it is believed that once HIV carriers increase their mining centers in Iceland and Sweden, their income will reach 150 million U.S. dollars per year.
The company is also affiliated with some of the coins it has mined. The value of these coins may fluctuate and provide investors with more leverage. However, keep in mind that these fluctuations can occur in both directions, which means that the loss of the value of the encrypted market will adversely affect HIVE's profits. In addition, in the absence of operating cash flow, the company relies on diversified purchases of products to expand its cryptocurrency mining capabilities.
IMAGE SOURCE: GETTY IMAGES.
Overstock.com
The third stock with rising leverage in the cryptocurrency market is online home retailer Overstock.com (Nasdaq:OSTK). By being the first to really embrace a series of Altcoin payment options at checkout, Overstock becomes the headline news. It works with ShapeShift, a digital currency intermediary that allows consumers to use dozens of different cryptocurrencies for payment when checking out using Overstock's platforms (including Ether, Bitcoin cash, Dash, Monero, etc.).
But accepting digital coins is just the beginning. Overstock's board of directors has authorized the company to retain more virtual currency payments in its portfolio rather than quickly convert it into dollars. Excess inventory has retained about 10% of digital currency in its portfolio, but this figure has since been raised to 50%. This makes Overstock more and more closely linked to the cryptocurrency market.
In addition, Overstock's subsidiaries are developing blockchain solutions. Patrick Byrne, chief executive of Overstock.com, is convinced of the long-term prospects of these projects and blockchain technology. He is exploring the possibility of selling traditional online household goods business and using the proceeds to fund blockchain development.
Although the three stocks it mentions are the least exposed, Overstock may offer the most diversified encryption products in its portfolio due to the results paid by customers. However, without any sustained profitability, Overstock investors will have to be confident that their basic blockchain solution will be successful.
But accepting digital coins is just the beginning. Overstock's board of directors has authorized the company to retain more virtual currency payments in its portfolio rather than quickly convert it into dollars. Excess inventory has retained about 10% of digital currency in its portfolio, but this figure has since been raised to 50%. This makes Overstock more and more closely linked to the cryptocurrency market.
In addition, Overstock's subsidiaries are developing blockchain solutions. Patrick Byrne, chief executive of Overstock.com, is convinced of the long-term prospects of these projects and blockchain technology. He is exploring the possibility of selling traditional online household goods business and using the proceeds to fund blockchain development.
Although the three stocks it mentions are the least exposed, Overstock may offer the most diversified encryption products in its portfolio due to the results paid by customers. However, without any sustained profitability, Overstock investors will have to be confident that their basic blockchain solution will be successful.
