In this article, we will take a look at the 10 best bitcoin stocks to buy now. You can skip our comprehensive analysis of the current bitcoin industry trends and go directly to 5 Best Bitcoin Stocks to Buy Now.
Bitcoin is gaining momentum as the global economy recovers due to increasing consumer market demand. The world’s largest digital currency by market value soared to more than $64,000 on April 14 before plummeting to around $48,000 in the fourth week of the month. However, bitcoin’s price bounced back from the downturn, and it appears that the crypto’s market framework has remained unchanged, at least for the time being, with Bitcoin trading at above $58,000 as of May 3.
Bitcoin’s price has already doubled since the beginning of the year, as mainstream investors have flocked to cryptocurrencies. As of the end of March, American EV behemoth Tesla, Inc. (NASDAQ: TSLA) had approximately $2.5 billion worth of bitcoin. Wall Street titans like The Goldman Sachs Group, Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) seek to roll out bitcoin investment products to their high-net-worth clients. JPMorgan Chase & Co. (NYSE: JPM) plans to deliver an actively managed bitcoin fund to a select group of investors, which may happen as early as this summer.
Should You Invest in Bitcoin Stocks?
Bitcoin has gained momentum to challenge gold as a store-of-value investment because, like gold, it is a shield against currency depreciation and uncertainty. Investing in bitcoin stocks is a brilliant idea if you want to gain direct exposure to the digital currency market and the projects or businesses that operate their business with Bitcoin. Bitcoin investing is becoming more popular, with companies like PayPal Holdings, Inc. (NASDAQ: PYPL) and Square, Inc. (NYSE: SQ) providing crypto trading services, and Mastercard Incorporated (NYSE: MA) becoming the first credit card to deliver digital currency “rewards” on transactions.
When companies like PayPal Holdings, Inc. (NASDAQ: PYPL), Tesla, Inc. (NASDAQ: TSLA) and Square, Inc. (NYSE: SQ) throw their weight behind cryptocurrency, the entire world pays attention, boosting the trust in bitcoin, ETH and other cryptocurrencies and platforms. This trend has forced conventional banks, hedge fund, investment companies like Goldman Sachs Group, Inc. (NYSE: GS), Morgan Stanley (NYSE: MS), JPMorgan Chase & Co. (NYSE: JPM) to give their clients options to invest in cryptocurrencies as an asset class.
Aside from investing in cryptocurrencies like Bitcoin, there are other ways to benefit from blockchain technology. Investing in the stocks of companies that are quickly implementing blockchain technology is a great idea. Investing in bitcoin futures markets and bitcoin mining companies, and bitcoin mining hardware manufacturers like NVIDIA Corporation (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NASDAQ: AMD) is another excellent way to benefit from the development of digital asset trading.
NVIDIA Corporation (NASDAQ: NVDA)
California-based tech firm NVIDIA Corporation (NASDAQ: NVDA) made its most profitable invention of the graphic processing unit in 1999. Today, the company plays a vital role in the integration of modern AI and GPU machine learning. The GPU giant produces GeForce GPUs for graphics-heavy games and bitcoin mining. The company also offers game streaming services through GeForce NOW. NVIDIA Corporation (NASDAQ: NVDA) had forecast $5.30 billion in sales for its first fiscal year, which ended on May 2. The company raised its sales forecast for its latest Crypto Mining Processor series from $50 million to $150 million in February.
Bitcoin and other cryptocurrencies are the harbingers of the broader changes taking place in the financial landscape, which are also shaking the conventional giants to their core. The entire hedge fund industry is feeling the reverberations of the changing financial dynamics. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the…
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