2 Bitcoin stocks I would buy now
i suggested that Bitcoin (CRYPTO: BTC) was a worthwhile buy two months ago, as long as you were prepared for some uncomfortable volatility. The main cryptocurrency today is 23% cheaper, and it still seems like a reasonable investment to me, with the usual reminders to back up the truck very slowly and always be prepared for more volatility.
Maybe you are not quite ready to take the Bitcoin leap. Still, you’re interested in the cryptocurrency market and curious enough to dip your toes in the water with more traditional investment tools. Here are some high-quality stocks with important links to Bitcoin.
Coinbase: A direct bet on cryptocurrency (but not on Bitcoin, exactly)
Buy shares of Global Coinbase (NASDAQ: COIN) is pretty much the most straightforward bet you can make in the cryptocurrency market without directly owning Bitcoin and other major digital currencies. And the leader among US crypto exchanges has unique attributes that make it a much safer investment than any individual cryptocurrency in the market today.
You don’t put all of your digital eggs in one basket. Imagine an unknown or yet to be invented cryptocurrency arrives and does everything Bitcoin does, only better. The advantage of the first player in the coin could quickly disappear, leaving Bitcoin owners disappointed. But I would bet a pretty dime that the new top dog will trade on the Coinbase platform, keeping the cryptocurrency exchange happy and healthy as the crypto market moves around it.
Therefore, Coinbase stocks are a good way to get into the cryptocurrency business without picking long-term winners from different digital tokens. As long as the broader crypto market is trending upward (working through slow fixes and terrifying declines along the way, but always coming back on track), this stock should serve you well.
On top of all this, Coinbase shares are nearly 50% below their all-time high on April 14, the first day the stock was listed. Granted, the stock doesn’t exactly sit in the Wall Street bargain basket – it trades at 98 times earnings and 16 times sales – but it’s still a big discount from the heady debuts in the market. .
Tesla: a big buyer of Bitcoin
Electric vehicle giant You’re here (NASDAQ: TSLA) has a difficult Bitcoin history. The company spent $ 1.5 billion on the main cryptocurrency over the past year, and Tesla was accepting it as a form of payment for a new car. Now CEO Elon Musk has put this payment option on hold until Bitcoin miners can prove they are using at least 50% renewable energy in their operations. This would likely open the door to further cash investments.
Now $ 1.5 billion is a big change; Tesla’s investment is one of the biggest cash bets on Bitcoin to date. But it’s a pocket change in the context of Tesla’s massive presence in the market. The cryptocurrency represents around 0.2% of Tesla’s current market cap, or 7% of the company’s cash equivalents.
The reasonably small scale of Musk’s real-world Bitcoin investment limits both potential returns and downside risks. It’s good enough for me. Tesla is one of the biggest holdings in my portfolio, and I expect big things from this stock over the long term. Bitcoin exposure is just one interesting wrinkle in the big picture for the automaker. But the bears have pushed Tesla’s stock price almost 30% below historic January highs, so that looks like a decent entry point for new investors.
This article represents the opinion of the author, who may disagree with the âofficialâ recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.