With Canada bringing out the first Bitcoin ETF, Tesla and Mastercard advocating for Bitcoin and a lot of other news recently, Bitcoin will soon likely reach $50,000 U.S. If you told me that a few months ago, I would have hardly believed you. Now that the Bitcoin bull market has occurred, it’s a cascade effect. Oddly, it means some Bitcoin mining stocks are as volatile as the Cannabis sector (pumped by Reddit).
Here’s the thing, in the GameStop Universe of investing today, it’s the Bitcoin miners who are better elevators for most people to tag along. This is not financial advice, these stocks are very volatile and you do so at your own risk. But let’s make a list of some of them shall we:
- $BITF (TSX)
- $HUT (TSX)
- Bitmain (when it goes IPO)
Bitcoin has too many real catalyst in 2021 for it not to be a sustainable rally to some degree. Please don’t think buying Riot alone is good for your portfolio, it’s more of a meme stock recently than anything else. Why diversify some of your wealth in Bitcoin mining stocks? They are tethered to the price of Bitcoin, literally. So why is Bitcoin going back up? It seems the second bull market isn’t over since a few leading Billionaires and companies don’t want it to be.
- PayPal adopted Bitcoin into its app
- Tesla put 8% of its corporate cash into Bitcoin.
- Mastercard announced it’s integrating Bitcoin and crypto.
- Bank of New York Mellon will start transacting Bitcoin for clients
- Visa will have a Bitcoin Rewards Card
- More Wall Street Banks are close to adopting Bitcoin
- More companies like Twitter may invest some cash in Bitcoin
Now if you had bought Bitcoin mining stocks back in the day, you’d already be quite well-off. They aren’t in line with their actual valuations or earnings. But they are still worth owning since there will be demand for them. You just need to have the common sense of when to sell them.