Jun 06, · The most convenient way to gain exposure to bitcoins is through the Bitcoin Investment Trust (OTC:GBTC). This fund was created so that buying bitcoins could be as easy as buying any stock Author: Matthew Cochrane. Dec 20, · For as volatile as the stock market has been in , you wouldn't know it by looking at bitcoin, which is up by % on a year-to-date basis through the late evening of Dec. Sep 22, · It seems the best thing to do is hold and buy the dip, the traditional way to get rich in a strategic bull market. Where the price grinds slowly up and spikes down every now and then, you can Author: Clem Chambers.
Can you buy bitcoin in the stock marketForget Bitcoin: Here Are 3 Stocks You Should Buy Instead | The Motley Fool
Bitcoin bulls are also pretty convinced that the most popular digital currency is now a bona fide store of value: i. When coupled with the central banks' pledge to keep its federal funds rate at or near record lows, it's pretty evident that the U.
Crypto investors believe that a ballooning money supply is a green flag for bitcoin to head significantly higher. The issues I have with the store-of-value thesis are twofold. First, bitcoin isn't backed by any other asset or government. Therefore, it has no tie-ins or official relationship to the movements of the U.
Implying that a ballooning money supply should push bitcoin higher is nothing more than a dart throw. Second, store-of-value assets are designed to maintain their value over time and protect investors from volatility. Yet in March, bitcoin nearly lost half of its value in a hour period.
In , bitcoin lost about half its value in about six hours. This isn't how a store-of-value asset behaves. Bitcoin optimists will also crow about bitcoin leading the digital payments revolution. Going cashless could resolve the issues created by certain regions of the world being underbanked. Additionally, the blockchain technology that underlies bitcoin could revolutionize the payment processing and settlement time frame, especially in cross-border transactions.
While I don't disagree that a digital payments revolution is underway, or that blockchain could offer global financial and supply chain solutions, bitcoin isn't the vessel that's going to make this vision a reality.
The interesting thing about blockchain is that it can be tethered to multiple types of digital currency, be used in conjunction with fiat currency, or can operate independent of a tethered token.
There's absolutely zero evidence that bitcoin is necessary to support a blockchain revolution. To add, buying bitcoin tokens does not give an investor any ownership in the underlying blockchain. With no ownership in the solution that has the potential to actually drive this digital revolution, bitcoin investors are pinning their hopes on other investors being willing to pay more for a currency that exists only in computer code than they did.
So, why is bitcoin rallying? I'd surmise it's a combination of short-term emotions, technical analysis i. After all, it's nowhere near as easy to bet against bitcoin as it is to bet against a publicly traded stock. History has proved that sentiment can shift at the drop of a pin in the cryptocurrency space. I'd suggest investors keep their distance from bitcoin. Wallets must be encrypted so anyone withdrawing bitcoins from your account must know a password.
Whatever you do, don't forget your password! Many wallets offer two-factor authentication, where a unique code is texted or emailed to you before withdrawals can be made. Bitcoin passwords are also critical as, unlike bank accounts, there is no customer service line to reset your password. There are other ways to purchase bitcoins; some more exotic than others. Bitcoin Depot, in conjunction with the bitcoin wallet Airbitz, allows users to buy bitcoins with cash at dozens of special ATM locations spread across six states: Alabama, Florida, Georgia, Massachusetts, Tennessee, and Texas.
After setting up an account, all customers need to do is deposit cash in the ATM and scan a QR code with a special scanner attached to the ATM and, within minutes, the purchased bitcoins will be available in the Airbitz account.
This fund was created so that buying bitcoins could be as easy as buying any stock or ETF share. All people have to do is buy shares through their regular broker using the ticker symbol. Each share represents about one-tenth of a bitcoin. According to his calculations, a share often costs more than the value of the underlying bitcoin. As with any security, one should do their due diligence before buying bitcoins. Not only on its worthiness as an investment, but on the right exchange platform that best meets your security and convenience needs.
Investing Best Accounts. Stock Market Basics. Stock Market. Industries to Invest In. Getting Started. To date, Sea's gaming division has been its breadwinner. But the dominance of digital entertainment won't be long-lived for Sea Limited -- and that's actually a good thing for investors. The far more exciting operating segment for the company is its Shopee e-commerce platform. Without question, the pandemic played a role in bolstering online orders throughout Southeastern Asia.
But it's not as if Shopee wasn't growing like a weed before the coronavirus pandemic hit. Additionally, Sea launched SeaMoney in , which today provides mobile wallet services and payment processing for individuals and businesses. In Q2 , the number of paying users for its mobile wallet services topped 15 million. If your heart is set on digital payments, skip bitcoin and enjoy the high-growth and digital exposure you'll get with Sea Limited. If your thesis surrounding bitcoin is that it could lead to a digital purchasing revolution , cloud-based e-commerce solutions provider Shopify is the company for you.
According to the company, it already possesses the second-highest share 5. The beauty of the Shopify platform is that the company is only scratching the surface , in terms of addressable market, yet is already the second-largest online retailer by GMV. What's more, this is a subscription-driven business model that's highlighted by robust margins and minimal client churn.
This is a high-growth company that's still in the early innings, and investors would be wise to choose it over an investment in bitcoin. Investing Best Accounts. Stock Market Basics. Stock Market. Industries to Invest In. Getting Started. Planning for Retirement.