JPMorgan Says This Cryptocurrency Is A Better Buy Than Bitcoin

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Growing applications of cryptocurrency make it less sensitive to interest rates

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November 26, 2021 • 13 minutes ago • 4 minutes read • Join the conversation eamesBot / Shutterstock Post Content

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Bitcoin can gobble up most of the headlines, but America’s biggest bank says Ethereum, the world’s second most valuable cryptocurrency, could be the best bet as interest rates start to climb.

In a recent report, JPMorgan analysts say the growing number of uses of Ethereum – peer-to-peer lending, NFTs, games, stablecoins – should help it maintain its value in a climate of rising interest rates. .

Bitcoin, on the other hand, could be configured for one (another) slide.

“Rising bond yields and the eventual normalization of monetary policy are putting downward pressure on bitcoin as a form of digital gold, in the same way that higher real yields have put downward pressure on bitcoin. traditional gold, ”the report says.

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Ethereum may be “more secure” than Bitcoin, but it’s crypto we’re talking about, so volatility is part of the game. There are ways, however, to expose yourself to Ethereum without actually buying tokens. These three look pretty interesting.

Coinbase

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As the largest cryptocurrency exchange in the United States, Coinbase is in a prime position to benefit from an increase in Ethereum trading, earning transaction fees on every sale or purchase.

Many cryptocurrencies sold on the exchange are powered by the Ethereum blockchain, which means that a bet on Coinbase is essentially a bet on Ethereum itself. Their futures are closely linked.

One thing you want to see in any stock is capacity to grow, and Coinbase has it in spades. In Q2 2020, Coinbase had 1.5 million monthly users; a year later, that figure reached 8.8 million. During the same period, net income increased from $ 178 million to $ 2.03 billion.

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Shares of Coinbase, which are currently trading at around $ 314, are down about 4% since the company went public in April. And you don’t need to pay the full price per share either, some investing apps allow you to buy fractions of Coinbase shares.

Robinhood Markets

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Looking at Robinhood’s stock market performance since its IPO in July – it’s down over 20% – you may wonder if the very stock juice the company was running on is fizzing.

That’s a good question, but Robinhood isn’t just a commission-free equity trading platform (Wealthsimple Trade is the Canadian equivalent). The discount broker has facilitated Bitcoin and Ethereum trading since 2018 and now allows users to buy and sell Litecoin and Bitcoin Cash.

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Robinhood’s crypto offerings have also paid off for the company. Crypto-generated revenue in the second quarter of 2021 was $ 233 million, more than 40 times what it was a year earlier.

HIVE blockchain

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A cryptocurrency miner, HIVE Blockchain is one of the many companies that are turning colossal amounts of computing power into crypto tokens. HIVE operates Bitcoin, Ethereum, and Ethereum Classic.

The amount of energy needed to mine the cryptocurrency is raising environmental concerns among major investors, including Tesla CEO Elon Musk, and HIVE is focused on using green energy for its mining.

HIVE intends to pivot and focus on other cryptocurrencies once Ethereum 2.0 rolls out, but its business still relies heavily on Ethereum and should provide decent exposure to Bitcoin’s little brother in short or middle term.

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HIVE investors have had a great 2021. The company’s stock price has more than doubled since the start of the year.

Avoid cryptocurrency volatility completely and get ahead anyway

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Crypto investing is not for everyone. The wild swings in prices and the many questions about its future as a currency make it a risky game in the short and long term.

If the crypto market is off-limits for you and you think the stock market looks poised to take a dip, it might be time to get some real assets, like commodities.

Another option is contemporary art, which has far surpassed the S&P 500 almost every year since 1995.

Investing in modern masterpieces doesn’t require millions of dollars. With the help of a popular new app, you can buy shares in quickly loved works by Claude Monet, Andy Warhol, and even Banksy.

You won’t be able to look at them on your wall, but seeing them in your portfolio should be just as inspiring.

This article was created by Wise Publishing. Wise is dedicated to providing information that helps readers navigate the complex landscape of personal finance. Wise only associates with brands that he trusts and that he believes can be of use to the reader. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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