Yahoo Finance Millennials: HIVE Stock Is a Much Better Buy Than Bitcoin
Millennials can afford to take risks with their investments, with wildly volatile, high-upside bets like Bitcoin and cryptocurrency miner HIVE Blockchain Technologies (TSXV:HIVE). Cryptocurrencies have continued to defy the laws of gravity over the past year.
With many people like Elon Musk accepting and investing in the wildly volatile and speculative asset, there’s no question that many of his followers are more than willing to hold on. Could Musk’s gold stamp of approval make Bitcoin the new gold standard in the crypto world? Possibly. And while Musk is bullish on Bitcoin and its long-term outlook, that doesn’t mean you should make the dive at these absurd heights.
As someone wise once put it, the higher they climb, the farther they have to fall.
That said, if you’re a millennial investor with disposable income, it can’t hurt to dip a toe into the Bitcoin waters. Over time, you may even wish to dip a foot into other cryptocurrencies, meme coins, or crypto miners like HIVE stock, as long as you understand the stakes and are willing to risk 100% of your investment. Many people view Bitcoin or crypto as some sort of “millennial gold.”
Millennials: Dipping a toe into the crypto waters
Given Bitcoin’s limited track record, I can’t say with certainty that it’s as an effective a store of wealth as gold is. Gold has been a store of wealth for thousands of years. Bitcoin, however, has only been around for just over a decade. Bitcoin seems to have had a positive correlation with equities these days. As cryptocurrencies are securitized, with funds, miners, ETFs, and all the sort popping up, I expect Bitcoin will continue to be positively correlated with stocks.
So, unless your goal is to speculate to make a quick buck, I wouldn’t touch Bitcoin. And I certainly wouldn’t swap gold for it.
HIVE stock is a better buy than actual Bitcoin
With that warning out of the day, let’s have a closer look at HIVE stock to see how it compares to Bitcoin or crypto itself.
Like the miners of any physical commodity, HIVE should be seen as a levered way to play the underlying price of the commodities it mines. Bitcoin and other cryptocurrencies are already absurdly volatile, so another layer of volatility on top of that may seem like far too much to handle for most.
HIVE stock: A one-stop shop for security and diversification
If you’re a strong-handed (or diamond-handed) millennial who truly believes in Bitcoin and blockchain, though, HIVE stock, I believe, is a better way to go versus holding crypto in a wallet. I don’t think it’s very safe to hold Bitcoin in your wallet for the risk of losing your keys. With a miner like HIVE Blockchain, you won’t need to worry so much about losing access to your investment.
Moreover, you’ll also gain exposure to a broader basket of cryptocurrencies, many of which may be more lucrative to mine than Bitcoin. So, if you want to bet on the future of crypto and blockchain but aren’t sure Bitcoin will be number one forever, HIVE stock is a top pick.
The post Millennials: HIVE Stock Is a Much Better Buy Than Bitcoin appeared first on The Motley Fool Canada.
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Fool contributor Joey Frenette has no position in any of the stocks mentioned.
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