Dear Reader,
Cryptocurrencies are the best performing major asset class year to date.
The problem with cryptocurrencies is that they are not very liquid, so the major cryptocurrency investors are individuals. This makes cryptocurrencies much more volatile than stocks.
One way to both diminish the volatility of cryptocurrencies and benefit from the huge future promise of cryptocurrencies is to invest in common stocks of listed technology companies that stand to benefit from the cryptocurrencies boom.
Such stocks are AMD, Microsoft, Intel, Apple and many microprocessor chips producers. To produce or mine bitcoins one needs huge computing power. That is why computer and graphic chip producers like AMD are seeing huge demand for their products. AMD much more than Intel, since AMD is a low cost microprocessors producers. Since its recent low in 2015 AMD's stock is up more than 50 times driven by the cryptocurrencies boom. Microsoft sells Microsoft Windows, which is the operating system powering most computers and also large part of its stock appreciation is due to cryptocurrencies. Apple designs personal computers and now even designs its own microprocessor chips, so Apple also benefits a lot from the boom in computer power demand. Intel designs the chips in most computers and, but since its chips are more expensive it has benefited less from cryptocurrencies.
Actually, the cryptocurrencies boom has much more to run in the future. Cryptocurrencies will profoundly change finance and will make it more accessible.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
1 comment:
Thanks for sharing your views, Nice post.
Equity research analysis of listed stocks forms a major part of operations in Hedge Funds, Investment Banks.
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