JPMorgan Says This Cryptocurrency is a Better Buy Than Bitcoin As Interest Rates Rise — Here Are 3 Easy Ways to Invest
Nov 26, 2021
As Bitcoin has dominated the news, America's largest bank believes Ethereum, the world's second-most valued cryptocurrency, is a better option as interest rates rise.
According to JPMorgan analysts, Ethereum's expanding range of applicants — peer-to-peer lending, NFTs, gaming, and stablecoins — should let it sustain its value in an increasing interest rate environment.
Bitcoin, on the other hand, might be on its way down.
In the same manner that higher real rates have placed downward pressure on conventional gold, rising bond yields and eventual normalization of monetary policy is placing downward pressure on bitcoin as a sort of digital gold.
Ethereum may now be "safer" than Bitcoin, but we're dealing about crypto, so volatility is unavoidable. Meanwhile, there are methods to get acquainted with Ethereum without purchasing any tokens. These three appear promising, and one of them could be worth trying with some spare cash.
Coinbase, the leading cryptocurrency exchange in the United States, is well positioned to profit from an increase in Ethereum trades, since it earns a commission from every sell or buy.
Because many of the cryptocurrencies offered on the exchange are based on the Ethereum blockchain, betting on Coinbase is basically betting on Ethereum.
A capability for growth is something you want to see in any investment, and Coinbase has it in excess. Coinbase had 1.5 million active monthly users in the second quarter of 2020, and 8.8 million a year later. Net sales increased from $178 million to $2.03 billion within the same time period.
The stock of Coinbase, which is presently trading at roughly $314, is down around 4% since it came out publicly in April.
(By the way, although many exchanges charge exorbitant commission costs to acquire and sell cryptocurrency, certain investment applications charge nothing.)
When you look at Robinhood's stock performance since its IPO in July — it's down more than 20% — you might wonder whether the company's meme stock juice is running out.
Robinhood is more than simply a no-commissions stock trading platform. Since 2018, the discount broker has allowed Bitcoin and Ethereum trading, and it now allows customers to purchase and sell Litecoin and Bitcoin Cash.
Robinhood's cryptocurrency offers have also proven to be profitable. In Q2 2021, crypto-generated income reached $233 million, which is more than 40 times what it was the previous year.
HIVE Blockchain is a cryptocurrency miner, one of several organizations that convert massive quantities of processing power into crypto coins. Bitcoin, Ethereum, and Ethereum Classic are all can be mined using HIVE.
The total energy necessary to mine cryptocurrencies is causing environmental worries among big investors such as Tesla CEO Elon Musk, and HIVE is focusing on employing renewable sources for its mining.
HIVE intends to shift and concentrate on other cryptocurrencies once Ethereum 2.0 is rolled out, but its operations are still strongly dependent on Ethereum, and it should give fair exposure to Bitcoin's close relative in the near to medium term.
Since the beginning of the year, the price of the company's shares has more than doubled, which is fantastic for HIVE investors.
Avoid crypto volatility altogether — and still come out ahead
Cryptocurrency investment isn't for everyone. The dramatic price fluctuations and numerous doubts regarding the currency's future as a currency make it a dangerous short and long-term investment.
If you're not enthusiastic about crypto and feel the stock market is about to crash, perhaps invest in safe real assets, such as agricultural products.
Contemporary art is another possibility, since it has consistently outperformed the S&P 500 since 1995.
Millions of cash are not required to invest in modern masterpieces. You can purchase shares in quickly appreciating artworks by Claude Monet, Andy Warhol, and even Banksy using a popular new app.