This Blockchain Stock Has Almost Doubled This Year and Could Have a Lot More Upside Left
Bitcoin has found some new life this year, making a big recovery after it was looking like the cryptocurrency might be losing popularity with consumers. Instead, it has doubled in value, reaching well over US$8,000 a few weeks ago, which is a big improvement from the less than $4,000 U.S. it was trading at to start the year.
And with Bitcoin gaining traction, so too have blockchain stocks. HIVE Blockchain Technologies Ltd (TSX-V:HIVE) has also had a great 2019, as its share price has climbed around 90%. The stock’s share price has closely mirrored the success of Bitcoin and it’s a good way for investors that want to take advantage of the Bitcoin hype without actually having to buy the cryptocurrency itself. HIVE is, after all, a business that while it can certainly piggyback off the popularity of Bitcoin, isn’t nearly as risky.
Even if Bitcoin falls out of the mainstream there are other cryptocurrencies that could still take its place and could continue to inject the stock with some optimism. As of Tuesday’s close, HIVE was trading at just 48 cents and had a market cap of around $150 million. It’s still a very small player in the industry and that could make it a very appealing option for investors as the upside that it achieves could be significant. Blockchain, however, is a long-term play and it will take some time before stocks like HIVE realize their potential.
The danger, however, is that like with stocks that rely on commodities, HIVE will undoubtedly be impacted by cryptocurrencies as well, at least over the short term.