Millennials: HIVE Stock Is a Much Better Buy Than Bitcoin

Why cryptocurrency miner HIVE Blockchain Technologies (TSXV:HIVE) is a far better bet than actual Bitcoin.

| More on:
New virtual money concept, Gold Bitcoins

Image source: Getty Images

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has no position in any of the stocks mentioned.

More on Tech Stocks

top TSX stocks to buy
Tech Stocks

2 Top Stocks That Could Turn $10,000 Into $50,000 by 2030

TSX investors can buy shares of quality growth stocks, such as Snowflake, allowing them to generate exponential gains in 2023…

Read more »

TIMER SAYING TIME FOR ACTION
Tech Stocks

Don’t Wait for a Market Bottom: These 2 Stocks Are on Sale

Two of the best Canadian growth stocks could keep soaring in 2023 and beyond.

Read more »

clock time
Tech Stocks

3 Top ‘Future’ Stocks to Hold for the Rest of This Decade

Canadian growth stocks like Constellation Software are starting to look appealing.

Read more »

Credit card, online shopping, retail
Tech Stocks

Nuvei stock: Can This Gainer Keep on Running?

Despite a 40% increase in its stock price, I expect the uptrend in Nuvei to continue, given its higher growth…

Read more »

value for money
Tech Stocks

3 Growth Stocks You Can Buy Now With Less Than $100

Thanks to the recent bear market, you can now buy growth stocks like Shopify at bargain prices.

Read more »

Upwards momentum
Tech Stocks

The 1 Canadian Stock I Think Could Double in 3 Years

Here’s why this top Canadian stock has the potential to double in three years or sooner.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Why Open Text Stock Rose 11% Last Month

Not all tech stocks are performing poorly. In fact, Open Text stock (TSX:OTEX) continues to rise higher, though it's still…

Read more »

Businessman holding AI cloud
Tech Stocks

2 AI Stocks to Watch in February 2023

Those looking to invest in AI stocks can consider companies such as Nvidia and CrowdStrike Holdings right now.

Read more »