Gold is an ongoing struggle for investors. The metal peaked in the last few months of 2020. Investors holding Barrick Gold (NYSE:GOLD) since the $31.22 top has paper losses of around 30%.
Bitcoin is an entirely different story. The continued decoupling of the U.S. dollar from gold and the economy is driving speculation in the cryptocurrency. Investors could buy Marathon Digital (NASDAQ:MARA), for example. The stock traded at just 38 cents last year. Last week, shares traded at over $50.00.
Not all cryptocurrency mining stocks are safe. SOS Limited (NYSE:SOS) peaked at $15.88 at the height of the crypto frenzy in Feb. The stock closed at $4.82 last week. Odds are worsening that this China-based miner will fight short-sellers.
Voyager Digital (CSE:VYGVF) is another way to get exposure to the crypto market. The company posted a 3867% Y/Y increase in revenue, to $3.57 million, on March 1. In February, it likely posted revenue of over $20 million. So, the January to March period should greatly exceed investor expectations.
Risk
Bitcoin could fall at any time. It could correct by 5-10% in a single day, shaking out weak hands. Despite the volatility, the currency is gaining in value as demand increases. Investors seeking exposure outside of a monetary-based economy will accumulate bitcoin. This is one of the best hedges against the U.S. Federal Reserve’s unsustainable money printing and zero interest rate policy.
