Oct 14, · Amid the chaos of , it's not just tech stocks that have been a pleasant surprise. The most popular and valuable cryptocurrency on the planet, bitcoin, ended . Nov 21, · Data source: Yahoo! Finance. Bitcoin approaches new highs. Even as the stock market fell, bitcoin continued its amazing ascent. The price of Author: Dan Caplinger. Bitcoin (BTC) prices - Nasdaq offers cryptocurrency prices & market activity data for US and global markets.
What stock market is bitcoin onForget Bitcoin: Here Are 3 Stocks You Should Buy Instead | The Motley Fool
If you're a believer in the long-term use cases for bitcoin, another way to play it would be to buy a stock that could make billions if bitcoin does well, but that will be just fine if it doesn't. There's no denying that Square's bitcoin operation has been very successful. It could stand to benefit dramatically if bitcoin's price keeps rising, or if the digital currency achieves widespread merchant acceptance.
The point is that Square doesn't need those things to happen. At its core, Square is still a payment processing business. It has grown dramatically over its decade-long history. In addition, Square has built a nice business lending operation in the form of Square Capital, which has originated billions of dollars in small business loans. It does this at a much lower credit risk than its peers, since its loans are based on merchants' sales. Square received approval for a banking charter of its own in , and the company plans to launch its own industrial bank next year.
Finally, there's the Cash App, which offers so much more than bitcoin. The app provides person-to-person payments, the ability to buy and sell stocks, and debit cards. Cash App's user base has quadrupled over the past three years. More than 30 million people actively use the platform, which is still in the relatively early stages of monetization. In a nutshell, Square's growth story has been impressive so far, but it could still have more room to grow.
That's true with or without bitcoin. In the corporate world, there are few people who believe in the long-term potential of bitcoin more than Square CEO Jack Dorsey. There's no denying that Square's non-crypto business growth is extremely impressive, to say the least. If you believe in the long-term potential of bitcoin as an asset, but don't necessarily want your investment results to be only dependent on bitcoin, Square could be a smart way to go.
Investing Best Accounts. Stock Market Basics. Stock Market. Although some new bitcoin lending services offer interest on bitcoin holdings, cryptocurrencies held in traditional wallets don't generate income.
Those looking for growth must rely on price appreciation. And while the long-term trend has been up, there have been long periods when selling bitcoin for cash would've been a painful move. Investing in stocks is still a great way to generate wealth over the long run, even when there's a lot of uncertainty.
After more than a decade of naysayers predicting bitcoin wouldn't amount to anything, cryptocurrency bulls have had the last laugh. It's definitely not something you should bet your entire life savings on, but bitcoin and other cryptocurrencies are likely here to stay -- no matter what happens to their prices in the coming weeks and months.
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With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. Follow DanCaplinger.