Stocks may be risky, but they are not nearly as risky as cryptos

Article content

Once again this week, a bunch of cryptocurrencies, bitcoin and ether in particular, hit all-time highs. Whether it is the fear of inflation, fear of missing out, aversion to fiat currencies or something else, investors are going all-in on alternative currencies.


Article content

We have discussed the sector before, but we are going to go out on a limb here and connect cryptocurrencies to equity markets. Bear with us. Most stock market players worry about cryptocurrencies. “It is a bubble,” they cry out, and maybe it is. “It draws capital from the stock market,” they say, and this is very true, with the market valuation of all cryptos hitting US$3 trillion this week.

But we are going to make a case that cryptos are very good for the stock market. Bubble or not, they make the stock market look good, in many ways. Let’s look at five reasons why.

Tangible ownership : We might get some pushback on this, since the whole reason behind blockchain accountability is to prove that you actually own the cryptocurrencies you…

Read more…