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The digital economy: Blockchain and investments
Following up on the funnier notion of dogecoin written yesterday, today we look at blockchain.
If you’re like me, you need to increase your understanding of why blockchain technology is a game changer in our evolving digital world.
We all know that blockchain is famously associated with cryptocurrencies, enabling secure and decentralized payments.
Here are some other traditional uses:
The main benefits of all applications in these areas are increased efficiency, accuracy, transparency and cost savings.
However, it is not without its challenges.
- Scalability, as there are fixed limits on block sizes.
- Power consumption, as blocks consume significant computing power.
- Speed, as the processing speed is slower than traditional transaction methods.
- Lack of universal standards, which can make it more difficult for developers to navigate.
However, currently, we see that most major mining companies have not only underperformed the overall market, but also Bitcoin.
With a couple of exceptions.
When I checked a list of major mining companies, some very recognizable names emerged.
The first 2 names are Coinbase and Block (formerly known as Square).
Block’s chart shows a recent increase following news or rumors of an upcoming Ethereum ETF.
The real movement shows bearish divergence as the price is above the 50-DMA but not the momentum.
The block is, however, in a bullish phase and above the high of the January 6-month calendar range.
A move above 34.50 or a decline around 27.50 seem like the best parameters to watch for buying signals.
With Coinbase COIN, there was an attempt earlier in the day to push the price above the 50-DMA, but it did not hold.
COIN is starting to outperform SPY.
On Real Motion, COIN has yet to prove it can break above the moving averages and remains in a bearish divergence.
We have a position in COIN, full transparency, and believe the stock has huge potential to rise in price further.
As for other companies, only Microsoft has a strong technical paper,
IBM, PayPal, and FedEx are all on the list as well.
None of these companies showed much in the way of performance.
So, as with all megatrends, investment timing is everything.
Twitter: @marketminute
The author may hold a position in securities mentioned at the time of publication. All opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.