Cryptocurrencies had really tough times in 2018 because of numerous reasons like strict governmental regulations and overall market stagnation. The top-rated coins went down in value greatly, driving crypto investors to desperation.
Bitcoin alone faced a 74% drop, while other coins suffered even more. Thus, XRP lost 80% of its value, Ethereum – 81%, and Litecoin – 85%! The global market capitalization decreased from $585.5 billion to $111.5 billion within 2018.
Nevertheless, the global idea of blockchain technology and cryptocurrency is still intriguing. It’s possible that the leading crypto assets will recover soon and hit new highs during 2019 – especially, if bulls take the initiative.
Many crypto investors claim that Bitcoin and altcoins will inevitably go up, so they urge other enthusiasts to invest in the industry and not to fall victim to FUD. Instead, we think that it’s a good idea to put your money in more traditional stocks which relate to crypto.
This way, your investment will be safe when the decentralized world struggles through slumps, and will bring great returns when cryptocurrencies prosper. With that in mind, let’s look at the Goldman Sachs (NYSE:GS), NVIDIA (NASDAQ:NVDA), and Square (NYSE:SQ) stocks and how they are performing.
Disclaimer: the following information is given for educational purposes only and can’t be considered professional investment advice. We aren’t financial consultants, so make sure to refer to other sources as well.
Goldman Sachs: Finance and Investment
The renowned American investment bank has recently refused to enter the cryptocurrency market on a large scale. In 2018, Goldman Sachs was planning to launch a crypto trading desk, but eventually abandoned the attempt because of unclear crypto-related regulations both in the USA and the rest of the world.
Still, the financial services giant boasts significant investments in blockchain initiatives aimed at expanding the crypto ecosystem. In 2015, Goldman Sachs partnered with Circle, a company focused on decentralized digital assets.
Circle’s creators have recently introduced the USDC token, a so-called stablecoin backed by the US dollars. In addition, Goldman Sachs has provided funding for BitGo, a firm which focuses on facilitating custodial services for institutional investors.
During 2019, Goldman Sachs will be working on innovative consumer banking solutions and will probably invest more in blockchain-related projects. Most likely, the price of GS stocks will rise once the crypto market enters into the bullish phase.
NVIDIA: Hardware and Mining
It’s needless to introduce NVIDIA, the US-based tech company focused on producing graphics chips. It has been flourishing throughout the years due to the increased interest in gaming and modern solutions for database management.
With the rise of crypto mining, NVIDIA has drastically increased its revenue. Crypto enthusiasts have been heavily investing in GPUs as they facilitate earning cryptocurrencies. However, as mining becomes more energy-consuming and crypto prices drop, the company’s profit decreases.
Similarly to the crypto market that can recover and skyrocket to new records, NVIDIA stocks may become more expensive again. Right now, the corporation buys back its shares from the marketplace, because they are pretty cheap. They have lost around 50% since 2018. Even without demand from crypto miners, NVIDIA can generate insane revenues thanks to powerful data centers and gaming GPUs.
In addition, the brand is planning to implement their solutions in self-driving cars, medical devices, and robots. But certainly, the NVIDIA experts will refill the market with efficient chips once crypto mining becomes profitable again.
Square: Payments and Trading
This organization is fresh and innovative. Square was established in 2009 and filed an IPO in 2015. Evolving from a small e-payment devices’ developer into a global individual-to-individual money transfers’ service, Square is now a key player in the financial market.
The company has been showing meteoric growth and has no plans to stop there. The adjusted revenue of Square was 68% in 2018 Q4, while the same period featured 155% revenue from subscriptions and services. Additionally, Cash App created by the company continues to attract more users by providing cross-selling options.
When it comes to cryptocurrencies, Square has recently integrated Bitcoin support into its Cash App. Now, in addition to traditional methods of investing, users can buy and sell BTC easily through the app interface. Precisely, in 2018 Q3, this service generated $43 million in profits. Of course, it’s not a big deal for global markets but the new rise of cryptocurrencies may boost Square’s performance.
All in all, it’s up to you to decide which projects and companies to choose. Making sound investment decisions may be tricky even if you opt for traditional stocks.
Crypto markets are even more sophisticated due to their insane volatility. Still, we can suggest that you consider the three described companies as they are heading for positive dynamics in 2019.
If Bitcoin, Ethereum and other cryptocurrencies move up, the stocks of Goldman Sachs, NVIDIA, and Square should follow the lead.Consider investing in them to diversify your portfolio. Good luck!