Investing in Stocks that are being influenced by Bitcoin

[HookahSmokingCaterpillar]

I'm new to the bitcoin/cryptocurrency world, but have been working on my investment portfolio for a couple of years. As a way to further diversify my portfolio, I decided to dive into the world of cryptocurrency and start researching bitcoin etc.. I noticed that mining has definitely had an influence on the GPU market and seems to be benefiting stock prices of companies such as AMD and Nvidia since they have started to show significant market price increase since the recent bitcoin boom.

AMD - up approx 94% since last year - https://www.fool.com/quote/nasdaq/advanced-micro-devices/amd/interactive-chart

Ndvidia - up approx 72% since last year - https://www.fool.com/quote/nasdaq/nvidia/nvda/interactive-chart

There might be many reasons contributing to this up trend but I think that Bitcoin has had significant influence on certain markets since people have started accepting it.

Article - AMD vs. NVIDIA: Here’s How the GPU War Is Playing Out - https://www.fool.com/investing/2017/09/19/amd-vs-nvidia-heres-how-the-gpu-war-is-playing-out.aspx

We will see how difficulty increase and PoS will affect the GPU market. We might see that a decrease in consumer purchasing of mining hardware will happen but I'm not sure how much that will affect the share price as long as big companies are mining. I know AMD is manufacturing mining specific GPUs now.

*Edit - Just thought I'd add that I'm thinking of adding some AMD to my portfolio if the fundamentals check out. The price is still pretty cheap @ approx $13 as of the writing of this post. Probably will add Nvidia as well if the fundamentals check out, since the company has been showing promise. Just waiting for a pull back. We should see a full market correction soon maybe as soon as this year or next.

Any thoughts on the what stocks are doing in response to Bitcoin?

Anybody watching or investing in companies that seem to be moving upwards in response to Bitcoin?

[1715662271]

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[1715662271]

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[1715662271]

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[gotya1]

I'm gonna guess that they're gaining traction because computers are getting more and more used and that it has nothing to do with Bitcoin.

[Eric Cartman]

who is better for GPU mining, AMD or Nvidia?

[sexycoin69]

Depends what ur mining yah?

[HookahSmokingCaterpillar]

I'm gonna guess that they're gaining traction because computers are getting more and more used and that it has nothing to do with Bitcoin.

Thanks for your guess,

True computers have been gaining traction since the early '90s but AMD shares dropped significantly in 2006 from almost $40 per share to about $3 dollars and have had minimal recovery since then. They experienced a small rise in share price in 2009 peaking at about $9 and dropped back to $3 in 2012. However from this time last year to today, the share price rose almost 94% percent in conjunction with the rise in bitcoin and ethereum currencies. Possibly a coincidence, but the probability is there to suggest that bitcoin etc. might have had an influence.

So maybe if the bubble in bitcoin collapses (if it's a bubble)  the recent price in AMD if it's being influenced by bitcoin will probably drop and that could be an indicator. Of course there are things to consider like AMD's Ryzen processor which is helping AMD compete against Intel, but we can't deny that AMD is selling a ton of GPUs.

I've been following Intel for a while and read an article about AMDs Ryzen and the delay of Intel's Coffee Lake processor, which got me thinking about AMD vs Nvidia for GPU space. I can link the article if anyone is interested. But I found this Fool article just now as I was looking into AMD more that would be more relevant to this post.

Article- Ryzen and Cryptocurrency Drive Growth for AMD - https://www.fool.com/investing/2017/07/26/ryzen-and-cryptocurrency-drive-growth-for-amd.aspx

And even this article says GPU demand is unlikely to persist, but whose to say for sure?

We will see if bitcoin is something that will influence the stock market as it becomes more accepted. I'm definitely wanting to invest in some coin but trying to balance taking advantage of the rise in bitcoin with actual bitcoin and of the things that bitcoin influences as well. For example in stocks, Intel is something that is secure not only from consumer sales, but also from the fact that google uses its processors in their servers, so the growth of google influences the growth of Intel etc. but that's just one example of many in terms of Intel there's also IoT and 5G implementation etc.

But my point is and the point of this post is that you must investigate the entire ecosystem to find and reap the benefits from all angles. So bitcoin is definitely something I can get behind but also I must ask what does the big picture look like and where can we invest in addition to bitcoin to fully benefit from bitcoin?

Thoughts?

[HookahSmokingCaterpillar]

who is better for GPU mining, AMD or Nvidia?

Good question . I definitely would like to know that.

Depends what ur mining yah?

True I'm sure mining alt coins will keep people interested in mining, especially if they gain traction. Maybe something like Siacoin or something with less difficulty. Especially for people who are good at trading. Mine speculative alt coins either hold and hope they produce, or trade them for bitcoin when the time is right.

[myshaka]

Stock are in a bubble. Especially American..
Lot of people will cash out from stocks and invest into crypto.
Like a lot of people already emptied their bank accounts into it

[HookahSmokingCaterpillar]

Stock are in a bubble. Especially American..
Lot of people will cash out from stocks and invest into crypto.
Like a lot of people already emptied their bank accounts into it

I agree, American stocks are in a bubble. The Fed is printing more dollars every day, something to the tune of 45 billion dollars per month. American brick and mortar retailers are closing doors because they cannot compete with Amazon. Toys 'R Us filed chapter 11 before the Christmas spending season, which is alarming to say the least. We can expect toy manufacturers to suffer if Toys 'R Us decrease inventory orders or completely shuts its doors in the near future. So to say we are facing a recession or even a depression is probably correct.

Lot of people will invest in crypto, gold, and silver. I think the Bitcoin bubble will more than likely pop, but I think the BTC bear trend if it pops will recover due to the people's decreasing trust in the dollar and dollar backed fiats. I see a rise in gold and silver buying if we enter into a deflation period of American dollars, and a huge rise in crypto if the deflation period develops into a hyperinflation period. Simply because you can't buy things with gold and silver over the internet.

However if crypto does make a huge run, I wonder what buying opportunities in addition to BTC will present itself? AMD and Nvidia have a good chance of becoming leading sprinters towards a bull from the bear when the bear happens in the stock market. Especially if Bitcoin Gold is actually a legitimate thing. If Amazon decides to accept BTC this could be good for both BTC and Amazon. Also the possibility of Bitcoin ETFs is interesting.