Over the last few years, cryptocurrencies have been one of the best-performing asset classes. The most well-known are bitcoin and ethereum. Another innovation is the blockchain. Some believe that crypto will have the same impact on money that the Internet has had on information.
Even though the cryptocurrency is relatively immature, this market is all set to witness continued appreciation. According to Markets and Markets, the cryptocurrency market is projected to grow at a CAGR of 6.18% to $1.40 billion by 2024. Rising demand for decentralized finance and cashless payments will be the major growth drivers.
2017 saw a cryptocurrency boom as the Bitcoin prices soared about 2000% in a year. According to market experts, the burgeoning demand for Bitcoin might lead to history repeating itself. Therefore, investing in this growing industry by betting on the right stocks can be highly rewarding.
Four stocks that could be on fire during the next Crypto boom are Square, Inc. (SQ), PayPal Holdings (PYPL), Nvidia Corp (NVDA), and CME Group (CME). Let’s take a look at how these stocks are placed.
Square, Inc. (SQ)
SQ is predominantly known as a digital payment app. However, it is now well-known for its innovations in crypto and blockchain technology. SQ has forayed into the peer-to-peer investment market in the past three years. The company has also formed a dedicated team called Square Crypto which is focused on enhancing the BTC network for hassle-free cryptocurrency transactions. SQ has also launched a non-profit organization — Cryptocurrency Open Patent Alliance or COPA — to encourage crypto innovation and open access to patented crypto inventions.
Square’s Cash App includes a feature that allows customers to buy and sell bitcoin. In the second quarter, SQ’s net revenue climbed 64% year-over-year to $1.92 billion on the back of its Cash App ecosystem. The company’s Cash App delivered a robust 167% increase in gross profit compared to the year-ago quarter. And Bitcoin investing is a part of SQ’s Cash App product. SQ also boosted its network to over 30 million monthly active customers in June. Cash App posted $875 million of bitcoin revenue during the second quarter, up 600% from the prior-year period. The bitcoin gross profit during the second quarter of 2020 surged 711% year over year.
The company strongly believes in cryptocurrency as an instrument of economic empowerment and has put 1% of its total assets, worth nearly $50 million, in bitcoin. Experts believe that as the next crypto boom arrives, the company would witness a massive rally.
PayPal Holdings, Inc. (PYPL)
The most widely used payments processor, PYPL has been on a rally amid the pandemic. Contactless payments have gained pace and PYPL has been the most preferred route. However, the company is showing a keen interest in cryptocurrency and blockchain development off late.
In 2019, the company declared that it was funding Cambridge Blockchain, a start-up that works…