I believe with Riot Blockchain (RIOT) stock. The cryptocurrency revolution is still alive and well, although it needs to pause for some time. If you’re looking for a convenient way to bet back on crypto and miners, Riot stocks could be the ticket to long -term wealth.
Riot Blockchain is bitcoin (BTC-USD) miners and was an early mover in this industry. There is a limited supply of 21 million bitcoins, but there is still a lot of bitcoin to be mined. Hence, there is room for a company like Riot to make a profit even if the price of cryptocurrency goes up and down.
Of course, the mining business depends heavily on the price of whatever is mined. Like a gold miner, who tends to thrive when the price of gold goes up but struggles when gold loses its value. Riot Blockchain has a similar correlation to bitcoin, and it’s bad news when bitcoin falls – but when it rises, this can give a strong boost to Riot shareholders.
Riot Blockchain CEO is confident about Crypto Mining
It’s no secret that the price of cryptocurrency is generally down in 2022 to date. Indeed, bitcoin has only experienced its worst half -year in its history. This is a pill that is hard to swallow by crypto cows, but don’t forget that bitcoin has recovered from several steep drops in the past.
The worst of selling bitcoin this year may be in the mirror, however. Prime Trust President Erin Holloway gave a briefing on the basic processes of the crypto market, saying, “I think we’re starting to see what is called seller fatigue,” and, “A lot of people are balancing relevant portfolios.”
Holloway further suggests that, while traders should expect daily volatility, “a steady dive will be slow” in the cryptocurrency market. Although there are no guarantees, people who own Riot Blockchain shares can hope that Holloway’s optimistic predictions come true.
Also optimistic is Riot Blockchain CEO Jason Les, who recently provided the company’s stakeholders with an exciting announcement. Specifically, Les reports that Riot is expanding its existing Winstone mining facility in Texas to 700 megawatts. The CEO also joined in the bragging, noting that the Winstone facility is “the largest facility in North America and what we would believe will be the largest in the world.”
For some, bragging is part of the job description of a blockchain company’s CEO, and it’s also gathering forces to achieve the future of crypto. Thus, it is understandable that Les stated that cryptocurrency mining “will continue to grow in the United States,” and that “even if the Bitcoin mining economy has declined, there is still a very good opportunity here.”
Riot Blockchain Increases Mining Activity
When bitcoin dropped below the key $ 20,000 level a week ago, it should have given a tough emotional blow to cryptocurrency defenders. However, remember that the investment should be viewed as a marathon, not a sprint.
In addition, the change may be due to bitcoin recently returning above $ 21,000, and the best day of the month is July 18th. In light of this, Oanda Senior Market Analyst Edward Moya has been bracing for a better time, saying, “If bitcoin continues to stabilize here over the next two weeks, the crypto season could be over.
If the crypto season is finally over and bitcoin is approaching $ 30,000, $ 40,000, and so on, consider how much Riot Blockchain shares could run. Just as gold mining stocks typically provide leverage for gold price movements, Riot stocks tend to amplify bitcoin movements.
Of course, this enlargement is a double whammy, as the rapidly falling price of bitcoin could cause huge losses for Riot shareholders. Still, if you can tolerate the ups and downs, Riot Blockchain stocks are a convenient way to bet back cryptocurrency on your brokerage account.
In addition, if you’re going to bet on bitcoin miners, Riot is a good choice as of now. In an update for the month of June, Riot Blockchain announced some stunning statistics that should allay the concerns of skeptics.
If you can believe it, Riot Blockchain could generate 421 BTC in June, up 73% per year. In the same month, the company sold 300 Bitcoins and thus generated approximately $ 6.2 million in net proceeds. Furthermore, Riot held approximately 6,654 BTC as of June 30th.
Take Wall Street
According to TipRanks analyst rating consensus, RIOT is a Strong Buy, based on six unanimous Buy ratings. The average Riot Blockchain price target is $ 23.83, indicating a potential upside of 282.5%.
Blockchain Riot Stocks Can Offer Multi-Bagger Returns
There is no guarantee that bitcoin will be higher in the coming months. If history is a credible guide, then big drops in bitcoin tend to lead to strong rallies.
If the bullish thesis continues for bitcoin, then the confidence of the CEO of Riot Blockchain will be fully proven. In that case, Riot Blockchain shareholders can expect returns that exceed bitcoin’s profits by several magnitudes. Just be sure to keep the position size small, as sharp drops are always possible.
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