Watching the price of bitcoin has become a
kind of sport, as it swings up and down (mostly up), with 10% intra-day changes
becoming not so uncommon for the flagship cryptocurrency these days. Wherever
bitcoin ends up on this New Year’s eve, its historic high at more than US$13,200
per coin, posted on December 6, brought almost 1,300% in return since the
beginning of the year.
As coindesk.com noted, it's not clear
whether bitcoin can push much higher in the short term given its recent
spectacular gains. But after bitcoin derivatives are launched on the US market
on December 18 and Wall Street gets a chance to short it, bitcoin’s volatility
(swings lower and higher) may become even more pronounced.
There also were hot plays among more
tangible assets this year. Take cobalt for instance, which has risen over 120%
over the past year. The rise of this metal has been due to its application in
batteries. Baystreet.ca puts it very bluntly: “Cobalt is never going to be
cheap again, thanks to the electric vehicle revolution and a massive supply
chain bottleneck coming out of Africa.”
The Democratic Republic of the Congo is
the major global supplier of cobalt currently, and Elon Musk of Tesla stated
that he would prefer a North American supplier of cobalt for his Tesla vehicle
batteries, where lithium and cobalt are critical metals for batteries running
electric vehicles. The other major
component of lithium-ion batteries, lithium, has risen by more than 60% in
price over the past 12 months.
There are multiple ways, for instance, to
invest in cobalt. Talk to your investment advisor as to which company stocks
would be the best suited to win from the rush for cobalt as the focus is now
shifting from the African “conflict” cobalt miners to the North American
projects.
Ukrainian Credit Union Limited
No comments:
Post a Comment