Blockchain Basket beats gold and Bitcoin during pandemic
Gold and its digital counterpart, Bitcoin, have had a pretty good run among traders looking for a safe haven or those willing to take a kick out of cryptocurrency.
However, they were pushed last year by another fundraising thesis that is perhaps a little more tangible, highlighting the previous adage that it’s better to promote shovels in a gold rush.
Instead of buying into both assets, those who threw their money into a basket of companies advertising blockchain applied science would have reported 54% from the previous year, even after the latest rout. that hit global tech stocks the hardest.
Gold has only risen by 27% from this point, regardless of an increase since March, while Bitcoin is definitely down 1.8%.
Elwood Asset Administration LLP’s Blockchain International Fairness Index – ticker: BLOCK – is a collection of 45 relevant companies within the blockchain ecosystem, expertise that deploys crypto to retailer data in distributed ledgers and is resistant to modification or manipulation. Its three main holdings are Taiwan Semiconductor Manufacturing Co., Kakao Corp. and Monex Group Inc.
TSMC is well known as the leading provider of chips that go into cryptocurrency miners, powerful computer systems that correct mathematical calculations on the core of Bitcoin and comparable digital currencies. Seoul-based Kakao was best known for its eponymous chat app before it was created get into the blockchain business two years ago. Japan’s Monex was the country’s largest online brokerage at the time, later moving to SBI Holdings Inc. and Rakuten Inc., and acquired the Coincheck cryptocurrency exchange in 2018.
Collectively, the top 10 performers on the index all returned over 54% in the past year, with “online retailer and blockchain technology advocate” Overstock.com Inc. multiplying by new (even after a 45% drop since August 20). ) after second quarter income more than doubled. Kakao is the third best, up 147%.
To be fair, the strong returns of many index members may only be indirectly linked to their publicity in the blockchain ecosystem. TSMC, for example, has benefited greatly from the U.S.-China tech rivalry and high demand for private computer systems, servers, and video game consoles amid prolonged social distancing due to a pandemic.
Traders may not care precisely why these players have done so well, but the simple indisputable fact that they have generated such high returns will likely be enough reason for True Believers to advocate for embracing. the blockchain revolution.
This column does not primarily reproduce the opinion of the Editorial Board or of Bloomberg LP and its owners.
To contact the editor responsible for this story:
Patrick McDowell at [email protected]