TheStreet recently assembled a panel of star experts to discuss digital transformation, investment strategies, and opportunities. And they identified cryptocurrency miners as a great opportunity and a good way to get involved in investing in the cryptocurrency space.
Although the digital currency landscape is volatile and constantly changing, there are signs that the positive momentum for cryptocurrencies may continue as fintech grows, the number of miners increases, and more billionaire companies put their names and reputations on the line. as they get behind Bitcoin. , ethereum and other cryptocurrencies.
TheStreet’s panel included the managing director and head of ETF products at VanEck (OUNZ) – Get report Ed Lopez, CEO of New Constructs David Trainer, CFA and Product Manager at VanEck John Patrick Lee and Research Analyst at VanEck Action Alerts Plus Charitable Trust by Jim Cramer Zev Fima.
“I will keep it in the ecosystem and work at a lower level. I really find the miners and their business model particularly interesting. They have been successful in arbitrating stranded carbon and partnering with energy companies to find renewable energy sources and cost the energy sources because that is a very important part of their business, “said López.
“I think miners are a flexible partner for energy companies as they can come in and take advantage of the extra slack in the power grid or the extra power that is developed. They are mobile. They can move around the world to find the lowest. – energy inputs cost. And, you know, given the growth and trend that we’re seeing in the ecosystem and the adoption of cryptocurrency, I find miners a really interesting and engaging story, “added Lopez.
At a recent meeting hosted by MicroStrategy (MSTR) – Get report CEO Michael Saylor, Tesla’s (TSLA) – Get report Elon Musk called on large Bitcoin miners to be more transparent about their energy use. Musk revealed the meeting in a tweet, saying that he had spoken to North American Bitcoin miners and asked them to publish reports on the use of renewables and ask other mining companies to do the same.
The meeting resulted in the group forming the Bitcoin Mining Council to work towards a cleaner and more transparent way to mine Bitcoin in the future, according to TheStreet’s Luke Conway.
Saylor additional that the Council would help “standardize energy reporting, pursue ESG goals, and educate + grow the market.”
Some companies like Nvidia (NVDA) – Get report have noted a degree of uncertainty in predicting the impact of cryptocurrency mining on short-term sales.
“It is difficult to estimate exactly how much and where cryptocurrency mining is taking place. However, we can only assume that the vast majority is contributed by professional miners, especially when the amount of mining increases tremendously as it has,” said CEO Jensen Huang. he told investors on a conference call last week.
Jim Cramer of TheStreet noted in his diary Action Alerts Plus Summary This past week that while Nvidia has performed well and its recent 4-for-1 stock split makes sense, the link between cryptocurrency mining and Nvidia’s performance is not necessarily that strong.
“I think people really like to buy technology when cryptocurrencies are doing well,” Cramer said.
Daniel Roberts, editor-in-chief of crypto news site Decrypt, explained in a recent interview with TheStreet why Bitcoin mining uses so much electricity. “Nvidia and other companies said, ‘We don’t like our platforms and chips being used for crypto mining,’ but I think that has changed a bit,” he said.
“Bitcoin mining uses these expensive chips called ASICs and that’s why Bitcoin uses so much electricity. When ethereum makes the switch to eIF2, which will use proof of stake, it won’t need those ASIC chips. And that’s why it won it consumes almost as much electricity. I don’t know what that means for companies like AMD (AMD) – Get report and Nvidia in terms of whether they will want to participate in cryptocurrency mining in any way, shape, or form. But that’s where things are headed in mining, “Roberts added.
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