7 Best Blockchain Stocks to Buy for the Rest of 2022

With the implosion of cryptocurrencies, several of the best blockchain stocks to buy are finding themselves on fire sales. However, it is important to realize the enormous risks involved. Basically, everything crypto-related is dependent on the actions of the Federal Reserve. More specifically, the central bank’s commitment to a hawkish monetary policy poses problems for risk assets.

At the moment, the central bank wants to liquidate previous monetary excesses. It is deflationary (ie reduced money supply equals deflation). With fewer dollars chasing more goods, purchasing power Rises. In this scenario, people have an incentive to save dollars rather than spend or invest them. That’s not good for risk takers, especially with some of the best blockchain stocks to buy. Going forward, due to the deflationary approach to monetary policy, global economies risk recession. Again, it’s deflationary.

Still, if you want to take a chance on crypto-related investments, you might as well consider some of the best blockchain stocks to buy.

IBM (IBM)

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While IBM (SNEEZE:IBM) receives most attention today for its work in artificial intelligence and cloud computing services, it also moved into the blockchain. Basically, blockchain’s main innovation focuses on facilitating decentralized operations across a distributed platform. In other words, people can work together towards a common goal without trusting each other. The blockchain works without the participants having knowledge of the others’ existence.

Essentially, blockchain has its own economic incentivization based on capitalist motivation and economic rationality. IBM represents one of the best blockchain stocks to buy because it converts this organic capitalist ethos towards business operations.

Mastercard (MA)

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Although MasterCard (SNEEZE:MA) earned its reputation as one of the gatekeepers of the fiat currency system, and also jumped into blockchain. Basically, it makes sense to turn to crypto-related transaction services for both payment providers and merchants. Increasingly, many businesses are actively considering adopting virtual currencies to meet the growing demand.

Recognizing this trend, Mastercard stepped up to the plate and offered various programs to help everyone in the value chain adapt to distributed decentralized transactions. For example, the financial giant offers a crypto card program, which enables blockchain-powered services for everyday purchases. In addition, Mastercard offers consulting services for large companies and government agencies regarding blockchain adoption.

Additionally, MA stands as one of the best blockchain stocks to buy for savvy investors due to its undervalued profile. In particular, Gurufocus.com cites excellent strengths in growth and profitability metrics. In addition, Mastercard has a return on equity of 144%, ranking better than 99% of its peers. These statistics also reflect the high quality of the MA stock.

Visa (V)

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Visa (SNEEZE:V) is another global fiat financial services powerhouse that turned to crypto-powered transactions, making it a solid idea for the best blockchain stocks to buy. No, neither Visa nor Mastercard stocks are likely to make you rich in no time. However, these companies present better probabilities of not leaving you hanging to dry.

Basically, Visa benefits from new generations’ relationship with wealth. Because Generation Z has no real memory of analog mechanization, it is normal for this age group to adopt crypto. In addition, evidence suggests that market fluctuations do not disrupt crypto users in general as a demographic. This suggests that Visa’s myriad digital asset initiatives will eventually pay off.

Even better, I’m much more comfortable talking about Visa as one of the best blockchain stocks to buy. If the crypto angle doesn’t work, guess what? Gurufocus.com labels the V share significantly undervalued. One of the prominent metrics for Visa is its return on equity of nearly 40%. This ranks better than 97% of its peers and also indicates that the company represents a high quality business.

Nvidia (NVDA)

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Specializing in graphics processing units or GPUs, Nvidia (NASDAQ:NVDA) made a name for themselves in the field of computer games. No longer an obscure niche for the friendless, gaming represents a rapidly growing global market. However, Nvidia’s powerful GPUs also come in handy for crypto mining. With many blockchains still using process-intensive proof-of-work protocols, NVDA offers relevance as one of the best blockchain stocks to buy.

Personally, I am not involved in crypto mining, preferring to speculate on digital assets. However, the general consensus is that Nvidia tends to deliver the best of the best for mining-centric GPUs. For example, Windowscentral.com noted that the Nvidia GeForce RTX 3090 represents the company’s most powerful RTX 30-series GPU to date.

Opinions on the above will of course vary depending on the individual miner or company. However, what is not debatable is that as of this writing, Gurufocus.com notes that NVDA is significantly undervalued. The company has strengths across the board, with a stable balance sheet, excellent growth metrics and outstanding profitability indicators.

Advanced Micro Devices (AMD)

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In an effort to spare my inbox from colorful messages, we need to discuss Advanced Micro Devices (NASDAQ:AMD) as one of the best blockchain stocks to buy. First, I can’t show love to compete with Nvidia without mentioning high-end microdevices. Otherwise I might get into some trouble. But note that as one of the biggest names in GPUs, AMD enters this list by merit.

While the consensus may be that Nvidia enjoys a slight advantage over AMD when it comes to mining, the issue is really neck and neck. For example, Tomshardware.com rates the AMD Radeon RX 5600 XT as one of the best crypto mining GPUs. And while blockchain networks consider swinging to the more efficient proof-of-stake protocol, many networks use proof-of-work. AMD should therefore have great relevance in the long run.

However, I have to bring in some not so pleasant news. According to Gurufocus.com, the investment resource warns that AMD presents potential value trap problems. Currently, one of the main differences between Nvidia and Advanced Micro is that the latter has a lower quality of business; that is, AMD has a return on equity of 11.8% against Nvidia’s 31.8%. Still, AMD has a strong balance sheet, so it may be worth speculating as one of the best blockchain stocks to buy.

Hive Blockchain (HIVE)

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Hive Blockchain Technologies (NASDAQ:HIV) technically enjoys first-time status. According to its website, the company uses 100% green energy to mine digital assets. In addition, management is committed to an environmental, social and governance (ESG) strategy from day one. Ultimately, Hive aims to bridge the gap between blockchain/crypto to traditional capital markets.

Among the main advantages of the HIVE warehouse is low-cost operation. In addition, Hive’s operations are located in “cool and politically stable jurisdictions (Canada, Sweden and Iceland) with access to low-cost green/renewable energy.”

Now, for the not so great part. Blockchain miners align with crypto sentiment. There is no way around it. Therefore, on a year-to-date basis, HIVE stock fell almost 75%. If that wasn’t enough, Gurufocus.com flags the underlying business as a potential value trap. Here’s the deal: HIVE represents one of the best blockchain stocks to buy for speculators, I repeat, speculators. It’s a no pain, no gain approach. That said, Hive has a surprisingly decent balance, so gamblers have it covered.

Argo Blockchain (ARBK)

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Argo Blockchain (NASDAQ:ARBK) champions the use of renewable energy sources to support the growth and development of blockchain technologies, according to its website. In addition, the company has a total mining capacity of 220 megawatts. In addition, Argo’s facilities are located in North America, which provides jurisdictional and geopolitical stability.

As appealing as these and other attributes are, the reality is that pure blockchain companies – even those considered the best blockchain stocks to buy – incurred significant volatility. Since the beginning of this year, ARBK has bled over 85% of its equity value.

Some of this erosion centers on the increase in average network difficulty for the underlying cryptos. Unfortunately, this circumstance represents a worst-of-both-worlds scenario: difficulty pings higher while prices drop lower. Therefore, Argo must carry out serious safeguarding to stay afloat.

As with Hive Blockchain above, ARBK represents a high-risk, high-reward opportunity. Financially, it has several exciting calculations, for example a price-to-sales ratio of 0.9, which is well below the industry’s median ratio of 3 times. Still, only gamblers need apply here. If that’s not you, you may want to consider the more conservative offerings among the best blockchain stocks to buy.

At the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Guidelines for publication.