Is Crypto a Safe Investment?
Many people refer to Bitcoin as a store of value or digital gold. It’s called a hedge against inflation and the devaluation of fiat currency, or even the future of finance. But the bears will tell you that Bitcoin has fallen by 57% so far in 2022, compared to the S&P 500 which has only fallen by 21%. The price of gold is actually on the rise and has traded around all-time highs for the past while. It’s pretty clear which investment asset is the least stable of the three.
It’s not an entirely fair argument though as Bitcoin has the potential to exponentially outperform gains made by traditional investment assets, especially gold. Bitcoin is therefore acting as a long-term store of value and a high-growth investment all in one asset. As with any investment, when times are tough and the price is falling, it’s easy to be bearish on the future outlook. Even a broken clock is right twice every day.
But it still begs the question: is crypto a safe investment? So far this year, crypto investors will probably tell you it’s not. Look at what happened with the Terra Luna scandal or the Time Wonderland collapse. These were major projects and in Terra’s case, it had two crypto tokens in the top-ten by market capitalization. With more margin calls and liquidations on a daily basis, people are finding out how much of the crypto industry was built on leverage.
Are the OTC Markets Safer than Crypto?
Right now, the answer is undoubtedly yes. OTC stocks tend to have a bad reputation with investors. This comes with some markets being unregulated, as well as scams and pump and dump schemes. Sound familiar? Remember, some regulation is safer than no regulation at all which is what you are dealing with in most of the crypto industry.
The OTCQX index is down by about 20% over the past six months, similar numbers to the S&P 500 and the NASDAQ, but holding steadier than most crypto tokens. Safe is always in the eye of the investor, but I know which assets I am choosing right now. Having trouble figuring out which OTC stocks to buy? We have a few hidden gems for you to add to your watchlist.
Penny Stocks More Stable than Crypto
CleanVision Corp (OTC:CLNV)
You know what’s better than investing in high-energy consuming cryptos like Bitcoin? Investing in a company that is trying to make a difference by reducing plastic waste and converting it into a renewable energy source. Through its global subsidiary, Clean Seas, the company invests in technology that takes collected plastic waste from the oceans and converts it into AquaH, a hydrogen fuel source with real-world use cases. CleanVision is a pre-revenue company that has recently helped to set up Plastic Conversion Networks or PCNs in Morocco and India, and is in a joint partnership to establish one in Puerto Rico as well. These networks will eventually bring in tens of millions of dollars in annual revenue for the company, so this is an opportunity to get into a rapidly growing business on the ground floor.
Black Bird Biotech (OTC:BBBT)
Another company that is putting the environment first, Black Bird Biotech is an innovative company that is in the organic pesticide industry. Produce around the world contains high amounts of pesticide residue, with some levels that could even be harmful for human consumption. Organic pesticides fix this problem. Black Bird Biotech’s MiteXStream rids plants and crops of pests like spider mites. It has completely natural and plant-based compositions, and is even non-toxic to honeybees and other native species to agricultural ecosystems.
Grayscale Bitcoin Trust (OTC:GBTC) and Ethereum Trust (OTC:ETHE)
Grayscale is well known for being a digital asset manager providing traditional finance market investors with exposure to cryptocurrencies. Its GBTC and ETHE trusts might not be granted ETF status, but both assets track Bitcoin and Ethereum well enough that it can be considered a part of any diversified portfolio. Both are trading at obvious discounts right now due to the falling prices of the underlying cryptos. The idea with these trusts is that buying shares is the equivalent of owning a certain amount of that crypto token. As the price of Bitcoin and Ethereum fluctuate, each share of GBTC or ETHE represents a different amount of the underlying token. It might not be more stable than investing directly in BTC or Ethereum, but it takes a lot of the hassle out of buying these cryptos on centralized exchanges and then storing them safely offline.
Clickstream Technologies (OTC:CLIS)
Clickstream Technologies is a tech company that is innovating in the industries of mobile apps and NFTs. Its largest hit has been the HeyPal social language learning app, that has over a million of downloads on the Apple App and Google Play stores, and is even supporting a premium membership structure. Clickstream also launched its Beta NFT site, Nifter, earlier this year. Nifter allows up and coming musicians to sell their music directly to consumers via a decentralized blockchain network where they get paid directly in Ethereum. Nifter is set to do a full launch at some point in the near future, and has already locked in deals with Jay Z’s Roc Nation and the Estate of Stan Lee to create more NFT series.
Summary: Crypto is Far From Stable
These are just some of the OTC stocks that will likely be more stable than cryptos over the coming years. That’s not to say that cryptos like Bitcoin or Ethereum won’t outperform these companies, but we’re talking about how stable these investment assets are over the near-term. The OTC markets have some great companies that are looking to eventually uplist to the NYSE or NASDAQ exchanges. While I am a firm believer that cryptos will rebound in the future and will be an integral part of the financial system, there is just no incentive to invest in them right now. During a crypto winiter, I’ll take my chances with high-performing OTC stocks instead.
$CLNV $BBBT $CLIS $GBTC $ETHE
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