Consider Cryptocurrency Plays Without Big Volatility Risk

Ned Piplovic


While some investors flocked in droves to invest in cryptocurrencies in 2017, other investors remained on the sidelines fearful of price volatility and unsure whether cryptocurrencies are sound investments.

However, there are ways for investors skeptical of cryptocurrencies to take advantage of the current price boom through more conventional investment vehicles and avoid most of the risk and volatility associated with buying and trading cryptocurrencies. Here are some investments to consider for those who want to benefit from the upside without extreme risk.

Just as precious metals must be mined, individual units of cryptocurrencies are created through a process called “mining.” It is a process where computers run software that solves a complex mathematical algorithm to confirm and track cryptocurrency transactions. Like traditional precious metal mining operations, cryptocurrency mining requires considerable resources and many supporting industries.

In the initial stages of Bitcoin mining, a mid-level desktop computer had sufficient processing power for the cryptocurrency mining process. However, mining algorithms are designed to get progressively more difficult, which require more processing power and more energy.

Therefore, companies are developing computers designed for mining cryptocurrencies, which can be quite expensive. Bitmain’s latest unit costs approximately $7,000. Investors could cash in on this demand by investing in industries and companies – such as Advanced Micro Devices, Inc. (NASDAQ:AMD) or NVIDIA Corporation (NASDAQ:NVDA) – that supply components for these cryptocurrency mining rigs.

Additionally, electric utilities have benefited from the cryptocurrency mining expansion. According to the Bitcoin Energy Consumption Index, current electricity consumption for Bitcoin mining globally is approximately the same as the total electricity consumption of countries like Qatar or Hungary. The energy consumption for mining in the United States is only 1% of total electricity consumption. However, The Netherlands uses almost 30% of the country’s total electricity consumption to support Bitcoin mining. The Czech Republic – at 59% – has the highest share of total electricity consumption used by Bitcoin mining operations.

Therefore, investors wary of cryptocurrencies can still take advantage by investing in computer components manufacturers and electric utilities, especially in countries that use a large share of its total consumption towards Bitcoin mining – The Netherlands and the Czech Republic – or China, which has the majority of current Bitcoin mining operations.

share on:

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle


DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops