Bitcoin vs. Oil: Which Has More Value in the Stock Market?
Gas has been around for years whereas Bitcoin is relatively new in the market.
Which one will you put your market investments on?
Oil and gas stocks have not been at par with the performers in the market today. This has been going on since the November election results were announced. A huge drop happened from 78 (Dec 2016) to 63 (current) for XLE, the main ETF that monitors the energy sector.
This 20% drop happened only in a short period while other sectors of the industry are on a constant increase in their levels in the stock market.
Doubts about investing in the oil and gas industry may now start to rise because of the decrease that happened. However, it is still important to determine the true value of the stocks depending on the situation.
Many analysts do not look at the surface level whenever they decide if the company or worth investing in or not. There are gas companies that sell stocks at almost 70% discount from its book value but the returns are still acceptable – and that’s what triggers them to buy it.
But it’s still too risky…
Bitcoin, a cryptocurrency-based technology, is now running at 100% premium to its net value in the trading industry. This data is so overwhelming that it is very interesting to compare it to the oil and gas stocks.
The picture is quite obvious because oil and gas are on a downward trend whereas Bitcoin is aggressively climbing the market ladder. Although gas is a basic commodity to run machines, the world is now becoming more dependent on the internet.
The value of Bitcoins generally depends on how much a person would want to buy it. The demand is so high that its price easily skyrockets.
Some gas companies may sell stocks less than its book value but their returns can still be acceptable. This situation is something to look upon to if you’re planning to buy stocks because of its great potential value. Although they have interesting numbers, a thorough research is still required before you buy it.
When it comes to Bitcoin, the trading is so fast and the selling prices are booming. It can be safe to say that right now, Bitcoin is overtaking the gas stock market by miles. It’s now up to you where to invest your money.