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The Wrapped Bitcoin (WBTC 1.06%) cryptocurrency is a derivative of Ethereum (ETH 2.06%), which replicates the value of a regular Bitcoin token (BTC 0.82%). This peculiar mix provides Ethereum-based apps access to a Bitcoin-like mechanism for storing and transferring money. It’s also worth noting that it’s a kind of Bitcoin with Ethereum-like features such as smart contracts, albeit in an odd form.

Creating a hybrid product from the upside of two extremely different cryptocurrencies makes sense, but isn’t it too good to be true? After all, holders of Wrapped Bitcoin must bear the long-term ownership risks of both Ethereum and Bitcoin.

Let’s look at how the market has treated this one-of-a-kind currency.

Here is how closely the two cryptos have stayed together this year. 

Federal Reserve Chairman Jerome Powell discussed his agency’s approach to future federal interest hikes in 2022, which weighed heavily on speculative assets like growth stocks and cryptocurrencies. Powell’s comments shook up the crypto market as a whole, and it was not surprising to see various currencies moving in different directions on January 28th. On January 28th, Ethereum still hadn’t recovered from its more severe correction, when it fell roughly 10% under Bitcoin’s year-to-date drop of 33%.

On January 25, the bitcoin price plummeted by almost 30 percent in a single day. However, on January 29, after the large drop, Wrapped Bitcoin returned to matching the regular Bitcoin token’s prices. That makes perfect sense; even if you believe that Ethereum is a greater risk investment than Bitcoin.

So what’s the difference?

Another benefit of utilizing Wrapped Bitcoin is that you may exchange it for any number of Bitcoin tokens at will. You can mint tokens by following a simple procedure, and you may convert them back into a Bitcoin by burning a Wrapped Bitcoin token. Furthermore, the development team behind Wrapped Bitcoins has custody of the original bitcoins that were placed in order to produce each Wrapped Bitcoin coin.

Today, the Wrapped Bitcoin project holds approximately 283,904 Bitcoins in its vaults. The market capitalization is $283,774 based on CoinMarketCap’s numbers. That’s a difference of 0.05 percent.

Because of the guaranteed conversion process, Wrapped Bitcoin should always be very close to the value of a typical Bitcoin. Sure, investors are betting on the success of three projects rather than one (including the Wrapped Bitcoin system itself), but there is no actual reason to include additional market risk into wrapped BTC.

The addition of Ethereum features to Wrapped Bitcoin, on the other hand, does not appear to offer much value. In the broader picture, the existence of Wrapped Bitcoin basically serves as a component in the overall value proposition for bitcoin’s underlying system, adding a tiny amount of extra market value to the greater ecosystem. Keep in mind that despite its small percentage share in total market value (1.5 percent), the Wrapped token has a sector-leading footprint.

Yes, you can buy this token — but it doesn’t really matter

You should feel free to use Wrapped Bitcoin tokens instead of, or in addition to, regular Bitcoin tokens as long as your selected cryptocurrency trading platform accepts them. If something goes wrong, you will be able to exchange these tokens for Bitcoin as needed.

There are no advantages to purchasing this token rather than Bitcoin unless you are an app developer that need its unique mix of Ethereum and Bitcoin capabilities, but there is no real downside either. For most of us, it’s just another oddity in a sector already rife with anomalies. Perhaps you’d be better off looking at the tried-and-true Bitcoin crypto system instead to keep things simple.

Author: Blake Ambrose

The metaverse is a contemporary technology movement that is still in its early phases of development, but it is predicted to become enormous in the future due on its capacity to link people all over the world in 3D virtual worlds.

People may learn, work, play and socialize in the metaverse from their homes using mixed reality devices that support both virtual reality and augmented reality. Not surprisingly, investments in this area are anticipated to rise dramatically in the coming years. The metaverse market is expected to develop at an annual rate of around 48% through 2029 and reach a size of just over $1.5 trillion near end of the forecast period, according to a third-party forecast.

The rise of the metaverse might see these tech giants gain a significant boost. Here’s why Nvidia (NVDA 5.29%) and Microsoft (MSFT 2.03%) could benefit investors handsomely from this trend. Let’s look at why the metaverse may cause these IT companies’ stock prices to go up significantly.

1. Nvidia

In numerous ways, Nvidia may benefit from the metaverse. Even before it has fully taken hold, Nvidia is already enjoying the benefits of this developing technology trend, as it powers Meta Platforms’ (FB 1.29%) supercomputer intended to aid in the expansion of the metaverse. The Meta AI Research SuperCluster (RSC) computer is powered by over 6,000 Nvidia GPUs. When Meta finishes adding more GPU capacity to its existing supercomputer, it will be powered by about 16,000 Nvidia GPUs.

The potential of artificial intelligence (AI) applications is limitless, according to Meta. “The work done with RSC will lay the groundwork for future technologies for the next big computing platform, which is the metaverse, where AI-driven apps and items will play a significant role,” says Meta. This implies that demand for Nvidia GPUs should grow in the long run as servers, data centers, and supercomputers will have to be modernized to serve real-time 3D content delivery for millions of users across the world.

More than 400 firms, according to Nvidia, have tested the Omniverse platform. BMW has used the Omniverse to make a digital twin factory, while Ericsson is using it to test and visualize 5G wireless networks before releasing them.

This implies that Nvidia’s business could get a significant boost as a result of the metaverse, which is likely to have an impact on the firm’s already rapid growth. Nvidia ended fiscal year 2022 (which ended January 30) with a 61% year-over-year boost in revenue of $26.9 billion, and the potential for the metaverse suggests that it is just beginning to explore a huge market opportunity.

Analysts forecast Nvidia to grow earnings at a compound annual rate of 30% over the next five years, and the metaverse may help it accelerate its growth rate and supercharge the stock in the long term.

2. Microsoft

Another technology giant, Microsoft, is also on track to profit from the metaverse in a variety of ways, including the lucrative video gaming market.

Microsoft is reportedly close to closing a deal to acquire Activision Blizzard, which it values at $60 billion. Microsoft’s press release when the acquisition was announced stated that the “acquisition will help Microsoft accelerate growth in its gaming business across PC, mobile, console, and cloud,” as well as providing building blocks for the metaverse. It is also worth noting that Microsoft already has a strong foothold in the gaming industry thanks to its Game Pass subscription service, Xbox consoles, and a large collection of games thanks to its ownership of numerous gaming studios.

Microsoft’s ability to benefit from the metaverse gaming industry opportunity, which is expected to develop at a rapid rate, puts it in a strong position. Grayscale, a cryptocurrency asset management firm, forecasts that virtual world economies may be worth $400 billion by 2025 as opposed to $180 billion by 2020. Almost all of the virtual game revenue will come from in-game spending, so Activision’s 400 million users will provide Microsoft access to a big population of gamers from whom it can drive incremental spending to fuel its gaming business in the metaverse.

Microsoft has already established its presence in the metaverse with Mesh for Microsoft Teams, which is a collaboration tool that links people together via their virtual avatars. This product, which is based on the popular Microsoft Teams communications software, will allow individuals across the world to participate in meetings in realistic 3D environments through their virtual representations. With over 250 million users, Microsoft may cross-sell its metaverse communication platform to a massive audience.

Analysts forecast Microsoft’s earnings to grow at a pace of 16% per year for the next five years, but don’t be surprised if it outperforms that number, thanks to lucrative growth drivers like the metaverse. That is why buying Microsoft stock appears to be a no-brainer, as it trades at a P/E ratio of 26, below its five-year average of 37.

Author: Steven Sinclaire

Many people think that creating passive income is all about selling services, but it’s more than that. It’s also possible to generate money while watching a fantastic film and relaxing at the same time. That’s precisely what passive income enables you to do.

There are several methods to generate money without requiring your time or involvement on a regular basis. Staking cryptocurrencies is one strategy that’s gaining popularity. Here’s why staking Ethereum (ETH -2.74%) might be a fantastic way to make passive earnings.

Yielding way

Staking is only possible on blockchains that employ the proof-of-stake consensus method. These blockchains enable you to pledge your tokens to verify transactions. In return, you will be rewarded.

The original Bitcoin network was on the proof-of-work principle, which does not allow staking. In December 2020, however, the Beacon chain enabled staking for Ethereum coins. This chain is set to connect with the mainnet this year, allowing Ether tokens to be staked across the whole Ethereum ecosystem.

How much money can you make while staking Ether tokens? It is determined by the crypto exchange that you use and how long you stake your assets for. However, the payouts may be quite significant.

The annualized return on investment for staking Ether is 10.1% as of the time of this writing, and it’s highest ever. For a 120-day staking period, Binance offers this particularly lucrative return. It’s simple to discover other exchanges with returns ranging from 4% to 8%. Over shorter timeframes, these yields are more appealing than those provided by most dividend stocks.

The other side of the coin

Why wouldn’t everyone want to stake Ether tokens, with potential returns of double-digit proportions? The major disadvantage is that you can only sell once.

When you stake your Ether tokens, most cryptocurrency exchanges demand that you keep them locked for a certain length of time. Even after the staking period has ended, you may not be able to sell immediately. Some exchanges have “unstaking” periods lasting several days.

The inability to sell tokens can be especially harmful when the coins’ value rapidly drops. We have seen this happen in recent days, with Ethereum plummeting more than 30% in a week.

It’s quite conceivable that a downturn might stretch on for some time. While staking may help to some extent, the yields will not be nearly enough to compensate for significant losses like we’ve seen this month.

Taking the long-term view

This is basically the same issue that dividend stock investors face. You cannot sell your shares of the company and still get paid dividends. It’s conceivable that the share price could fall much more than you realize from your payouts.

That is why dividend-paying firms with good long-term prospects are most appealing to investors. The stock price may drop in the near term, but investors anticipate it will at least remain level (and perhaps increase) over time.

If you’re thinking about staking Ether tokens, take this into consideration. Staking Ether tokens is a poor decision if you don’t believe in the cryptocurrency’s long-term potential.

However, if you believe that the Ethereum blockchain has some staying power and that Ether is a wonderful long-term investment, things are different. If this forecast comes true, staking Ether may genuinely be a fantastic way to generate passive money.

Author: Scott Dowdy

After the Federal Reserve stated in late 2021 that it would begin raising interest rates, growth stocks have suffered a beating. Because future cash flows will be discounted at a higher rate as a result of rising rates, growing stocks are harmed by them. It’s not unusual to come across shares that have lost 50%, 60%, 70%, or even 95% of their highs recently. There are several excellent firms among the large sell-off.

Roblox (RBLX 3.82%) and Chegg (CHGG -2.77%), for example, have both fallen 75 percent and 84 percent from their highs, respectively. Long-term investors who can handle the short-term volatility may add these two stocks to their portfolios before a major rise drives them up. Here’s why each is worth considering for inclusion in your portfolio.

1. Roblox 

ROBLOX is a metaverse company that allows users to interact with each other and the world virtually. To put it another way, it’s a metaverse enterprise. The software is free to download and use, which has clearly aided in Roblox’s popularity growth since then. impressively, despite the fact that consumers were spending more time inside, mobile ARPUs rose by 23% year over year at this time last year. Still, after the economic reopening began in March 2019, development slowed considerably , especially in its most lucrative US and Canada area.

The Robux entrepreneur earns money by selling Robux, an in-game currency that is required for certain tasks and items that are not accessible to free players. In 2021, Roblox earned $1.9 billion in revenue, up from just $325 million in 2018. Interestingly, some third-party developers develop premium services for Roblox. Roblox incentivizes developers by paying a share of the income their games generate. With 53.1 million daily active users, there’s plenty of money to be made. This aspect of the business model ensures that Roblox doesn’t spend money on creations unless its users do, lowering the risk of investment loss.

Of course, Roblox is up against headwinds as potential users have moved on to other interests, but that is already reflected in the stock’s price. It’s nearly at its lowest valuation, with a price-to-free-cash-flow ratio of 29.8. Growth stock investors will want to buy shares before it becomes more expensive because of a potential major rally.

2. Chegg 

Chegg is a for-profit education technology firm that has struggled to keep college enrollment growing since the epidemic began. The outbreak was initially a boon to Chegg, as millions of students were away from vital on-campus services. Students sought help from Chegg with their course materials, which were in short supply because of the pandemic. Chegg’s earnings decreased dramatically as colleges started to reopen and students began returning to campus.

Chegg, nevertheless, has 7.8 million subscribers and has enhanced its competitive edge. The main reason for students to sign up with Chegg is because it offers 79 million pieces of unique content that were built at the request of students over time. Revenue in 2021 was $776 million, which was a rise from $255 million in 2017. Meanwhile, Chegg’s scale turned it from a loss-making firm to one with an operating income of $78 million in 2021.

Chegg is currently trading at a price-to-free-cash-flow ratio of 16, which is its lowest point. College enrollment will most likely rebound as COVID-19’s threat fades away. Before the stock rises higher and the chance is lost, investors may buy shares now at low prices.

Author: Scott Dowdy

When will the next market decline happen? It’s not an enjoyable topic to think about, but it is always a good idea to be ready. Even in good times, being prepared can help you maintain your cool and make the greatest selections for your portfolio.

No one knows when the next financial catastrophe will strike. But if it happens, now is a good time to buy shares in firms with potential for future growth that might fall at the time, but have everything it takes to rebound later. These are enterprises with solid present and future prospects in the field of consumer products. The following top retail stocks are on my list in the world of consumer goods.

1. Target

During the worst days of the Covid pandemic, one of the winning businesses was Target (TGT 1.13%). There are a few reasons for this. And each one of these factors should help Target succeed in future difficult situations. Target has created a variety of drop and collection options. The company’s digital and in-store operations are closely linked; over 95% of Target’s sales are completed by its stores.

Target has adapted its store sizes and product lines to the area, according to a recent Business Insider article. To invigorate long-term development, the firm has committed to invest up to $5 billion this year in areas that will benefit from future growth. It will be investing in physical and  digital store experiences, fulfillment, and also the supply chain.

Target has already seen the benefits. Its ROIC is increasing steadily. And, despite investments in the company, Target was able to reach a new high for fourth-quarter EPS under generally accepted accounting standards (GAAP) of $3.21. Target generated more than $100 billion in sales during the full year. That represents a growth rate of more than 35% over two years. Importantly, online and physical retail sales are exploding. Digital revenue increased by almost $13 billion from 2019 through last year. In that time, physical store transactions increased by $14 billion.

Target’s stock is up 10 percent year-to-date. All of these components together give me faith in Target’s ability to ride out a market downturn and increase earnings over the long term.

2. Amazon

Amazon (AMZN 5.73%) experienced a 9% increase in revenue and a 7% boost in earnings during the pandemic. In fact, Amazon nearly doubled its fulfillment network in only two years to keep up with demand. And since then, Amazon has increased both annual income and net profit.

However, recent market conditions have had a significant impact on Amazon’s earnings. Recently, external elements have had an adverse influence on Amazon’s earnings, such as supply chain difficulties and  inflation. The company also disappointed shareholders by reporting a net loss in the first quarter.

So, why would I buy Amazon stock in a bear market? There are two reasons for that. First, the e-commerce sector offers one of the company’s primary revenue drivers, which will lead to rising revenue over time. And it’s due to its Prime membership service. That program has over 200 million members worldwide as of 2020. And it is expanding. Recently, Amazon made a good decision: It raised its Prime membership fee in the United States. Once Amazon has dealt with today’s headwinds, I expect Prime to help reinstate income growth rates.

Here’s my second incentive to buy the stock: Amazon Web Services (AWS) is still thriving. By this, I mean sales and income growth of more than 10%. Sales and operating income increased 18.4% and 6.5%, respectively, in the first quarter. Importantly, AWS accounts for a large percentage of Amazon’s total operating earnings. As a result, AWS is an important part of the Amazon narrative.

Even if Amazon’s stock plummets during a future market downturn, earnings and share price momentum are likely to recover, as long as it is able to meet consumer expectations.

Author: Scott Dowdy

The U.S. dollar surged to a new 20-year high on Thursday, prompting a fall in gold prices and June Comex gold futures closing at $1,820.40 an ounce, down 1.7 percent on the day. Meanwhile, the US Dollar Index rose to a fresh 20-year peak of 104.80 before retreating slightly to 104.60.

“The dollar has firmly positioned gold in the danger zone, and a break below $1,800 may lead to greater technical selling,” says Edward Moya. “Until the dollar’s advance ends, gold won’t be able to grab anyone’s attention.”

The price drop for gold comes as the US stock market has been declining. Fears about the Federal Reserve’s ability to combat inflation without causing a recession have prompted investors to shift toward risk-off mentality.

“Right now, the stock market and Treasury yields are both falling, which should indicate that we’re getting closer to a capitulation on the market. If gold falls beneath $1,800, technical selling may help it fall toward $1,750,” Moya said.

TD Securities strategists believe that the broad market selloff is making a liquidity vacuum, which has also been affecting gold.

“At a time when liquidity is limited, the substantial selling flow has continued to weigh on gold,” the strategists said. “Prices are now fighting to maintain the bull-market-era defining uptrend under increased pressure from this selling flow… And with the Fed telegraphing every move they make, positioning analytics will be crucial as market continues to squeeze participants following bearish sentiment.”

Markets also took in the confirmation of Federal Reserve Chair Jerome Powell for a second term on Thursday by the US Senate, which passed it with an 80-19 vote. After the Federal Reserve announced a 50-basis-point rate increase in May, broad support for Powell was evident.

According to the CME FedWatch Tool, the markets are presently pricing in a 93 percent chance of another 50-bps increase in June and a 90 percent probability of another 50-bps boost in July.

“Because wage expenses are increasing rapidly as a result of the labor market tightness, inflation is most likely to be higher than before the pandemic,” said Commerzbank’s Daniel Briesemann. “The Fed is thus under pressure to increase interest rates significantly. Our economists anticipate that the federal funds rate will rise by 50 basis points at each of the Fed’s following three meetings. The key rate is expected to reach 3 percent by year end.”

Author: Steven Sinclaire

Amazon (AMZN 0.73 percent) shareholders will vote on a 20-for-1 stock split at its annual meeting this month. It’s very probable that the proposal will be approved, allowing for the split to occur in June.

A split could make investing in the firm more appealing to a larger number of investors and increase trading volume by separating the stock into smaller, more readily available pieces. These variables have previously aided other firms’ growth and it’s not implausible that they might generate bullish signals for Amazon. However, there are at least two additional compelling reasons to purchase Amazon’s stock ahead of the split.

1. Amazon is cheaper than it has been in years

Following Amazon’s recent first-quarter earnings report, the company has been battered on Wall Street. Last quarter, owing to Amazon’s significant financial investment in automobile maker Rivian, the company recorded a loss of $7.56 per share. Q1 revenue fell short of the average analyst forecast, and even if it wasn’t for the impact of Rivian’s tumbling stock price, earnings per share would have fallen short of market expectations.

Despite the fact that Amazon’s performance disappointed the market in Q1, investors should be relieved that this stock hasn’t looked this inexpensive in years. Recent top- and bottom-line results, challenging contexts for certain areas, and corporate investment projects have all contributed to a perfect storm of investor anxiety.

In conclusion, Amazon is spending a lot of money to help fuel its long-term growth at a time when sales are growing at a slower rate as a result of weariness pandemic-induced tailwinds. That’s also causing earnings to fall in the wrong direction.

With investors fleeing stocks due to high inflation and interest rate hikes, it’s easy to understand why the market despised Amazon’s Q1 results and the stock is now down roughly 33% from its high last year. On the other hand, this is a firm that still appears to be in an excellent position to dominate the future, and big sell-offs have created a great buying opportunity.

2. The cloud business looks incredibly strong

While Amazon’s e-commerce operation is still its most lucrative source of income, the company’s cloud services sector plays a much bigger role in profitability. In the first quarter, Amazon Web Services (AWS) increased revenues 36.5% year over year and posted a gross margin of 35.3% – which was an improvement from about 30% gross margin for all of last year.

E-commerce is a low-margin business due to the high infrastructure and operational expenses. Meanwhile, as AWS shows, cloud-infrastructure services can be extremely lucrative at scale. AWS provides the underpinning for a wide range of modern internet. Amazon should keep benefiting from new sites, services, and apps being added.

 Amazon Web Services (AWS) accounted for just 10% of overall revenue last quarter and generated roughly $6.2 billion in operating income, pushing the business to an operational profit of around $3.67 billion despite significant losses from other areas. Despite short-term disturbances for other sectors, Amazon’s main earnings generator is in excellent condition, and it would be a blunder to ignore the broad picture because of current sector difficulties

Author: Scott Dowdy

AMD and Intel’s rivalry dates back to the birth of the microchip industry. AMD was always a smaller firm, despite its aggressive growth.

Still, since Lisa Su took the reins at AMD in 2014, the company’s stock has rebounded from penny-stock status and produced returns of almost 30 times during her tenure. Meanwhile, Intel’s stock languished for many years. Still, Intel appears to be staging a comeback of its own in recent months, raising the debate about whether it’s time to consider Intel or if AMD stock is still the superior investment.

The case for AMD

Meanwhile, when Su took the reins of AMD, the PC market was in steep decline. Many investors had given up on AMD because of its stock price, which was trading at less than $5 per share.

Su, on the other hand, shifted AMD’s attention to high-performance computing. She also devised a strategy for catching up to Nvidia and surpassing Intel. As a consequence, AMD has challenged Nvidia in several markets and will release its first 7nm processor in 2019, which Intel has yet to accomplish.

Today, AMD’s enterprise, semi-custom and embedded sector is its growth engine. This includes EPYC processors, server businesses, and gaming console microchips. The computing and graphics segment includes the Radeon and Ryzen GPUs, desktop and notebook CPUs, as well as data center chips. AMD has also acquired a segment focused on the supercomputer market after completing the Xilinx takeover.

The company has enjoyed significant growth in recent years, which is highly unusual for the sector. AMD’s overall profit rose from $532 million to $879 million between 2013 and 2016, an increase of 64%. Revenue was up 7% year over year in Q1. The EESC segment generated 88 percent more revenue. A 33% boost in computing and graphics drove this figure.

Non-GAAP earnings increased by 148% to almost $1.6 billion during the three months, as the firm kept expenses growth below 44%. This increase should continue as the company expects around $26.3 billion in earnings for 2022, 60% more than 2021.

Unfortunately, these hikes have done nothing to prevent AMD stock from declining 40% from its 52-week high. However, the decrease in value helped reduce the P/E ratio to 39, which is far under Nvidia’s 53 P/E ratio. Many investors may regard AMD stock a buy right now when comparing that valuation to revenue growth.

The Intel comeback plan

Intel has been a pioneer in the computer industry for decades, but it has faced management upheaval and the loss of its tech edge. TSMC’s takeover of AMD caused such a stir that Intel began outsourcing production to Taiwan Semiconductor Manufacturing (TSM -0.16%), better known as TSMC.

However, the firm’s strategy changed when the present CEO took over in February 2021. He established Intel Foundry Services, making it a challenge to TSMC and Samsung. To back this business, he has started an aggressive capacity buildup plan that will invest $40 billion in the United States and 80 billion euros in Europe.

Intel CTO Drew Cherry has stated that Brad Linder will continue to be in charge of product development. Although he is currently working on 7nm chips, Intel’s CEO Bob Swan wants to reclaim the technical lead for the company. He aims to produce 7nm chips by 2023 and surpassing TSMC by late 2024. nonetheless, chip creation cycles generally take three to five years. As a result, before investors know if it will succeed in meeting its objectives, Intel has a lot to prove.

Furthermore, such goals might put additional strain on Intel’s struggling finances. Revenue was $18.4 billion in Q1 2022, which is down 7% from the previous year. It also reported non-GAAP net income of $3.6 billion, 35% less than last year’s figure. Profits took a beating as costs rose and earnings fell dramatically short of expectations.

Additionally, since 2022 revenue forecasts of $76 billion imply just a 1% increase in coming years, it will not come as a surprise to investors that the stock price dropped by more than 20% during the last year.

However, Intel’s P/E ratio has fallen to eight, the lowest of the big companies, as a result of these circumstances. If Intel can achieve most of its objectives, it appears poised for a resurgence.

So, Intel or AMD?

AMD appears to be the superior choice right now, owing to current market conditions. AMD is undoubtedly more expensive than Intel, but unlike Intel, it has a lot of potential to boost its prices further.

Still, investors should keep this discussion in mind in the future. Chip development cycles are considerably longer than Gelsinger’s 15-month tenure as Intel CEO, so his approach has yet to be determined. However, if Intel can demonstrate that it is hitting revenue and technological targets, it just might become the semiconductor stock of choice.

Author: Scott Dowdy

Imagine your dog working every day to create money that goes into your bank account. While it may appear to be a fantastic opportunity, it is also a remote possibility.

However, there’s a scenario that is at least somewhat comparable that represents genuine potential. Replace “dog” with the “dog-inspired meme coin.” Here is the amazing amount of passive income you can earn staking Shiba Inu tokens in total.

This dog will hunt

What is staking? Simply put, it’s a way to earn rewards for being an early investor in the project. We’ll get to the financial compensation later. Let’s first address an essential question: what exactly is staking?

Staking is a method of earning cryptocurrency rewards by committing funds to a blockchain. Your tokens are then utilized to help the underlying blockchain verify transactions. The issue is that the given blockchain must employ the proof-of-stake consensus algorithm, rather than the proof-of-work protocol.

When it comes to staking, you may believe that the ancient saying “this dog won’t hunt” is correct for Shibas. After all, the token is based on the Ethereum (ETH -6.84%) blockchain, which uses proof-of-work technology.

However, the Ethereum network is in the midst of a significant upgrade to move to a proof-of-stake consensus mechanism. The Beacon chain is already up and running, bringing staking capabilities to the Ethereum ecosystem. Merge of the Beacon chain with the ETH mainnet is planned for this year, allowing all users of Ethereum to stake.

Digging up dollars

The bottom line is that, yes, Shiba Inu tokens may be staked. And you can make a decent profit doing so.

Binance currently has the highest annualized yield. The amount displayed is for a 120-day lockup period. Binance also provides an option that only needs a 10-day lockdown and generates a yearly return of 10.12%.

Shiba Inu appears to have the worst staking potential among the coins we reviewed. You may currently earn an annualized return of 3% in exchange for putting your tokens away for three months.

ShibaSwap’s conditions are the most complicated of all three exchanges. You must keep 67 percent of your staked tokens locked for six months. The cryptocurrency exchange, on the other hand, allows you to receive weekly bonuses on the remaining 13%.

Shiba Inu staking is a little more complicated than other cryptocurrencies. For example, the amount of passive income you will make staking SHIB depends on the exchange that you use, the lock-up period you select, and the number of tokens you stake. However, for every $10,000 worth of staked tokens, it’s now possible to earn more than $1,200 per year in continuous passive income. That’s far greater than most other techniques of generating passive revenue allow.

Barking up the wrong tree?

Shiba Inu staking may earn you a lot of money over time, but it isn’t necessarily the greatest option. If the price of a meme coin drops while your tokens are locked up, you will not be able to sell them. It is possible that your overall loss will be larger than your staking payouts.

Stablecoins like Tether (USDT 0.27%) are an attractive alternative for investors looking to produce passive income by staking crypto. The maximum yearly yield available for staking Tether is 12.3 percent, whereas Shiba Inu has a maximum annual yield of only 10%. Stablecoins are less volatile than SHIB. Its value has barely changed thus far in 2022, yet SHIB is down more than 40% thus far in the year.

Author: Blake Ambrose

Bear markets, corrections, and crashes in the stock market may be frightening. They’re unpredictable, can lead to significant equity declines, and tug on investors’ emotions.

But spectacular falls in the overall market may be a great time to acquire high-quality stocks at a bargain. Even though the S&P 500 has suffered 39 double-digit declines since 1950, which amounts to a double-digit correction once every 1.85 years on average, each of the previous 38 downturns, not including this one, has been erased by a bull market rally.

These stocks look like screaming bargains

Many creative and time-tested firms stand out as tremendous steals now that the market has cratered, with several of them waiting to be purchased. The following are two such businesses.

Wells Fargo

Wells Fargo is a money-center bank that’s currently yielding 1.32%, resulting in it being primed and ready to be purchased by opportunistic investors at a striking discount.

The stock has dropped over a quarter of its value in the previous 3 months. Because bank stocks are cyclical, there’s worry that historically high inflation will force the United States into recession. It’s worth noting that first-quarter GDP in the United States did retrace by 1.4 percent.

The cyclical nature of banks, on the other hand, is precisely what makes them so appealing during market panics and economic downturns. Even though recessions are bound to occur, they generally last no more than a few months to a couple of quarters. Economic booms, on the other hand, usually last for years. Bank stocks are well-positioned to benefit from this natural growth in the United States economy.

The Fed’s monetary policy shift should benefit Wells Fargo as well. Although higher interest numbers usually slow the American economy, they imply that Wells Fargo can receive a greater net interest income on its variable loans. Next year’s earnings are expected to increase by 24% as a result of this net interest income increase.

Investors may buy Wells Fargo now for less than nine times forward-year earnings, above its book value.

Trulieve Cannabis

Marijuana stock Trulieve Cannabis (TCNNF -3.85%) is another screaming bargain that investors may buy with confidence as the market tumbles. Since reaching an all-time high 14 months ago, shares have dropped almost three-quarters of their value.

Pardon my overused phrase, but after the Democrats took control of Congress, expectations for marijuana stocks were high. Following Pres. Joe Biden’s victory in Nov. 2020, it was anticipated that cannabis would be legalized nationally or at the absolute worst that cannabis banking regulations would be developed. However, no amendments have been passed to date, leaving Wall Street to punish what are called multi-state operators (MSO) such as Trulieve Cannabis.

However, going after U.S. marijuana stocks makes little sense since three-quarters of all U.S. states have legalized cannabis in some manner, including 18 states that have legalized adult-use consumption. As long as the federal government permits individual states to control their own industries, MSOs will continue to see organic growth potential.

Trulieve Cannabis stands out among MSOs in part because of how it’s grown. While most MSOs opened cultivation facilities and dispensaries in as many legalized states as possible, Trulieve’s attention until recently was almost entirely on Florida. Medical marijuana is legal in the state of Florida, and Trulieve has a monopoly on flower and cannabinoid oil sales.

Author: Steven Sinclaire

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