Forget Dogecoin: HIVE Stock May Be the Best Play on the Crypto’s Future

Dogecoin investors are still euphoric, but here’s why HIVE Blockchain Technologies (TSXV:HIVE) or HIVE stock is a better long-term crypto play.

| More on:

The speculative mania going on at Dogecoin is unprecedented. The digital currency originally created as a joke has many people taking the token very seriously. Based on the wildly popular Shiba Inu dog featured in memes, Dogecoin has minted millionaires in just a few months.

There’s nothing more tempting than a story of a couple of normal folks who became overnight millionaires. Those who gave in to the temptation — something I pleaded with investors to avoid leading up to Elon Musk’s Saturday Night Live (SNL) appearance where he jokingly referred to Dogecoin as a “hustle” in a skit — are now feeling pain. Cryptocurrencies, led by Bitcoin, Ether, and the like, took a nasty spill as China looked to crack down on its miners.

Forget about Dogecoin and all the hype for a moment

HIVE Blockchain Technologies (TSXV:HIVE), a popular Vancouver-based cryptocurrency miner, took a massive hit to the chin as environmental concerns surrounding the process of crypto mining were thrown to the forefront. Now we’re hearing that Elon Musk and many other folks pushing for greener mining (something HIVE is known for) with its access to low-cost sustainable sources of energy in some of the chilliest climates on the planet (Canada, Sweden and Iceland).

Setting up shop in an ice-cold part of the world while using renewable energy makes HIVE Blockchain one of the better miners to hang onto if you’re keen on crypto but are a tad worried about the environmental footprint left by its miners.

HIVE stock holding its own better than other miners

Despite HIVE Blockchain’s greener footing, HIVE stock has not been immune to immense pain amid Bitcoin and Dogecoin’s latest sell-off. Shares of HIVE slid just over 58% as Bitcoin shed around half of its value. Given that miners of a commodity tend to amplify moves in the underlying commodities they mine, HIVE stock’s plunge was not as bad as it could’ve been — likely because of a gravitation toward cryptocurrency miners that have shown a sense of environmental responsibility.

Bitcoin isn’t as efficient as it could be. Elon Musk and many other innovators want to change this. As the crypto crackdown spreads to various nations, I’d be wary of buying any cryptocurrencies on the dip. That said, if you’re keen on holding on for dear life in the world of crypto and you’ve only got 4% or less of your overall net worth invested in digital currencies, HIVE stock is a vastly better bet than Bitcoin and certainly better than meme token Dogecoin.

A future-proof play for serious cryptocurrency investors

HIVE focuses its efforts on mining serious cryptocurrencies, most notably Bitcoin, Ethereum, and Ethereum Classic with an emphasis on bolstering gross mining profitability through improving upon computational efficiency while driving down the amount of energy used.

Not only is HIVE Blockchain a green cryptocurrency miner, but it’s also a diversified and more secure way to bet on the broader cryptocurrency universe. And if ever there’s something better, greener and more widely adopted than Bitcoin, you can be sure that HIVE will likely look into mining it at some point down the road.

The bottom line

Personally, I’m no fan of any of today’s cryptocurrencies. Bitcoin is too power hungry for my liking, and I still view Dogecoin as a joke despite its success. If I were forced to place a bet in the crypto universe, though, I’d go with a green miner like HIVE stock over holding actual tokens in a digital wallet.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has no position in any of the stocks mentioned.

More on Stocks for Beginners

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

Asset Management
Stocks for Beginners

TFSA: 4 Canadian Stocks to Buy and Hold Forever

Thinking about what to buy with the new TFSA contribution space in 2025? These four Canadian stocks are worth holding…

Read more »

concept of real estate evaluation
Stocks for Beginners

2 No-Brainer Real Estate Stocks to Buy Right Now for Less Than $1,000

These two real estate sector-focused stocks have the potential to deliver strong returns on your investments in the coming years.

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »