Dogecoin action against Ballard Power (TSX: BLDP)
Dogecoin is a cryptocurrency that has gained a lot of attention these days. Despite its recent sharp decline, Dogecoin has returned a spectacular 8.600% in 2021. This is very attractive to investors. It makes our dreams of getting rich quick seem like it is possible. But is this really the case? Is Dogecoin worth the risk? Well, there are stocks of disruptors that offer an explosive rise as well. They also carry risks, especially when they are at an early stage, such as Ballard Power Systems (TSX: BLDP) (NASDAQ: BLDP). But investing in Ballard Power stock is very different from investing in Dogecoin. There are real fundamentals behind this. Let’s take a closer look.
Dogecoin is all the rage, but is it justified?
Remember that cryptocurrency is a speculative bet. Some of the best and brightest minds have remained clear. And looking at the price history of Dogecoin and other cryptocurrencies like Bitcoin, we can see that volatility dominates the day. Large increases are followed by large declines. And there doesn’t seem to be an easy way to predict what’s going to happen next. Well, what I just described sounds like a bet. This is exactly what Bitcoin is – a bet. Perhaps cryptocurrency will one day be an accepted method of payment. Today, there are many risks that investors should not be prepared to take on.
Thus, Dogecoin has increased dramatically by over 8,000% in 2021. Many of us dream of making it rich in an instant. But the reality is that there is great risk in this volatile instrument. For example, since May 7, Dogecoin has fallen by 50% – like that in two weeks. It is a high stakes game. And there is no real way to predict where Dogecoin will trade next month, or two months, or next year. It’s a guessing game. I think it’s best to focus our attention on real companies.
Ballard Power Stock: Better Than Dogecoin as Fuel Cell Acceptance and Deployment Rise
Yes, Ballard took a long time to increase his income. The company is innovating in a fairly new and early stage industry. Many obstacles still need to be overcome. But there are clear fundamental reasons for placing a bet on Ballard Power stock. For example, Ballard Power currently has a market share of around 80% of the heavy-duty fuel cell (HDFC) market. The transition to fuel cells in the bus, truck, train and ship markets is making more and more sense. It is supported by the global push for clean energy. There are mandatory carbon reduction targets that simply have to be met. Ballard contributes to this.
So the Ballard Power stock has also seen a volatile run. It has skyrocketed over 500% from late 2019 to a February 2021 high of $ 43. But since then, Ballard stock has fallen 62%. That’s a 62% drop in three months. So, as we can see, the Ballard Power stock is not for the faint of heart either. Like Dogecoin and cryptocurrency in general, it is also very volatile. But the level of volatility is lower. And with Ballard, there are strong fundamental drivers.
Fuel Cell Market Rising: A Much Better Bet Than Dogecoin
The fuel cell market is booming and is about to explode. Costs have been drastically reduced. And governments around the world are deploying fuel cell vehicles. For example, Europe is pushing for a fuel cell public transport system. In addition, China is even further along in this push. Heavy fuel cell vehicles such as buses have been upgraded. They outperform reliability, power, distance and recharge times.
ResearchandMarkets.com estimates that the global fuel cell industry will experience massive growth over the next five years. The estimate is at an average annual rate of 26%. Ballard is at the forefront of the fuel cell market. The company has unparalleled expertise and relationships.
Motley Fool: The Bottom Line
Dogecoin is one way investors are looking to get rich quick. But these enrichment projects are usually quite dangerous. Dogecoin is no exception. Consider the Ballard Power stock instead. It’s a title that has a bright future and big advantages. It is not without risks, but I see it as a solid investment that should benefit from the rise of the fuel cell market.
This article represents the opinion of the writer, who may disagree with the position of an “official” recommendation of a premium Motley Fool service or advisor. We are Motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we’re posting sometimes articles that may not meet recommendations, rankings or other content. .