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      Find out why Riot Blockchain Inc. (RIOT) is seeing gains today - Stocks Telegraph

      By ST Staff

      Published on

      March 24, 2021

      3:56 PM UTC

      Last Updated on

      August 4, 2021

      2:59 PM UTC

      Find out why Riot Blockchain Inc. (RIOT) is seeing gains today - Stocks Telegraph

      Riot Blockchain (NASDAQ: RIOT) stock surged by 5.85% in the recent trading session leading to the stock price of $53.05.

      The rise in the RIOT stock is correlated to the bullish movement in cryptocurrency Bitcoin (BTC).

      Riot Blockchain was not always a Blockchain

      Initially, Riot Blockchain started as a diagnostic equipment maker company in the year 2000. However, the business did not have much success. 17 years later, the company shifted its focus from medical equipment producer to a BlockchainCompany as it stepped into the crypto industry.

      The company has acquired high-powered mining systems and sophisticated algorithms for crypto-mining and the creation of Bitcoins. IT specifically approaches the mining concept through a category is known as proof-of-work (PoW) mining. PoW mining companies have to compete with other companies to acquire Bitcoins through solving complex algorithmic puzzles.

      How Bitcoin influences the stock value of crypto-mining companies and currencies

      The reason for BTC to soar is because of the very recent announcement by the “TechnoKing” of Tesla; “You can now buy a Tesla with Bitcoin” Elon Musk tweeted at 3 am EST Wednesday. Similarly, Chair of the Federal Reserve, Jerome Powell praised the biggest cryptocurrency. Jerome said that BTC resembles a speculative asset which can substitute gold rather than for the dollar which does not have intrinsic value.

      Whenever Bitcoin rises or falls due to major news, it influences the movement of many crypto-coins especially Ethereum, and along with it the stock value of crypto-mining companies. Riot Chain is a small company compared to other Blockchain companies. However, RIOT has the advantage of being one of the few publically traded cryptocurrency companies.

      How does this affect the outlook for RIOT stock?

      Essentially, RIOT stock is classically influenced by the momentum of the Bitcoin’s performance.  This phenomenon can work both in favor and against the company’s stock movement. Wall Street analysts predict that since the stock’s fundamental lacks innovation and sees an increased number of competitors, it will lose 54% of its value by next year.

      However, a lot of investors and businesses like TESLA are leaning towards the cryptocurrency’s play in this era of digital wallets and online transactions. Many hedge funds and financial institutions are allocating their portfolio to cryptocurrencies. Mastercard (MA) and PayPal (PYPL) have already integrated cryptocurrency in their financial network for the medium of exchanges.

      Overall, cryptocurrency does not seem to be going anywhere as its foundation seems bold; it is possible to witness bullish trends for it in the near future while expecting periodic drops in the value.

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