Argo Blockchain shares: here’s why I would and wouldn’t buy this UK share

first_imgArgo Blockchain shares: here’s why I would and wouldn’t buy this UK share The Argo Blockchain (LSE:ARB) share price remains highly volatile as it tracks movements on cryptocurrencies markets. At 240p, this UK share’s up around 10% in Monday trading as prices of Bitcoin et al have risen again.That said, the Argo Blockchain share price still sits a little way off early February’s record peaks north of 280p per share. Does this recent retracement still represent a top dip-buying opportunity for UK share investors like me?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Reasons why Argo Blockchain could keep risingThere are several reasons why I think the Argo Blockchain share price could soar to new record peaks. These include:#1: Blue chip interest keeps growing. Doubts over the underlying value, and the mass acceptance, of digital currencies hit their prices hard in previous years. It’s no coincidence then that investor interest has perked up in recent months as a string of major tech, retail, and financial firms have decided to dip their toes in the water. News on this front keeps coming thick and fast, too, and today Visa announced plans to allow customers to settle payments using cryptocurrencies.#2: Institutional investor interest expands. Buying interest from institutional investors has ballooned during the past 12 months. And this been a major driver behind the explosive movements in cryptocurrency prices in this time. The good news for Argo Blockchain is that the popularity of Bitcoin et al among these investors looks set to keep rising. A recent survey by Nickel Digital Asset Management for instance suggests that demand should keep rising. It shows that 93% of professional investors expect wealth managers and institutional investors to increase their exposure to digital currencies over the next two years.Why I’m still worried about this Bitcoin playI won’t deny that there are solid reasons why the Argo Blockchain share price might continue rising in the short-to-medium term. However, the close relationship between this UK share’s valuation and that of Bitcoin and other digital assets might have serious ramifications for Argo Blockchain’s profits over the long term. There’s still a long way to go before cryptocurrencies will be embraced as a major global new asset class. And so prices could well drop through the floor again.The Argo Blockchain share price could also fall as investment in sustainable and environmentally friendly asset classes becomes more popular. The business of cryptocurrency mining uses colossal amounts of electricity, raising concerns over increased use of fossil fuels. The Cambridge Bitcoin Electricity Consumption Index shows that Bitcoin uses more electricity annually than all of Sweden did in 2019.Argo Blockchain has taken steps to address this issue. It decided to build its new mining development in Texas partly because the cheapness of renewable energy there. This might not save the company’s bacon though if the investment community starts to dump cryptocurrencies on fears relating to their carbon footprints. All things considered I think Argo Blockchain is still too risky for a UK share investor like me. Image source: Getty Images. Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. 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Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Visa. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Enter Your Email Address Royston Wild | Monday, 29th March, 2021 | More on: ARB Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Royston Wildlast_img