Just two weeks ago, the world went WILD as Bitcoin barely went above the $20,000 price level and hit a historic all-time high. It was the first time in three years that Bitcoin reached this level after numerous ups and downs.
And yesterday, we saw a jump in Bitcoin price unlike anything we’ve ever seen in the past. It was at $20,600 as of 12:30pm EST in yesterday’s trading session. An impressive 7% jump from the day before, and a 3-fold increase in value since the start of 2020.
If you look at Bitcoin’s price over a longer period of time, the average returns have been 200% per year for a total 10-year return of 6,200,00%. Suck it long and suck it hard, index fund investors!
I’m writing this article as of 6am EST today, and Bitcoin has gone up MORE to an impressive price point of $22,624 USD per individual coin. This is mind-blowing when you consider at 5pm EST yesterday, Bitcoin was at $21,195.60.
Well-known Bitcoin whale Eric Peters chimed in with his thoughts on why the price skyrocketed over the past 24 hours:
“We see this as a small but potent insurance policy against the continuing devaluation of the world’s major currencies. Bitcoin diversifies the company’s (much larger) investments in gold and inflation-linked bonds, and acts as a hedge to some of the monetary and market risks that we see.”
Even with this meteoric gain, Bitcoin still has a 7-fold lower market capitalization than gold in the form of coins, bars, and exchange-traded funds ($2.6 trillion versus $383 billion). But if these gains hold and Bitcoin keeps going up, it is no longer unreasonable to believe that Bitcoin could easily reach the $100,000 and go further beyond in 2021.
I can’t help but feel very jealous of the people who were early adopters to Bitcoin, bought several coins when they were dirt-cheap, had the patience to hold onto them despite fear-inducing volatility, and had the wisdom to securely keep their coins in a wallet without “losing” them.
Bitcoin has led to the surge of ordinary know-nothing people who are now millionaires, multi-millionaires, and even billionaires. It is truly an untapped source of wealth that you would now be foolish to avoid.
According to HowMuch, here is how a $100 investment into Bitcoin 10 years ago performed I comparison to other investments…
- Visa: $1,700
- Apple: $2,400
- Amazon: $3,200
- Bitcoin: $9,200,000
I rarely make investment recommendations, but there is a very high chance you will end up banging your head against your desk if you do not allocate at least a small portion of your total portfolio to Bitcoin and other cryptocurrencies.
What do YOU think about the astronomical rise in Bitcoin this year? Will you start investing in this hedging asset, or do you have good reason to avoid buying Bitcoin? Reply to this newsletter and tell us what your next move is!
The Stock Market BARELY Inches Out Gains Over Positive News
After a series of losses this week, yesterday’s stock market performance led to some much-needed yet lackluster gains. Here are the most important numbers you need to know about:
- Dow Jones: -0.15%
- S&P 500: +0.2%
- NASDAQ: +0.5%
- Tech stocks: +2% for Microsoft and Apple
One of the driving factors behind these numbers were some comments made by the Federal Reserve when they released their economic projections for 2021. From CNBC:
“The central bank now expects real gross domestic product to fall just 2.4% in 2020, compared to a decline of 3.7% predicted in September. The Fed also upped its 2021 real GDP forecast to 4.2% from 4.0% expected previously.
The Jerome Powell-led Fed estimates the unemployment rate to fall to 6.7% this year, further below the 7.6% previously predicted. The unemployment rate should fall to 5.0% in 2021, compared to the central bank’s previous estimate of 5.5%.”
We also have Congress (hopefully) inching closer to towards signing off on the second stimulus package, now valued at a total of $900 billion. Tomorrow marks the FINAL day for leaders to reach a mutual agreement before government shutdown for the rest of 2020, and that’s excluding the possibility of extending their deadline by an additional week.
The market appears to be in a quiet standstill right now for some major news, so don’t think this lack of activity is going to last forever…
An investment of $100,000 will turn into $1 million
If you do the math, a 1,000% return on investment means your money grew 10-fold. In other words, an investment of $100,000 will turn into $1 million. You’d be VERY hard pressed to get these kinds of returns from any other investment, short of explosive growth stocks and long-term holdings in Bitcoin.
But according to The Motley Fool, there were 3 stocks in particular that would have 10x-ed your investment at the start of 2020 if you were wise enough to buy into them. Then again, hindsight is 20/20 and we are all investing geniuses if we talk about what we could have done and should have done.
Blink Charging: A +1,365% ROI in 2020 would have turned $100,000 into $1.5 million as their shares jumped from $2 to $27 at the time of writing. This company specializes in providing charging equipment and services for electric-powered vehicles.
With 18.7 million electric vehicles projected to be on US roads by 2030, you might as well be on the side of the company providing essential services to this niche group of automobile owners.
NIO: A +944% ROI in 2020 would have turned $100,000 into $1.04 million as their shares jumped from $4 to $44.67 at the time of writing. This Chinese electric vehicle company is poised to become a serious competitor to Tesla as they belong to a country with the largest use of electric vehicles. Not too shabby for a company with a market cap of $57 billion!
Novavax: A +3,034% ROI in 2020 would have turned $100,000 into $3.13 million as their shares jumped from $4 to $121 at the time of writing.
Although their share value exploded due to their development of a COVID-19 vaccine in the middle of Phase III clinical trials right now, hoping for FDA approval in mid-2021, you would have had to be a biotech-focused investor or a genius to predict the COVID-19 pandemic well in advance.
Just goes to show you that 2020 was TRULY the greatest year to be an investor if you picked the right stocks at the right time!
Love It or Hate It, K-12 Students Are Stuck With Remote Learning
Most people don’t know this, but the largest school system in America is located in the heart of New York City. And with an upcoming snowfall, K-12 students will have yet another reason – on top of the COVID-19 pandemic – to attend classes from their laptops.
At least, according to Mayor Bill de Blasio:
“Someone said to me the other day they felt kind of forlorn about the fact that it ends the snow day as we knew it as kids, when we look forward to a day off, yes, it’s true that that’s now going to be a thing of the past, that even when kids are home because of snow, they’ll still be learning.
Even when kids are home because of snow, they’ll still be learning… And I’m kind of sad for the kids on the one hand, on the other hand we got a lot of learning that needs to be done, a lot of catching up.”
Schools now have an important decision to make: Will they rely 100% on online learning for K-12 students, offer a hybrid of in-person and virtual learning, or only tap into virtual learning during events such as extreme snowfalls that physically prevent kids from attending school?
So far, we’ve seen nothing but negative results from switching to online learning. Kids are getting failing grades at a rate never before seen, especially in the basic fields of reading, writing, and mathematics. Not to mention that 462,000 jobs in the K-12 school system were lost this year because of COVID-19.
If you are seriously considering the possibility of homeschooling your children, and you have both the free time and the financial means to do so, now would be a good time to start looking into it. Because I have a feeling that the overall quality of public education is on track for a downward trajectory…
Do YOU plan to homeschool your kids in the near future? Why or why not? Reply to this newsletter and share your plans with us!
“Buy Now, Pay Later”: The New Sales Model of Retailers Nationwide
When you buy expensive items such as furniture, the standard sales model is to offer customers a generous “payment plan” where you cover the cost of an item over several monthly payments without interest or additional fees.
After all, a small upfront investment and a monthly fee is how you get customers to pay for items that would normally be too expensive to pay off in one lump sum.
But apparently, it turns out that retailers of low-cost items are starting to take on the same “buy now, pay later” plan. Walmart, GameStop, Macy’s, and Gap are just a few examples off the top of my head.
And according to Forbes, the statistics behind this payment model show that more consumers are preferring it when they buy from retailers:
- 50% of consumers spend 10-40% more money with a “buy now, pay later” plan versus using a credit card
- 66% of users are using a “buy now, pay later” plan to cover items they WANT (not NEED) such as jewelry and other non-essentials
- 69% of millennials and 42% of Gen Z’ers are more likely to buy an item if a “buy now, pay later” plan exists for said item – it helps them afford items that otherwise are not in their budget, while having the payoff of avoiding credit card interest
Be warned: Your penalty fees may be even higher than credit card interest rates if you fall behind on these payment plans! As with every solution, a new problem always arises…
The Wealthy 1% Have Found Golden “Remote Work” Locations Within America
What happens when you have venture capitalists, companies and people making millions (if not billions), and otherwise powerful people move out from expensive cities in search of greener pastures? When places like Austin, Texas and Miami, Florida become viable work-from-home locations for these individuals?
You get a complete f*cking financial disaster for the cities who lose them. Bloomberg recently did an investigative piece on this phenomenon, using New York City as a scary example of how much money a city is set to lose when billionaires and millionaires leave for good:
“A whopping 80% of New York City’s income tax revenue, according to one estimate, comes from the 17% of its residents who earn more than $100,000 per year. If just 5% of those folks decided to move away, it would cost the city almost one billion ($933 million) in lost tax revenue.”
Tens, if not hundreds, of millions of dollars can be saved simply by moving from a higher-tax state to a lower-tax state. That’s it. No complicated loopholes or fancy business deductions. That’s literally all it takes.
Now granted… the core businesses making all the money likely will not relocate. It’s more like the individuals who “own and control the capital” are changing their address, per Bloomberg.
It’s one thing when middle-class Americans change the state they live in to afford a more comfortable way of live. But when the wealthiest 1% does it, and enough of them do it, their decision can leave a city in financial ruins.