In 2020, we thought it would be borderline impossible for Bitcoin to EVER break the $20,000 price point. After its crash in late 2017, the cryptocurrency was doomed to flatline for the rest of its lifetime, occasionally going up and down.
But then something happened, right out of nowhere. On the 16th of December last year, it went up to the $21,000 level. Just nine days later on Christmas Day, it broke the $24,000 level. Then the first day of 2021 came by and it was at $29,000.
We are only EIGHT days into the brand new year, and we already have a NEW non-existent level being defeated. From CNBC:
”Bitcoin smashed through $40,000 to hit a new record high on Thursday helping to lift the total value of the entire cryptocurrency market above $1 trillion for the first time. The digital coin hit an all-time high of $40,367 at around 1:17 p.m. ET, just a few hours after blowing past the $39,000 level.
Bitcoin pared some of its gains after hitting a record, last trading at $38,885, up 9.1% higher from a day earlier. The cryptocurrency is up over 30% since the start of 2021 and in the past 12 months has surged 400%.”
For Christ’s sakes… it only took THREE WEEKS to double the price of Bitcoin from $20,000 to $40,000. At this pace, Tesla’s 700% rise in share value last year might prove to be nothing more than a drop in the ocean.
As always, Bitcoin’s rise has a funny habit of automatically boosting the value of other cryptocurrencies in existence:
“The value of the entire cryptocurrency market, which is made up of bitcoin and other digital coins like ether and tether, surpassed $1 trillion for the first time earlier on Thursday, according to data from Coinmarketcap. Bitcoin is by far the most dominant cryptocurrency, with a market value of over $700 billion.”
Just take a look at Ethereum… it officially broke above the $1,200 level and is well on its way to achieving its 2018 high of ~$1,400. If Bitcoin continues to grow, then so too will Ethereum.
Don’t forget about the other companies directly involved in the mining and/or management of Bitcoin and other cryptocurrencies. As of 1 pm EST yesterday, according to The Motley Fool, here are just a small sample of how these companies saw an explosion in share value:
- Xunlei, up 65%.
- Marathon Patent Group, up 37%.
- CleanSpark, up 15%.
- Riot Blockchain, up 23%.
- Canaan, up 12%.
- Grayscale Bitcoin Trust, up 7%.
- MicroStrategy, up 14%.
And as always, it’s the same factors leading to Bitcoin’s explosive surge…
More institutional investors are buying into the idea of adding cryptocurrency to their portfolios. More payment platforms are starting to offer support for cryptocurrency payments, if not already expanding on what they made available for their customers.
More people who felt guilty about not buying into Bitcoin earlier are trying to salvage whatever gains they missed out on. And the early adopters, now convinced they made the right decision at the right time, want to get even more out of their fortunate market timing.
Which leads me to my question for you: What will YOU now do with Bitcoin in light of this exciting news? Get into cryptocurrency for the first time? Continue to buy more and hold on for dear life? Continue to ignore it? Reply to this newsletter and share your decision with us!
Elon Musk Is Officially the World’s Richest Man (Or Is He?)
In the late afternoon of yesterday’s trading session, Tesla shares rose up more than 7% and the company’s market capitalization of nearly $800 billion. And as a result, multi-billionaire Elon Musk was able to accomplish an extraordinary goal:
“Elon Musk just became the richest person in the world, with a net worth of more than $185 billion. Thursday’s increase in Tesla’s share price pushed Musk past Jeff Bezos, who had been the richest person since 2017 and is currently worth about $184 billion.
Musk’s wealth surge over the past year marks the fastest rise to the top of the rich list in history — and is a dramatic financial turnaround for the famed entrepreneur who just 18 months ago was in the headlines for Tesla’s rapid cash burn and his personal leverage against the company’s stock.
Musk started 2020 worth about $27 billion, and was barely in the top 50 richest people.”
Yet according to Forbes and their estimates, Elon is actually the SECOND richest man in the world:
“Shares of Musk’s electric-vehicle maker Tesla rose by 7% as of 2:30 p.m. EST on Thursday, pushing Musk’s net worth up by $9.8 billion, to $175.2 billion.
That makes him $22 billion richer than the planet’s third-wealthiest person, French luxury tycoon Bernard Arnault, but still $11 billion behind the world’s number one, Amazon CEO Jeff Bezos. Forbes estimates that Bezos has a net worth of $186.8 billion.”
Tomato, tomato. At the end of the day, he has made more in a few short years than any of us ever will in multiple lifetimes…
Offices in Manhattan Are So Quiet, You Can Hear a Pin Drop…
In what is easily perceived as bad news for commercial real estate in Manhattan, there are a LOT of vacant offices. From ZeroHedge:
“A new report from commercial real estate firm Savills said Manhattan’s office vacancy rate ended 2020 at 15.1%, a record high, up from 11.1% in 2019.
More than 68 million square feet of office space lay dormant in the borough in the fourth quarter, including 18.6 million square feet of sublease space available for tenants attempting to downsize.
…new leases in the fourth quarter plunged 64% from a year ago to 4.6 million square feet… average asking rents for ‘Grade-A’ office space fell 8.6% to 90.42 a square foot.”
At this rate, by the time America makes a full economic recovery, NYC will need a couple of additional years to catch up. Just 10% or less of all office workers in Manhattan have made a return, and this level of office availability was last seen in Q1 2004.
On the positive side, there’s never been a better opportunity to get ahead of the curve and buy up some property for pennies on the dollar. If you’re a real estate investor who is patient enough to wait for a few years before your positions generate positive returns, this might be worth looking into…
Our Retirement Plans Are Slowly Going to Zero… Will It Ever End?
Personal Capital and Kiplinger’s PersonalFinance Magazine recently conducted a survey of 744 Americans who were financially struggling during the pandemic. And according to MarketWatch, it appears as if our retirement accounts don’t have much longer before they go to zero:
“A majority of Americans — 60% — withdrew or borrowed money from qualified retirement plans since COVID-19 first arrived in the US, two-thirds of whom did so to pay for basic living expenses.
Nearly a third of people withdrew $75,000 or more from a retirement account, and another 58% borrowed between $50,000 and $100,000 the poll found. A third of people said they planned to work longer to compensate for the financial hit to their nest eggs.”
And to make the findings even more shocking, it turns out that your gender had a huge impact on the decisions you would have made:
“Significantly more men — 65% — took advantage of COVID-19 relief programs, compared with 28% of women, but they were also more likely to take a distribution or borrow from their retirement accounts (49% versus 14% and 44% versus 11%, respectively)… Almost four in 10 men were willing to take on more investment risks, compared with 9% of women.“
I’m curious to know: How have YOU managed your retirement savings during the COVID-19 pandemic? Were you able to keep it stable, add more money, or did you have to withdraw in order to cover essential expenses? Reply to this newsletter and tell us what you had to do!
In China, They Already Have Autonomous Self-Driving Taxis…
While America is dealing with its numerous political crises and the continuation of the COVID-19 pandemic, China is already focused on the future of technology.
According to CNN, they’re well on the track towards having taxis being operated without the need of a human driver:
“AutoX, an Alibaba-backed startup, announced it had rolled out fully driverless robotaxis on public roads in Shenzhen. The company said it had become the first player in China to do so, notching an important industry milestone.
…In Shenzhen, AutoX has completely removed the backup driver or any remote operators for its local fleet of 25 cars, it said. The government isn’t restricting where in the city AutoX operates, though the company said they are focusing on the downtown area.
The new initiative is still in trial mode and not currently open to the public. That likely won’t change anytime soon, according to [the CEO], who said that he hoped to obtain permission to expand the program to regular passengers in the next two or three years.”
Where’s Tesla and its promises for autonomous driving? The sooner they get that autopilot driving service fixed in their vehicles, the sooner they can outsource this technology to other vehicles and prevent China from dominating this market…