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Bitcoin’s 5X Climb by the End of 2020

Bitcoin’s 5X Climb by the End of 2020

Gold, precious metals and dollars … simply don’t have a place in America 2.0.

They will all be replaced by “digital gold.”

Bitcoin.

The demand is crazy high. And now is the time for bitcoin to make its move to our $50,000 prediction.

And we’re not alone here. We’ve even been out-bulled on our prediction! That’s right — we’ll tell who actually has an even higher prediction.

This is great news for you.

We’re going to tell you how to grab bitcoin’s 5X climb this year. Paul recommends an America 2.0 stock-play for bitcoin that he added to the Profits Unlimited portfolio.

Also, learn all about the moves in Tesla, cannabis and the America 2.0-ing of the Dow.

Take a look:

 

Bitcoin’s 5X Climb

This is definitely the most interesting thing I have read on Bitcoin in a while.

Do you know who the Winklevoss twins are?

An article I read from Decrypt says “Undervalued Bitcoin should hit half a million dollars, says Winklevoss twins.”

Bitcoin BPD

It goes on to talk about what we’ve been telling people.

One of the big selling points for Bitcoin is that it is a better store of value than gold.

It’s actually finite, it’s more divisible and more portable. Those are all the things you would want in a store of value. They go on to talk about several things, including the potential long-term non-scarce ability of gold. Gold’s market capitalization is something like $9 trillion and rising while it hits new highs!

Bitcoin is so tiny compared to it. Bitcoin is still under $300 billion total. It’s a tiny fraction of the market cap of gold. There are so many things that are going to drive it higher in the next few years and maybe even sooner than that.

We have talked about Bitcoin, crypto taking market cap and valuation from gold, precious metals, other stores of value or gold stocks. I’m definitely in the same camp as these guys. Over time gold’s value will be almost nothing. Whatever the industrial use of gold is what supports that price.

However, there’s a huge premium in price that’s there. People all around the world who have been using gold as a store of value are going to stop. They are going to go to Bitcoin.

It’s more divisible and more portable. If you are buying gold as a real hedge against inflation or as a store of value, you can buy shares, but it’s not the actual gold. It’s just a claim to gold. It’s not the same as buying actual Bitcoin, storing it offline and having it there.

It’s easier. You can buy it from anywhere. There are peer-to-peer Bitcoin trading sites where you can get in contact with other people around you and buy Bitcoin directly from them. You can’t really do that with gold, at least not on that scale.

They talk about the potential for gold becoming non-scarce as a result of space exploration. They also talk about SpaceX mining gold from asteroids. I have seen a credible paper that says they can synthesize gold chemically. There’s no reason why not.

We’ve figured out how to make diamonds, so gold is well within the realm of possibility. That would be horrible for the price of gold. It would be a game changer. It would destroy the entire premise of gold. Bitcoin has none of that.

It’s what supply and demand dictates. That’s the bottom line of valuing pretty much anything. When something has demand like Bitcoin that has been through four crashes of 80% or more and has bounced back every single time. Clearly there’s demand for it or else it would have been wiped out by now.

Over 11 years it’s already up to $300 billion worth of market cap. Clearly there’s demand for it. The market is absolutely saying it’s valued at a point where people are buying it. I think it will go up even more, it’s just a matter of when. It’s going to take a lot of market cap from gold.

We’re on the books for having made several predictions on Bitcoin. I have videos on my YouTube channel in 2017 talking about the Bitcoin bubble and then we talked about the bottom and now we are on the cards of saying it will his $50,000 this year.

If you go and look it’s already gone from $3,800 to $12,300 just this year. That’s already a 3X move.

Also, if you look at 2017, the last few months of that year it went up at least 300% or 400% just in the last three or four months of that year. It has happened before, and it can happen again. Once it reaches all-time highs, that’s historically when it has started to go higher fast.

That’s all we need is a break of all-time highs. Then who knows where it will end from there.

I have noticed and continue to see some of the actual players from the 2017 bubble are now becoming real businesses. They are getting into Bitcoin and crypto mining as an organized business. That’s another good sign telling you there is support from a lot of people for Bitcoin as an actual asset.

I think there are now at least 50 very real cryptos that are attracting serious money and serious bidding. They have a real purpose no different than any other country’s currency to be used in that country’s business. Every country has different concentrations. If you have a lot of mining, your currency supports that.

We are in an information-based economy. Our currency, on some levels, supports that. It’s no different than that.

Decentralized Finance Revolutionizing Banking

These are becoming usable ideas. They are not just ideas; they are becoming platforms that you can see the development of decentralized finance getting strong and stronger. Decentralized finance has a lot of meanings. It’s decentralized finance. It means an organized system of finance outside the banks. That’s the first wave of what crypto is becoming.

DeFi BPD

I posted this chart last week, but I wanted to give an update because there’s $800 million or $900 million more on these various systems being lent and borrowed since our last video, which has just been a week. So almost another billion dollars poured into this system.

You can get actual interest rates here. You don’t get any interest when you put your money into a savings account. You can get 2% to 3% interest here. When you deposit your money on some of these sites it’s basically like a savings account, but you can also take out a loan.

You get paid in the actual token of the platform. For example, there’s one called Compound. You put your money in there and you get paid in Compound tokens. You are being reimbursed with interest and you are also getting free tokens of this crypto when you make a deposit.

This system has a lot of incentives and has a lot of things driving it. Everything in blockchain is open source. You can look at the loans and deposits being used with these websites. Some of them are six and seven figures. There’s real activity going on here. It’s not going to go away any time soon.

I 100% agree. This world is going to come and wipe out the world of banking, insurance, paper-based finance and bureaucracy-based finance. We know there is some amount of innovation happening by companies like Square and PayPal and others out there around being able to get people money sooner rather than later.

We talked last week about payday lending. It’s this egregious practice inflicted on people with very little money. They lack a bank account and they are forced to go and use these payday lenders who charge them usurious levels of interest simply to cash their check.

The idea is that they take the check and sit on it for three days or five days or some period of time. During that period of time they are extracting enough where it would be a huge boost to these folks’ lives. Crypto and fintech definitively represent the answer to this.

I don’t think anybody trusts the banking system. There’s no accountability. With blockchain, it’s all open source. You can see all the activity going on. There’s no middleman. You can make way more money than just keeping your money in a savings account.

To circle back to the article about the Winklevoss twins — yes, these are the same guys from the Facebook movie — are calling for Bitcoin to go for $500,000 based on the idea it’s going to replace gold and expand the idea of a store of value.

With interest rates being zero, essentially zero or negative in many places around the world, concerns about inflation because of what the federal reserve board and central banks have been doing as a result of the crisis is only going to draw more people into something that is out of that universe.

When people make money, they are happy. If they buy Bitcoin at $11,000 and it goes up to $15,000 in a couple months, then they are going to buy more of it. That’s how it’s historically gone on, that’s human psychology. Rising prices equals rising demand.

We are BOP — bullish, optimistic, positive — on Bitcoin. That’s my hashtag on Twitter.

Will Big Tech Splits Rock the Markets?

We have two big splits coming. One that does affect the big indices. I saw the potential impact of the splits, particularly Apple, on the indices.

It definitely would have a big effect on the Dow.

All three of them — the Dow, S&P and Nasdaq. It has the top weighting and is the most influential stock. If Apple goes down, most likely the whole index will go down. When people see red, they automatically will cut back a little bit, especially after the rally we’ve had. People will take profits.

Stop losses will be hit. There could be a little break in the rally. Overall, I don’t think it will be too meaningful if it does happen. Remember, Apple has a lot of influence on the overall market. That stock has gone up in a straight line recently in anticipation of a stock split.

There’s also the whole “buy the rumor, sell the news” thing going on with that.

I have to say, I was thinking something along the same lines potentially. However, yesterday, the whole FANG (Facebook, Amazon, Netflix and Google) and those other acronyms, besides Facebook have been flattish, slightly up or slightly down. What you have seen is an undercurrent that has come up and bid up the other stocks.

If you look, the S&P 500 had a spread of +5 over the cap-weighted a week ago. Then largely because of the Apple rally where it went from $350 to $500 in the span of two weeks, the cap-weighted caught up. Now what you are starting to see is the equal weighted come up again.

I think it’s actually going to be a much smoother process than what you are thinking because of the fact that there are so many companies that are doing incredibly well, and people are coming to bid up. You can also see the index makers like the Dow folks decided to dump ExxonMobil, Pfizer and Raytheon.

They put in Salesforce, Amgen and I forget the third that was added.

That was expressly to counter the impact. The Dow is a purely price-based index. Really it makes no sense anymore. The Dow Jones is price based and the S&P 500 is cap-weighted. The Nasdaq is cap-weighted. There are people who exploit this difference that is poorly understood in the stock market.

The Dow is only 30 companies. It is getting more representative of the overall market now because of these conditions, but it’s only 30 companies. Having the thought that the Dow going down means the market is going down is totally wrong. For the last couple of years the Dow has way underperformed the overall market.

It’s been down way more than the S&P 500. Even the S&P 500 hasn’t done as well as the typical America 2.0 stocks.

The S&P 500 has done nothing compared to our equal-weighted Profits Unlimited portfolio which is up something like 35% this year. Then since we began Profits Unlimited as a service on June 1, 2016, using an equal-weighted methodology by dollar amount — yes, it is a model portfolio and it’s followed like a model, but it’s no different than the S&P 500.

It’s more than doubling the S&P 500.

3D Printing Adaptations Driving Sector Up

Honeywell was the very first publicly traded biotech company. I believe they became public in the 1980s. However, that first segment of its growth might have been private. Honeywell, I suppose is a unique company.

The industrial group, other than 3D printing and a small set of others, it does look like the industrial infrastructure is going to adapt to new technologies rather than seeing an entire slew of new companies come in.

Especially with automation across the entire industrial machinery industry. A lot of companies are adopting 3D printing now. It looks like that whole sector is probably the most well-adjusted into America 2.0.

They have been using 3D printing on as much as 30-40% of SpaceX rockets.

I have seen 3D printing used more in the space industry than anything else. There are some startups trying to do the same thing as SpaceX. One of them has a rocket that is fully 3D printed. It’s incredible that these companies are adopting this.

There’s actually a 3D printing metal company that just announced they are coming public. That’s going to be a boost for the 3D printing industry as well.

That’s coming via something called a SPAC (special purpose acquisition company), which Ian focuses on his $10 Million Portfolio service we run together. If you are interested in those types of opportunities, we put those in the $10 Million Portfolio service, so check into that.

Generally, it does look increasingly like America 1.0 and America 2.0 — people have come to me and told me it looks like it’s all made up and these companies have no revenue. However, the fact that the Dow is starting to shift it does tell you more money, I believe, is going to come in and start to bid up the America 2.0 stocks.

To some extent, it starts creating this buyback-driven bubble in Apple in a way. Maybe it sounds crazy, but it creates market cap where it can flow into these other stocks. It creates the scenario where Apple could gently drip down over time. There’s no way to support it, they would have to continuously add more money.

Apple Lacks Innovation; New Stocks Gaining Momentum

I got Apple stock wrong for four years. I put my hands up, I admit it fully. However, for me it’s like having created that value in the stock market it can now be sold. No one now defends Apple in what it’s doing.

Everyone now admits that what they are doing is wrong for the company, that they represent no innovation of any kind. They introduced a slew of phones and then what? The iPhone is now 13 years old?

This is a company that has spent $400 billion. Yeah, if I had $400 billion I could bid my own stock up too. I think you could do that same thing. They are the best investor in their own stock.

There was a time when buying back your own stock was illegal. Now it’s become a strategy.

You can understand why. If you are bidding up your own stock, it’s almost like Apple buying up its own iPhones to boost sales. It’s betting on your own team basically.

It’s like betting on your own team basically.

I want to make it clear, based on the market action, it does look like whatever is going on with Apple, people are flowing away from the more known stocks and into the newer stocks. There are some incredible companies that are coming public, including the one you mentioned.

There are also LiDAR companies coming public. There’s a big audience being created for these companies.

LiDAR is one of the biggest technologies in automated driving. That’s a perfect segue into Tesla because they are probably the biggest or most-advanced automated driving company in the whole world. No other company in the world has a car that can drive itself.

These LiDAR companies are going to have a lot of business as the wave of automated driving comes just like it did with electric vehicles. We are seeing a lot of electric vehicles companies come public too. So automated driving could be a big wave of companies coming public that are all private right now and getting a ton of investment from private equity companies.

I don’t know if you saw the stock, we put in Extreme Fortunes yesterday as part of our Super Bull Summit, but this company is building the information data set that can then be used over time. They have all the information on the cars. They can track the movement of these cars.

As a result, they are accumulating the same information Tesla is accumulating as a result of having tens of thousands of cars around the world.

That software with data for self-driving cars is going to explode. That’s an amazing thing that is relatively new. Obviously not many self-driving cars are out there. That is an area that is going to see a huge amount of investment and adoption for probably this whole decade.

One of the things we think is going to happen is that LiDAR is going to be offered as an after-market addition to internal combustion engines. It’s looking to implement advanced driver-assistance systems (ADAS). I forget what the acronym is. Essentially, it’s assistance for you. The idea is that any car could get autopilot or something similar.

LiDAR, we believe, is going to be an after-market system that’s going to be added to many cars. Those companies will attempt to transition, even though it’s unlikely they will make it. Nonetheless, it does look like that.

Tesla’s Battery Day Surprise

Tesla’s Battery Day is coming soon, September 22.

He tweeted something about a new battery that could potentially go into a plane.

It wouldn’t surprise me if they came out with something like that pretty soon. That’s going to be cool to hear more about on Battery Day. Their technology is always one step ahead, of five steps ahead in some cases. It’s amazing what they have done so far. They were the first ones to get batteries in semis and get that started.

Now there are a whole bunch of other companies doing that. A plane would be the logical next step in electric transportation.

They could put rockets on the Roadster and send that to Mars. The split is coming up in three days, on Monday.

Since there is a still a lot of misinformation out there, a split creates no value. There is no free lunch for you as an investor. Whatever shares you own, if you own one now — it’s a four for one split.

For every one share you own, you will have four. Then the price will shift downward for this split. There is no free lunch here. You will get no extra value as a result of simply buying before the split. If before you owned one, now you own four.

At $2,000, each share would be worth $500. If you own one share at $2,000, once they post the split, you will have four shares at $500. There is no free lunch here. We want to make this clear. There is always this fever that comes when a big company announces a split and people think they get something for nothing.

There hasn’t been a split in a big company in a while. The last one I can remember is Netflix and that was four years ago. It’s been a while. A lot of people have gotten into the stock market since then and might not know. I have seen a lot of stuff saying you can quadruple your money if you get in Tesla now.

I wish that was how it worked. Unfortunately, not.

Cannabis Sector Making All-time Highs

The market cap that’s flowing into Apple, it wouldn’t surprise me if some of that flows into cannabis. Some of the money that’s going into U.S. companies and the Canadian ones are going to follow. Several companies in the marijuana sector that are based in the U.S. have been making all-time highs in the past few weeks.

The Canadian ones and international have been lagging, but they are still growing at a rapid pace. The marijuana industry in general is growing at a rapid pace. It’s only a matter of time before these starts to get bid up as well.

I have an article here from Sonoma News. It’s talking about a person who was speaking at the North Coast Cannabis Industry Conference. Tamar Maritz is the Vice President of Business Development at Boycott, Divestment, Sanctions Analytics. She estimates that the industry be valued at $57 billion by 2025.

This year the cannabis global spending forecast came in at $20 billion. This entire pandemic has pushed usage higher for sure. People are feeling anxiety, panic and a lack of sleep. They don’t want hard prescription drugs for this. Whatever the side effects are for cannabis, those would be greater.

It was deemed essential. A lot of companies start delivery businesses because of it. Obviously, a lot of stores were not allowing anybody in or maybe a few at a time. The delivery business boosted sales and overall customers. People really liked that they could get it delivered.

I think it was a boost. We saw a lot of companies post record-high sales over the past few months, especially in the U.S. It was like nothing even changed.

Cannabis BPD

This article estimates based on their data that California, which is a mature market but it’s a good indication of where the other markets will go, it says 66% of Californians either consume cannabis or are open to it. However, I believe somewhere I saw that just 20% of California’s actual usage is in legal marijuana. Illegal cannabis still accounts for a vast majority of sales.

It’s like Prohibition. When that ended there was still a lot of bootleg alcohol. It’s going to go away over time. It’s has a lot of room to go from here. It’s taking over market cap from tobacco and alcohol. The black market is still around of course. It’s not going to go away overnight.

People prefer to get marijuana that they can trust was made under regulations and they can buy it from a store.

I feel like edibles are going to be the breakout product that mainstream cannabis. Then there will be cannabis bars and all those other things. We are still BOP on cannabis. The stocks have been volatile because of being post crash and the hype moment of four years ago.

Nonetheless, looking at growth and people are going to come to the cannabis sector sooner rather than later. We are still BOP on Tesla, but watch out for where markets have a tendency to buy on the rumor and sell on the news.

Bitcoin continues to go from $11,000 and $12,000 — that’s the range recently. We are BOP on that.

 

Regards,

Ian Dyer

Ian Dyer

Editor, Rapid Profit Trader

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