The Bold and the Bitcoin
If you’re holding bitcoin, I feel bad for you, son. I’ve got 99 problems, but bitcoin ain’t one.
Why? Because I listen to my Banyan Hill colleague Ian “The Crypto” King. But more on that in a bit…
Four days ago, so-called “mutual fund titan” Bill Miller told CNBC:
How’s that for a Quote of the Week? I mean, do you want a bitcoin (BTC) correction, Bill? Because that’s how you get a bitcoin correction.
Bill here essentially called a short-term top for the world’s most popular digital currency. BTC hit an all-time high of $41,946.74 on Friday, January 8 … then proceeded to nosedive 24%, entering correction territory in the process.
Thanks, Bill.
But I’m not panicking over bitcoin, and you shouldn’t either. As I said before, I listen to Ian King and his crypto bling. As Ian noted in yesterday’s article — “Don’t Let Bitcoin’s Volatility Shake You Out”— this kind of volatility isn’t new for the digital currency.
In fact, during 2017’s mania, BTC saw several drops of this magnitude or greater. And yet, after each of these drops, “bitcoin resurrected, buyers returned and those 30% sell-offs were followed by rallies of 76%, 237%, 183%, 165% and 152%.”
2017? Don’t talk about 2017! 2017? Didn’t bitcoin crash after that mania?
Well … sure. But there are three reasons that 2021 isn’t 2017, and I’m not talking about the pandemic or any of that 2020 nonsense … and if you read Ian’s article above, you’d know. Come on, get with the program here!
Basically, this time, institutions are buying bitcoin en masse, which provides stability not seen before … institutions like the 170-year-old mutual insurance company MassMutual. They know what’s up. Even Jeffries is cutting gold out of its diet to make more room for bitcoin.
Meanwhile, the Fed’s money printers are going Brrrrrr like never before. The result is a devalued dollar that isn’t rising from the dead any time soon. And, as we know from Economics 101, lower dollar values lift asset prices … assets like BTC.
Finally, as Ian noted in his article: “the Office of the Comptroller of the Currency announced that banks may use dollar-linked stablecoins and blockchains for payments.”
Now, if you aren’t a die-hard BTC hodlr — if you don’t know what hodl means, I’m talking to you! — you need to choose a ready guide in some celestial voice. (Rush out of nowhere!)
Because if you choose not to decide, you still have made a choice … and given bitcoin’s volatility, that’s a bad choice to make. You need to choose the path of bling. You need to choose Ian King.
Besides, the next great crypto bull market has already started. And it’s a LOT bigger than just bitcoin. Click here to learn more now, where Ian King gives you the chance to see his three favorite cryptocurrencies — that could make you 12 times your money over the next 12 months! Or something like that…
The Bank of Walmart (NYSE: WMT)? It could happen. I’m not sure if this deepens the companies ties to the small-town Good Ol’ Company Store motif or if it drives them further away. The company announced a head-first dive into “unique and affordable financial products for Walmart employees and customers.”
I’ll believe the “unique” part when I see it. You ever sing the Walmart cheer for a checking account? Walmart teamed up with Ribbit Capital, one of the money-backing names behind Robinhood, Affirm and CreditKarma.
Have you binge-watched anything good on Rumble? No? No one else has either. But Rumble isn’t blaming that on a lack of content. No sir! It is suing Alphabet’s (Nasdaq: GOOG) because “Google, through its search engine, was able to wrongfully divert massive traffic to YouTube.”
I’ve personally never heard of the site, which both humors me and makes me think Rumble might be on to something. Alphabet does get a little antitrust-y sometimes. Or, maybe, Rumble is just really bad at search engine optimization. (That’s SEO for you insiders out there.)
Debt: It’s What’s for Breakfast
Zoom Video Communications (Nasdaq: ZM) announced that it will offer $1.5 billion in convertible notes — debt, in other words. Zoom missed cashing in at all-time highs back in October, and it’s been mostly downhill ever since. So, Zoom’s cashing in now before the situation gets worse.
It’s like when your dad asks you why you need $20. Well, you see, it’s to “further strengthen its cash and balance sheet positions,” obviously… It’s brilliant for Zoom, but not so much for investors because of that whole “share dilution” thing.
ZM started the day off on the wrong foot, but don’t you worry: It’ll be back. Zoom is still the de facto video meeting software. A “Zoom meet” is a thing now, even if you use different software. It’s the new Xerox or Google, if you will. Hey, maybe even Tupperware, or whatever Millennials use now.
Great Stuff: Write Us a Novel!
Wow, Mr. Great Stuff, this isn’t your typical long-winded self; what’s up?
You noticed! What can I say? Crypto takes my breath away? Tuesdays don’t have a feel? I’m Ron Burgundy?
Anyway, we kept the ‘Stuff quick and dirty today, but it’s anyone’s guess what you and your fellow Great Ones will send along to our inbox. Whether you have a three-word manifesto or a novella in the works, drop us a line!
GreatStuffToday@BanyanHill.com. You should stop by sometime. Don’t be a stranger, either. Write us your thoughts on bitcoin, bubbles and the whole investing kerfuffle!
We’ll catch you on the flip side! Until then, don’t forget to follow us on social media too: Facebook, Instagram and Twitter.
Joseph Hargett
Editor, Great Stuff
