Pot Stocks and Bitcoin: 2 Buys for 2020
- With marijuana on track for legalization as early as next year, here’s your best way to leverage dozens of pot stocks with a single play.
- Don’t wait to jump into the cryptocurrency market. Bitcoin just triggered three of our GoingUpness signs, and I’ll tell you how to start taking profits now.
- The single biggest driver of both mega trends.
Welcome to the new vice economy.
The “old vice economy” — alcohol and tobacco — is quickly giving way to a new player: marijuana.
In today’s Bold Profits Daily video, I’ll reveal why pot is moving in on those old-world industries and creating a huge opportunity for early investors.
I’ll give you the best way to position yourself for profits in this industry. Plus, a second buy for another huge millennial-fueled disruption in crypto.
This week I want to get discuss pot stocks because I have been researching this quite a bit recently. We are releasing a few pot stock recommendations for the month of December so I’ve spent lots of time researching the industry. Both of the following stocks solid investments to make in 2020.
Marijuana is Disrupting Big Alcohol & Big Tobacco – Invest Now!
Marijuana on the verge of really doing some damage. These two industries are some of the world’s biggest consumer goods industries.
You add it all up on a global scale and alcohol and tobacco are worth $2 trillion. Marijuana doesn’t even come close to that. There are only seven pot companies in the world that are worth $1 billion or more. If you added up the entire marijuana industry worth, you don’t even get to a fraction of Altria, Diageo, or one of the big alcohol or tobacco companies that are competing with marijuana in the vice industry.
We’re seeing a trend in the younger population. Right now, 18-29 year olds are not smoking cigarettes. A shocking shift in the culture of cool. Now we’re seeing that shift to marijuana.
This is just the start of something that’s going to last for decades and generations. Alcohol among millennials and Gen Z right now is also less cool. Speaking as a Millennial, we love non-alcoholic beer, which I didn’t ever think was going to be popular. People our age don’t drink as much alcohol.
The most popular place for marijuana is out west where it’s legal. Particularly west coast states like California, Oregon and Washington. The numbers are clear and they say that marijuana is starting to take market share from tobacco and alcohol.
You don’t hear people talk about it but it’s a bright future for the marijuana industry because of this huge market opportunity. And marijuana legalization continues in major ways. Michigan legalized recreational marijuana on December 1, 2019. Illinois is coming up on January 1, 2020. We have more and more markets opening as we speak.
I believe on a federal level this is going to be legal sooner rather than later. You’re seeing a clear shift in politics. Republicans, Democrats, pretty much everyone want marijuana legal on a federal level. Hemp is already legal, it only remains for THC to be cleared.
I believe federal marijuana legalization on its way. Within 2 years at most.
This is a great time to invest in pot stocks. I feel like a broken record for saying this, but the ETFMG Alternative Harvest (NYSEArca: MJ) is a great way to invest in pot stocks without taking the obvious risk of buying a single pot stock.
With MJ ETF, investors get dozens of marijuana related stocks in one investment for the price of one stock. It’s a great way to buy in if you currently don’t have any or want some more pot stocks. I would recommend the MJ ETF.
Crypto is a Great Investment to Make in 2020
It’s been a rough past month for crypto and Bitcoin in particular. Paul Mampilly and I cleared that up a little bit with the Baakt futures. Like we’ve said, this is the first time you’ve been able to buy a lot of Bitcoin in the futures market. It’s growing in popularity in crypto. We’re seeing millions of Bitcoin being traded per day in the futures market now.
When these Bitcoins get delivered at the end of each month, this is the first time it’s a physical delivery. You’re basically betting on what the price of Bitcoin is going to be at the end of the month. You have to do so with a lot of money. There is a big financial requirement, but betting on that and holding it to the end of the month you will actually get the amount of Bitcoin you are betting on.
That’s the first time this has ever happened. When people get all that Bitcoin at the end of the month it puts so much supply into the market. These people who trade futures usually are not going to be big long-term holders, but a number of retail holders like you and me want to hold on for a long time because we see all the potential of this.
A recent article in Market Rebellion revealed that:
“64% of Bitcoin Supply Has Not Moved Since 2018”
People bought that dip and it was not easy to buy after it fell from $20,000 to $3,000. I know a lot of people who bought into that. Bitcoin has by far the most “strong hands” and dedicated group of investors I have ever seen in my life.
We don’t give up because we know Bitcoin has a future. It’s a really tiny asset class right now if you compare it to gold at $8 trillion. Bitcoin is just $130 billion. It’s just a fraction of the gold market and fraction of companies like Amazon or Apple. But investors hold on and that’s the point. People really believe in Bitcoin’s future.
Like I said, 64% of Bitcoin has not come out of the wallets of these owners since 2018. That’s more than 11 million Bitcoins. That’s more than half the supply there ever will be. There’s only 18 million Bitcoin out right now. There’s only three million left that will be mined.
The Halvening event which is coming up in May, is when the amount you get when you mine Bitcoin is cut in half. We’re only going to be seeing half of the supply enter the market as we are now come six months from now.
It’s getting to be a scarce resource because two-thirds of the Bitcoin that’s already out is being held on to. These people aren’t going to sell. I know I’m not going to sell any time soon. Really, the only people who are trading this are day traders and maybe futures traders. More and more people are going to buy and hold. Remember this when thinking of investments to make in 2020.
There is about three million left and there is a high demand than for that three million. That means it’s the time to get in. When there’s higher demand than supply the prices go up. The future for Bitcoin is very bright considering just how much belief there is that Bitcoin is going to be big and go up in value because it’s easier to move than traditional money and there are no banks involved.
There’s nobody trying to squeeze every last penny out of you in fees.
A great example of this happened yesterday. There was an exchange doing some routine maintenance and I guess that involves moving huge amounts of Bitcoin.They actually moved $9 billion worth of Bitcoin in under an hour.
First of all, you can’t do that at a bank or any financial institution these days. An international transaction will usually take days. Maybe if you wire it, but it’s super expensive. That’s where Bitcoin comes in handy. Not only is it really fast to move, it’s really cheap.
That $9 billion Bitcoin transaction incurred only about $12.50 in fees. You really can’t beat that. That’s a few trades in a stock account. This is something we’ve never seen before. The movability of Bitcoin, the scaling of Bitcoin and the scarcity of Bitcoin are all reasons why we think it’s going to be great.
Of course it hasn’t been fun to watch Bitcoin drop from $14,000 to $7,000, but now is a great time to buy. The Grayscale Bitcoin Trust (OTC: GBTC) is one way to do that. We’ve talked about it before. If you can’t get into regular Bitcoin you can buy it in any stock account. Millennials is probably the most popular demographic to buy Bitcoin.
I know a lot of people who don’t invest in the stock market and don’t know much about stocks, but they want Bitcoin. That’s the magic of it. There was a study done by Charles Schwab, one of the biggest brokerages in the world, they found the Grayscale Bitcoin Trust is the fifth-most popular stock in millennials’ accounts.
There is so much buying out there, not even just in Bitcoin but the stock that tracks Bitcoin. We see a very bright future for Bitcoin.
Editor, Rebound Profit Trader