NOW IS THE TIME!
This week on Money Talks, Friday at 9 AM PDT (noon EDT)
Friday on Money Talks
- Bill will talk about his updated Bitcoin allocation to his investment portfolio.
- We’ll continue the “Back to the Basics” mini-series with a discussion of stablecoins and Central Bank Digital Currencies (CBDCs).
- Don’t forget to leave us a comment on Twitter for a chance to win $200 in any cryptocurrency supported by Abra.
Note you may want to update or install your Abra app before the show starts to get a head start on the demos we’ll be doing!
Join us Friday at 9 AM PDT:https://youtu.be/VDLvMKGi_jE
Now is the Time
In lieu of a normal weekly newsletter, I’m going to keep this short and sweet.
As you all know, several weeks ago I came to the conclusion that the rocket is about to take off. The rocket of course being Bitcoin. I also expect Ethereum and Litecoin to take off as well. As a result, I increased my personal allocation to Bitcoin to 50% of my investment portfolio from 15%. To be clear I am not giving investment advice that all of you do this, I simply want you to be aware of how bullish I’ve become.
Why did I choose 50% of my portfolio for Bitcoin? There are several reasons. The bottom line is that I believe that Bitcoin is the single best investment opportunity in the world right now.
I’ll go into more detail on this during our Money Talks show on Friday, but my analysis comes down to three things:
- Technical – The Bitcoin technicals have never been as bullish as they are now. This newsletter isn’t about technical analysis, but we can’t ignore the reality that stock to flow plus the current monthly chart for Bitcoin are all showing a likelihood of a massive run-up in the price of Bitcoin over the next 5 years.
- Fundamental – There will never be more than 21 million Bitcoin. There will never be less fiat printed than there is now, it will only get worse. Cash is becoming more worthless by the day. Gold is good, Bitcoin is great. Those are the fundamentals, plain and simple.
- Sentiment – Read the Art of Contrary Thinking. It’s my favorite book on investing and understanding how consumers think. When everyone is off the bus it’s time to get on the bus. When everyone is on the bus it’s time to get off the bus. While everyone is waiting in line to get on the bus that tells you we’re in a new trend. Planet earth is off the Bitcoin bus that tells me it’s time to get on. When you see the line forming, watch out (and get out of the way!) I’m slightly early in terms of sentiment analysis but the other two – fundamentals and technicals – are so strong that it’s worth the bet in my opinion.
Abra’s usage volumes for both our trading accounts and Abra Interest Accounts are way up! Assets Under Management (or AUM) in the Abra Interest Accounts have skyrocketed since we launched the service just 10 weeks ago. Thank you all for your support. We couldn’t be more excited about this and what’s to come in the coming weeks and months. We have some BIG things planned for all of you!
As of this morning, Bitcoin has crossed $13,000, up nearly 15% this week! Anything above $12,500 is especially important since it’s above short-term resistance with no other short term resistance in sight. The next big psychological barrier here is the 2019 high of $13,859. After that the next barrier is likely the 2017/2018 highs. Nothing goes straight up but this is looking good. (Did I mention that nothing goes straight up?)
Four things driving this price pump now:
- Institutions are waking up to Bitcoin as an inflation hedge. The belief that more global stimulus and coordinated central bank actions are coming is creating big interest in Bitcoin as a global hedge, or as Chamath likes to call it… “schmuck insurance.”
- As I write this the news of PayPal getting into crypto has hit the wires, PayPal will support payments with Bitcoin at their merchants and will add Bitcoin support to Venmo as well.
- Spot buying across exchanges is increasing versus over the counter purchasing by large institutions which was keeping the price muted in early October.
- We’re seeing increased media interest in Bitcoin and cryptocurrencies.
What could cause this short-term pump to stall? If the public markets react negatively to the lack of a US stimulus deal, we could see a sell off. That doesn’t change my mid-term view at all and as I said, nothing goes straight up. I’ve given up trying to time this baby and have just gone all in as of now.
Tweet of the week
You asked for more on the New Bretton Woods and bitcoin so here it is, for free, so share it with everyone as it is so damned important!
— Raoul Pal (@RaoulGMI) October 19, 2020
The best video I’ve seen in 2020 on why you should own Bitcoin was published last week by Raoul Pal of Real Vision. Raoul is an ex Goldman Sachs hedge fund manager who gets paid a lot of money by hedged funds and institutions for his views on investing strategy. It’s a must watch! I’m going to try and get Raoul on Money Talks. He’s a tough one to get but stay tuned!
Earning Free Crypto with Abra
Abra’s Industry Leading Interest Rate Now Includes 8 Currencies
Abra now supports earning interest on USD, Bitcoin, Ethereum, as well as Litecoin and Bitcoin Cash. Our interest rates remain the highest in the space at 10% on USD and up to 5% on cryptocurrencies. Install the latest version of the app to start earning interest on your crypto and USD balances. Of course, you can use Abra to buy Bitcoin and trade crypto as well! Just link your bank account or existing crypto wallet to get started.
See you all tomorrow (Friday) on the next Money Talks. The Revolution has begun!
Peace and Love,
Disclaimer: Abra Interest Accounts are issued by Prime Trust a Nevada Chartered Trust Company. Rates for Abra Interest Accounts are subject to change. Digital currencies are not legal tender, are not backed by any government, and Abra Interest Accounts are not subject to FDIC or SIPC insurance protections. Any opinions, news, research, analyses, prices, or other information provided here is a general market commentary and does not constitute investment advice. Abra does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions. Abra will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.