It may have been a timeless, such as Muhammed Ali vs Joe Frazier or Hulk Hogan versus Andre the Giant. But we had fun, and we covered significant information that investors will need to understand.
Source: Shutterstock
In case you missed last week’s discussion between me and my esteemed colleague, the celebrated investor Louis Navellier, you’re not out of luck.
There’s still time to look at the occasion — Dow vs. Bitcoin: The Rush to 40K. We all took a negative and hammered out which we think will soar to 40,000 first.
Louis believes the Dow increases 46% to achieve 40K prior to bitcoin climbs 237% to reach $40,000. I had a blast in the back-and-forth using Louis, and we all ended up with the bet riding on the results. Every one of us gave off one of our best picks for the industry at this time!
The discussion was totally free, so in the event that you haven’t seen it yet, be sure that you take advantage and observe the replay after possible.
Truth be told …
I’m also bullish about the Dow, and that I think pick stocks are set to grow higher. Additionally, Louis has a powerful history and remarkable system, so I’d never bet against him long term.
It’s only that I believe bitcoin will get there quicker.
I understand it’s a good deal further to go than the Dow. But also many catalysts are lining up in bitcoin’s favor at this time, giving it that the high profile momentum it has to push through $40K.
Even when you’re not too knowledgeable about cryptocurrencies, you’ve definitely heard of bitcoin. It’s the world’s biggest cryptocurrency by market cap, and it only hit on a 52-week high above $12,000 on Sunday, Aug. 2. It’s the first-time bitcoin has breached that amount in over a year!
Bitcoin has bounced over 185% off its March low. And as the graph below shows, it’s also considerably outperforming the Dow year-to-date.
Part of the strength comes from shareholders new to bitcoin leaping aboard in droves.
The average weekly number of new bitcoin pocket addresses (as monitored by crypto analytics company Glassnode) attained 140,000 at August 4. There haven’t been that many since early 2018. No coincidence there. That’s around the time bitcoin reached its all-time high just above $20,000.
Then on Tuesday, second-quarter earnings from digital payments leader Square (NYSE:SQ) were leaked a day ahead of the scheduled release. The firm had a blowout quarter that topped estimates for earnings and revenue. The news sent shares soaring more than 10% at one point on Wednesday.
And here’s the important part — almost half of total sales came from the $875 million it earned in bitcoin revenue from its Cash App.
Thanks to Cash App’s 30 million active monthly users, that figure surged 186% from just the prior quarter. As a gateway to bitcoin for many mainstream investors, Square has now bought $1. )5 billion in bitcoin to meet customer demand over the last 12 months.
It’s not the only well-known payments company bringing bitcoin to more and more customers. PayPal (NASDAQ:PYPL) and Venmo plan to offer crypto buying and selling as well.
A recent regulatory change also paves the way for bitcoin to continue higher. The Office of the Comptroller of the Currency gave the green light for federally chartered banks to “custody” cryptocurrency. Banks have done for years with money and safe deposit boxes, and now they are free to move into electronic currency. I anticipate we’ll soon see a major bank enter the space and begin storing crypto for its customers.
But there’s another huge catalyst I think will propel bitcoin to $40k faster than the Dow. It’s not a future event which may or may not happen. It’s already happened!
I’m talking about bitcoin’s “halvening,” or “halving” as some people call it.
There’s a lot going on “under the hood” of this event, but its simplest terms, the reward for mining new bitcoins is cut by 50%. The end result is that as of May 11, 2020, the supply of new bitcoins coming on to the market dropped by half.
That means all bitcoins are now more valuable.
After the first halvening in 2012, bitcoin shot up 2,135%.
Following the second halvening in 2016, bitcoin rose 3,122%!
You can see why I’m so bullish on bitcoin. But here’s the thing …
A select group of cryptocurrencies other than bitcoin — called altcoins — jumped even more than bitcoin after the first two halvenings. In some cases, many times more.
For example, after the second halvening, the altcoin Verge shot up an unbelievable 1,362,400%!
We’re seeing similar action now. Since we launched our Ultimate Crypto portfolio on January 7, the altcoins I recommend are up an average of 124%. That’s outstanding anywhere and anytime, but especially compared to the Dow’s 4% loss.
Stocks are on a roll right now, too. And like Louis, I remain bullish as ever.
But when bitcoin gets going, few other assets can match its explosive potential.
These are some of the reasons I think bitcoin will cross the $40K finish line faster than the Dow. I lay out my full case in the big Race to 40K debate — and Louis hits back with his deep research on why he thinks stocks can get there first.
At the end of the day, our debate will leave you with more ideas to build your wealth and take advantage of extremely favorable market conditions. I hope you’ll watch it now before the replay comes down. I’d hate for this opportunity pass you by.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), only to name a few. Click here to find what Matt has up his sleeve now. Matt does maybe not directly have the above securities.
