Are you in or out?
This is a question you might hear during a game of poker. Or in your career. Certainly by investing.
In most cases, and for most people, you have to choose one or the other.
But if you are a billionaire and run one of the best known and most traded stocks in the market, you can answer …
In. And outside. Or… in, but with conditions.
This is what just happened with one of the most popular investments and one of the most influential entrepreneurs on the planet …
Four months ago, Elon Musk was “in”. The founder of You’re here (NASDAQ:TSLA) tweeted about cryptocurrencies. His company bought $ 1.5 billion worth of bitcoin AND said it would start accepting Bitcoin (CCC:BTC-USD) as payment.
That rings true for me.
But a month ago it was out. At least most of the time.
Tesla stopped accepting Bitcoin as a payment method and sold $ 200 million of its holdings to “prove liquidity.” (Huh?) Musk tweeted:
“We are concerned about the rapid increase in the use of fossil fuels for Bitcoin mining and transactions, particularly coal, which has the worst emissions of all fuels.”
I wrote about the impact on the environment a few weeks ago. You might be surprised at the real impact of Bitcoin. I think Elon Musk could be too. You can see it here.
But last weekend, Musk took the “we’re sort of in” position. He said Tesla would accept bitcoin as a payment method again… once energy use improves, of course.
Still, that was enough to fuel Bitcoin’s rise above $ 40,000 for the first time in nearly a month.
I think Elon Musk and Tesla will eventually go back to “all-in” on Bitcoin and cryptocurrencies, because that’s where the big bucks and big business go.
Positive comments from billionaire hedge fund manager Paul Tudor Jones also contributed to the latest rally. He said what we’ve talked about a number of times – that Bitcoin is a great way to diversify your portfolio and a great hedge against inflation.
“I like Bitcoin as a wallet diversifier,” he said CNBC. “Everyone asks me what should I do with my Bitcoin? The only thing I know for sure, I want 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities. At this point, I don’t know what I want to do with the remaining 80% until I see what the Fed is going to do. “
He didn’t get a lot of help today. The Fed kept interest rates where they are, but raised its inflation expectations from 2.4% to 3.4%. The statement says the increase is due to transient factors related to supply chain bottlenecks, largely a side effect of Covid-19 closures.
As of spring 2020, Jones had 2% of his portfolio in Bitcoin, so he more than doubled his exposure with rising inflation. I also loved his comment on what Bitcoin really is:
“I see bitcoin as a story of wealth. I see crypto as a story of wealth.
This is precisely the change in attitude that we see happening everywhere … with businesses, governments, consumers and investors.
Blockchain – the technology on which cryptocurrencies operate – will rewrite the way business is done and how personal fortunes are built in the modern age. It is the most secure way to store and transfer information ever created. This will make everything more transparent, safer and more profitable.
Perhaps keep in mind the two most important facts that illustrate the opportunity:
Everything will work soon on the blockchain because it will become the new internet.
And the only way to have direct ownership of this revolutionary technology is to use altcoins, which are cryptos other than bitcoin.
This revolution is already underway and we continue to expect a huge cryptocurrency rush in the years to come as businesses, consumers and big investors realize what is happening.
And believe me, they are.
MicroStrategy (NASDAQ:MSTR) issued $ 500 million in additional debt… only to turn around and buy more. It already has the highest amount of bitcoin on its balance sheet of any publicly traded company.
And perhaps most important of all… Salvadoran President Nayib Bukele has announced that he is going to make Bitcoin a form of legal tender in his country. In other words, legal tender. Politicians in seven other Latin American countries indicate they are interested in doing the same.
El Salvador is a small nation. And yet it becomes the first nation on Earth to adopt Bitcoin as legal tender. His bold initiative lays the foundation for even wider adoption and use.
Disruption is the raison d’être of blockchain and cryptocurrencies. Bitcoin – and even more altcoins – provide solutions and a better way forward compared to the traditional financial system.
In fact, in another big step forward, crypto investments are now coming to 401 (k) accounts. Coinbase (NASDAQ:PIECE OF MONEY) – one of the largest, easiest, and most well-known crypto exchanges – is partnering with ForUsAll, a leading 401 (k) investment platform, to offer crypto investments in these retirement accounts.
This is a big deal. This is yet another ramp for investors that will attract more money into cryptos.
You can see why I’m saying blockchain will change almost everything – the way you search for things online, buy goods and services, borrow money, heat your house, buy a house, vote, pay your taxes and more. again.
This is also why I say that buying altcoins right now is like supporting big software makers – Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Uber (NYSE:UBER) or Oracle (NYSE:ORCL) – in the beginning.
I believe investing in the best altcoins right now is like investing in Bill Gates’ Microsoft in 1986 … just before the world went wild for its productivity-enhancing software and its stocks skyrocketed .
As of the publication date, Matthew McCall does not have (directly or indirectly) any position in any of the stocks mentioned in this article.
Matthew McCall left Wall Street to actually help investors – by involving them in the world’s biggest and most revolutionary trends BEFORE everyone else. Click here to see what Matt has up his sleeve now.