#trends 0006 : Blockchain

Hi All,

First off, what a week we’ve already had in 2021. It feels like the craziness from last year continues. Continue to stay alert in this wild market.

Now let’s talk Blockchain. This is a continuation of areas in which I am looking to put my money to work long term in the next 5-10 years, and one of them is Blockchain Technology. Most people have probably heard of Bitcoin, but not many have heard of Blockchain. Blockchain is the underlying distributed and decentralized ledger technology that powers Bitcoin as well as other Cryptos. This is an area that I believe is here to stay and will continue to grow in years to come. I see Blockchain as Internet 3.0.

When I discussed Commodities last week, I saw it as the wealth preservation insurance policy in uncertain times. On the other hand I see Bitcoin as the long shot life raft if everything else crumbles. Bitcoin is supposed to be a better sound money system than fiat by design, but only time will tell.

There are various ways to gain exposure to Blockchain assets. I’ll focus on 3 ways to do so. Exposure via the traditional stock market by investing in companies that hold a ton of Bitcoin. This is probably the easiest way to go. There are quite a few, but here are my picks:

  • Grayscale Bitcoin Trust (GBTC)

  • Paypal Holdings Inc (PYPL)

  • MicroStrategy Incorporated (MSTR)

  • Square Inc (SQ)

  • Cypherpunk Holdings Inc (HODL🇨🇦 / KHRIF🇺🇸)

The second way is also via the traditional stock market, but by investing in companies that provide Blockchain focused services. This may be the smarter route to go only because, let’s say Bitcoin is not the ultimate winner and other cryptos take over, the service providers will continue to do well. My picks include:

  • Riot Blockchain Inc (RIOT)

  • Marathon Patent Group Inc (MARA)

  • Silvergate Capital Corp (SI)

  • Coinbase…(soon to go public)

The third approach is by investing directly into crypto assets themselves via reputable crypto exchanges like Coinbase, Bittrex, Binance, CashApp etc. While there are thousands of crypto projects out there, my focus will be only on these:

  • Bitcoin (BTC)

  • Ethereum (ETH)

  • Stellar (XLM)

  • Cardano (ADA)

🔥 IPO Hotlist

Some pretty notable names are set to IPO this week:

  • Affirm Holdings, Inc. (AFRM)

  • PET Acquisition LLC i.e. Petco ( WOOF)

  • Poshmark, Inc. (POSH)

⚖️ Watchlist

Stocks I will be watching for potential upside/downside swing plays:

  • Nio Inc (NIO) - Nio had a ton of good news over the weekend from Nio day. So this may see some upside this week.

  • NVIDIA Corporation (NVDA) - A positive effect from the Nio and NVIDIA partnership may allow this to see some upside as well.

  • Twitter Inc (TWTR) - This is a tough one, but Twitter may see some downside this week due to some of the actions they’ve taken.

🍯 Bitcoin

Bitcoin saw a fairly large correction from over $40K to now $35K as I write this.

🗺 One More Thing…

The month of January still has a lot of catalysts that could disrupt things. Until we enter February, anything is possible in this uncertain market.

🔗 Links

  1. Bitcoin Treasuries - bitcointreasuries.org

  2. Morgan Stanley Boosts Stake in Bitcoin-Laden MicroStrategy to 10.9% - Coindesk

  3. NIO Partners with NVIDIA to Develop a New Generation of Automated Driving Electric Vehicles - GlobeNewswire

As always, this is not financial advice. I use this as a way to journal my thoughts and share with anyone else interested enough to want to read this, as well as for educational purposes only.