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- 📈 $COIN: Primed for the Crypto Gold Rush
📈 $COIN: Primed for the Crypto Gold Rush
If the total value of all Bitcoin in circulation were to reach even a quarter of the total value of all gold in circulation, the price of one Bitcoin would be around $180,000.
Top of the morning everyone! Apple has approved the Underwriter app for release, we’re targeting a tentative release week of March 18th.
Featured Stock of the Week
A note that neither Underwriter nor this newsletter provides investing or trading advice. Please consult with a financial professional before making investment decisions. By reading, you agree to not take this as financial advice and assume all risk.
COIN: Coinbase $234.58
Our featured stock of the week is Coinbase.
Coinbase is hot…like Linsanity hot…like Beanie Babies in the 90s hot.
Increasing Profit
Coinbase ended 2023 on a high note in reporting a record profit number. Coinbase’s stock price closely correlates with the price of Bitcoin. As the price of Bitcoin goes up, so does Coinbase as Coinbase generates larger fees with the higher BTC price. With the Bitcoin halvening on the horizon, it is likely that Coinbase will continue to report recording-breaking numbers.
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78% Increase in Subscription and Services Revenue
Coinbase doesn’t just make money from transactions, they have a whole suite of products/services like Coinbase Custody for institutional investors and Card which allows for people to use their crypto directly for purchases. As the appetite for crypto grows for large institutions, so will the demand for services like Coinbase Custody which is rumored to start at $100k just for the set up fee. Despite decades of stuffy old dudes saying Bitcoin is worth nothing, it has continued to only increase in value. The CEO of Blackrock (10T in assets) recently said that Bitcoin is “a flight to quality”. |  |
Can Bitcoin hit $100,000?
Many estimate that Bitcoin will inevitably hit $100,000. The total value of all the gold in the world is approximately $14 trillion, while the total value of all the Bitcoin in the world is approximately $1 trillion. Some view Bitcoin as a potential replacement for gold due to its lighter weight and more secure method of storing value If the total value of all Bitcoin in circulation were to reach even a quarter of the total value of all gold in circulation, the price of one Bitcoin would be around $180,000. This is a staggering number to consider. As Bad Bunny would say, nadie sabe lo que va’ pasar mañana (no one knows what will happen tomorrow)….but what has repeatedly happened, is Bitcoin shattering conceptions about its “true” value. Remember that one Christmas where it broke $10,000,...it now sits at $63,000 :). Coinbase is the best positioned company to benefit from the future of Bitcoin. |  |
Major Market News
source: New York Times
Tuesday, March 5th - Factory Orders
What: Analyzes how many orders factories have received
Impact: This is a good economic signal as factories making stuff likely mean that there is demand. This demand trickles down into economic activity as people, trucks, boats, suppliers etc all coordinate to make and move the factory orders.
Source: Census Gov
Wednesday - Thursday, March 6th and 7th - Jerome Powell Testifies to Congress
Who: Jerome Powell is the chairman of The Federal Reserve (The Fed). The Federal Reserve is the central bank of the US. It sets our strategy and policy around jobs, unemployment, banking and inflation.
Why This Matters: Mortgage rates, credit card rates etc have all been high in part due to The Fed maintaining a high interest rate. The Feds interest rate is that rate at which banks can borrow and lend money to one another. The Fed raised rates during the pandemic to dampen inflation and now many are waiting for rates to be cut. Despite high rates, the US economy has done well which is why The Fed has kept interest rates high as cutting rates may spike inflation.
Impact: With Jerome Powell testifying to Congress, we’ll get a great sense of if and when The Fed will cut interest rates. Many predict that a rate cut will set the stock market on fire.
Source: Bloomberg
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A note that Underwriter and this newsletter is not investing or trading advice. These are stocks and information we find interesting. Please consult with a financial professional. By reading, you agree to not take this as financial advice and assume all risk. Futures, stocks, bonds trading of any kind involves a lot of risk. No guarantee of profit is made. In fact, you may lose your entire investment. We guarantee no profit whatsoever, You assume the entire cost and risk of any trading or investing activities you choose to undertake. You are solely responsible for making your own investment decisions. Owners/authors of this newsletter, its representatives, its principals, its moderators and its members, are NOT registered as securities broker-dealers or investment advisors either with the U.S. Securities and Exchange Commission, CFTC or with any other securities/regulatory authority. Consult with a registered investment advisor, broker-dealer, and/or financial advisor. Reading and using this newsletter or any of my publications, you are agreeing to these terms. Any screenshots used here are the courtesy of Underwriter. The data, quotes and information used in this blog is from publicly available sources and could be outdated or outright wrong - I do not guarantee accuracy of this information.