Too Hot Investment Thread

Not sure I understand what the rate of adoption of crypto versus the internet has to do with anything. The internet has been around a lot longer. Not sure why you think i'm not a believer. My question was a serious question. I actually own Etherium as well as some blockchain ETFs

 

I haven't bought any crypto as I don't understand it at all despite having a DIL who specializes in it for CitiBank at their HQ in NYC. Seems like a pure gamble to me. I put my money into the things I can easily understand and I'm not very sharp so the company and what drives the stock price needs to be obvious. I have APPL and can understand it - they sell products, subscriptions, and data storage. I can understand what makes their stock climb or fall generally. I have Amazon, I understand they sell and deliver packages, and lease digital storage and provide entertainment. I have a couple of banks - I vaguely understand what they do. I have a few high dividend companies that pretty much pay my monthly expenses and I understand the goods and services they provide.

I do not grok what goods and services crypto provides. If its like money why does the value fluctuate so severely? No monetary system this side of the Weimar Republic seems to gyrate so greatly. I'm going to sit out the crypto craze and try to get rich slowly. I wish all the TH crypto investors all the best and hope you all can afford your own island in a few years.

 

Yeah - I don't pretend to really understand either. ha. I also invest in what I know best (EV space), but some diversification is always good. One can't deny that crypto has been the best bet for a while now - so while I may not completely "get it", I put a piece of my pie into some coins.

I do avoid the crap-coins and try to stick with something that seems to have good tech (I guess the equivalent of fundamentals?) just to make myself feel better. That's been ETH and VET for me...

 

Ow, my balls!

 

Lucid is an interesting company. But what happened to the Churchill SPAC?

 

Churchhill merged with lucid. New symbol is LCID

 

It has occurred to me (I'm a slow thinker) that one way to take advantage of some of what crypto currency offers is to invest in crypto mining companies/funds. That way one stands to make money whether the crypto coin is rising or falling as money is skimmed off the transactions. Reminds me that some folks got very wealthy selling shovels and equipment to the Klondike gold miners while most miners made a pittance or less. Has anyone done this or know of some reputable choices?

Down the road from my house there are 3 - now 5 shipping container looking things that are jammed packed with server looking equipment and lots of electricity. Still being built but I think that is what is going up.

 

When you say adoption rate, are you referring to people actually using it, or just buying it?

I tend to think crypto is a speculative mania. But there is no doubt that there is a lot of intellectual horsepower and talent going into the Defi space. So I definitely think something is there, but I'm not convinced buying current cryptocurrencies is a way to invest in it.

My $1000 investment in bit coin and ETH 6 months ago is now back up to almost $1000.

 

People are actually using it. El Salvador is just one example.

Here are some other

"The worldwide adoption score — or "Global Crypto Adoption Index," as Chainalysis calls it — measures "adoption across 154 countries and highlights the countries with the greatest adoption by ordinary people."

The examined use cases are personal, business transactions, and individual saving, not trading and speculation.

Worldwide Crypto Adoption Skyrockets Over 880% In One Year

Here's another

"Cryptocurrency adoption in Africa is booming, according to a new report by cryptocurrency analysis firm Chainalysis. Between July 2020 and June 2021, Africa's cryptocurrency market grew by 1,200 percent – making up for a whopping $105.6 billion (roughly Rs. 775 crores), a recent report by Chainalysis said. Kenya, Nigeria, South Africa, and Tanzania all rank among the top 20 countries on the Global Crypto Adoption Index, and together, the African nations represent the third most rapidly growing cryptocurrency market in the world. The report also noted that the bulk of these crypto transactions aren't driven by large institutional investors, but instead small and medium-sized retail buyers and businesses."

Cryptocurrency Market in Africa Witnesses Huge Growth of 1,200 Percent

If there is this kind of adoption rate happening now, ask yourself what will it look like in in 10 or 20 years?

Anyone that says crypto is pure speculation or gambling hasn't done enough research to really understand what's happening.

 

I think buying current cryptocurrency coins is mostly speculative. My sense is crypto and Defi are probably hereto stay and will grow. Whether Bitcoin or ETH at their current prices may have little correlation to what comes of the whole effort. It seems more likely that dollar and other govt backed coins will be created and widely used. What that means for all these other alt coins remains to be seen.

 

So you’re not sold on Shiba?

 

Most of the DeFi applications are built on the Ethereum platform. If you believe Defi is here to stay and you recognize the adoption rate then it seems logical that Ethereum's value/price only increases over the long term.

 

Wow... we some serious crypto crusaders here.

 

Picked up some ASANA (ASAN, ~ $106) this morning. Been following them for a little while and Motley Fool has been on them for several months. It is described as a Software (project management) as a service company. The founder owns 60% of the stock so he should be motivated but should he get hit by a bus it could be calamitous to the stock price. It is not yet a profitable company but potential growth looks great. Thought it worth adding ~ 1% of my portfolio value in ASAN - so not taking a huge risk. I normally buy and hold but will look to sell on big movement either way with this one.

From Schwab:
Asana, Inc. offers work management platform. The Company's platform enables teams to orchestrate work, from daily tasks to cross-functional strategic initiatives. With its solution, Asana, it enables individuals to manage and prioritize across each of the projects. Its solution enables individuals to collaborate with teammates and have visibility into each team member’s responsibilities and progress.

From MF:

• The company's large customers are rapidly increasing their spending.
• High switching costs act as a solid moat around the business.
• Founders are still involved and have lots of skin in the game.

Asana not only holds onto its customers but gets them to spend 18% more each year. And among its highest-spending customers, the rate is much higher, with such customers increasing their spending by more than 45% every year.

That creates a wide moat in terms of high switching costs. Once you have all of your employees up and running on a platform, you'd be loath to deal with the headaches and friction caused by switching to another.

 

OTOH China has just outlawed cryptocurrency. Because of its use for fraud and money-laundering (they say).
China's cryptocurrency ban: What it means for Bitcoin, Coinbase and the US

 

My oil stock is doing really well over the last few weeks which isn’t a good thing for the average consumer.

 

I picked up $100 worth just for shits and giggles.

 

Likewise, but still down over the last few years - Chevron in my case.