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bitcoin

If Bitcoin Really Is Digital Gold, Then $500,000 Is the Next Stop

Everyone loves to throw out long-term price targets on Bitcoin.
ARK Invest fund manager Cathie Wood last week reiterated her firm’s call for Bitcoin to trend toward $500,000 per coin over the next several years. Tyler Winklevoss of Facebook fame and big crypto enthusiast has also pounded on the table about a $500,000 long-term price target for Bitcoin.
Meanwhile, the relatively conservative analyst team over at JPMorgan has set a theoretical long-term price target for BTC of $130,000. A leaked Citibank report shows that the analysts over there think that the price could climb toward $300,000. Billionaire Tim Draper has gone on record multiple times saying Bitcoin prices will eclipse $250,000 by the end of 2022.
And, in the most bullish call of them all, Anthony Pompliano – co-founder and partner at Morgan Creek Digital Assets – has said Bitcoin prices could soar to $1 million per token in the long run.
Big numbers. Yes. But can Bitcoin really soar toward $200,000? $300,000? Even $500,000 or higher in the long run?

Source: Shutterstock

Our short answer: Yes.
And the reasoning is pretty simple. Bitcoin is the digital version of gold. The gold market is an $11 trillion market. If Bitcoin gets that big, you’re talking an $11 trillion market on 21 million tokens, which implies a price per token of about $500,000.
That’s the back-of-the-envelope reasoning and math behind the $500,000 price target.
Of course, that model rests on some major assumptions. One, Bitcoin is the digital version of gold, and two, the Bitcoin market will be as big as the gold market.
We think both are fair assumptions.

The modern value of gold derives from scarcity. Sure, maybe once upon a time, gold was used to barter for goods or used to make swords and shields. Not too long ago, it was used in some semiconductor chips.
But those days are gone. Today, gold is used for nothing. Its value is in the fact that it has finite supply and, therefore, is a good store of value.
The same is true for Bitcoin. In fact, it’s even more true for Bitcoin. There are, by definition, only 21 million Bitcoins in the world. There will never be more than that. Meanwhile, in the gold market, more gold mining efforts can always be put online to increase supply as demand increases.
In other words, Bitcoin has more scarcity than gold and, therefore, isn’t just the digital version of gold – it is a digital and superior version of gold.
Meanwhile, Bitcoin is digital, while gold is physical, and the whole world is pivoting toward digitization these days. Media is digital. Shopping is digital. Entertainment is digital. Communications are digital. Work is digital. Health is digital. Everything is digital.
In that world, money will inevitably become digital, too. Indeed, that’s already happening. Venmo. Cash App. PayPal. SoFi. All of these digital money apps are soaring in usage right now, while the volume of cash transactions is plummeting.
Therefore, Bitcoin is gold made for the modern world. You can’t send gold through a social media platform, or a streaming service, or use it buy a good online. But you can use Bitcoin for that.
To that extent, it’s easy to see why folks will ditch their physical store of value (gold) for a digital store of value (Bitcoin) – and why the Bitcoin market will become as big as (if not bigger than) the gold market.
All in all, we think the fundamental reasoning underlying the Bitcoin market supports that Bitcoin prices will trend towards $500,000 in the long run.
How long will it take to get there? No one really knows. Our best guess is about 10 years – and if so, you’re talking about an asset that will increase 10X in value in 10 years.
That’s an amazing return.
Indeed, it’s such an amazing return that my team and I have created an exclusive investment advisory dedicated entirely to cryptocurrency research called The Crypto Investor Network.
Long story short, we’ve built a team of blockchain experts to analyze the crypto markets and pick the best long-term crypto investments – so that over the next 10 years, you’re not making just 10X returns on Bitcoin, but rather, something like 50X returns or greater on smaller altcoins.
Sounds impossible? It’s not. Click here to find out why 50X returns are more achievable than you might think.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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Why Are Cryptos Down Today? 7 Things to Know About the Suex.io Blacklist

Today, some juicy news has shaken the crypto world. Unfortunately, this news is rather bearish for those banking on a truly decentralized future free of government interference. Indeed, with cryptos down today (again), crypto investors appear to be in full-on bear mode, with most major cryptocurrencies seeing double-digit declines from their peaks right now. Today’s …

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someone excited about upcoming ipos

7 Upcoming IPOs That Are Getting Everyone Very Excited

Despite the novel coronavirus pandemic, last year saw several highly anticipated initial public offerings, or IPOs. According to FactSet data, the volume of IPOs more than doubled from 2019, with 494 IPOs raising a combined $174 billion, setting new records on both counts.
Last year saw the debut of Airbnb (NASDAQ:ABNB), Palantir (NYSE:PLTR), Snowflake (NYSE:SNOW), DoorDash (NYSE:DASH), and Unity Software (NYSE:U), all of whom had blockbuster listings. And this year is shaping up to be an excellent one for IPOs once again.
But there is a need for caution as well. For every company touting to be the next Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), or Tesla (NASDAQ:TSLA), several other companies will end up promising the world while losing money. That’s why you need a sound investment strategy that will help you make sense of the situation and ensure you pick a multi-bagger.
This list provides you with seven of the most anticipated upcoming IPOs to watch in the latter half of the year. They have been selected for their forward-looking operational models and unicorn-level valuations. Ultimately, every company has its growth stories and prospects. But these enterprises offer the best of both worlds. Hence, they are excellent prospective picks for your portfolio:

Instacart
Nextdoor
Stripe
The Fresh Market
NerdWallet
Discord
Ascensus

IPOs to Watch: Instacart
Source: Piotr Swat/Shutterstock.com
Many feel Instacart missed the boat by not going public before DoorDash, an online food ordering and food delivery platform that saw enthusiastic investor demand, going public at a $32 billion valuation before soaring on its first day of trading to a valuation of roughly $70 billion.
But there are plenty of positives with Instacart that make it an IPO I would watch out for. Earlier this year, the grocery delivery app closed on a $265 million funding round that sent the grocery delivery app’s value to $39 billion.
The pandemic was a boon for the company’s business. Consumer demand for delivery and pickup services skyrocketed due to the nature of the crisis — Instacart’s order volumes have surged as much as 500% this year.
The company has reportedly tapped Goldman Sachs (NYSE:GS) to lead its initial public offering, although we do not have a definite timeline for the listing as of yet.

Nextdoor
Source: Tada Images / Shutterstock.com
Neighborhood-focused social media and news app Nextdoor is tight-lipped regarding how it will go public. But last month, news broke that the company will go public through a reverse merger with a special purpose acquisition company. The deal is worth $4.3 billion.
Nextdoor’s app is interesting. It allows users to organize events, alert neighbors of danger, and share useful information. Overall, Nextdoor serves over 275,000 neighborhoods around the world and in nearly 1-in-3 U.S. households.
It achieved a valuation of $2.2 billion in its last financing round, which took place in September 2019. In total, the company has raised $447.9 million.
San Francisco-based Nextdoor is led by a very capable C-suite, headed by former Square (NYSE:SQ) CFO Sarah Friar, who is trying to aggressively expand the platform into new areas into new territories while continuing to allocate capital to both small businesses and in its proprietary advertising technology to support its monetization and revenue streams.
Nextdoor’s merger with Khosla Ventures Acquisition Co II (NASDAQ:KVSB) is expected to close in the fourth quarter. The emerging company will trade under the ticker symbol “KIND.”

IPOs to Watch: Stripe
Source: Michael Vi / Shutterstock.com
Last year, reports emerged of preliminary discussions between billionaire investor Bill Ackman and the payments processing software company Stripe that would help the latter go public through a merger with Ackman’s blank-check company.
However, those talks did not pan out. But that didn’t stop Stripe’s momentum. In March, it raised $600 million, leading to a $95 billion valuation, approximately triple its $36 billion price tag 11 months earlier. At this point, Stripe doesn’t need to go public. Even if it holds off listing, it will remain a sought-after private company for years to come.
One thing is for sure; it is unlikely the company, founded by Irish brothers Patrick and John Collison, will take the SPAC route. At close to $100 billion, it just isn’t viable as a SPAC target anymore. But watch out for the IPO. This is a company with an excellent future.

The Fresh Market
Source: Hananeko_Studio / Shutterstock.com
The Fresh Market is gearing up for its second IPO.
Founded in 1982, the organic grocer had debuted on public markets through a $290 million IPO in November 2010. However, in March 2016, the company inked an agreement with private equity giant Apollo Global Management (NYSE:APO) for a $1.36 billion cash buyout.
During the intervening period, the grocer tried unsuccessfully to compete with the likes of Kroger (NYSE:KR) and Whole Foods. But a lot has changed since then. For one thing, the company is a much leaner enterprise, operating 159 stores in 22 states, down from 186 stores in 27 states back in 2016.
Credit rating agency Moody’s said the grocer managed to increase sales by an estimated 20% in 2020 due to investments in price, perishables and expanding home delivery and pickup service availability. The agency estimates the grocer had $187 million in unrestricted cash as of late October. And it will be cash-flow positive for the remainder of this year.
Although it’s in a fiercely competitive industry with low margins, it has shown remarkable growth and resilience in years since being taken private by the private equity arm of Apollo Global Management.

IPOs to Watch: NerdWallet
Source: McLittle Stock / Shutterstock.com
In March, NerdWallet, the owner of a financial advice website, reportedly filed paperwork for an IPO, according to a Reuters report.
San Francisco-based NerdWallet has hired a group of investment banks, led by Morgan Stanley (NYSE:MS), to arrange the IPO, with plans to list before the end of the year, per the report.
Its personal finance website and mobile phone app generate over $150 million in annual revenues across more than 100 million users. NerdWallet’s strategy has been to grow through aggressive mergers and acquisitions (M&A) activity.
Last year, for example, the company purchased New York City-based Fundera, which created a marketplace where small businesses could find loans. It was NerdWallet’s second purchase of 2020, having previously acquired U.K.-based Know Your Money.
While we do not have a firm date regarding when the IPO will happen, it will still be a notable one, considering the asset-light nature of the company and phenomenal user growth since it was founded in 2009 by former hedge fund executive Tim Chen and Jake Gibson, a former trader at JPMorgan Chase (NYSE:JPM).

Discord
Source: Shutterstock
Discord is a VoIP, instant messaging and digital distribution platform that allows users to communicate with voice calls, video calls, text messaging, media and files in either private chats or communities called “servers.”
The concept of Discord came from Jason Citron and Stanislav Vishnevskiy. The duo created online games and had to have regular discussions with their remote developer teams. Unfortunately, the comm systems they evaluated didn’t have the features they needed, so they built their own system, Discord.
In a world that is increasingly going digital, it’s no surprise Discord is doing so well. Monthly active users (MAUs) doubled in 2020 to 140 million, and revenues skyrocketed from $45 million to $130 million. These mouth-watering statistics made Microsoft (NASDAQ:MSFT) make a move for this one. The tech giant reportedly offered to purchase the company for at least $10 billion. But the deal fell through, with Discord ending talks with selling itself to Microsoft or other companies, The Wall Street Journal reported.
Microsoft doesn’t have a big consumer-facing way to interact with consumers, apart from its Xbox and Surface devices. So the deal would have been a major coup for the company. Nevertheless, Discord remains an excellent IPO prospect. Discord has reportedly decided to stay independent and consider a potential public listing to build on its success despite the pursuit of big names.

IPOs to Watch: Ascensus
Source: Shutterstock
The IPO for financial services company Ascensus has been a long time coming. Founded in 1980, the company provides services for the 401(k) market, 529 college funds and Health Savings Accounts (HSAs). It has more than $327 billion in assets under administration, with more than 3,700 employees and a large national footprint.
Building on its thriving business, Ascensus is heavily investing in its technology offerings and has already rolled out a new digital sales platform for representatives that automates the proposal process.
As of this writing, Ascensus has not yet announced a formal date for its IPO. However, the savings provider has tapped Barclays (NYSE:BCS) and Goldman Sachs to prepare for the stock market listing. The listing IPO of the savings services provider could value it at around $3 billion, including debt.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

semiconductors

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blockchain

HVBT Stock: Could Ethereum’s 2.0 Overhaul Threaten Hive Blockchain?

Ethereum’s (CCC:ETH-USD) London hard fork is a new chapter for cryptocurrencies. The overhaul, starting with the fork and ultimately transforming into the Ethereum 2.0 network, is one of the largest upgrades we’ve ever seen on a blockchain network. And, it’s the second-largest crypto in the world to boot. But this upgrade could potentially be a …

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investor about to place a trade for amc on robinhood

Robinhood IPO: What to Know About Robinhood IPO Pricing as HOOD Stock Debuts

Investors are anxiously awaiting today’s trading debut of Robinhood Markets (NASDAQ:HOOD), the online brokerage that priced its initial public offering at $38 a share. HOOD stock will trade on the Nasdaq following the Robinhood IPO. The Robinhood IPO pricing reflects a $32 billion valuation. Investors should note that the pricing is at the bottom of a …

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technology supercycle

How to Cash in on a $56 Trillion Tech Supercycle

Like you, I’ve been run ragged with all the negative news over the past year.

Source: Shutterstock

Together, the country faced the pandemic and the record bear market followed by the record bull, a contentious election, and the emergence of the delta variant.
But last night was a very special positive development!
That’s when thousands of people tuned in to the Tech Supercycle Summit.
During that event, stock-picking legend Louis Navellier and I talked about the Technochasm — the growing divide between the rich and poor in this country fueled by the rapid growth of technology and the investors who take advantage of it.
I started talking about the Technochasm about a year ago, and my goal was to alert people to what was happening and help them understand and prepare.
But last night, I talked about something different.
Last night, I went beyond making you smarter — and focused on how to make you wealthier through one specific advancement that is going to be the most important thing will drive the Technochasm to grow even faster over the next few years.

And I was delighted that Louis chose to join me.
Louis’ stock selection system differs from my own — but we’ve both been able to succeed over decades in the markets and produce dozens of triple- and quadruple-digit winners for our readers.
And together, we revealed our picks for how investors can get on the right side of the Technochasm in 2021 and beyond.
What this growing divide means for you, as an investor, is that it’s critical to position your portfolio on the right side of it. If you don’t, the wealth destruction could be life changing.
That’s no exaggeration.
Some of the biggest traditional names in the stock market… companies with thousands and thousands of investors… have been left floundering because they didn’t adapt to our rapidly changing tech-focused world. And their investors have paid the price.
But there is still time to get on the right side of the gap.
You can watch the replay of last night’s event now and learn how our systems work… and how Louis and I have been able to pick some of the biggest tech winners.
PLUS, during the video, we give away our favorite hypergrowth stock to grow your wealth. It’s quickly emerging as a leader in the $56 trillion tech supercycle that we talk about during the event… and a perfect example of the stocks you’ll need to stay on the right side of the Technochasm.
Even this morning, we were fielding dozens of calls from folks asking for more details.

So, here’s the bottom line.
If you hope to survive and prosper in America in the years to come, you need to understand the Technochasm, why it’s happening, and, most importantly, what you can do about it.
You can either take this information and leverage it to increase the worth of your portfolio… or you can do nothing and potentially watch your stocks struggle as they become the Technochasm’s latest victims.
Watch the replay now to get the details… and to get our free stock pick!
Regards,
Eric Fry
P.S. $56 Trillion Opportunity Hinges on This New Tech
There’s a new technology about to go mainstream and it could unlock $56 trillion in new wealth and jump-start a new supercycle in tech stocks. As Louis Navellier and I just revealed in last night’s big event, you could make $100K or more as this story plays out.
Click here for more info…
Eric Fry is an award-winning stock picker with numerous “10-bagger” calls —in good markets AND bad. How? By finding potent global megatrends… before they take off. In fact, Eric has recommended 41 different 1,000%+ stock market winners in his career. Plus, he beat 650 of the world’s most famous investors (including Bill Ackman and David Einhorn) in a contest. And today he’s revealing his next potential 1,000% winner for free, right here.

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