Bitcoin’s incredible gains are attracting more investors, which is pushing demand. This has sparked the interest of Wall Street. If institutional money starts entering this space, it could drive the crypto to even greater heights.
Blockchain powered company Power Ledger (POWR) has had a remarkable weekend, rising 116%. There was no one reason for this, but a combination of factors is working in their favour.
With regulations in place, there will be one less barrier for billions of dollars to flood into the crypto market
Over the weekend we saw more bullish moves with a sharp rise from US$28 to a high of US$41.77. So, what’s going on with neo?
The golden rule of wealth creation is to generate a higher return on equity and assets than it costs to fund those assets. Because these two companies generate high returns on equity and capital, they generate significant cash. It allows them to pay a dividend, invest in growth, and pay down debt quickly if they need to, or buy back shares.
What’s a young person or couple to do, then? Buy into the most inflated asset of all time and hope interest rates stay low enough, long enough for a new generation to come along and keep the Ponzi scheme going? I think Australian society has to come together to start addressing this growing problem.
Ripple is also backed by Google. And as the company continues to expand its uses, the value of the coins will continue to climb.
According to Bloomberg, ‘Mom-and-pop investors haven’t been this crazy for Hong Kong initial public offerings since 2009.’
While it might be too early to jump in and thumb your nose at the Amazon effect. Keep an eye out for turning points like the above. That is, when you see buying on negative news. It means the news wasn’t as bad as expected. Often this is a turning point.
Economics 101 will tell you if you’re creating more of something, then the price of it (the value in this case) will go down. That’s what’s happening with cash. And no one really knows the consequence of this on the global economic situation. But as long as the opportunities are out there, I remain bullish.