Twitter CEO Jack Dorsey is one of the world’s biggest bitcoin bulls. And he’s putting his money where his mouth is…
Last week, he appeared on the podcast, Tales from the Crypt. In the interview, he said he’s purchasing $10,000 worth of bitcoin every week.
Now, Dorsey’s a billionaire, so $10,000 per week isn’t much for him. But it’s significant because he’s part of a bigger social media movement called “#StackingSats.” (“Sat” is an abbreviation of Satoshi, the smallest unit of bitcoin.)
The movement is encouraging members to build up their crypto holdings during the bear market—which sounds a lot like what we’ve been saying here at PBRG…
As Crypto Income Quarterly chief analyst Greg Wilson wrote in January 2019, “use the current crypto bear market to start a stake today. I’d start with bitcoin.”
And the fact that Dorsey continues to buy bitcoin at this rate during “Crypto Winter” is a strong endorsement of its staying power. But what really piqued our interest is Dorsey’s prescience: He thinks bitcoin will become the “native” currency of the internet.
Here’s why that’s big for crypto investors…
Born on the Internet
Dorsey is a pioneer in the tech space. He co-founded Twitter in 2006, growing it from an obscure messaging app into one of the world’s largest social media platforms, with over 300 million users (including President Trump).
He’s also the founder and CEO of Square, a financial services and mobile payments company based in San Francisco. Square allows individuals and merchants to accept offline debit and credit cards on their smart devices. It also supports bitcoin trading.
Dorsey helped turn both companies into multibillion-dollar enterprises. So he knows a thing or two about internet technology…
That’s why we’re intrigued by his views on the future of bitcoin:
When you think about the internet as a country, as a market, as a nation… it’s going to have its own currency. And what’s interesting about the internet as a nation—it’s the whole world. So the whole world gets one currency. It gets one thing to communicate in. And that to me is just so freeing, and so exciting.
Dorsey says bitcoin will likely become the currency of choice for internet commerce because it’s the largest, most liquid crypto. Plus, it has first-mover advantage. And it has something that other cryptos don’t—brand recognition…
The brand strength, the brand of bitcoin is really spectacular. It enables more of that resilience. It’s a mainstream, well-known “household” concept. Not everyone really knows what it might be for and may have different perspectives on what it does… but everyone knows that it’s digital currency, digital money, a digital asset.
Admittedly, Dorsey says the adoption of a global internet currency is down the road. But that’s why you want to get in now…
If bitcoin does become the native currency of the internet—as we believe it will—mass adoption will drive its price to new highs.
And as exciting as bitcoin becoming the internet’s native currency sounds, that’s not the major reason we’re all-in on crypto in 2019.
The Year of Wall Street Greed
When a guy like Dorsey is betting big on crypto, he’s probably onto something. And we think we know what it is: Wall Street’s greed.
Regular readers know that world-renowned cryptocurrency expert Teeka Tiwari believes 2019 will be the year when institutions begin flooding into the crypto market…
The New York Stock Exchange (NYSE) and Nasdaq both plan to launch crypto trading platforms this year. And financial services giant Fidelity had its crypto custody service quietly go live this quarter…
Fidelity Digital Asset Services president Tom Jessop told CNBC last week that there’s long-term interest from institutional investors in adding some form of cryptocurrency to their portfolios.
The firm also interviewed nearly 450 institutions—from wealthy families and hedge funds to pensions and endowments—and about 22% already own crypto. And those that do expect to double their allocations over five years… which will only expand the crypto market further.
Here’s what Teeka told me in January:
The NYSE and Nasdaq are the two largest stock exchanges in the world, so they bring a wealth of experience and a ton of reputation to the crypto market. They’ll also help expand the pool of available buyers this year by about 15 times.
Compared to about 35 million crypto holders, there are nearly 500 million stock buyers in the world who have never owned crypto. […]
Whenever a tiny market becomes a massive market, prices rise—especially when it comes to a finite instrument like bitcoin.
So we think Dorsey is trying to get ahead of this tidal wave of institutional capital headed into the crypto space. And crypto investors should follow the smart money…
You can do so by buying a small amount of bitcoin. Remember, crypto is volatile, so don’t bet the farm. You just need small stake to make life-changing gains.
Analyst, The Palm Beach Daily
P.S. Despite 2018’s crypto bear market, it’s still an asset class on the rise. And while Crypto Winter is thawing, Teeka has found a way for you to generate income from smaller cryptos as we wait for the next big move up.
From Anonymous: I don’t believe in your philosophy about not regulating the stock market. We shouldn’t be like a Third World country, where there are only two classes of society—the poor supporting the rich. That’s reverse socialism.
From John Q.: Is Mr. Buffett telling us he’ll invest in more technology companies since those old-school valuation methods (like book value) don’t apply anymore? If that’s the case, why not ignore all the fundamentals?
And Teeka’s tale about a hacker getting into his accounts continues to draw awareness about crypto safety…
From Claire F.: Dear Teeka, your unfortunate experience provided us with a great deal of help because you laid out the causes and effects, in addition to the remedies of how to protect yourself from hackers in such simple detail. I’ve archived your interview with Nick and will use it as my benchmark going forward.
From Joseph P.: Teeka, sorry you got hacked. In your interview, you said there’s no insurance for cryptos like there is for bank accounts with the FDIC… as if the FDIC is really a good thing for fiat assets.
My understanding is that the fractional-reserve system for both banks and the FDIC makes the whole thing mostly useless. Has the FDIC ever done anything good for normal people other than giving them a false sense of security?
From Wayne P.: Teeka, if you had used a “basic” phone instead of a smartphone, would that have prevented the hack?
From Carol F.: I got hacked in December 2017. They took over my computer and locked me out. They also took the funds I had on Coinbase—and more importantly, in my Jaxx wallet.
Your idea about the burner phone is a good one. I understand the concept of keeping passwords and such on a flash drive, but I don’t know very much about how to keep info about the wallet from being saved on the computer.
I haven’t gone near cryptos since I lost about $8,000 to $10,000 that December, when bitcoin was at its high. I’m thankful that I don’t know the exact amount I lost.
Do you have comments or question for our editors? Send them to us right here…
For the past 26 years, Jeff Brown has been a member of Silicon Valley’s “in” crowd.
He’s invested in 102 private deals… and served at an executive level for some of the most successful tech companies in the world—including Qualcomm, Juniper Networks, and NXP Semiconductors.
He gets to see what’s happening behind closed doors in Silicon Valley long before the general public. Today, he says there’s a new tech breakthrough that’s about to take America by storm.
Most people have never heard of it. But Jeff predicts that it will become the biggest investment story of 2019…