Welcome to Talk Money Weekly - where I cut through the noise and curate the best money-related topics from the web.
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Markets & Business
I spoke with my good friend the Weatherman this weekend. The Weatherman is one of the smartest investment analysts I know.
He explains what’s happening with global supply chain disruption, how we should prepare for holiday buying, what this has to do with housing, and when we’ll see an end to this. Tune in for some amazing insights.
Coinbase, now a public company, wants to be the mainstream platform for crypto. It recently announced a platform to buy/sell NFTs. Now, it has a partnership with the NBA. That is HUGE, from a mainstream point of view.
If Coinbase wants to grow into its massive stock valuation, it needs to make sure it stays ahead of the competition. This is very much about branding and on-boarding mainstream/new crypto users onto their platform.
With rumors of Facebook announcing a digital wallet, which Coinbase also has, it needs to continue pushing its branding. Coinbase has also partnered up with Youtube influencers. I like.
Look through this feed. It’s art, NFT or physical. The point being is that people collect and appreciate art in different forms. At some point we won’t care if it’s digital or physical. It matters to someone, and that’s why they purchased it.
Remember when a plasma TV was like $10,000? Tech got better, the cost of production got cheaper, and competition increased bringing down the price. BUT the things we actually NEED in life get more expensive. Profits don’t lie.
It’s a good thing that wages go up, as well as housing. It means that there’s an increase in equity. Yes, of course, housing is expensive, but you can still find it cheaper if you move away from dense areas. BUT, hospital services and college tuition being so high on this chart? There is an unfair advantage here. It’s a racket.
We all remember the absurdity of college textbook prices. We ALL KNOW the absurdity of hospital costs.
If we have a Bitcoin ETF that follows Bitcoin closely, rather than Bitcoin futures contracts, we have the closest thing to a stock that follows the Bitcoin price. That means less fees as well. Can you buy a stock that follows Bitcoin now? Yes, but you’re paying a premium, and it doesn’t own Bitcoin; it owns contracts that are betting on the future price on Bitcoin. (Just assume that it’s not as good as owning Bitcoin outright).
A Bitcoin ETF would be cheaper and then would potentially allow banks and money managers to add direct Bitcoin exposure to a portfolio. OR if you don’t want to buy Bitcoin directly, you can own the ETF.
SEC is being careful of what is being approved. Let’s see if Bitwise’s ETF is approved.
Overtime this becomes less of a growth stock, and more like a Disney. Has consistent profits, owns a bunch of IP, and has steady growth, or kicks out a dividend. Streaming wars are real though, and will make it hard to keep production costs down.
That's all the news from this past week!
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