We are up 369%, Wall St meets crypto, plus more to come
Finally some good news for 2020 Many people suffered greatly in 2020. In the BOS office, we have friends who survived being hospitalised and on life support with COVID19. There are millions who did not survive, and billions who had work and family life disrupted by lockdowns, protests and bushfires. To quote the Hill Top Hoods, “Twenty twenty’s nothing but an unshaved ……” We encourage those who have not heard the song to click on the link. The song is fresh, funny and catchy, plus all profits are donated to charity. From the crisis that was 2020, many opportunities have emerged, and stories of selflessness, love and hope abound. Communities have become more connected (albeit remotely), some of us spent more time on self-improvement and some even learned the names of their neighbours. With governments around the world responding to a pandemic-fuelled economic crisis, central banks used the only tools that they had at their disposal, lowering interest rates and printing money like it was … well, less valuable than the toilet paper which we were hoarding. Stimulus payments were handed out to individuals and businesses, and some of it even ended up in the right hands. Fresh influxes of money sought pandemic security in government bonds or bank accounts, however, the interest rates of 1% or less were disappointing. This lead to a run on the stock market, and whilst some stocks went rocketing up (eg. Zoom, Facebook, Amazon, Afterpay, Netflix, Tesla), the vast majority of stocks ended 2020 on a low.
What about the crypto?
Undoubtedly many “mum and dad” or retail investors put some of their spare cash or stimulus money into crypto for a bit of a punt (congratulations if you bought BTC at its March 2020 lows). This inflow was also joined by savers and investors who were disgruntled by poor returns on bank accounts, causing a slight hike in crypto values earlier in the year. But wait… In mid- to late-2020, a tsunami of cash was about to crash into crypto markets. Professional money managers and institutions such as Grayscale, Square, Microstrategy and others started to buy bitcoin as a hedge against inflating currency supplies. According to BitCoin Treasuries, over 5% of the supply of bitcoin has now been accumulated by large institutional investors. Wall Street billionaires have finally figured out what you knew all along: crypto is the future. Bitcoin prices soared, and despite occasional pull-backs and profit-taking, the prices keep heading up as more and more “Wall Street” types realise that currency printing is bad for most investments, and scarce commodities are the way to go. (Clearly these people do not read the #BostonCoin newsletter, otherwise they would have been informed and taken action twelve months earlier!) As mentioned in previous newsletters, bitcoin’s scarcity, the cost to mine and its inbuilt “halvening” have been driving price for a decade. Now that institutions are buying bitcoin as an inflationary hedge and store of value, the floor prices are set far higher, and scarcity is increasing. If you missed the huge gains of bitcoin from its March 2020 lows, rest assured that there are still gains to be had in 2021. These may come from bitcoin itself, due to more institutional buy-ins, as well as from the plethora of undervalued altcoins which have yet to exceed their previous all-time highs. Although BTC blew past its record, Ethereum is still down 25% from its 2017 highs and dozens of other coins have yet to recover their records set three years ago. If you feel like a flutter, or are just interested, you can see a list of the coins still down from record highs at CoinGecko here. We do not make recommendations on any of these coins, tokens or projects and it is up to you to do your own research (DYOR) before deciding whether to buy, hold or sell.
How did we do?
The “atta boy” and “good girl” action continued at BostonCoin, with some nice gains in the main arena, as well as some out of left field. (For those who wish to know how our investments performed, read on. For those wondering about the picture of a Boston Terrier on a scooter, feel free to click through to the Youtube video to see more well-trained puppies, and we will wait for you to come back when you’ve watched enough dogs on scooters and skateboards)
How did we go this month?
Ethereum up 107% Bitcoin up 273% Elrond Gold up 119% WANchain up 126% AAVE/Lend up 165% ChainLINK up 898% Celsius up 12 017% If you think those gains are impressive, stay tuned, as there are more to come. We continue to scour the markets for opportunity, monitoring crypto markets as well as broader macroeconomic factors to take action as and when appropriate. For the closing of 2020, BostonCoin is up 39% for the month of December and up 369% for the year. Congratulations if you’ve been HODL’ing, and feel free to add to your investment as we build momentum and value. Remember to tell your friends who do not yet have crypto to join the #BostonCoin puppy pack, for safer crypto returns without the volatility. BOS NAV 31/12/2020 76.3760959 BOS Price 84.0137055 This is a growth in the price of BOS of over 369% since this time last year, with regular income and less volatility than Bitcoin. Tell your friends: BostonCoin: secure, strategic, successful See you next month JB