They all have common attributes … Learn how to spot them

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Some things sound too good to be true, especially when money is involved. And, at times of strong asset price inflation and many investors making huge profits in the short-term speculating on stock options or crypto, our judgement can become clouded. Since the start of the pandemic, Ponzi schemes have hit highest level in more than a decade. Authorities have uncovered 60 alleged Ponzi schemes since the start of the pandemic with a total 3.25 billion dollars in investor funds. …

The launch of the central bank’s digital currency could weaken cryptocurrencies including Bitcoin and the USD dominance in global trade

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China’s crackdown on cryptocurrencies has intensified in recent months. Beijing has banned banks and payment firms from providing services related to crypto-currency transactions. It also banned Bitcoin mining in some povinces. All this contributed to the recent plunge in the value of Bitcoin and other cryptos. While many argue that this is part of the love-hate relationship that China and more broadly governments had with cryptos over the years, we do see a radical shift in China’s stance on cryptocurrencies…

Even Ethereum’s founder says it is crypto’s ticking time bomb

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I know I’ll get a lot of heat for this article from Crypto and Bitcoin maximalists but hear me out: The crypto market is too reliant on Tether … Any issue with this stablecoin will lead to a liquidity shock and a subsequent collapse of the crypto market. It is the single biggest risk to the current upturn in crypto prices. Even, Vitalik Buterin, founder of Ethereum and one of the smartest figures in the crypto space stated at the Tim Ferriss Podcast: “I think the Bitcoin ecosystem does have…

Until late 2020, the most Beeple, a digital artist, had ever sold a print for was $100. He just netted $69.3 million at Christie’s auction.

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For those not familiar with the word NFT, this might come as a shock. How can someone sell a JPEG file for such a high figure? The answer is Non-Fungible Tokens. This is the latest tech craze which has boomed in popularity in recent months.

The use case for NFTs

NFTs use blockchain technology in a similar way to Bitcoin. However, the key difference comes from the fact that one Bitcoin is exchangeable with another Bitcoin, while each NFT has…

Living rent-free, spending less than he earned and investing the rest were his key secrets

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We have all heard about the Financial Independence, Retire Early (FIRE) movement which has become particularly popular amongst Milliennials in the past years. The strategy consists in 1) maximising one’s savings by increasing income and reducing expenses; 2) Using those savings to acquire assets, notably indexed funds. The objective here is to accumulate enough assets so that the passive income generated from those assets cover one’s living expenses. Once financial independence is achieved, paid work becomes optional, allowing for retirement many years before the standard retirement age. Having said this, one of the key criticism of this movement is that…

Unlike in 2017, the current Bitcoin bull run looks sustainable

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Bitcoin has skyrocketed to $19,000 a coin after it dropped to $3,122 in late 2018. The cryptocurrency is now almost back to its all-time high value of $19,783 reached in December 2017. In the last two months alone, the cryptocurrency has added almost $10,000 in growth. Most market participants believe Bitcoin’s current bull run is sustainable. JP Morgan predicts its price can achieve $140,000+. Here’s why:

#1. Worldwide quantitative easing

Quantitative Easing or QE is a monetary policy whereby a central bank buys government bonds or other financial assets by printing money in order to inject liquidity into the economy. This is typically done…

Whether you are interested in buying the shares or not, here are the five main take-aways from the filing

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Airbnb started in 2007 when two friends from design school, Brian Chesky and Joe Gebbia, decided to rent airbeds in their apartment to help pay their rent. That year, they realised that an international design conference was coming to San Francisco where they lived and that every hotel was sold out. They created a website, and hosted three guests. Something magical happened over that weekend, Brian and Joe treated their guests as if they were old friends and their guests felt like locals. This was the birth of Airbnb. In 2007, Airbnb started with two hosts. Thirteen years later…

Seek Monopolies, Avoid Competition

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Peter Thiel, who turned into an entrepreneur and a venture capitalist after he succesfully co-founded and sold PayPal, has just seen his net worth jump to over $5 billion dollars in recent months. This is quite an achievement having started with ‘only’ $10 millions after Paypal was sold to eBay in 2002. He developed his investing strategies in a controversial book called Zero to One where he states that competition is for losers. …

The hype around special-purpose acquisition companies is the ultimate sign of the current stock market bubble

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What is the common denominator between Nikola, Virgin Galactic and Draftking? They all listed their business by merging with a Special-Purpose Acquisition Company (SPAC). SPACs, also known as blank check companies, are essentially large pool of cash which is listed on a public exchange with the sole purpose of completing an acquisition. SPACs managers would typically raise hundreds of millions if not billions in cash and get paid hefty fees should they acquire a business. They are ultimately incentivised to do a deal at any price, even if they end up overpaying for it. Investors, on the other hand, go…

He netted $2.6 billions with only $27 million investment earlier in the year. He placed a similar trade the day Pfizer announced its new promising COVID-19 vaccine

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Bill Ackman has placed a new position against corporate credit, betting that companies will struggle to pay their debts. This is only eight months after he cashed in $2.6 billion profit in a month on the back of a $27 million investment. In a previous article (link here), we stated that Bill Ackman’s trade earlier this year will go down as one of the greatest trades in the history of financial markets. He achieved in a month what Michael Burry, the famous hedge fund manager portrayed in the movie ‘The Big Short’, achieved in many years.

A genius trade in early 2020

As the coronavirus pandemic…

Adam Aya

Proud Father | Stock Market Analyst | Passionate about Building Things | Life Witness

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