MEMBERS AREA
Bitcoin – Inevitable and Eventual
TRADERS’ RISK CALL – 18 Feb 2021
[NIC] Hi guys, welcome to another episode of traders’ risk call. I’m Nicholas and today with us is Vee,the CIO and founder of TrackRecord. How are you, Vee?
[VEE] Hey Nick, I’m good. Let’s talk about markets.
[NIC] So I think Bitcoin is making headlines again. Black Rock and large corporations, especially BlackRock, are talking about dabbling the Bitcoin. So do you think the inevitable adoption is around the corner?
[VEE] I think so. Yes. You have answered your own question. It is inevitable and it is coming soon and it’s probably here already for some of those guys, right? We have seen Tesla we see now Black Rock. So, these are actually key leaders in their sectors, right? Tesla being led by, you know, cult figure Elon Musk, is basically driving the way forward for corporates to put it on their balance sheet. And BlackRock, 7.8 trillion or something like they are managing. There’s no need to worry about joining this frenzy to make a billion or two right? Clearly, it is not something like this. Clearly they see this as a growing sector. They want to stake some claim and get involved before everybody else comes right? So I think this is a sign of things to come. So, definitely Bitcoin as a store value. And interestingly, I’m having a lot of conversations, getting calls from friends in traditional finance asking how to get involved, when to get involved, is it too late to get involved? Clearly. I think these conversations will continue to be had in the days and weeks to come. So yes, it’s inevitable and it is closer than we think.
[NIC] Right and on the commodities side of things, platinum and copper is trending well, it’s performing. What do you make of this, is there a broader trend behind this?
[VEE] Yes, first, of course, everything is driven by the money printing right? Finite assets, scarce assets, all will be going up. And of course, platinum and copper have usage in industrial use: in production of electric vehicles as you said. Also, copper is used quite a lot in infrastructure projects, wiring and stuff like that. So definitely it’s telling us something about the world that there’s a lot of demand for this Commodities. And it’s interesting that Platinum is a precious metal that’s outperforming both gold and silver. I’m not exactly sure why gold trades so poorly. But it does, it trades very poorly. But I guess maybe there’s people getting out of gold. For example, Warren Buffet, he sold his Barrick Gold Holdings. Probably the shortest stock holding to see him divest in such a short time. I cannot remember once when (he did so). Just last year, he bought into gold and there was a big deal for his thesis that gold is an useless investment and then he dabbled and then they got out. So that is weighing on the market. So I think, always find the best expression. Like now I am not long gold anymore because the price action truly truly disappoints. At least silver is slightly better but platinum, I guess it’s the best because it’s surging ahead. Copper is good too. But I think underlying all this is just that scarce asset again, right? It’s going up.
[NIC] Right and back to the Bitcoin thing. I think this is a good segue into yesterday’s segment of our Life of a Trader (podcast). So what we get that most people say “(At) $50,000 Bitcoin is too expensive. Should I even buy?” So how do you explain that?
[VEE} Well, it’s expensive relative to where we came from but it’s always going to be expensive relative to where we came from in an uptrend right? It’s not expensive relative to where we are going. Our target for the year is 80-85 thousand, our ultimate Target is 500 to 600 thousand. I think it’s as good as any right and every day it is different because there’s not just more money being printed, not just prices going higher. Yes, prices are going higher, but it’s also because of developments. Everyday that passes, more and more corporates, more and more institutions are getting involved, right? So that is critical to understand right? So today is very different from tomorrow, tomorrow more people buying and there are more long-term holders – the available supply gets less. Say for example, BlackRock buys a billion dollars, that’s a billion dollars of Bitcoin out of the market and they’re not going to sell it anytime soon. So it’s critical to understand this. Of course it’s going to be a while. But, you know, don’t forget the destination, right?
[NIC] I think that’s all for today’s episode Vee.
[VEE] Okay. Thanks, Nick. Take care, as always stay true to the process and you will always be profitable eventually.
1. BlackRock and large corporations are talking about Bitcoin, does Vee think the inevitable adoption is around the corner?
2. Gold and Silver is underperforming its commodity counterparts like Platinum and Copper. What does Vee make of this?
3. $50,000 is too expensive. Should anyone even buy ?
Disclaimer: The views and opinions expressed in this material do not constitute a recommendation by TrackRecord Pte. Ltd. that any particular investment, security, transaction or investment strategy is suitable for any specific person. No part of this material may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of TrackRecord Pte. Ltd.