Analyst: Like Amazon, Bitcoin Offers a Lucrative Multi-Decade Investment Opportunity

Analyst: Like Amazon, Bitcoin Offers a Lucrative Multi-Decade Investment OpportunityA financial analyst looked closely at the spikes in Amazon’s stock price and bitcoin recently. While detailing similarities between the two investments, he explains why bitcoin may be one of the most lucrative trading opportunities for decades. Also read: Most Popular Contactless Smart Cards in Japan Adding Bitcoin Hardware Wallets Bitcoin is Most Lucrative Education consultant and

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Analyst: Like Amazon, Bitcoin Offers a Lucrative Multi-Decade Investment Opportunity

A financial analyst looked closely at the spikes in Amazon’s stock price and bitcoin recently. While detailing similarities between the two investments, he explains why bitcoin may be one of the most lucrative trading opportunities for decades.

Also read: Most Popular Contactless Smart Cards in Japan Adding Bitcoin Hardware Wallets

Bitcoin is Most Lucrative

Education consultant and analyst Gordon Scott published an article on Wednesday explaining how “bitcoin looks a lot like an early Amazon,” referencing the massive spike in Amazon’s stock price that started in 1997. While citing bitcoin “holds real risks,” he believes “there is a real opportunity for traders right now”, adding that:

Bitcoin may be the most lucrative trading opportunity since internet stocks such as Amazon.com Inc. in the dot-com era.

Scott is the Managing Director of the Chartered Market Technician (CMT) program for the Market Technicians Association, a non-profit organization of professional technical analysts headquartered in New York City. Previously, he worked for IBM and TD Ameritrade and spent over 10 years as a trading coach and e-learning consultant.

Similarities to Amazon

Analyst: Like Amazon, Bitcoin Offers a Lucrative Multi-Decade Investment OpportunityAfter explaining the importance of blockchains and the tremendous impact they are likely to have on our society, Scott compared a few of bitcoin’s price spikes to that of the huge Amazon spike during the dot-com boom. He felt that the two spikes are similar because in each case investors are seeing a new technology that could change their world. “The latest run-up in the price of bitcoin is an indication that many more people are starting to believe these promises could actually be fulfilled,” Scott said.

Amazon went public in May 1997 at $18 per share in an initial public offering (IPO) which valued the company at around $438 million. Citing Amazon’s groundbreaking business model, Scott recalled that “investors were not able to fully and accurately quantify Amazon share value at first.” In 1997, people knew that Amazon had a great idea but they still could not fully give a proper valuation to its shares, he detailed, noting that “consequently, investors had to guess at the company’s value.”

Analyst: Like Amazon, Bitcoin Offers a Lucrative Multi-Decade Investment Opportunity

Scott compared the price of Amazon shares from 1997 to 1999 with bitcoin from 2016 to 2017 as well as from 2009 to 2010. The marketplace giant rose more than 6,000% in its first two years after its IPO, he described, noting that “18 years later the peak price from back then looks cheap by comparison today.”

Analyst: Like Amazon, Bitcoin Offers a Lucrative Multi-Decade Investment Opportunity

While Amazon’s price surge is still larger than any single bitcoin price surge, Scott pointed out that it happened over a longer period of time than any one of bitcoin’s surges. “Surprisingly, bitcoin’s performance in its first two years only achieved two-thirds of Amazon’s original run-up,” he conveyed, then concluded:

It’s possible that cryptocurrencies are not only here to stay, but potentially a life changing mechanism for all of us. If that’s the case, then bitcoin offers investors a multi-decade investment opportunity, rising like Amazon’s market cap — and a price — that defies logic.

Do you think bitcoin will continue to be a great investment opportunity for decades? Let us know in the comments section below.


Images courtesy of Shutterstock, Gordon Scott, Investopedia, Microtrends


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Coinbase Seeks $1 Billion Valuation From Committed Investors

valuationAccording to a report from the Wall Street Journal, the bitcoin company Coinbase is seeking investors in a new funding round that aims for a $1 billion dollar valuation. Also read: Bitcoin Could Progress the Fourth Industrial Revolution Says Wealth Manager Coinbase Seeks Investment Pledges of ‘$100 Million or More’ for a $1 Billion Valuation Goal Sources familiar

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valuation

According to a report from the Wall Street Journal, the bitcoin company Coinbase is seeking investors in a new funding round that aims for a $1 billion dollar valuation.

Also read: Bitcoin Could Progress the Fourth Industrial Revolution Says Wealth Manager

Coinbase Seeks Investment Pledges of ‘$100 Million or More’ for a $1 Billion Valuation Goal

Coinbase Seeks $1 Billion Valuation From Committed InvestorsSources familiar with the matter told the publication Coinbase is currently having discussions with potential investors. Currently, investors that may pledge towards the round are undisclosed, but the source has disclosed it will be one of the biggest funding rounds in the digital currency space. The company has been one of the most well-known startups since Brian Armstrong, and Fred Ehrsam founded the company in 2012.

Over the course of the company’s life, it has so far raised $117 million over five funding rounds. This includes funding from big-name venture firms such as Andreessen Horowitz, BBVA Ventures, and the New York Stock Exchange (NYSE). The Wall Street Journal says the company is now seeking “$100 million or more” from investors looking to pledge.

“There’s more interest in bitcoin when prices go up, and then trading volume goes up,” explains one investor to the news outlet.

Therefore there’s more interest in bitcoin companies.   

Investors Are Noticing the San Francisco Bitcoin Company’s Popularity Continues to Grow

Besides getting large capital injections from venture firms and individual investors the company has grown massively. For instance, Coinbase claims to have 7.4 million users and works with 46,000 merchants who accept bitcoin. Additionally, the company has issued 24.2 million wallets and its software team has released 10,000 developer applications. On May 26 the company’s CEO Brian Armstrong told the public the company was seeing a significant influx of new registrants.

“Coinbase had 40,000 new users sign up in one day, or approximately one San Francisco Giant’s Stadium,” exclaimed Armstrong.

May was a crazy month for Coinbase as the price spike caused “Slow load times and degraded performance” and “partial outage” issues on May 22 through 25th.

If venture organizations and investors give more funding to Coinbase, the startup will be the largest funded bitcoin-based company on the record. The valuation will push Coinbase higher than other bitcoin-focused companies with significant funding capital such as 21 Inc. and Circle Financial.

What do you think about Coinbase looking for more venture capital? Let us know in the comments below. 


Images via Shutterstock, and the Coinbase website. 


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