Four Investors With Bold Predictions About Bitcoin’s Future

Bitcoin Is a Gamble, Not an Investment

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Last year, bitcoin exploded in value, going from under $1,000 a coin at the beginning of 2017 to an all-time high of nearly $20,000 on December 17.

Shortly thereafter, bitcoin entered a bear market, and is down nearly 40% since the beginning of the year. According to Google Trends, interest has steadily declined since its peak.

Bear markets, however, usually don’t last forever. Sooner or later, something happens that reignites the public’s interest and causes the bitcoin price to rise. For example, institutional investors such as endowment funds might decide to start dabbling in this new asset class.

Bear markets such as these tend to be good times for long-term investors to start accumulating an asset. Bitcoin currently sits at $8,200 a coin, but some see bitcoin going much higher in the not-too-distant future. Some of these figures have impressive backgrounds in the fields of finance and technology. They have made bold predictions in the past, some of which have come true.

Let’s take a look at four of the biggest bitcoin bulls.

Bitcoin Bull No. 1: Chamath Palihapitiya

Prediction: Bitcoin at $100,000 by 2020/2021, $1 million by 2037.

Chamath Palihapitiya ran AOL Instant Messenger and later served as an executive at Facebook, Inc. (NASDAQ:FB). He founded the venture capital firm Social Capital in 2011, which has invested in startups such as Box Inc (NYSE:BOX) and Yammer, which was acquired by Microsoft Corporation (NASDAQ:MSFT) in 2012.

He also is part-owner of the Golden State Warriors.

Palihapitiya got in early, having bought bitcoin at around $100 a coin. He owned $5 million in bitcoins in October 2013, when it was trading under $200.

Still, Palihapitiya thinks bitcoin can appreciate further. On December 12, he predicted that bitcoin would reach a price of $100,000 in three or four years, and $1 million within 20 years.

Palihapitiya is known for making bold predictions. As I noted in 2016, he sees Amazon reaching a market capitalization of $3 trillion. Last year, he predicted that Tesla Inc (NASDAQ:TSLA) would eventually capture 5% of the global market for cars and a $336 billion valuation.

Bitcoin Bull No. 2: Tim Draper

Prediction: Bitcoin at $250,000 by 2022 (April 2018).

Tim Draper was an early investor in Internet companies. In 1985, he founded the Silicon Valley venture capital firm Draper Fisher Jurvetson, which invested in Skype, Hotmail, Tesla, SpaceX and Baidu Inc (NASDAQ:BIDU).

He is also bullish on cryptocurrencies. On April 12, Draper predicted that bitcoin would reach a price of $250,000 by 2022. He sees cryptocurrencies like bitcoin eventually replacing fiat currencies such as the U.S. dollar and the Euro.

Why might this be?

Draper says that bitcoin, unlike fiat currency, “is not subject to the whims of some political force or another.”

Central banks such as the Federal Reserve, the European Central Bank and the Bank of Japan can always print more dollars, euros or yen. Indeed, they did this in recent years following the 2008 global financial crisis.

When more dollars are printed, the value of the dollar goes down.

This cannot be done with bitcoin. The total supply of bitcoins is permanently capped at 21 million.

Draper purchased 30,000 bitcoin in 2014 for $19 million. In September 2014, he predicted that the bitcoin price would reach $10,000 within three years.

This prediction came true. Bitcoin hit $10,000 on November 29, 2017.

Bitcoin Bull No. 3: John McAfee

Prediction: Bitcoin at $500,000 by 2020 (July 2017), $1 million by 2020 (November 2017).

John McAfee founded McAfee Inc., which sells antivirus software, in 1987. McAfee sought the Libertarian Party nomination for president in 2016. He also is an outspoken supporter of cryptocurrencies.

McAfee became chairman and CEO of MGT Capital Investments Inc. (OTCMKTS:MGTI), a bitcoin mining firm, in May 2016.

Later that year, the Securities and Exchange Commission (SEC) subpoenaed MGT, causing the stock to fall.

McAfee stepped down as chairman and CEO of MGT in August 2017 and left the company a few months later.

In July 2017, McAfee predicted that bitcoin would reach $5,000 by the end of the year and $500,000 by 2020. In November 2017, he increased this to $1 million.

Despite bitcoin falling in December 2017, he remained bullish, advising investors not to sell.

McAfee is even more bullish on privacy coins such as Monero, Verge and Zcash, which claim to be untraceable and anonymous.


Bitcoin Bull No. 4: James Altucher

Prediction: Bitcoin at $1 million by 2020 (November 2017).

James Altucher is an entrepreneur, angel investor, fund manager, and self-help guru. He founded StockPickr, which was acquired by TheStreet, Inc. (NASDAQ:TST) in 2007.

Like McAfee, Altucher thinks the price of bitcoin will reach $1 million by 2020.

In 2013, Altucher released his book Choose Yourself, which for several weeks was available for sale exclusively in bitcoin.

Altucher is bullish on other cryptocurrencies; in December he said he owned Ethereum, Zcash, Litecoin and Filecoin.

Altucher raised eyebrows in 2007 by stating that Facebook could become a $100 billion company, which it did in 2012.

Risks With Bitcoin

Cryptocurrencies are high-risk investments, and investors should understand these risks before they decide to buy bitcoin. Allianz SE (OTCMKTS:AZSEY) released a report last month calling cryptocurrencies a bubble at risk of bursting.

Richard Turnhill, chief investment strategist at BlackRock, Inc. (NYSE:BLK), said bitcoin is only for those who can ”stomach complete losses.”

For one thing, if your bank or brokerage fails, the FDIC or SIPC will step in to help you get your money back. This isn’t the case with cryptocurrencies, as Coinbase, a popular cryptocurrency wallet, notes on its site.

Investment risks tend to be even greater with altcoins, cryptocurrencies other than bitcoin.

But if you think bitcoin does have a future, now may be the time to buy.

As of writing, Lucas Hahn was long BTC, BCH and ETH.

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8 Long-Term Uptrend Stocks to Buy

Source: Emilio Kuffer via Flickr

In the early stages of an uptrend, it’s hard to tell just how far a stock will rally. Sometimes these trends are short-lived and “only” give us a 10% return. Other times though, these trends are good for several years and return 100% or more.

Telling the difference in the beginning is tough and too many investors take a pass on something because it’s up 10% or 20% in a few months. While there’s no such thing as a risk-free bet, they’re leaving a ton of reward on the table by avoiding the name simply because of its recent rally. It reminded me of a line from a great writer, Richard Saintvilus:

One lesson, among many others, I’ve learned on Wall Street is that it’s never too late to make the right call. And if ever that proverbial train “leaves the station,” there’s nothing wrong to admit you were wrong and chase that train to get back on board — even if the ticket costs more to ride.”

A stock rallying from $105 to $125 in a few months is a lot and may make many feel they’ve missed the train. But what if we ignored a good fundamental situation because “it had rallied too much.” Ultimately nine months later that stock is sitting another $50 per share higher and we ignored it. We sat out a $50 per share gain because of its $20 rally? That doesn’t make any sense.

With that in mind, let’s take a look at 8 solid stocks that are still in an uptrend and may still have farther to go.

Uptrend Stocks to Buy: Netflix

Netflix, Inc. (NASDAQ:NFLX) has been on a mission, both in reality and in the stock market. The company’s goal is to become the leader in global streaming. With 125 million customers, it’s well on its way to fulfilling that leadership goal. Heck, its market cap is just $7 billion short of Walt Disney Co (NYSE:DIS).

That puts things in perspective a bit.

But NFLX stock has been even more impressive than the company. It’s up 132% over the past 12 months and 73% since the start of 2018. That’s paved a solid — if also explosive — uptrend for investors. Take note of the chart to see what I mean.

nflx stock in an uptrend

As you can see, Netflix stock has been a beast. Notice that when it started 2018, shares weren’t over $200 yet! Now we’re already over $300. The move has been intense, but so long as the trends stay in place it’s hard to bet against NFLX.

Over its previous highs and above $330, Netflix stock is basing nicely. Momentum is strong and the stock is not yet overbought (blue peaks on the chart). Should nearby support fail, investors would be lucky to gobble up the stock near $300. There should be support near this level, along with the 50-day moving average and a rising uptrend line of support.

Given that the company just beat earnings, revenue and subscriber estimates, as well as provided subscriber guidance that topped analyst estimates, I’d rather be a buyer on dips than a seller on rips.

Uptrend Stocks to Buy: Nvidia

Nvidia Corporation (NASDAQ:NVDA) has been one of the market’s best performers. If you bought this name at the start of 2016 and forgot how to hit the sell button, you’d be sitting on a 600% gain in Nvidia. While the move has been extraordinary, we could be setting up for even more gains.

nvda stock in an uptrend

Looking at the charts, it’s pretty obvious that Nvidia has been struggling to eclipse the $250 mark. On three separate occasions this year, shares have rallied to this point only to fail and stumble lower.

Thursday’s 3% selloff could setup NVDA stock to retest the 100-day moving average and uptrend support that’s been in place for almost a year. As much as investors would hate to see this level fail though, I would love to get a shot at NVDA near $200. At this level, it would have the 200-day moving average and decent support to hold it.

Just like January 2017 through May 2017, it’s good to see Nvidia digest some of its massive move over the past 12 months. If there are worries about waning demand due to cryptocurrency headwinds, then Nvidia stock could see a further decline — perhaps down to that $200 level we’re wishing for.

While this is one of the strongest uptrend stocks we’ve seen, remember it has massive gains over the past few years. Eventually a big pullback wouldn’t be a surprise. If $200 comes, it would be a 20% decline for the highs. I’d love to buy into its secular upside on a short-term selloff.

Until then, the $250 breakout is still in play.

Uptrend Stocks to Buy: Boeing

Boeing Co (NYSE:BA) went from a frustratingly stubborn stock to one that couldn’t be stopped. Consider that BA stock was flat from January 2014 through October 2016, almost a three-year lull. However, shares then exploded 90% in 2017.

So what now?

BA stock in an uptrend

It obviously wouldn’t be surprising to see Boeing stock settle down and consolidate a bit. Even bouncing between $300 and $360 for a few quarters would represent a relatively healthy consolidation period.

I like BA for its intense earnings growth, commitment to capital return and huge free-cash flow. It’s not the cheapest stock in the world anymore, but valuation and consolidation aren’t enough of a reason to sell the stock.

Shares still look great in the short-term, as our chart shows. Poking through resistance with plenty of support nearby, BA stock could retest its old highs if these patterns hold steady. It’s got bullish momentum and isn’t overbought yet either (blue circles on the chart).

Uptrend Stocks to Buy: Salesforce

salesforce.com, inc. (NASDAQ:CRM) has tripled since mid-2013, but its gains over the past 16 months have been truly impressive. Shares have quietly rallied 81% over that period, forming quite the uptrend in CRM.

crm stock in an uptrend

This is one of my favorite names, because despite its $90 billion market cap, it still flies under the radar. Alphabet Inc (NASDAQ:GOOGL), Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFTget all the credit for their cloud businesses.

Despite CRM still churning out incredible growth, it seems to be much less discussed than it was a few years ago. That’s not stopping the analysts, though. They expect annual revenue of about 20% for the next four years. On the earnings front, estimates call for almost 60% growth this year and another 26% growth next year.

While CRM is pretty expensive on an earnings basis, its sales-based valuation is actually pretty reasonable versus its peers. CRM has better growth than most of its large cap competition and far superior financials and cash flow compared to its smaller competition. It’s in a real sweet spot right now. Lastly, the company has a very long runway for growth — as seen by the long-term revenue predictions — giving investors confidence to buy the stock today.

Investors could easily draw an uptrend line on CRM’s chart to highlight the stock’s robust rally. But just look at the 100-day moving average instead. All three major moving averages are trending higher, but each time Salesforce pulls back to the 100-day, CRM has an intense bounce.

Uptrend Stocks to Buy: Roper

Roper Technologies Inc (NYSE:ROP) has been in a very steady uptrend over the last year and a half.

In fact, Roper was and still is one of my top Future Blue Chip stocks. Known for robust revenue and earnings growth today, management has demonstrated a tangible commitment to returning capital to shareholders. The goal here is simple: Allow the company’s robust growth to drive shares higher over the long-term and cement its position in our portfolio with a low cost basis, while enjoying management’s continued commitment to raising the dividend once the business is more matured.

Rop stock in an uptrend

Well, ROP sure is delivering on the first part of our strategy: allowing strong growth to drive shares higher. Since the start of 2017, Roper stock is up more than 50% and is up more than 35% over the past year.

I’m definitely not ready to bet against Roper anytime soon. However, some may start to grow concerned over its valuation and growth profile. Analysts expect sales growth of just 6.1% this year and 7% next year. That’s good, but not necessarily great. While 17.5% earnings growth this year is very solid, estimates of just 8.5% next year is sort of lackluster.

It may make some wonder if ROP stock is worth 25 times this year’s earnings and 23 times next year’s estimates. On the chart though, Roper still looks great.

There’s pretty clear resistance between $285 and $290, while uptrend support currently sits around $270. The 100-day is support as well. If these support levels give way though, the 200-day moving average would be my downside target. If ROP stock breaks over resistance, consider buying the breakout.

Uptrend Stocks to Buy: Visa and MasterCard

Let’s do a double for this one: Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA). Both companies are huge beneficiaries of the same trend, as global consumers continue moving to credit and debit from cash and check. Further, growing e-commerce sales bode well for V and MA too, for obvious reasons.

V stock in an uptrend

The credit card business is attractive for many reasons, as V and MA serve as simple “toll booth” businesses. They don’t lend consumers money and they don’t take on big risks. Instead, when a consumer purchases goods or services from a merchant and pays via credit card, the merchant pays a fee that goes to V and MA.

While the pair of stocks may look expensive on a sales basis at first glance, the earnings-based valuation isn’t all that bad. Especially considering their double-digit earnings and revenue growth.

Throw in the fact that Visa has profit margins of almost 40% while MA has margins of 32% and we can see that these two are earning money hand over fist.

ma stock in an uptrend

Both stocks tend to trade with a high correlation. They’ve been in a steady uptrend since early 2017 and I hate that I’ve taken some off the table since I first initiated a position almost six years ago.

As V and MA both bump up against resistance, they look like they’ll soon push through to new highs, short of another market-wide selloff.

Uptrend Stocks to Buy: Raytheon

Like Roper, Raytheon Company (NYSE:RTN) is another under-the-radar company. However, its stock sure has become something to talk about, with shares up about 50% over the past 12 months.

While the rest of the market has been floundering, RTN stock is already up more than 21%. That’s what happens when a company makes anti-missile defense systems and the U.S. military has an annual budget of roughly $700 billion.

rtn stock in an uptrend

While the U.S. government utilizes other anti-missile defense systems — Lockheed Martin Corporation (NYSE:LMT) also makes one — the desire for countries to boost their defensive capabilities continues to increase. That’s no surprise given the tension on the Korean Peninsula and continuing conflicts in the Middle East.

Despite expectations calling for revenue growth of about 5% this year and next year, earnings are set to explode — no pun intended. Analysts are looking for 27% growth this year and more than 15% growth in 2019. With earnings growth outpacing revenue growth, look for margins to expand as well. If the government keeps spending like Trump has so far, expect more lucrative contracts in the future, too.

After flagging the stock as a potential breakout candidate earlier this month, the recent 52-week highs come as little surprise. Going forward, look for RTN to make even more highs so long as its uptrend support holds steady (as shown on the chart). Keep in mind, the average analyst price target sits at $240.

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