The Tech Bargain You’ve Been Waiting For

Everyone loves a bargain.

We love that feeling of discovering a secret gem that everyone else has neglected. Vintage vintage corvette with small scratches on the fourth panel that you can easily remove. Widescreen HD TV in the open box area of ​​your electronics store.

You take the picture.

But even your smartest market hunters have nothing for investors looking for the “next big thing”. In fact, this speculative attempt to “enter early” often leads investors to heavy losses.

They get their emotions better, as they inflate what are essentially short-term market trends in the major stock trading executives.

This leads to unreasonable expectations and equally unreasonable stock prices.

It leads to irrational trading.

One of the best examples of irrational expectations this year is Advanced Micro Devices Inc. (Nasdaq: AMD).

Cryptocurrency madness

In July, the stock was going up in an influx of revenue from the growing cryptocurrency mining market. Ethereum was the “next big thing”, and investors were speculating a lot about AMD’s value despite signs that this fad would not last.

Even Wall Street analysts were to blame for pumping AMD shares into Ethereum fashion, with some raising their ratings and price targets to, frankly, volatile levels. AMD shares quickly jumped into excess buying territory, driven by a fad and a wild rise in emotional investment.

At the time, AMD was due for a correction as “beneficiaries appear, and the most bearish contingent in the brokerage community begins to sound for valuation concerns and cryptocurrency traps.”

This week, Morgan Stanley did just that. The brokerage firm said that “sales driven by cryptocurrency mines for AMD graphic potatoes will fall by 50% next year, or a $ 250 million drop in revenue.” Morgan Stanley also noted that sales of video game consoles will fall by 5.5% in 2018, but this is a drop in the bucket for AMD, and investors are likely to expect this given the age of the current generation of consoles.

You can almost hear the hearts of cryptocurrency speculators breaking as AMD shares fell 9% after the report.

True AMD

To remember the real reason you should invest in AMD, we need to go back to 2016. The company caught fire early last year when I anticipated some new chips, including its new CPU chipset (CPU), Ryzen and the new graphics processing unit (GPU) device, Vega. Both products had a significant promise and AMD expected strong sales once the chips were launched in the market.

But both Ryzen and Vega blew analysts’ expectations out of the water. When they hit the market earlier this year, Ryzen and his sister chip, called Threadripper, not only surpassed competing chips from Intel Corp. (Nasdaq: INTC), they beat them even in prices. At the same time, Nvidia Corp. (Nasdaq: NVDA) was touting its Titan Xp GPU as the fastest in the world, but AMD’s top Radeon Vega Frontier Edition GPU quickly stole that title.

As a result, AMD saw its market share in the desktop market grow roughly 45% to its highest level in 10 years at 31%, while Intel fell to 69%. It is also stealing market share from the server and data center from Intel through the increasingly popular Threadripper CPU.

And these are just the core business operations of AMD. When it comes to areas like virtual reality, driverless vehicles and artificial intelligence, AMD is already at the forefront and is poised to be a market leader.

Many of you at this point may ask, “But what about AMD’s poor earnings ratio last week?”

And I would argue with, “What poor earnings ratio?”

Just look at the numbers. AMD earned $ 71 million last quarter with revenue of $ 1.64 billion. Not only did this expect Wall Street, but they put the shame of last year’s loss of 50 cents per share on revenue of $ 1.31 billion. Moreover, AMD raised its full-revenue growth forecast from mid-to-high teens to over 20%.

So why did AMD shares plunge approximately 20% after such a stellar ratio? Because the company said fourth-quarter profits would fall 15% sequentially (though that’s still a 20% year-over-year increase). Once again, it all comes down to an irrational level of bargain hunting, and an emotional trade surplus.

Investing in Advanced Micro Devices

But you are lucky! This emotional storm has left AMD trading at a significant discount … and a fairly large bargain given its significant growth potential – AMD is expected to see sales grow around 17% next year, compared to 12.3 % for Nvidia and a significant 2.3% for Intel.

The stock has more than 30% rise over the next year. How many other big companies besides Alibaba Group Holding Ltd. (NYSE: DAD), can you say that?

So ignore the cryptocurrency hype and focus on AMD core products and its potential with key technologies like AI and data centers. I will not promise you a smooth ride, but it should be quite lucrative.

Why There Will Never Be Another Bitcoin

Well, 10 years have been crazy for Bitcoin. In fact it is over 10 years since Bitcoin was first created by Satoshi Nakamoto. Whoever, he, she or they, they have had a profound effect on the world. They no doubt foresaw what is why they chose to disappear from the spotlight.

So over a decade later Bitcoin is still alive and well than ever. Thousands of other cryptocurrencies have come together since everyone tried to imitate the crypto king. Everyone has failed and will continue to fail. Bitcoin is a type. Something that cannot be repeated. If you do not know why then let me explain.

If you do not know what Bitcoin is, I will give you just a few key points:

  • Bitcoin is an online cryptocurrency

  • Has a maximum supply of 21 million

  • It cannot be falsified

  • Not all currencies are in circulation yet

  • It is completely decentralized without anyone controlling it

  • It cannot be censored

  • Weight Peer to Peer Money

  • Anyone can use it

  • Bitcoin has a fixed supply which decreases every 4 years

What Makes Bitcoin Different?

So what makes Bitcoin different from all the thousands of other currencies that have been invented since then?

When Bitcoin was first invented, it began to spread slowly among a small group of people. It grew organically. When people started to see the benefits of Bitcoin and how the price would rise due to fixed supply, it started to grow faster.

The Bitcoin blockchain has now spread to hundreds of thousands of computers worldwide. It has spread beyond the control of any government. The creator is gone and now functions autonomously.

Developers can update and upgrade the Bitcoin network but this should become my consensus across the Bitcoin network. No one can control Bitcoin. This is what makes Bitcoin unique and impossible to copy.

There are thousands of other cryptocurrencies available now, but as an example of what makes Bitcoin different, I will use Ethereum as an example. It is one of the largest Alt coins now and has been since it was invented in 2015 by Vitalik Buterin.

Vitalik controls the Ethereum blockchain and basically has the final say on every development that happens on Ethereum.

Censorship and government interference

For this example let us imagine that Iran is sending billions of dollars to North Korea to fund their new nuclear weapons program. This is not a good situation, but it is supposed to show you how your money is safer in Bitcoin!

However .. the first example. Iran is using the standard banking system and is transferring this money to North Korea in USD. The US government says it’s a minute, we need to freeze these transactions and confiscate the money. Easy. They do it right away and the problem is over.

The second example. The same thing happens again, but this time Iran uses the Ethereum blockade to send money to North Korea. The US government is seeing what is happening. A call is made.

“Get Vitalik Butter here now”

The US government “puts some pressure” on Vitalik and they make him restore the blockchain and cancel Iran’s transactions. (Blockchain Ethereum was actually back again earlier when a hacker stole a significant amount of funds).

The problem is solved. Unfortunately Ethererum’s credibility would be ruined along with its price.

Ethereum is just one example, but it is true of any other cryptocurrency.

Bitcoin cannot be stopped

So the same thing happens again. This time Iran uses Bitcoin as their payment method. The US government sees this and is powerless to stop it.

There is no one to call. No one can put pressure. Bitcoin is beyond censorship.

Every other cryptocurrency out there has been created by someone or some company and this will always be the point of failure. They are still centralized.

Another example would be if Vitalik’s family were taken hostage .. Bitcoin is beyond that and that is why it is the safest investment on the planet.

Learn how to use Bitcoin

Everyone should own some Bitcoin. It is not without it is dangerous though. If you are new to Bitcoin, then you need to learn as much money as possible before investing money. Owning Bitcoin comes with a lot of responsibility. Learn how to use Bitcoin safely.

How "Crypto" Currencies Work – A Brief Overview Of Bitcoin, Ethereum & Ripple

“Crypto” – or “cryptocurrencies” – are a type of software system that provides the functionality of transactions for users through the Internet. The most important feature of the system is theirs decentralized nature – usually provided by blockchain database system.

Blockchain and “cryptocurrencies” have become key elements of the global zeitgeist recently; usually as a result of the “price” of heaven in heaven. This has led millions of people to participate in the market, with many of the “Bitcoin exchanges” experiencing massive infrastructure stresses as demand increased.

The most important point to understand about “crypto” is that although it actually serves a purpose (cross-border transactions over the internet), it does not offer any other financial benefit. In other words, its “intrinsic value” is firmly limited in its ability to transact with other people; NO to storing / distributing value (which is what most people see as people).

The most important thing to understand is that “Bitcoin” and the like are payment networks – NO “coins”. This will be addressed more deeply in a second; The most important thing to understand is that “getting rich” with BTC is not a case of giving people a better economic situation – it is simply the process of being able to buy “coins” for a low price and you sell them above.

For this purpose, when you look at “crypto”, you must first understand how it actually works, and where its “value” really lies …

Decentralized Payment Networks …

As mentioned, the main thing to remember about “Crypto” is that it is basically one decentralized payment network. Consider Visa / Mastercard without central processing system.

This is important because it underscores the real reason why people are really starting to look at the “Bitcoin” proposal more deeply; this gives you the ability to send / receive money from anyone in the world, as long as they have your Bitcoin wallet address.

The reason this attributes a “price” to different “currencies” is due to the misconception that “Bitcoin” will somehow give you the ability to make money by being a “crypto” asset. not

only the way people have made money with Bitcoin has been because of its “rising” price – buying “coins” for a low price and selling them for a MUCH higher. While it worked well for many people, it was actually based on the “biggest fool theory” – essentially stating that if you manage to “sell” coins, it is for a “bigger fool” than you.

This means that if you are looking to get involved in the “crypto” space today, you are basically looking to buy any of the “coins” (even “alt” coins) that are free (or cheap), and their riding price increases until you sell them later. Because none of the “currencies” are backed by real-world assets, there is no way to estimate when / if / how this will work.

The Rise of the Future

For all intents and purposes, “Bitcoin” is a wasted force.

The December 2017 epic rally showed massive adoption and while its price is likely to continue to rise in the $ 20,000 + range, buying one of the currencies today will essentially be a big game for this to happen.

Wise money is already looking at most “alt” currencies (Ethereum / Ripple etc.) which have a relatively low price but are constantly rising in price and adoption. The main thing to look at in modern “crypto” space is the way in which different “platform” systems are actually being used.

Such is the rapid “technological” space; Ethereum & Ripple are looking like the next “Bitcoin” – with a focus on how they are able to provide users with the ability to actually use “decentralized applications” (DApps) on top of their networks basic to get work

This means that if you are looking at the next level of “crypto” growth, it will almost certainly come from the various platforms you are able to identify there.

Decentralized Finance (DeFi) on Ethereum: The Future of Finance?

Decentralized Finance, or “DeFi” for short, has taken over the crypto and blockchain world. However, its latest revival masks its roots in the 2017 bubble era. While everyone and their dog were making an “Initial Coin Offer” or ICO, few companies saw the potential to block more than a profit. fast in price. These pioneers envisioned a world where financial applications from trade to savings to banks to insurance would all be possible simply on the blockchain without any intermediaries.

To understand the potential of this revolution, imagine if you had entered into a savings account that gives 10% per annum in USD, but without a bank and practically no risk of funds. Imagine being able to trade crop insurance with a Ghanaian farmer sitting in your Tokyo office. Imagine being able to trade and earn tariffs as a percentage, the likes of which every Citadel would want. Sounds too good to be true? It’s not This future is already here.

DeFi building blocks

There are some basic DeFi building blocks you need to know before moving forward:

  • Making an automated market or exchanging one asset for another without trust without a broker or clearing house.

  • Collateralized loans or being able to “put your assets to use” for traders, speculators and long-term holders.

  • Stable or active algorithmic currencies that follow the price of a basic base without being centralized or backed by physical assets.

Understanding how DeFi is made

Stablecoins are often used in DeFi because they mimic traditional fiat currencies like the USD. This is an important development because the history of cryptography shows how volatile things are. Stablecoins like DAI are created to track the value of the USD with small deviations even during strong bear markets, i.e. even if the price of crypto is falling like the 2018-2020 bear market.

Borrowing protocols are an interesting development, usually built on top of stable currencies. Imagine if you could close your $ 1 million worth of assets and then borrow against them at stainco. The protocol will automatically sell your assets if you do not repay the loan when your collateral is no longer sufficient.

Automated market makers form the basis of the entire DeFi ecosystem. Without this, you are stuck in the inherited financial system, where you have to trust your broker or office or an exchange. Automated market makers or AMMs briefly allow you to trade one asset with another based on a reserve of both assets in its groups. Price disclosure occurs through external arbitration. Liquidity merges based on other people’s assets and they gain access to trading tariffs.

You can now gain exposure to a wide variety of assets, all in the Ethereum ecosystem and without ever having to interact with the traditional financial world. You can make money by borrowing wealth or being a market maker.

For the developing world, this is an amazing innovation because now they have access to the complete set of financial systems in the developed world without any barriers to entry.