Buying Blockchain & Bitcoin Bargains

Summary

  • As I discussed again in an interview with Forex Analytix, Bitcoin is still likely to reach six figures in the next few years.
  • Despite that, I am selling Bitcoin miner Marathon Digital (MARA) on the single stock risk.
  • I am instead building a position in the VanEck Digital Transformation ETF (DAPP) which gives me diversification across blockchain and crypto.
  • Taking a starter in DAPP is a great idea now and I am also selling December $6 cash-secured puts. You can do one, the other or both.

A couple trades right now to make in blockchain and crypto – particularly Bitcoin related. 

First off, I mentioned Marathon a couple months ago in the Q3 Plug & Play. Here is what I said: 

“My only Bitcoin miner because I think Bitcoin goes to $100k on family office and institutional adoption as store of value. Bitcoin could go to $300-500k on next feeding frenzy of news of institutional buying. 1 in 4 family offices now own Bitcoin, up from almost zero a few years ago.”

It  has rallied and I am selling it all for a profit of about 50%. 

Sell Marathon Digital (MARA) on the single stock risk. 

I am removing it from the Plug & Play until there is more clarity on their finances as they’ve had some speedbumps. 

Blockchain To Bitcoin

I am still bullish on the blockchain space and Bitcoin in particular. Both are seeing huge adoption. In blockchain it is being used in many ways: 

  • Supply Chain & Logistics
  • Oil & Gas Production & Delivery
  • Healthcare
  • Retail & eCommerce
  • Finance
  • Property & Real Estate
  • Media
  • NFT marketplaces
  • Heavy Industry & Manufacturing
  • Music
  • Cross-border Payments
  • Internet of Things
  • Gaming
  • Personal Identity Security
  • Government & Voting
  • Anti-money Laundering
  • Advertising
  • Original content creation
  • Automotive
  • Smart Contracts

Blockchain is no fad and it is no longer unproven. 

Bitcoin (BTC-USD) is more speculative for sure, but what lesson do we always try to follow? 

Follow the money! 

BlackRock (BLK) has been dramatically increasing access to institutional investors for Bitcoin. That only happens if there is demand. 

BlackRock Offers Bitcoin Investing to Big Institutional Clients

How Are Institutions and Companies Investing in Crypto?

Family offices, where the big personal and family money is for 1%ers, are expanding Bitcoin and a few other cryptocurrency holdings as part of broader asset allocation.

Family Offices Embracing Digital Assets

Family Office Trends 2022

Soros and Rockefellers take first steps to invest in cryptocurrency

Bitcoin is chopping along that $20,000 area where I said it would hit last January when I interviewed Dr. Sean Stein Smith. https://seekingalpha.com/embed/20647

So, I can see that blockchain and Bitcoin are both adopting. We are in a major crypto correction too, even though companies continue to use blockchain in new ways and there are buyers in that $20,000 range of Bitcoin. 

Blockchain & Bitcoin Investment Idea

Rather than focus on one company, I want a basket of top companies. A few won’t do well, but others will do exceptionally well. Because ETFs self-correct asset allocation, we can use a focused basket to get great exposure. 

I am expanding my VanEck Transformation ETF (DAPP) asset allocation in line with what I discussed in the September Global Trends ETF article.

Increase DAPP to 8% in growth portfolios and 4% in retiree portfolios. 

If you have a small position already, feel free to sell the December $6 cash-secured puts for a $1 or more.

That put is in the money, so it’s more likely to be put to you, but you get time value. 

Disclosure: I/we have a beneficial long position in the shares of DAPP either through stock ownership, options, or other derivatives.