Bitcoin this, Bitcoin that. I’m sick of hearing it. People wanting to “invest” in cryptocurrency, yet they can’t even spell the word correctly. The amount of messages I receive on a daily basis asking whether I should invest in Bitcoin is astounding. People, let’s get one thing straight. It’s not investing, it’s gambling. Yes Bitcoin is gambling. My usual answer to the countless lemmings that are seeking a quick way to get rich quick is, “If you can’t explain to me what Bitcoin is, why on earth would you gamble your life savings on it?” It’s quite simple really. Would you go down to Crown Casino and put all your money on the Roulette table? Well there’s your answer. Why Bitcoin then? How is Bitcoin any different from the Roulette table? Just because other people have made squillions on it doesn’t guarantee anything.
Don’t be a guinea pig. Use your brain.
People that got on the Bitcoin gravy train when it was in its infancy have made a bucket load of money. No doubt. Mind you most of those rags to riches stories are of people that bought Bitcoin in its early days when it was trading around $12. They had no idea it would rise to $14k. So you can understand and appreciate the lucky buggers that struck it rich. I’m filled with envy. Headlines like this are all too common, “How one guy’s $24 investment in bitcoins turned into an $886,000 payday” or “Meet The Man Traveling The World On $25 Million Of Bitcoin Profits.” In these examples, we’re talking about +1000% price gains. Bitcoin is actually up 1000% year to date.
Do you see what’s common here? All these astronomical price increases happened because they got onto Bitcoin early. When it was still under $100. At the time of writing Bitcoin is trading at $14,167.03. Do the math. For you to double your value or for Bitcoin to rise by a 100% it has to hit $28,334.06. That’s a possibility. But let’s not kid ourselves, the 1000% price increases where people made squillions from investing small amounts, that game is long gone. For Bitcoin to get to $100,000 from where it is, that’s only a 605% increase. So if you bought $1000 worth of Bitcoin today and Bitcoin’s price went from $14k to $100k, you’d have $6050. Far cry from the millions. Thing is, I highly doubt Bitcoin will go to $100k.
For you to get rich, you need to find something that’s currently in its infancy that has the potential to explode. Similar to Bitcoin. And where’s the best place to find such an investment? The share market. The stock market has a lot more rags to riches stories than Bitcoin. There are a tonne of investors who have struck it rich by owning baby powder, graphite, lithium to tech stocks. If you owned Bellamy’s (BAL) when it listed at $1.31 you would have made 763%. I could go on and on. Instead – Here are 3 stocks that we think will make you more than buying Bitcoin today.
Here are our two stock recommendations
AuMake (AU8) – This stock is soaring. It listed via a backdoor listing at 8c and is now trading at 70c. That’s a massive 775% profit since the 4 October. Eat that Bitcoin. Bitcoin was trading at US$5500. It’s now US$11,200. That’s only a paltry 103%. It isn’t even in the same ball park. So what does AuMake do? AuMake is an Aussie shop that connects Australian suppliers directly with Chinese daigou and Chinese tourists. It sells products such as baby formula, skin care products via its online e-commerce store and retail stores located in Sydney. AuMake engages with the growing and influential daigou and Chinese tourist markets by offering a full service retail experience with a range of Australian products across four main categories including healthcare (supplements and food); skin, body care and cosmetics; dairy products and baby food (including infant formula); and wool and leather products. Customers value AuMake’s one-stop shopping which includes knowledgeable bilingual staff, multiple payment options (including WeChat, Alipay and Unionpay) and an in-store logistics service for the delivery of products to anywhere in the world including China.
The stock is flying at the moment and we think it’s got a long way left to go. Get on board before it’s too late.
Homeloans (HOM) – Provides Australians with an alternative to the banks for their home finance. It specialises in home loans for first home buyers to investors. Major shareholders include National Australia Bank and Macquarie Bank. Back in 2016 the company merged with RESIMAC. The company also provides a range of amazing offers from discounts on grocery shopping and fuel, to great deals on dining and entertainment. The company recently listed via a reverse takeover of RESIMAC. Homeloans writes mortgages using wholesale funding whereas RESIMAC uses securitisation to fund its home loans. Securitisation means individual loans are pooled together and sold to investors as a mortgage-backed security. They are a small player in a sector dominated by the big 4. But that’s what makes them nimble and have superior upside potential. We think it’s a buy.
Alderan Resouces (AL8) – Is another one of ex Co-founder of Syrah Resources Tolga Kumova stocks. He is a substantial holder and driving force behind the company. AL8 is a copper exploration company and holds mineral rights to the Frisco Project in Utah, USA. Its 100 year old mine has been largely overlooked but a recent update shows that it may have uncovered a massive preserved, and mineralised porphyry copper system. The company has started a 10,000m drilling program, with the initial focus on the Cactus Corridor, Comet and New Years mine. Its market capitalisation has run over $100m in a short time after listing at 20c. It’s now trading at $1.90. That’s an 850% rise so far. The company catching media attention worldwide and the expectations are high. The drilling results are due in a few weeks. For those that don’t know, copper has been in a bull market and is set to rise more than 20% on the increasing use of its metal in electric vehicles, wind power and solar plants. According to Bloomberg consumption is tipped to rise to 28 million metric tonnes in the next 5 years from 23 million. That puts Alderan in the perfect position to benefit.
So to conclude, our message to you is:
If you gamble your hard earned money into a pyramid-ponzi scheme such as Bitcoin, be prepared to lose it all.
You may as well go down to Crown Casino and bet on the roulette table. Your odds are better. By buying Bitcoin you’re helping support an unregulated payment system used by underground criminals to fund human trafficking, drugs and weapons. Do you really want to be part of that? If there was anything positive to come out of all of this, it would be Blockchain technology. That alone, has the potential to disrupt. Hopefully banks will adopt this technology soon.
Why not do the world a bit of good, keep a clear conscious and stop propping up a fake overvalued system that is about to collapse. Stop being a sheep by following what everyone else does. Invest in the sharemarket because not only is it real but has intrinsic value and you’ll make you a lot more.