If you somehow believe the word salad of Michael Saylor when he attempts to justify MicroStrategy (MSTR)'s premium above the NAV of its Bitcoin holdings, as soon as the music stops... MSTR will be trading at a significant discount below the NAV of its Bitcoin holdings. Saylor's entire identity is tied to Bitcoin so he will continue his reckless behavior until he drives MSTR into bankruptcy. There is no other possible outcome.
The best indicator of peak Crypto Euphoria is this Google Trends chart showing how current search interest in Meme Coins is 2.92X higher than AI stocks and 6.33X higher than gold stocks.
In fact, search interest related to altcoins in general has exploded to new all-time highs of above the 2017 and 2021 bubble peaks.
At the peak of the Crypto bubbles in 2017 and 2021 there was a massive pump in the XRP token of VC funded Ripple Labs. In recent days, the reported market cap of XRP has exploded to a new all-time high of $142 billion, which equals the combined market cap of established online payment companies Square (SQ) owner of Cash App with a market cap of $55 billion and PayPal (PYPL) owner of Venmo with a market cap of $87 billion. SQ and PYPL transfer trillions of dollars in payments each year, but XRP the token of Ripple Labs is somehow worth the same as Square + PayPal combined. This XRP market cap is based on only "circulating supply" and does not include approximately 40 billion XRP held by Ripple Labs in escrow to be released over the next 42 months, which will increase its circulating supply by 75% to 99.99 billion tokens. The real XRP market cap is already $240 billion.
NY regulators have approved Ripple Labs to create a RLUSD stable coin, which is the main reason that XRP is rallying, but Ripple Labs will be required to follow all KYC/AML regulations, which totally negates its usefulness because the entire purpose of stablecoins like Tether is to help launder money or fund terrorism. Even if RLUSD somehow did become so big that it surpasses the market cap of Tether, it would only create profits for Ripple Labs not the holders of XRP. Ripple Labs had a valuation in January 2024 of only US$11.3 billion!
Is this really the biggest Crypto innovation of 2024... another stablecoin?! Or is it Pump.fun where 12-year-olds with broccoli hair can use SBF backed "Sam Coin" Solana (formerly the second largest Crypto holding of Alameda Research after only their native FTT token) to instantly create their own Meme Coin for the sole purpose of pumping and dumping it?!
XRP is a centralized token created for big banks and has seen no transaction growth in eight years! It represents the opposite of what Bitcoin was originally supposed to be back when it was created by the great Hal Finney (the real Satoshi). XRP might as well be called the WEF coin because XRP is the closest thing to a CBDC!
Gold recently hit a new all-time high but with Americans distracted by Crypto Euphoria... nobody has a clue that America's last remaining Tier 1 Gold District with total resources of 19.5 million oz is about to be developed. Tiny market cap Augusta Gold (TSX: G) whose largest shareholder Richard Warke is part owner of the PGA Tour, Liverpool, and Red Sox is the only company with a fully permitted construction ready gold project in this district... and Augusta Gold (TSX: G) is about to be acquired at a massive premium before year-end with their office closing on January 1st. Read the latest press release of Solaris Resources (TSX: SLS) including the quote from Richard Warke near the bottom. Augusta Gold (TSX: G)'s imminent gains will be similar to the recent gains of MicroStrategy (MSTR) only permanent.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA's President has purchased 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
