Daily Reckoning

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  • Cryptocurrencies Could Be Worth $200 Trillion One Day

    Cryptocurrencies Could Be Worth $200 Trillion One Day

    This post Cryptocurrencies Could Be Worth $200 Trillion One Day appeared first on Daily Reckoning. I’m not exaggerating when I say cryptocurrencies are the biggest innovation since the internet. We’re on the ground floor of an enormous trend that’s going to change the world. Cryptocurrencies are currencies with no government in the middle. No bank in the middle. No organizations in the middle keeping track of all your payments, or taking advantage of your spending so they can invade your privacy, and on and on. Cryptocurrencies solve trillions of dollars’ worth of problems, which is why they will be worth trillions of dollars one day. Consider the potential: There is currently $200 trillion in cash, money and precious metals used as currencies in the world. Meanwhile, there’s only $200 billion in cryptocurrencies. Cryptocurrencies are eventually replacing traditional currencies. So that $200 billion will eventually rise to the level of currencies. And probably sooner than we can imagine. Fortunes have been made in cryptocurrencies and many more will be made in the future. But just like the Internet boom in the 90s, there will be a lot of scams. Let me say it right now: 95% of cryptocurrencies are scams. But …Read More »
  • Gandhi, Bitcoin and Russia

    Gandhi, Bitcoin and Russia

    This post Gandhi, Bitcoin and Russia appeared first on Daily Reckoning. “First they ignore you,” began Gandhi. “Then they laugh at you, then they fight you, then you win.” If “you” happen to be cryptocurrencies, old Gandhi may have been a prophet… Russia, for example, ignored cryptocurrencies for years. Then it laughed at them… In August, the Russian deputy finance minister chuckled: “[It is] hard to argue cryptocurrency is not a pyramid scheme.” “We are very skeptical,” snickered the first deputy governor of the Russian central bank. “Gold fever” was the Russian central bank governor’s mocking term for the cryptocurrency moment. Then Russia fought cryptocurrencies… The Russian central bank: Concerning the use of cryptocurrency… the official currency of the Russian Federation is the ruble. The issue of monetary surrogates in the territory of the Russian Federation is not allowed. The first deputy governor of the central bank: “We cannot give direct and easy access to such dubious instruments for retail [investors].” Vladimir Putin himself said cryptocurrencies were the coin of crime, of vice, of terrorism; a cutthroat’s money. Then cryptocurrencies won… Russia’s finance minister conceded last week that “cryptocurrencies are a fact of life.” Better to join them if you …Read More »
  • Here’s What’s Next for Retail

    Here’s What’s Next for Retail

    This post Here’s What’s Next for Retail appeared first on Daily Reckoning. Let me offer a quick scenario. You walk into a store at your local mall. They’re holding a 40%-off sale. You have questions but there’s not a salesperson in sight. The clothing displays are a mess and you can’t tell what’s 40% off and what isn’t. You look around for assistance, but after two laps and no help, you’re too frustrated and leave. Sounds like a normal shopping experience right? That scenario may be true today, but in all likelihood, it won’t be true for long. Now imagine in the near future, you’re interacting with a personal shopping assistant, an AI powered automaton, rather than leaving a store in frustration. The notion is hardly far-fetched. The artificial intelligence revolution has already taken hold of industries like manufacturing, transportation and finance. Now AI tech is being applied to brick-and-mortar retail operations. The impact it will have is mind blowing. “We Are Braindead” Last week the retail conference Shoptalk, a veritable “who’s who” list of retail execs and industry experts, was held in Copenhagen, Sweden. The hands-down dominating consensus coming out of the conference was that artificial intelligence will play …Read More »
  • The Rich Life Part II: Confessions of a sixth-grade stock picker

    The Rich Life Part II: Confessions of a sixth-grade stock picker

    This post The Rich Life Part II: Confessions of a sixth-grade stock picker appeared first on Daily Reckoning. When your name is Nilus Lawrence Mattive III, people automatically expect you to have a silver spoon in your mouth. But I never did. Nobody in my family ever started a company, patented an invention, or wrote a movie script. My odd first name was the ONLY thing handed down from generation to generation in my family. No inheritances or trust funds to speak of here. As I explained in Part I, I was just a lower-middle-class sixth grader living in northeastern Pennsylvania. My dad was the first person to go to college on either side of the family. He worked in the human resources department at a state mental health facility. He also had a second gig at the YMCA. And my mom? After spending a few years taking care of me, she got a part-time job at a small credit union. My parents’ investments were limited to passbook savings accounts and maybe a CD or two. That’s why they were so surprised when I said I wanted to start investing in stocks on my own. Sure, I had always been …Read More »
  • Revenge of the Tech IPO: New Stocks are Heating Up

    Revenge of the Tech IPO: New Stocks are Heating Up

    This post Revenge of the Tech IPO: New Stocks are Heating Up appeared first on Daily Reckoning. The formula has remained the same for decades. Wall Street cashes out. Retail investors get burned. Market hucksters have force-fed mom and pop investors useless new stocks for years. The initial public offering always manages to capture the herd’s collective imagination. But it rarely translates into immediate profits. As you’ve probably already figured out, most IPOs are just cash grabs for up-and-coming companies and underwriters. This is especially true when it comes to trendy sectors and industries. Unless you’re looking to flush money down the toilet, placing a huge bet on a brand-new stock with no price history is probably a bad idea. But after a rocky start to the year, the IPO market is starting to attract some new speculators — especially in the tech space. Fact is, some of these new stocks are actually going up. At least for now. I’ll reveal these new names and how to play ‘em in just a minute. First, you need to see what happens when an ill-advised IPO gets whacked. As you’ve probably guessed, we’ve seen our fair share of duds this year… The best …Read More »