Bitcoin Loves El Salvador

And, a look at gold investing.

Steven Lerner
Steven Lerner

Today is Tuesday, September 7, 2021.


Before we get to today's commentary, we are proud to introduce the Early Bird podcast. KingsCrowd CEO Chris Lustrino, the guest on the first episode, discusses how to invest in startups through equity crowdfunding.

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El Salvador Officially Adopts Bitcoin

There’s a push on social media for people to buy $30 worth of Bitcoin to celebrate El Salvador’s plan to adopt the digital currency as legal tender today.

Background: Starting today, Bitcoin will be used as one of the national currencies in El Salvador. The government has also established a $150 million fund to help citizens convert U.S. dollars to Bitcoin.

Showing Support: As part of the rollout, citizens in El Salvador can receive $30 worth of Bitcoin via a government app. Thus, there’s talk on social media around the world to buy $30 worth of Bitcoin as a show of solidarity.

Opposition: Not everyone in El Salvador supports the move to Bitcoin. There have been protests across the Central American country over concerns about pensions and money laundering.

Bigger Picture: As other countries attempt to regulate or crackdown on cryptocurrency, El Salvador’s adoption of Bitcoin is refreshing.

Final Thoughts: Keep an eye on the price of Bitcoin today. On Monday night, the price reached $52,000.


Notables

Notable Earnings Today: Casey’s General Store (Nasdaq: CASY), Dada Nexus (Nasdaq: DADA).

Notable IPOs Today: TradeUP Acquisition Corp. Common Stock (Nasdaq: UPTD), StoneBridge Acquisition Corporation Class A Ordinary Shares (Nasdaq: APAC), Arqit Quantum Inc. Ordinary Shares (Nasdaq: ARQQ).

Notable Equity Crowdfunding Campaigns Ending Today: Chasin’ Dreams Farm (Republic), Carter’s BBQ (Honeycomb), Reverend Motors (Honeycomb), blueShift Aerospace (Wefunder), Firelight Camps (Wefunder).

Notable Economic Events Today: n/a.


Boeing Dealing With Canceled Orders, Delayed Deliveries

European budget carrier Ryanair (Nasdaq: RYAAY) reportedly called off an order of new 737 MAX jets from Boeing (NYSE: BA) on Monday due to disagreements over price.

Delays: Deliveries of Boeing’s 787 Dreamliner will also be delayed until at least late October due to concerns from air-safety regulators, according to The Wall Street Journal on Saturday.

Background: The delays have been happening for almost a year as Boeing deals with safety concerns. During that time, buyers have been able to negotiate with the airplane maker.

Bigger Picture: All of these problems come for Boeing as other travel stocks have plummeted in recent months due to the pandemic.

Stock: While Boeing’s stock price is up 7% this year, it is down 2% in the past six months and 5% in the past 30 days.

Final Thoughts: These delays could impact Boeing’s earnings report for the quarter.


What’s Driving Gold Investing in 2021?

As the value of gold fluctuates in 2021, there are some trends impacting the price that investors should be aware of.

Going Young: According to the Royal Mint in the U.K., there has been a fivefold increase in young adults buying the precious metal. This might suggest that more young people are interested in buying gold.

Future Uptick: Call it a potential fourth-quarter comeback, but analysts from Bank of America (NYSE: BAC) speculated at the end of August that the price of gold could tick up to $1,900, with the average price closer to $1,800 for the rest of the year. The reason? Because the Federal Reserve might start tapering.

Dollar, Dollar: One thing impacting the price of gold is the U.S. dollar. If the U.S. dollar gets weaker, then the price of gold rises. If the U.S. dollar gets stronger, that doesn’t bode well for gold.

Final Thoughts: The price of gold is down over the last year, but it is up since the spring. Over the past three months, the value of most precious metals has declined.


Fearful: Goldman Cuts U.S. Growth Forecast as Consumer Sees 'Harder Path' (Bloomberg)

New Backing: Chinese Ride-Hailing Giant Didi Could Get State Investment (The Wall Street Journal)

New Boss: JD.com appoints new president as founder steps back from day-to-day operations (CNBC)

Sounding the Alarm: Crypto’s Rapid Move Into Banking Elicits Alarm in Washington (New York Times)

Not on Board: Many teens are reluctant to invest in the stock market after the GameStop frenzy, survey finds (CNBC)


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