Wall Street Unplugged
Episode: 877April 6, 2022

Is Trump coming back to Twitter?

Donald Trump Twitter

I’m back from my incredible trip to the NCAA Men’s Basketball Championship game… 

On today’s show, I break down Elon Musk’s Twitter (TWTR) shakeup—including whether the stock is a buy… and if Donald Trump will be allowed back on the platform anytime soon.

Daniel and I also discuss the fundamental shift taking place in cryptocurrencies… Why billions of dollars will continue to flow into the space… And why everyone should have some crypto exposure. Speaking of which, Crypto Intelligence members can expect an exciting new recommendation on Friday…

Inside this episode:
  • My spur-of-the-moment Final Four trip [0:30]
  • Is Twitter a buy right now? [7:45]
  • Will Trump be back on Twitter after Elon Musk’s shakeup? [10:26]
  • The software company scaling into Bitcoin [18:00]
  • Why you should get out of the trading mindset with crypto [26:40]
  • Everyone should have crypto exposure [30:00]
Transcript

Wall Street Unplugged | 877

Is Trump coming back to Twitter?

Announcer: Wall Street Unplugged looks beyond the regular headlines heard on mainstream financial media to bring you unscripted interviews and breaking commentary direct from Wall Street right to you on main street.

Frank Curzio: How’s it going out there? It’s Wednesday, April 6th. I’m Frank Curzio, host of the Wall Street Unplugged podcast, where I break down the headlines and tell you what’s really moving these markets. I’m bringing in the ever popular, most famous analyst in the world, Daniel Creech. What’s going on, buddy? How’s everything?

Daniel Creech: Most famous. Wonderful, Frank. Good to see you.

Frank Curzio: Yeah.

Daniel Creech: Let’s get this out of the way. You have a bright blue shirt on here in the office.

Frank Curzio: Yeah, on the YouTube channel, you can see me wearing-

Daniel Creech: You look like hell, Frank. You look tired. You look victorious. No, I’m kidding.

Frank Curzio: I can’t believe my voice is still here. My nice sweaty shirt that’s unwashed. Yes, I’m going to wear it 10 days in a row. So, the KU shirt.

Daniel Creech: Hey, why not 16? Didn’t they come back from 16?

Frank Curzio: They were down 16 at 15 and a half. It was the biggest come back in ever in terms of being down at half time. And wow, it was last second, decided to go. I didn’t know that there would be zero flights from here to New Orleans. Nothing. Nothing in Mobile, Alabama. I couldn’t go to Baton Rouge. No flights, so we had to drive, and I took my daughter with me. So, we booked the tickets right after the game because if Duke would’ve won, that ticket would’ve been a fortune because of Krzyzewski’s last game.

Daniel Creech: And Kansas was the early game, sorry, on Saturday?

Frank Curzio: Kansas was the first game.

Daniel Creech: Gotcha.

Frank Curzio: Then you got the second game. So, I booked it and then realized okay, we have to drive there. Which we saved money, but it was about a seven and a half hour drive there and back. So, Sunday we left, and we got there. Went to the fan experience early on Monday, which was great. I got pictures with Danny Manning. Any of you Kansas fans know how big of a deal that is. It doesn’t get any better than that. He’s the legend. He’s the Michael Jordan of Kansas. 1980 championship. And then, yeah, going to the game I bought a special pass, which allowed us to take a picture with the trophy. We were able to get down on the floor at the end of the game. But we had a sky suite. I spent a lot. This is something… Kansas is my favorite team out of any sport, and you guys know how crazy it is with sports. But what a moment, what a game.

Frank Curzio: I was embarrassing my daughter a lot, I think, screaming, “Let’s go KU.” The crowd was split about 50/50. Really cool fans on both sides. We had a booth with North Carolina people in it as well as Kansas, but it wasn’t like in your face like a Duke/North Carolina game. It was really cool. Everybody respected each other. And man, that was unbelievable. They played terrible in the first half. I don’t know why they didn’t rush the ball up the court. Did a great job. I was tweeting like crazy. If you follow me, @FrankCurzio, saying, “Guys, yeah, you got to push it.” They got five players really. Everyone else, they only go five deep. Their sixth and seventh player got hurt early in the year. One got hurt and one took off for personal reasons, so they really didn’t have a bench and just to let them really come out with that lead at the beginning, it was crazy. I’m like, this is nuts. Yeah, I walked away for a little bit, came back at half time and they ended up winning. But what a moment.

Frank Curzio: And for me, there’s a lot on my plate. We had the Bitcoin conference, which I wasn’t sure if I was going to go or not because it’s 100% Bitcoin, right. And for us, we’re looking for different ideas within this, and we’ll get to Bitcoin later. But you have to push your schedule, and you’re busy and everything, and the kids. And for something like this, and this is what I preach all the time, Daniel, to everyone is the reason why we do this for is to make better lives for our families. So, when something like this happens, the two things I remember the most actually from my dad, the two best things, my dad passed, is when he took me to a Penn State game when I was a kid. It was an unbelievable experience. We had New York plates even though Penn State played at Rutgers, so our car was completely buried in mud. They threw, the Rutgers fans, when we got out. Completely. We couldn’t find it for several hours. They completely buried it in mud. But we were a Penn State fan.

Frank Curzio: And when my dad took me to Jets/Eagles games at the Meadowlands, when Randall Cunningham was playing. They were down three touchdowns and they came back and won. I was going crazy. I’ll never forget. He’s like, “Sit down and shut up before we get the crap kicked out of us,” because that’s how it is in New York sports back then. It’s a lot more better. But taking my daughter to that and seeing that experience and just watching her and her going crazy and just seeing that event. I’ve never been to a final four before and I said, “But if Kansas makes it, I’ll go.” That’s a moment I know she’s going to remember for the rest of her life. Even when I’m long gone, hopefully that’ll be a long time from now, that’s something that she’s going to talk about, and that’s why we work so hard. That’s why we do this: To provide those moments because those special moments. Yeah, listen, you’re never going to remember the test you passed or failed or whatever in high school or college.

Frank Curzio: When you get an opportunity to do something like this do it. I’m glad they won. Someone said to me, Daniel, they’re like, “Don’t ever bet against Frank,” because I think he bet against… Even though they didn’t cover. They only won by three. They should’ve won by four. They should’ve covered because… Anyway, I won’t get into it for non-basketball fans, but they had the ball and instead of getting fouled, the guy stepped on the baseline and gave the ball back to North Carolina for the last second. Heaved to try to tie the game from three. But people are like, “Oh, I’m never betting against the other time,” or whatever. So, whenever I go to the game, right? So, in the Super Bowl, you usually bet the opposite and you usually do okay. But so the two games that I went to, the championship with my two favorite teams, Kansas being first, which is the national championship, which was, man, it feels like it was forever ago. It was just the other day, and we drove all the way back and I’m here. And also the Eagles.

Frank Curzio: So, that was an amazing, amazing experience, and just to experience that with my daughter, guys, I can’t tell you how important that is. Anyone that’s a dad knows with your kids and stuff like that, you do things like that, they remember for the rest of their lives. And we have that, which is cool. But now it’s back to work.

Daniel Creech: Back to work.

Frank Curzio: A lot of stuff going on. I got the Kansas shirt on. Very happy, ecstatic that they won. What a game. I thought it would be an easier game for them. I thought they matched up great to them but for some reason they were soft in the first half, second half they came out on fire and what a game. Every second half they dominated every single team. Not only offensively, defensively they just shut these teams and blew them out in the second half almost all the way through. So, congratulations to the Jayhawks and man, really, really happy.

Frank Curzio: So, like I said, Daniel, aren’t you glad you asked?

Daniel Creech: Yeah. Hey I warned everybody yesterday. I knew. It’s fun. I didn’t even watch. Oh, well, I won’t even go there. You’ll probably get upset.

Frank Curzio: I’m sweating just talking. Yeah, if you could see me how I am right now just on Curzio Research YouTube page. We videotape all this stuff so you can see, we’ll bring up charts and figures and stuff. I’m going to put up pictures and everything on our YouTube channel, and you’re going to see my screaming like a maniac as they were coming back going nuts. But the whole stadium was just erupting when they were coming back. It was great, so.

Frank Curzio: But I did want to get to some of the news, which I know you’ve filled in great for me on Tuesday, and one of the things that we talked about last week and then this week, right, which came out is Elon Musk and Twitter.

Daniel Creech: Yeah, what a difference a couple days makes.

Frank Curzio: Yeah.

Daniel Creech: We kind of just brought it up and hey this is fun to watch and look at and then the guys buy almost 10%, refiles as an activist investor versus a passive and has a board… I saw the headlines about giving him a board seat. I’m assuming that takes place very soon, but the bigger picture here is the stock moved 25, 27% one day. It’s down a little bit today as we record. Yeah, what is changed, if anything? I love the macro story here on the new activist investor we’ve seen. Like I mentioned quickly yesterday, there’s nothing new under the sun here. Money is going to be thrown around all the time by rich people in groups. But do you think this changes anything on the activist? And I tied this with AMC getting into gold and silver mines. I mean, anything is possible and I have a few theories or things I would like to see happen or might think will. But now that he’s a board member and much more vocal and all that, what do you think on this?

Frank Curzio: I’d buy Twitter right now. I’d buy Twitter right now. I would even up 35%. And if you haven’t bought, buy a little bit now and then scaling, you’ll probably see pull back a little bit and here’s why. Twitter is a cool platform, and the problem with Twitter is it stopped growing, right? Because their demographic isn’t the same as a Facebook or an Instagram, where you have lots of kids on it. You do have crypto crazies on it, but it’s more like, I don’t want to say a mature platform in terms of the people who are on it. But what happened with Twitter is, it stopped growing in terms of users and that is the metric. Every single company, every industry has a metric and it’s not always earnings and sales. Sometimes it’s same store sales, sometimes it’s average revenue per user. It’s different across all industries, right?

Frank Curzio: So, how much hedges take place in oil and gas, so again… Earnings, of course, are going to drive the stock and not necessarily the last 10 years earnings drove stocks. My point is, Twitter found a way to monetize its list faster than everybody else, and they do a fantastic job monetizing. However, people weren’t concerned with earnings because that wasn’t the metric. It was growing the platform. That’s why Facebook got really, really hit because they finally, after adding how many people with three billion plus, you can’t really keep going after that. It’s crazy. People didn’t think they’d go after 500 million, a billion, two billion, three billion whatever, no matter how many Facebook accounts. But that’s the metric that’s really driving social media companies, that growth, and when that stopped for Twitter that was a problem. However, they did find a way much, much quicker than Facebook of how to monetize it through advertising. So, they do a great job monetizing but people are just like, ah, it’s not really a growth stock no more, so we don’t want Twitter.

Frank Curzio: Elon Musk has 80 million followers. You’re going to say so many more… You’re going to see the metrics in Twitter go up almost incredibly, dramatically over the next couple of quarters because a lot of these people want to go on there and 80 million followers on Twitter, but look at everything and every other platform that he’s on and the reach he has globally.

Daniel Creech: Yeah.

Frank Curzio: So, you’re talking about hiring the Michael Jordan in terms of the most exciting person, the most followed person in the world and now he’s a major stakeholder in that platform who’s going to promote the shit out of it. And I could tell you, anything that guy says and anything he promotes on that thing just goes up tremendously and now he talks crypto so everyone in the crypto world is definitely going to be on Twitter now.

Daniel Creech: Tesla stock, crypto, a lot of things.

Frank Curzio: His following and… So, he’s going to get the board seat. He owns almost 10% meaning that he doesn’t have to file. 10% would be filing. He might, maybe that goes to 10% because it’s up now or whatever. I don’t know how… Yeah, I think he can’t own more than 14% of it. I think that’s part of the deal now that he’s a board member and he’s saying it fails to adhere to the free speech principles and that’s why he was taking Twitter polls the other day and whatever. But what does this mean, right?

Frank Curzio: And you mentioned the elephant in the room. Does this mean we’re going to see Donald Trump come back on this platform because you can’t have it one way and not the other, right? Because it’s got to be free speech and I use Donald Trump because a lot of people hate Donald Trump. But think about the person you hate the most and their views and everything. If you have free speech, and this is what he wants his platform to be, that’s freedom of speech right there. I don’t care if you agree with someone or you disagree with someone, if you hate Trump, you don’t like Trump, whoever it is across any single platform, if it’s the craziest conservative in the world or the craziest liberal in the world, you’d have to see Trump come back on this platform, which, again, would be a boom to the stock because he had the most Twitter followers, I believe, or is in the top five or 10 because even the people hate him love following him and love trying to troll him all the time.

Frank Curzio: So, in terms of the stock here I really like Twitter, and Elon Musk is incredibly powerful, incredibly powerful. Powerful than most of these big hedge funds, believe it or not. So, if he wants to get something done or control something I think he’s going to easily be able to persuade the board and again, we’ll see about the votes in some of these people but everybody that spends just a couple minutes with this guy loves him because people think he’s arrogant. It’s more confident but I’ve seen him humble. You see him humble all the time. The mistakes he made, how he almost went out of business. And he just has that power when you’re in the room with him. You just like him and being in that board room is going to make an incredible difference where he’s going to light a fire under them and saying, “Listen this is where we need to be. Okay, I did it with every company that I have and look where I am. This is where we need to be with Twitter.” I think this is a boom for the stock here and I’d be buying.

Daniel Creech: I think it’s the next… I think it can turn into… What I’m interested to see if it turns into this meme stock. So, I’m glad to see it from… A little bit of me is excited to see it pull back a little bit after popping so high in that 25, 27% range. What I love about this is that it shines the light in an election year and the irony here is you mentioned Bitcoin conference. I believe last year at the Bitcoin conference Jack Dorsey was talking about free speech and all that, got interrupted by a heckler. Fast forward a year later during Bitcoin conference Elon Musk is basically sounding the same and taking control of that company or having a major influence. I don’t want to say taking control.

Daniel Creech: So, Frank, give me an over under. Now, real quick here. Let me back that up.

Frank Curzio: Uh-oh.

Daniel Creech: The freedom of speech stuff is a whole other topic because you have freedom of speech, meaning you can say anything you want and not go to jail like other countries, against your government. You have the right to speak out. The freedom of speech to say anything you want is more of a gray area on private platforms. That’s where this is, you’re going to see that in the headlines back and forth. Say, hey, freedom of speech doesn’t mean you’re allowed to say now anything you want anywhere you want. That’s going to continue down the road to the lowest hanging fruit, to there is a Trump supporter would say, “Frank, okay, well if you kick Trump off for XYZ, then why is this guy or this woman or this person or this entity allowed to post?” That’s where you’re going to go on that.

Daniel Creech: Moving past all that from something I’ll continue to follow. During the election year on freedom of speech, what stops the copycats or a new sector growing here, Frank? Like AMC, get the meme stocks. They raise a bunch of capital, they can do whatever they want. What’s stopping… We’ve seen a fun start to just short Cathie Wood. This ,ARK who is shorting the ARK funds?

Frank Curzio: Mm-hmm.

Daniel Creech: All you need is a loud platform, a vocal person and a lot of money. If I were companies, if I were CEOs of companies that didn’t have a lot of share control or stock, I would be a little nervous right now because this opens the platform for a whole new game of hedge funds and everybody else preaching and putting money behind their words. And we’ve seen this. We’ve talked about this with BlackRock. It’s already starting. This is just, Elon Musk is doing what he does. He’s just putting it in the limelight and saying, “Hey, this is going on,” and I think he’s going to set up for a long battle and it’s going to be great. I’m getting more bullish on Twitter. It’s so hard to buy stuff after it pops like that. I’d have to look into when’s the board meeting and all that kind of stuff, but he is going to be vocal and I don’t see how this… How does this not turn into the next meme stock, I guess, is what I’m trying to talk myself or think myself through.

Frank Curzio: I can tell you meme stocks, I just had some of the market caps I was showing you though for the meme stocks. It’s easy to move around stocks with 10 billion dollar, 15, 12 billion dollar. Not that easy, but with that crowd, it’s easier. And you’re looking at the AMCs and the GameStops, 11, 12 billion dollar market cap with Twitter now is 40 billion, right? So, you’re looking at 10, 11 billion market caps to 40 billion. So, maybe they’re able to push it around here and there and I get it, but it’s a much larger name. But just the crowd…

Frank Curzio: You know getting back to the Twitter point, again, I always have to say it’s not political, it’s not. But if he’s going to get Donald Trump back on the platform, if he’s going to get a lot of… Usually, those crazy people who are out there who are not on a platform have big followings. Again, not to say whatever they want but either way this is great for the company all around. I don’t see the negative of how this is a negative for Twitter and just getting the meme crowd in there, getting more people on this platform. Now, it’s going to be a growing platform again, I believe, and it should be pretty exciting for that. And Jack Dorsey, just to put in perspective, you said earlier, what is he on like two percent, Daniel?

Daniel Creech: I don’t know. It’s very little.

Frank Curzio: I think it’s like two percent of the stock. He stepped down. I think he’s stepping down totally. I think he stepped down for the CEO, he stepped down for the board I think this year. So, he’s going to be doing whatever he’s doing but it just shows you it’s a three billion dollar stake. He’s not messing around. So, let’s see what happens and this is the platform that he uses the most so it should be interesting, it should be pretty cool. But talk about meme stocks and crypto and how they’re into crypto. Man, it’s been pretty crazy within this industry now that you’ve seen it push 46, 47, seeing interest rates go higher so we see the market get hit the past couple days, which is expected. And they’re going to continue to go higher.

Frank Curzio: The Fed just raising… I destroyed the Fed for raising 25 basis points. I thought they were absolutely crazy. I know they’re trying to ease it. You can’t ease it. You have inflation. You got to raise it. You do it now, you do it even by more later. Whatever it is you have to raise rates, take money out of the system, load the Fed’s balance sheet. You have to because inflation is out of control right now. It’s insane. And it’s not going to go anywhere unless you do that.

Frank Curzio: But when you’re looking at crypto, crypto has been one of the places that’s held up very well. It’s starting to go up now. I talked about Biden’s executive order. The amount of money coming to the sector is amazing, and even Galaxy Digital just said that too, right, Dan? They just posted that’s one of the largest investment banking names in the space, one of the names we like a lot. But they just reported really good numbers, right?

Daniel Creech: Yeah, they had a good earnings report. They talked about how all their business models are profitable, which is always something you like to hear. Their earnings are very lumpy. They have a ton of private equity investments they mine for Bitcoin and everything. It’s just a great… There’s so many ways to win there in my opinion and I’ve been very vocal about me being very bullish on that and buying the stock over time.

Daniel Creech: Speaking of scaling in and buying over time, Frank, because hopefully investors aren’t frustrated during volatile times about this because it’s okay if you don’t have another choice. And what I mean by that is, unless you’re like a Scrooge McDuck type, and unless you have piles of money sitting around, you have no other choice but to buy over time because typically, myself included, is you get paid, you set money aside, you invest over paychecks or every so months or whatever. That’s okay. Who else is buying over time, cost averaging it? And I hate using that because it’s such a… I feel so sleazy when I say, “Oh, well you just got to lower your cost basis.” It sounds like you’re playing catch up.

Daniel Creech: But speaking of buying over time, Michael Saylor, founder and CEO of MicroStrategy, who continues to put Bitcoin on the map and be the trailblazer for more corporations holding cryptos, i.e. Bitcoin, on their balance sheet. On April 4th, Frank, he tweeted a Wall Street Journal article, speaking of Twitter. We’re talking about it. There was a Wall Street Journal article called, or titled, “The World is Piling on Debt as it Battles Inflation.” Pretty obvious, that’s what governments do, world meaning. Michael says, “The surge in food and fuel prices is going to further weaken global currencies and encourage the imposition of capital controls, price controls and export controls favoring a strategy based on digital products, digital services and digital assets.” That was April 4th. April 5th, he tweets, “MicroStrategy has purchased an additional 4,167 Bitcoins for 190 and a half million dollars.” They bought these 4167 Bitcoins at $45,714 average price. Frank, as of 4/4/22, April 4th, MicroStrategy holds 129,218 Bitcoins at an average cost of 30,700.

Frank Curzio: Hmm.

Daniel Creech: Okay? So, they’re up at 45,000. That’s what? 45, 46%.

Frank Curzio: Mm-hmm.

Daniel Creech: I follow this quite a bit. I haven’t checked this recently. With the volatility and such, I would’ve guessed their average cost basis would’ve been higher than the 30,700.

Daniel Creech: I would’ve. I don’t know what… It’s easy to say that when you read it. Maybe I would’ve gone to 35-ish, but percentage wise, that’s a hell of an increase. That’s impressive.

Frank Curzio: How much was the increase would you say?

Daniel Creech: What’s that?

Frank Curzio: How much was the increase percentage wise?

Daniel Creech: Well I just meant their average price is 30,700. If I would’ve guessed 35, that’s a huge percentage increase, is my point. So, they’re still more than well profitable on all these holdings. Now, I’m not just saying, hey, they’re in the clear. Obviously, prices are volatile like crazy. I’m simply pointing to the fact that I like this because I would’ve guessed that average price as higher. It shows somebody buying over time and how you have to have that mindset. They’re raising debt to do it. I’m not going out on a limb and telling the individual to do that. I’m just pointing this out that money continues to flow into the space. That’s a huge thing and catalyst on the corporate side.

Daniel Creech: One quick note about, I know you’ve mentioned this, but in the Galaxy Digital holdings conference call transcript they highlighted that 33 billion dollars in venture capital was invested in blockchain ideas and such over the last year and that was more than all previous years combined. Case in point, takeaway, why do you give a flying Florida about this? It’s because you want to position yourself to make money off of trends taking place, not being hindranced by headwinds taking place. So, just have exposure to all this. I know we’re beating a dead horse here but-

Frank Curzio: No, but Saylor believes, and by the way, the amount of money, 33 billion dollars in venture capital coming into this industry, more than all the previous years combined. There’s a reason why I was pushing that offer, which is over now. You can’t get that offer for Crypto Intelligence. We only opened it up for, I think it was about a week. And it was half off, and then you got a year for free and I want you in for two years because there’s, just like I said in November. Okay, if you follow me even for the past couple years with COVID selling a lot of our positions and being able to get back in a tiny bit late but still we had great returns. We saw asset struggle tremendously, a lot more than I thought, but I said in November how there’s a fundamental change in the marketplace. The Fed understands that inflation’s here. They’re going to aggressively tighten, and it’s much different than we’ve been hearing, right?

Frank Curzio: So, that’s a fundamental change in the market where people are like, “Oh, buy the dip.” No, no, no. This isn’t buy the dip anymore. This is more like sell the rips. And right now in crypto, there’s fundamental change. When you saw Biden come out you’re seeing more institutions all who said, “Okay, great.” Even the SEC came out and said the exchangers should trade more like securities and some of those got hurt yesterday. To us, that’s a great thing. That’s why we have a security token. To me, I always thought that’s where the industry needs to go. That’s why Coinbase has it’s licenses, you have Binance has licenses to trade security tokens, Gemini does. They all do as the backup just in case if the SEC does its job because these really are securities. I hate to say it.

Frank Curzio: Again, I’m a big believer in crypto but a lot of these things, I want to invest in things that I know where this money’s going and you’re talking about kids, right? Kids who understand technology but never ran a business before, they’re getting in… They never had money in their lives and all of a sudden, they raise 10 million dollars. You don’t know where the 10 million’s going. You have no idea where it’s going. They just bought houses, they bought whatever. They’ll put a little bit of money into it. They say that they have a plan to develop this project. Mostly, you raise money after you develop something, right? They’re doing it beforehand and a lot of these projects, they’re not even on schedule and you don’t know where this money is. You need that, but this is more like securities. But when you saw Biden come out it means more money’s going to pour into this.

Frank Curzio: Guys, I’m going to tell you right now the metaverse is here. It’s here. Okay, people are like, “Well, it’s not here. What is the metaverse?” Start learning about it. I’m going to teach you everything I can about the metaverse, okay? That’s going to be a very, very big theme in our crypto newsletter going forward where, hopefully, I can get you into some pre sales. We got some great contacts in this industry. I’ve talked to a lot of people just this week alone but over the past couple of weeks, Dollar Stock Club. Right, that credit rate’s 450 million dollars to build an NFT metaverse. Okay, so now, that you’re billing this metaverse you have all this real estate there, this land and now NFTs, and it’s not just artwork or whatever. It gives you special access, special privileges. Some of the people I talk to just are blown away by their ideas of how amazing this is going to be, and it’s not just a video game and another planet and people. No, it’s much, much more than that.

Frank Curzio: So, a Nike land. Nike created Nike land. You’re looking at Walmart. All the major companies are in here. Everyrealm just raised 460 million dollars last month to build their metaverse. Animoca brands raised 360 million. Oorbit, and that’s with two Os, Oorbit raised four million in funding for their platform and the smaller platform, Portals, raised five million. We just put a metaverse company that really no one heard of through one of our interviews in our Dollar Stock Club and that’s up a lot already. So, the money pouring into this sector right now is real. It’s coming from venture capitalists, it’s coming… So, these venture capitalists are not just investing money and saying, “Okay, give us cheap stock, and let’s get out of there with the cheap tokens.” They’re going onto the board, they’re teaching these people how to run a business, while they have all developed skills and those people and those ties and that’s why you’re seeing all this money come together with these platforms getting ahead of Facebook. You’re going to have access to all this stuff, but it’s exciting times in crypto.

Frank Curzio: If you’re looking at Saylor, look at that gain, that 50% gain in crypto off of his cost basis. He’s using crypto and he’s using Bitcoin, right Daniel, as a store value, meaning it’s better to hold than cash. So, if he held cash the value of that cash would be down tremendously and yes, taking out debt, but this is why he’s going on all in. If this becomes a store of value where people really believe it and you see less volatility, where it’s not all over the place. There’s trillions of dollars on the balance sheets of these companies and do they want to be in cash because they’re buying back the stock. They’d rather buy back the stock than just leave it in cash right now because it’s getting destroyed with inflation. So, you’re looking at over a trillion dollars in buybacks this year, that’s about to happen in the middle of these earnings starting to get nailed.

Frank Curzio: So, they’re going to try to keep their earnings up. That money might be better spent, some of it, or maybe five percent of it, a small possession, going into Bitcoin. And you’re seeing more and more management teams. You’re seeing more, some of the smartest people at hedge funds in the world saying this, crypto is here, guys. You have to get involved. I know it’s difficult. There’s a learning curve. You got to go in different exchanges. We explain that in our CCI newsletter. If that’s too expensive for you or… Here there’s so many different places that you could learn about crypto. Start learning. Go to Coinbase, open an account and just buy whatever. $100, $200 worth of something. Start learning about this because all the innovation, all the innovations, all the Fintech that’s coming out, most of it’s going through crypto.

Frank Curzio: It’s the reason why all these platforms, now Visa, MasterCard, have no choice but to offer credit cards and get into crypto because they’re getting crushed by the Fintech companies who are offering this stuff, who are putting it on their site. Here, here’s how you buy Bitcoin, here’s how you pay for Bitcoin, different things. And just decentralized finance versus DeFi, security tokens, which we’re in, the metaverse, NFTs, all this stuff coming together. These are all trillion dollar trends on their own that are just going to continue to develop over time and one last point here, Dan. I’ll go on this because you raise a lot of good points with Michael Saylor and everything.

Frank Curzio: But when you’re looking at Bitcoin itself, or you’re looking at crypto, a lot of people are creating platforms where you could trade crypto. I don’t want you to trade crypto. I don’t want you to be in and out, in and out, in and out. I want you to be able to hold these things for 12 months, 18 months, two years or longer. That’s how you make an absolute fortune. So, with oil, oil, uranium, gold, cyclical. A lot of this things are cyclical, they’re all cyclical, right? So, uranium has been beaten up tremendously. It’s starting to come back. There’s times to buy oil, there’s times not to. Gold cyclical. So, these are names within these sectors you may not want to hold long-term, you want to hold during that cycle. This is totally different with Bitcoin because it gets compared to these as a commodity sometimes as oh, well let me hold this instead of this. But when you look at gold, gold, if you’re looking at gold stocks, they’re going to rise tremendously during those cyclical times that it’s good and then this is something where it’s not cyclical.

Frank Curzio: It’s continuing to grow because of innovation where this is secular growing trends. It’s much different. So, I know there’s crypto products out there. They’re like oh, let’s trade back and forth. You’re not going to become filthy rich by trading cryptos. They’re all over the place. It’s crazy and it’s nuts. Most people don’t make money trading. I only know one percent of people. I know three traders that I would trust out of thousands I’ve met over my career that I trust with my money when it comes to trading, maybe three. Actually, maybe two. But if you’re looking at crypto, not so much trading but buying and holding these things especially within these growth trends. That’s how you could turn a small amount of money into an absolute fortune because the institutions are not in there yet. They’re coming in, the framework is set. Now, you’re really going to see tons of money. 250 trillion on the sidelines. Not on the sidelines, but assets on the management. 250 trillion.

Frank Curzio: That has to find a home someplace. And now, those people want access to crypto, and now they have it with the new framework, so everything’s a positive for crypto right now. It’s going to be volatile, but this is where the exciting times are and you’re seeing it right now in a market that’s over the place, and crypto’s holding up pretty well right now.

Daniel Creech: Yeah, it is. It’s down a little bit right now but overall, overall it’s getting very difficult for the bears to continue their argument. Not that they won’t continue their argument. It’s just getting a lot more difficult to take them serious. But that’s okay. That’s what makes markets and gives us fun things to talk about.

Frank Curzio: Being bearish is okay. You could say well I think crypto’s going to come down 15%, 20% here and you might be right. No one knows the future. But to say crypto’s going, Bitcoin’s going to zero and it’s worthless. If you’re saying that right now, you’re an idiot because it’s because you’re just saying it to say it and get headlines and you’re not looking at technology. Smart people are willing to adapt. You’ve seen that within crypto. You’ve seen that within some of the largest hedge fund management in the world saying hey, I didn’t understand this. Now I do. You have to understand but if you really predict Bitcoin’s worthless and going to zero, seriously. You really don’t understand what’s going on here. You don’t. It could go down 15, 20%, it could be volatile. I get it.

Frank Curzio: Maybe they overregulate. You hate getting the government involved, but people need to know their money’s safe. Again, it’s not like I’m pro-regulation, but you need to make sure your money is safe. It’s going to help scale this and everybody getting into it, make it a lot easier. It’s got to be easier because it’s still difficult to buy some of these though especially if you’re using decentralized exchanges. You have to be very, very careful. You could lose your money in hacks and stuff like that. But this trend is here. It’s not just a short-term trend. This is a secular growing trend with innovations taking place. And look, you know I’m not bullshitting you because my whole company I based on it. So, this is what I saw years ago, and it’s blown away my expectations and even for security tokens and everything else, but I see this going further and further.

Frank Curzio: And you’re going to see a lot of these platforms that offer, whether it’s Coinbase, Gemini, Binance, whatever, Kraken, all these, they’re going to start offer security tokens. That’s where the market is going. You’re seeing a lot of people raise money through security tokens. And that’s going to provide more safety and more data. This way you’re showing everything, you’re getting equity stakes in these things. That’s where this market is heading. That’s where it’s going along with the innovation. It’s really exciting times.

Daniel Creech: Yeah, absolutely. The flood gates are open so there’s a lot of runway here.

Frank Curzio: No, it definitely is, definitely is. So, Dan, listen, I want to thank you. I felt like I talked more than anything because I’m just so amped still, believe it or not, from Kansas winning. But yeah, I appreciate you taking over yesterday. We don’t have an interview set up this week, but Daniel and I are going to break down the markets tomorrow to a lot of cool stuff include going to oil is something very, very big going on oil right now. Just testify in front of Congress and some of these statements that have come out that Daniel’s been tracking, it’s pretty funny listening to these CEOs and everything within the oil industry. But we’ll be able to find some really great ideas, talk more about stocks and sharing a lot more ideas with you not just in the oil sector, but all the sectors, and that’s going to come out tomorrow. So, definitely guys, give a listen. And Daniel, thanks so much for covering yesterday. Really appreciate it.

Daniel Creech: Always a pleasure. Cheers.

Frank Curzio: Questions and comments, Daniel, email?

Daniel Creech: Daniel@curzioresearch.com.

Frank Curzio: I love making you say it. You’re like-

Daniel Creech: I know. Ridiculous.

Frank Curzio: Anyway. Or, it could even be frank@curzioresearch.com. Guys, if you just subscribed to Curzio Crypto Intelligence, then your issue’s going to come out on Friday. Usually, we post on Wednesday. I was at the Kansas game, but I had a lot of really cool meetings, so you’re going to get a cool pick on Friday, where it’s coming out and a lot of stuff. You’re going to hear me talk about the metaverse, a lot of those conversations I had, and we just hired somebody new that’s 100% focused on crypto because this person has great contacts in the industry, going to introduce us to a lot of great people. So, we’re going really all in here. We’re a big believer in it, and you’re going to get some really good ideas but that issue will come out on Friday. So, guys, thank you so much. And I’ll see you in 24 hours. Take care.

Announcer: Wall Street Unplugged is produced by Curzio Research, one of the most respected financial media companies in the industry. The information presented on Wall Street Unplugged is the opinion of its host and guests. You should not base your investment decisions solely on this broadcast. Remember, it’s your money and your responsibility.

Frank Curzio, founder and CEO of Curzio Research, is one of America’s most respected stock experts. His research is regularly featured on media outlets like CNBC’s Kudlow Report, The Call, CNN Radio, ABC News, and Fox Business News. His weekly Wall Street Unplugged podcast—ranked the No. 1 “most listened-to” financial podcast on iTunes—has been downloaded over 9 million times.
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