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The future looks bright for bitcoin in 2024.
Once considered financial curiosities useful only for proof-of-concept transactions like buying pizza, bitcoin and other cryptocurrencies are now on the verge of mainstream legitimacy. Analysts expect three major developments in 2024: A major bitcoin milestone, dubbed “The Halvening,” is set to make supply more scarce. they see a more aggressive bid to drive bad actors out of the industry, and major institutions are readying ETFs for approval by regulators.
X
That institutional support is one of the largest bull factors for bitcoin in 2024, says Will Clemente, Reflexivity Research founder and a notable bitcoin bull. “The most interesting trend throughout the year has been the rise of a U.S.-based institutional type of buyer, whereas historically the crypto market’s been primarily driven by retail (investors),” Clemente tells Investor’s Business Daily.
Meanwhile, bitcoin in 2024 could become what it’s always been designed to be: digital money, in all its investable, transaction-able glory. The big question is: Will this be enough to overcome its reputation for volatility, seediness and lack of stability?
1. The Halvening Shocks Supply Of Bitcoin In 2024
One of the most surefire events to catalyze bitcoin in 2024 is The Halvening, a portmanteau of “halving” and “happening.” That’s when the reward for bitcoin miners will be cut in half, or halved, in predictable increments.
Satoshi Nakamoto, the cryptocurrency’s mythical creator, introduced the idea in the original bitcoin white paper published in 2008. Bitcoin “miners” get rewards for verifying its transactions, which incentivizes them to contribute to the network. But because the supply of bitcoin is fixed (a measure intended to fight inflation), that reward halves after a set number of transactions.
That halvening is likely to occur in April 2024. Clemente points to previous halvening events for what to expect in markets. “It’s essentially a kind of supply shock on the market where the total amount of supply that’s coming on is cut in half,” he said.
However, a smaller reward creates less incentive for miners. That means adding bitcoins to the blockchain at a slower pace. Eventually, transaction fees will outpace mining as a way to profit from bitcoin. “Just from a raw supply-demand standpoint, you have less supply coming onto the market,” Clemente said. “Even if demand stays the same, price starts to drift upwards.”
We potentially could witness a repeat for bitcoin in 2024. “We’ll see a similar price action following this upcoming halvening,” said Clemente.
2. Bad Actors Booted From Crypto As Regulation Looms
Cryptocurrency continued to make headlines throughout 2023 as former titans continued to fall. Changpeng Zhao stepped down as CEO of crypto exchange Binance after pleading guilty to criminal charges. In November, Sam Bankman-Fried, founder of crypto exchange FTX, was found guilty of fraud by a New York federal jury. He awaits sentencing in March 2024.
Additionally, arrests and convictions followed the stunning collapse of the crypto hedge fund Three Arrows Capital in 2022. The collapse triggered more instability in crypto. It also turned the spotlight on allegations that many of crypto’s biggest players engage in fraudulent schemes and misuse their customer’s assets.
Crypto’s nature as an anonymous, irreversible method of payment also opens investors to fraud and schemes.
Cryptos act like bearer bonds. Crypto transactions are supposed to be secure and irreversible — whoever holds the cryptocurrency key is effectively the owner. But this design meant investors who used exchanges like FTX or hedge funds like Three Arrows lost their holdings with little available recourse.
Clemente says crypto’s reputation is likely to incentivize U.S. regulation of crypto and bitcoin in 2024. “I do feel favorably about regulation coming into the space … I think it’s necessary,” he said. “Regulation will continue to clam down and I think it’s a positive for us to move forward and mature as an industry.”
3. U.S. Institutions Loom Over Bitcoin In 2024
And like in any economic system, prices rise where there’s increased demand. U.S. financial institutions are set to take even bigger steps into crypto and bitcoin in 2024.
One of the most notable developments is the rise of bitcoin ETF applications. The Securities and Exchange Commission and companies like BlackRock and Fidelity are discussing proposals for ETFs that track the price of bitcoin. There are reportedly up to 13 firms with pending applications for bitcoin-tracking ETFs, according to Reuters.
Investors looking to gain exposure to bitcoin and other cryptocurrencies will likely drive this trend in 2024. Clemente sees a rise in bitcoin trading during U.S. hours versus trading during European and Asia-Pacific hours. Meanwhile, interest in bitcoin futures is rising on regulated exchanges like the Chicago Mercantile Exchange.
U.S. A Leader In Bitcoin
“The U.S. has really been driving this thing up,” Clemente said. “BlackRock, Fidelity and some of these very large institutional firms are putting a stamp of approval (on bitcoin), saying ‘look, we feel comfortable offering this to our clients.’ “
Institutional support could mean more stability for bitcoin in 2024, and a reduction of the trademark volatility that has plagued the cryptocurrency. “They’re able to get money into the asset in a way that they feel comfortable doing so for the first time,” said Clemente.
While the fundamental story for bitcoin in 2024 looks promising, investors need to remember that an analysis of what the actual charts are saying is of paramount importance. Look for proper entries, avoid buying extended and always make sure to manage risk by sidestepping big losses.
Follow Mike Juang on X at @mikejuangnews and on Threads at @namedvillage
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Linda Yaccarino, CEO, X/Twitter speaks onstage during Vox Media’s 2023 Code Conference at The Ritz-Carlton, Laguna Niguel on September 27, 2023 in Dana Point, California.
Jerod Harris | Getty Images Entertainment | Getty Images
Linda Yaccarino sent a memo to employees of X (formerly Twitter) on Thursday in the aftermath of Elon Musk’s interview with Andrew Ross Sorkin, which she characterized to her staff as “candid” and “profound.”
On Wednesday at the DealBook Summit, Musk accused advertisers of trying to “blackmail” him by pulling ads from the platform after Musk said he agreed with a social media post accusing “Jewish communities” of pushing “hatred against whites.” Musk’s original comments drew condemnation from the White House, which blasted Musk for promoting “antisemitic and racist hate.”
“If somebody’s going to try to blackmail me with advertising?” X owner and CTO Musk said during the interview. “Blackmail me with money? Go f— yourself. Go. F—. Yourself. Is that clear?”
In the memo sent Thursday, Yaccarino told employees that the X owner “shared an unmatched and completely unvarnished perspective and vision for the future.”
She urged employees who did not watch the interview to “please take the time to absorb the magnitude and importance of what we’re all a part of. Because that’s exactly what I wanted to focus on with you today.”
During the interview, Musk lashed out at companies like Disney and Apple that paused their advertising campaigns with X. Musk denied he is antisemitic and apologized for his X posts, calling it “one of the most foolish if not the most foolish thing I’ve ever done on the platform.”
Read the full memo below:
Proud to be at X with YOU!
Hi all,
Yesterday I posted this about DealBook and the X community has been quite lit up today on the same topic. Elon’s interview was candid and profound. He shared an unmatched and completely unvarnished perspective and vision for the future. If you haven’t watched it, please take the time to absorb the magnitude and importance of what we’re all a part of. Because that’s exactly what I wanted to focus on with you today.
We’re at one of the most maverick companies in the world and we get to do things that have never been done before. X sits in a one-of-a-kind constellation of companies that are changing the world – from helping to conserve the planet through Tesla’s electric vehicles, to exploring new planets with SpaceX, to the seamless global connectivity of Starlink, to the potential of transforming lives with Neuralink, to responsibly reimagining the benefits of AGI through xAI.
You’re at X because you have the courage and conviction to build and operationalize the most consequential platform that exists. That’s quite an enviable position to be in.
Our mission at X is bold: to be an open platform without censorship of thought – one that provides people information and the freedom to make up their own minds. Our principles do not have a price tag, nor will they be compromised – ever. And no matter how hard they try, we will not be distracted by sideline critics who don’t understand our mission.
I’m immensely proud to lead this company – with the passionate people and partners of the X community and most fortunately with all of YOU.
As always, if you need me – I’m here.
Linda
Watch: Elon Musk to advertisers who are trying to “blackmail” him.
Some investing decisions are easier than others. A high-growth stock with increasing profits at a low valuation could be a no-brainer buy. But if you take out the low valuation, it could become a real question. Similarly, investors might struggle to determine if a young, high-growth stock with an uncertain future is a better buy than a mature, lower-growth one that’s well-established.
For most investors, the way to deal with the conundrum is actually quite simple. It’s called diversification. Instead of choosing from these different types of stocks, buy both, and add a few more to round out your holdings. A solid group of stock picks should include proven, established winners that still have strong growth prospects.
One excellent example today is Amazon (AMZN 0.38%). If you weren’t sure whether or not the e-commerce giant still has more growth ahead, consider what CEO Andy Jassy just said.
Is Amazon still a growth stock?
Amazon’s revenue has increased by more than 10,000% over the past 20 years, or a compound annual growth rate of 26%. Its stock has gained nearly 5,000% over that time, and much more going back to its initial public offering.
During this time, it has expanded in multiple ways and become the unmatched e-commerce and cloud computing giant it is today. That began right at the beginning with a strong list of acquisitions that immediately set it apart as a leader in what was still the uncharted territory of e-commerce, and it continues to acquire other companies and launch new products and services in what is now a vast set of businesses.
While some of its innovations are major shifts — such as its acquisition of One Medical last year that brings it into the healthcare industry — many of them are minor improvements that strengthen its moat and ensure that no competitor can touch its lead. These might not seem revolutionary, but they’re integral to Amazon’s growth strategy.
There’s still a long runway ahead
Jassy, who has been on every earnings call since he took over as CEO in 2021, provided shareholders with great news on the one last week. Sales were up by double digits, net income tripled from last year, and Amazon Web Services (AWS) is gaining momentum after a sluggish period, to note the highlights.
But what he said about the future might have been the most potent part of the update. Earlier this year, Amazon made a major shift in its delivery and fulfilment network. It moved from a national system to a regional one, with eight regions to serve different parts of the country.
The strategy involves keeping the most-popular products in all of those locations at all times, making it much faster and cheaper to get them to customers. Other products can still quickly move through channels to get to their destinations. Jassy said that delivery times are at their fastest in 29 years.
But this was the most potent part of the update: “We have a long way before being out of ideas to improve cost and speed.” Since Amazon is so big, it takes time to make small changes happen. It also needs to test, test, test to get things right and have the right infrastructure at the right cost to make sure it ends up being cheaper and not more expensive.
The improvements it launched this year were likely a long time in the making. It has added multiple types of robots to its force. These use artificial intelligence and machine learning to sort and deliver with a high degree of automation and lower costs, while freeing up employees for more creative work. These are constantly upgraded with new technology.
Even minimal improvements make a big difference for Amazon’s more than 200 million Prime members, who rely on it for essentials and other products. The faster it can get them their deliveries, the more loyalty and revenue it’ll earn. And the cheaper it can do that, the more it can delight its shareholders with increased profits.
It’s not just about fulfillment
Jassy’s optimistic take really applies to the whole company. While he said it in reference to fulfillment, he gave plenty of updates about generative artificial intelligence and how it’s transforming e-commerce, AWS, and advertising. Some examples are Amazon Bedrock, which allows AWS clients to customize large-language models with their own data, and Code Whisperer, which can write code for users based on company data. These are just early models of what should eventually grow into massive businesses and revenue drivers.
The are no guarantees in the stock market, but I wouldn’t underestimate the amount of gas that Amazon has left in its tank.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
Not all of us will live to be 90. But if we do, will we still be getting out of the house and volunteering? Smiler Haynes, a retired fashion model in Boston who just celebrated her 90th birthday, isn’t letting age slow her down.
“I feel better than the person I helped,” she says about the time she spends teaching reading skills to young people in her community.
“Just giving back is beneficial to me as well as the recipient,” she says. “Being around young people and seeing how you can give positive reinforcement by the things you do feels so rewarding to me.”
The way she sees it, during the five hours a week she spends working with local kids, she gets the chance “to make an impression that could last forever.”
Read: Volunteers cuddle babies in intensive care: ‘To feel their finger curl around yours is an amazing connection.’
Haynes, who has four children, eight grandchildren and 15 great-grandchildren — so far, she adds — says she has always volunteered, even when she worked full time as a model and a show producer.
“My mother always told me that you need to give back to the community,” she says, adding that there’s a quote attributed to Muhammad Ali that she likes: “Service to others is the rent we pay for our rooms here on earth.”
Haynes retired at age 62, when her husband fell ill. He passed away 20 years ago.
Since retiring, she has kept busy working with local charities and with her church, Boston’s historic Charles Street African Methodist Episcopal Church. She has been most involved in literacy and education programs, working with the nonprofit organizations Jumpstart for Young Children and Generations Incorporated, now known as Literations, both of which focus on kids preschool-age and older. After many years of volunteering five hours a day, three days a week, she downshifted to her current five hours a week at age 82.
Read: Where are the retirees? The retiree volunteer rate is depressingly low. Here’s how to change it.
She recommends volunteering to all seniors — for their own sake as well as the sake of those they are helping.
“I would say to others, keeping busy, keeping your mind on something other than what’s on the TV, gives you an opportunity to see how big this world is,” she says. “You’ll see that the problems you think you have are minuscule.”
She adds: “Move your body and you’ll move your mind. Love everybody!”
Read more about retirement and volunteering:
Traveling, volunteering, and — yes — working. Welcome to unretirement.
These much-loved volunteers swoop in to rescue animals in communities struck by disasters
‘We all need purpose when we wake up in the morning’: Finding meaning in retirement leads to happiness and health