A Point Of Contention

In a conversation over the weekend the topic of Bitcoin came up. However, this wasn’t the usual clash of perspectives between myself and another as has been the usual. No, this was a conversation with a friend that had absolutely no idea of the working thesis, investment hedge, nor anything else except that he’s heard the name and knows that some are just emphatic on the whole thing. And, what was so refreshing? He could care less about it, which allowed for a real conversation on the topic.

It was during this conversation that I made the point I’ve repeated ad nauseam, which is, “There is nothing going on in Bitcoin™ that one can’t do in regular plain old stocks using options or pure alpha plays with far more transparency, as well as relative safety. (emphasis on “relative”)

When I said this, he responded, “Example?” which I did. However, the examples I gave were more along the lines of a meandering hodgepodge. Although they were quite informative and he understood my premise and agreed, I thought in light of this conversation I would just use one example that is transpiring today, making headlines everywhere throughout the market, as Bitcoin still flounders around its most recent lows. Funny how Bitcoin is suddenly now ‘page three’ rather than its daily ‘page one’ sensation, no? But I digress.

Today’s topic du jour throughout the “markets” and Wall Street is AMC™ which also is the ticker symbol for the movie theater chain. Why I’m using this one precisely, is that it demonstrates everything I’ve been stating, all rolled up into one perfect illustration.

Below are two charts to show my point, one AMC, the other Bitcoin. To wit:

First AMC…

(Chart Source)

Now, Bitcoin…

(Chart Source)

Here’s the other dirty little secret…

To do the same in each, one takes an initial investment of only $1.85 and the other requires $3,200. The reason why this alone is important is for this reason…

Armed with a $1,200 stimulus check, one could have purchased just under 650 shares of AMC and been riding it to a 20X profit. Regarding Bitcoin? You can’t even get into the game to buy just one. Any wonder now why all the other cryptos that are priced in pennies were suddenly “in the game?” Pure coincidence, I’m sure. But again, I digress.

So, what’s the conclusion? It’s as easy as this…

For all the hype that’s been thrown around regarding Bitcoin and the “mega bucks!” everyone is supposedly making, you would have been far more savvy to have put your money into a complete lunatic moon shot in AMC and had a “20 banger!” in 6 months rather, than “investing” in Bitcoin at the lows of 2018.

Don’t take my word for it, the proof is staring right at you in the above.

But, then again, what do I know.

© 2021 Mark St.Cyr

Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.