Month: January 2024

After several months of sharp moves in both directions, the most recent of which was the unexpected 617K plunge in the number of US job openings to 8.733 million, the lowest since March 2021, moments ago the BLS reported the latest, November JOLTS data (as a reminder, this BLS data set lags the jobs report by a month), was a rather tame change with the number of job openings dropping by a modest 62K, the smallest monthly change since Dec 2020, to 8.790 million down from an upward revised 8.852 million (previously 8.733 million). This means that after the revision, the November number was still the lowest since April 2021, even though it was lower than the original October print (which was revised higher).

According to the BLS, in November job openings decreased in transportation, warehousing, and utilities (-128,000) and in federal government (-58,000). Job openings increased in wholesale trade (+63,000). Also, worth noting that a lot of the major job opening drops that were originally reported last month for October in fields like social assistance (-236,000), finance and insurance (-168,000), and real estate and rental and leasing (-49,000), have been revised higher.

The continued modest drop in the number of job openings meant that in November, the number of job openings was 2.499 million more than the number of unemployed workers, up modestly from last month’s 2.346 million which was the lowest since July 2021. This is due to the large drop in unemployed workers in November (6.291 million) from October (6.506 million).

Said otherwise, in November the number of job openings to unemployed dropped to just 1.34, the lowest level since August 2021 and almost back to pre-covid levels of 1.3… and a far cry from the record 2.0 hit in early 2022.

But what was more interesting than the number of job openings in November, was the number of quits: and as the number of job openings slumped to the lowest in more than two years, the number of people quitting their jobs – an indicator traditionally closely associated with labor market strength as it shows workers are confident they can find a better wage elsewhere – tumbled by 157K 3.471MM, which is at the 3.4 million level reported in Feb 2020, just before the covid shutdown. According to the report, the number of quits decreased in professional and business services (-77,000) and in educational services (-23,000). In other words, in at least one part of the labor market normality has been restored.

Developing

For the 15th month in a row, ISM Manufacturing survey signaled no expansion (print over 50) in December.

While the 47.4 print is up from November’s 46.7 (and better than the 47.1 expected), it is still a contractionary signal

Source: Bloomberg

“Companies are still managing outputs appropriately as order softness continues,” said Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management Manufacturing Business Survey Committee:.

“Demand eased, with the (1) New Orders Index contracting at a faster rate, (2) New Export Orders Index essentially flat, and (3) Backlog of Orders Index climbing back above 40 percent but still in fairly strong contraction territory.”

Source: Bloomberg

None of the six biggest manufacturing industries registered growth in December.

After sliding to fresh multi-week highs yesterday despite a burst of geopolitical risks and adverse escalations – almost as if the intern in charge of the White House oil trading desk was only left with a sell button – WTI rebounded after briefly sliding below $70 this morning and traded near session highs, reversing all of yesterday’s losses after a Bloomberg report that Libya’s Sharara oil field would be shuttered due to protests. The previously noted news that over 100 people have been killed in Iran in a terrorist attack near the grave of former IRGC commander Qassem Soleimani, in a terrorist attack only led to further gains.

As OilPrice notes, after false rumors of the closure of the giant Libyan Sharara oil field on Tuesday, a letter from Libya’s National Oil Company on Wednesday confirmed the shutdown of one of Libya’s most important oil fields.

According to Libya’s Al-Ahrar disgruntled protestors took to the field on Wednesday morning stating that the field would not be re-opened until their demands and those of the entire region of Fezzan in Southern Libya would be met.

In talks with Libya’s Al-Ahrar TV, spokesman Abu Bakr Abu Shreya of protest group the Fezzan Gathering Association demanded better services and development of Southern Libya.

Fears are that the protests may spread to the nearby 60,000 bpd El Feel field.

Sharara produces around 270kb/d, out of Libya’s total 1.2mb/d total output; the last time the field saw a short disruption for the last time in July of 2023 when protests erupted following the arrest of an official who tried to become the boss of Libya’s central bank.

During a period of relative stability following the truce between the rivaling parties in 2020, Libya’s crude oil production has risen to around 1.2 million barrels per day, and Libya’s state oil firm has plans to ramp up production to 2 million bpd by 2030 according to Minister of Oil and Gas Mohamed Oun.

While these disruptions may be relatively short-lived, they will be a reminder that the relative stability in Libya in 2023 has not been the norm in recent years. Libyan production fell below 700kb/d for a couple months in 2022, collapsed for most of 2020, and has been very volatile for years. Oil markets will focus on delivery of the new OPEC+ cuts, on potential risk of disruption from the widening conflict in the region, and on understanding the potential for more of the positive supply surprises we saw last year. However, Libya could be another important variable.

By Stefan Koopman, Senior Macro Strategist at Rabobank

It is a new year, the P&L’s are back at zero, and the financial punditocracy is once again invited to identify the risks in store for 2024. However, after a year in which most strategists were proven wrong, many are licking their wounds and only few are daring to make bold predictions. The consensus seems to be just a simple extrapolation of recent trends: yes, some slowdown in global growth, but no major recessions; yes, some pockets of stress here and there, but no macro-credit events; yes, some inflation hiccups, but an underlying trend of relatively pain-free disinflation, and, yes, a dovish shift by the central banks, so please, please buy those assets we’re selling.

While the Global Daily often highlights the global economy’s structural and intractable challenges, the new year does bring grounds for modest optimism. After all, the US avoided a recession and Europe probably experienced only a mild one in 2023. And inflation has not only confounded economists on the way up, but also on the way down, especially in core and services metrics. Moreover, labor markets held resilient through it all. These developments prompted central banks to pause tightening, and if markets dictate, rate cuts may soon follow. Of course, it is tempting for us strategists to balk at the foolishness of the crowd, but potential outcomes last year seemed a lot darker than this.

That said, we also believe that 2024 is likely to serve as a reminder that some of last years’ ‘once-in-a-lifetime’ events are not as rare as portrayed. The global security order is crumbling, with Iran projecting its power in the waters off Yemen and the Israeli strike in Lebanon as the two latest examples. Supply curves of commodities, inputs, intermediates, and final goods remains much more volatile than one would like. Furthermore, Western labor markets will remain structurally tight as demographic shifts, such as aging or outright population decline, accelerate, while increasing immigration is clearly not the panacea once thought. Lastly, but not least importantly, climate change may be progressing even faster than anticipated. These factors will have a greater impact on medium-term growth and inflation (and, therefore, on central bank rate decisions) than they have had for the past few decades.

The year 2024 will also witness a global contest between democracy and autocracy, as countries that account for half of the world’s population go to the polls. This “biggest election year ever” kicks off with Bangladesh this Sunday, but the spotlight has already turned to Taiwan’s presidential vote on January 13. That election comes amid particularly tense Taiwan-China relations, with President Biden pledging to protect Taiwan should Xi’s vows for ”reunification” actually be a euphemism for “invasion”. President Biden will of course also face his own challenge from his predecessor Trump, who is seeking to return to the White House in an election that will have global implications, especially for the US-China rivalry in the Indo-Pacific. And on that note, what about the elections in Pakistan, India, Iran, or Indonesia? Or the numerous elections in Africa, where foreign powers are again competing for influence on the continent, with the United States and its Western allies trying to counter Russia’s and China’s economic and security ties.

Europe will also undergo several political transitions in 2024, as some of its key leaders and parties face uncertain  futures. The UK’s Tories look set to lose their long-held majority to the opposition Labour Party, as the public grows dissatisfied with the economy, the countless scandals, and the crisis in the National Health Service. Meanwhile, the Tories’ pet project Brexit has visibly downgraded the country’s standing in international relations and trade. Even though a Labour government will seek to align more closely with the European Union on a variety of levels and topics, don’t count on any big formal commitments.

The European Parliament will hold elections of its own in June. The polls suggest here that the far-right Identity and Democracy group, which includes Germany’s Alternative für Deutschland, France’s Rassemblement National and Italy’s Lega, will make significant gains. If Trump also returns to power in the US, this could again strain the transatlantic relations that have started to improve under Biden. It will certainly hamper EU-US cooperation on the war in Ukraine.

Speaking of which, the Russian presidential election may be the one with the most predictable outcome, but will still be worth watching. While Putin is set to win another term in March, the vote breakdown may reveal the level of his support and whether the Russian public still backs his war. Meanwhile, in Ukraine, it is unclear if the planned 2024 presidential vote will take place while the country is under martial law, though the current leader Volodymyr Zelenskyy has said he will run for another term.

So, rate cuts in 2024? Well, probably. The rest, however, is politics.

Recall 2021… when the Biden FBI deployed counterterrorism resources against concerned parents who showed up at school board meetings, and Gen. Mark Milley told Congress that he wanted “to understand White rage” one month after an enraged father was dragged out of a Loudon County, Virginia school board meeting after his daughter was raped by a transgender boy in the girl’s bathroom – which the school board then covered up.

Loudoun County dad Scott Smith dragged out of school woke board meeting & found guilty of disorderly conduct/resisting arrest reveals his daughter was ‘raped’ in the girls’ bathroom by a ‘skirt-wearing’ boy who was arrested for a 2nd girl later. & School WOKE Board COVERED IT UP. pic.twitter.com/odjuzYniQz

— 🇺🇸Robert.N🇺🇸 (@Rob_Noorollah) October 13, 2021

Remember that?

And instead of addressing the concerns of millions of angry parents who had woken up to a nationwide phenomenon of mentally ill schoolteachers, critical race theory / DEI indoctrination, and transgender boys crushing the dreams of female athletes, the Biden administration turned the whole thing into a ‘white rage’ problem caused by extremist Trump supporters.

In December of 2021, the Pentagon furthered the ‘white rage’ narrative, warning that ‘extremism’ within the ranks was on the rise, which would require ‘detailed new rules’ to prohibit service members from engaging in ‘certain activities.’

The new policy lays out in detail the banned activities, which range from advocating terrorism or supporting the overthrow of the government to fundraising or rallying on behalf of an extremist group or “liking” or reposting extremist views on social media. The rules also specify that commanders must determine two things in order for someone to be held accountable: that the action was an extremist activity, as defined in the rules, and that the service member “actively participated” in that prohibited activity.

Previous policies banned extremist activities but didn’t go into such great detail, and also did not specify the two step process to determine someone accountable. -AP

Turns out that was total bullshit…

According to the Wall Street Journal, “Good news: The U.S. military isn’t packed with violent extremists.”

That’s the gist of a new report commissioned by the Pentagon in 2021 and released quietly with little notice in December. The result won’t surprise Americans who have spent time in uniform, but it should calm the media frenzy about right-wing radicals in the armed forces.

After reports that some service members participated in the Jan. 6 riot, Defense Secretary Lloyd Austin ordered an independent study to get “greater fidelity” on extremism in the ranks. The think tank tasked with the report, the Institute for Defense Analyses (IDA), “found no evidence that the number of violent extremists in the military is disproportionate” to U.S. society. A review of Pentagon data suggested “fewer than 100 substantiated cases per year of extremist activity by members of the military in recent years,” the report says.

The researchers found that “the prevalence of extremist and gang-related activity that are reflected in court-martial opinions is limited to fewer than 20 cases” since 2012, for example.

One conclusion was that the military doesn’t need a new section of the Uniform Code of Military Justice to punish alleged “extremists” in the ranks, and that commanders can simply rely on Article 116 (riot or breach of peace), Article 88 (contempt toward officials), Article 109 (destruction or damage to property), and Article 115 (communication of threats), as well as others.

The researchers also found that “fewer than ten” out of more than 700 Jan. 6 cases involved active members of the military, debunking yet another leftist claim.

Let’s see how much attention this debunking receives vs. the original headlines?

Update(0845ET): Iranian state media has confirmed that more that 70 were killed in two “terrorist attacks” at the cemetery where memorial anniversary events for the slain IRGC General Qassem Soleimani were being held in the southern city of Kerman.

“Babak Yektaparast, a spokesperson for Iran’s emergency services, told state media that 73 people had been killed and 170 injured,” according to Sky News. Wednesday marked the four-year anniversary of Soleimani’s assassination.

Iran is meanwhile vowing to “punish the perpetrators of the Kerman explosions” according to state media.

* * *

Two explosions close in time to one another ripped through a cemetery in the southern Iranian city of Kerman on Wednesday, killing scores of people and injuring over 15 others. The initial death toll of 20 was been quickly revised upward, with Reuters and Sky News subsequently reporting, “At least 50 people have been killed at a cemetery in Iran where a ceremony was being held to mark the 2020 assassination of Iran’s top commander Qassem Soleimani, an official has told Reuters news agency.”

Large crowds had been gathered near the grave of IRGC commander Qassem Soleimani a day of memorial events marking his death anniversary. The semi-official Nournews initially described that “several gas canisters exploded on the road leading to the cemetery and relevant authorities are monitoring the situation”.

Videos from the scene show chaos after the two explosions sent people running, which appear to number in the tens of thousands.

A correspondent with Iranian state-run Tasnim has said that the mounting casualty count is “high”. He’s been cited as saying, “There is a strong chance that more 50 people have lost their lives and 50-60 have been injured.”

Scenes from blast aftermath at the crowded cemetery…

🎥 لحظه شنیده‌شدن صدای انفجار دیگری در مسیر گلزار شهدای #کرمان pic.twitter.com/FY1w5YDALu

— خبرگزاری تسنیم 🇮🇷 (@Tasnimnews_Fa) January 3, 2024

According to more details via Al Jazeera:

Iranian state media says two explosions have struck a procession marking the anniversary of General Qassem Soleimani’s assassination. The blasts reportedly happened near the slain commander’s gravesite in the city of Kerman.

And very quickly in the aftermath, as casualties are still being rushed to the hospital, an Iranian official has been quoted in state media as saying the blasts in Kerman city were “terrorist attacks”.

This couldn’t come at a worse time and appears possibly connected with events in Gaza as the region already stands on the brink of a major regional war.

BREAKING: Over 20 killed in two bombing attacks at the entrance of the cemetery in which the late IRGC Quds Force Commander Qassem Soleimani is buried, in the city of Kerman. pic.twitter.com/6GCP58R8oO

— The Cradle (@TheCradleMedia) January 3, 2024

Yesterday Israel assassinated the deputy head of Hamas in a drone strike on southern Beirut, and Hezbollah’s Secretary-General Hassan Nasrallah is still set to give a major speech later today.

Soleimani was killed on January 3, 2020 when his convoy left Baghdad International Airport. The strike was ordered by then President Trump and likely had the assistance of Israeli intelligence. It was considered essentially an act of war by Tehran, which then lobbed dozens of ballistic missiles onto US bases in Iraq, resulting in Americans injured.

developing…

Authored by Michael Lebowtiz via RealInvestmentAdvice.com,

As we welcome in 2024, one of the most critical questions facing investors is which stocks and sectors will beat the market. Can the Magnificent 7 retain its crown? Or will some subset of the 493 other S&P 500 stocks and their neglected sectors take the throne in 2024?

The Magnificent 7 stole the show in 2023. As we wrote in: From Magnificent 7 To A New Team:

This year’s most popular investment bandwagon is the Magnificent 7, comprised of Apple, Microsoft, Google, Tesla, Nvidia, Amazon, and Meta. The graphs below, courtesy of Goldman Sachs, and our table show these 7 stocks gained 71% this year to date, while the remaining 493 stocks added a mere 6%. The outperformance pushed up their contribution to the S&P 500 to nearly 30%. Lastly, the sharp increase in stock prices led to even more extreme valuations for the group.

We ended the article as follows:

As we enter 2024, be open to the possibility that last year’s winners will not take the crown this year.

We don’t know what will replace the Magnificent 7 or when, but we will be sure to keep our bias in check and stay open to new ideas.

In the spirit of being open to new ideas, we study market valuations and earnings expectations to see if 2024’s Magnificent 7 includes names like Con Ed, Johnson & Johnson, Kraft Heinz, and other 2023 laggards.

Disclaimer On Valuations

Before we share our analysis, it’s worth emphasizing that changes in valuations, often called multiple expansion or contraction, can play an outsized role in the performance of a stock or index. Regardless of changes to earnings, sales, or other fundamental data, investors’ desire to buy or sell, if strong enough, can divorce a stock’s price from its fundamentals.  

For example, last year, the S&P 500 was up 23%. Approximately half of its increase was due to rising earnings, and the other half from increasing valuations.

The graph below shows how P/E multiple and EPS changes contributed to the S&P 500 price change since 2009. In six of the fifteen years, the changes in EPS and valuations were opposites of each other. Also note the years 2020 and 2021. In 2020, a significant increase in valuations more than offset declining earnings. Conversely, in 2021, EPS spiked, and valuations gave up most of its 2020 gains. Even if you forecasted EPS to the penny at the start of those two years, your S&P 500 projection would have been dead wrong!

S&P Sector Earnings Forecasts

S&P Global puts out a wealth of data on the S&P 500, which we use in this analysis. The table below is broken down into the eleven S&P 500 sectors and compared to the entire index.

Given the importance of valuations, as we noted, the first three columns show the current P/E ratio next to the three-year pre-pandemic average and the average of the last two years. This comparison provides context for a valuation on which to base our analysis.

With those three price-to-earnings estimates, we can imply the potential S&P 500 return by estimating earnings per share. S&P Global provides the 2024 EPS estimates for our analysis.

If the P/E remains unchanged, the price return equals the change in earnings. The two columns furthest to the right of the table compute the potential price change if P/E reverts to the pre-pandemic average or the more recent average.

The S&P 500 will gain 13.6% if valuations remain unchanged yet only increase by 2.30% or 7.89% if valuations revert to prior averages.

May 2024 Be The Year Of The Laggards?

The graph below, courtesy of Finviz, highlights the large discrepancy in the returns of the S&P 500 sectors.

The three sectors with the worst performance last year, Healthcare, Consumer Staples, and Utilities, offer the best potential returns in 2024, as calculated in our table above.

In our analysis, the Energy sector could have a remarkable 168% return if its P/E returns to its pre-pandemic average. However, its P/E is volatile as its earnings swing much more than other sectors. Its long-term P/E average is in the mid-teens. If its P/E climbs back to such a level, a 50% increase in share prices is in store, assuming earnings are relatively flat.

After a strong 2023, Technology, Communications, and Consumer Discretionary (cyclical) have projections more in line with the market.

Sentiment Trumps Fundamentals

As we noted earlier, valuations play a significant role in performance. Consequently, it’s crucial to appreciate the sentiment and narratives in place. The Magnificent 7 and, to a lesser degree, large-cap Technology, Communications, and Discretionary are in vogue. Valuations are generally expensive in these sectors and are rising. Despite such high valuations, the positive sentiment toward these sectors could continue for part or all of next year.

Conversely, the out-of-vogue sectors may continue to underperform. Returning to our article From Magnificent 7 To A New Team, we compared one of the market’s hottest stocks in 2023, Nvidia, to an out-of-favor stock, Albemarle. To wit:

To help appreciate what may lie ahead, we compare Nvidia to Albemarle. Nvidia is up 230% year to date. As a result of the stock surge, Nvidia’s investors are paying a 250% premium for Nvidia’s earnings versus those of the S&P 500. Nvidia’s earnings will undoubtedly grow faster than the market for a while, but by how much and for how long? Can they avoid competition and margin pressures while keeping sales elevated long enough to justify the premium?

The world’s largest lithium producer is in quite the opposite shoes. Despite strong demand for lithium from electric vehicles (EV) and a projected shortfall of lithium to meet growing EV needs, Albemarle investors only demand a price to earnings of five, about one-fifth of the S&P 500. Its shares are down about 30% year to date.

Despite the significant value in Albemarle compared to Nvidia, investors continue to chase Nvidia and sell Albemarle.

The takeaway is that regardless of valuations, Nvidia and its six other compatriots may continue to lead the market. Albemarle and the many stocks in the out-of-favor sectors proposition may continue to languish.

Summary

The combination of earnings expectations and valuation regression argues that Utilities, Staples, and Healthcare will outperform the market.

HOWEVER, sentiment and changes in investors’ perceptions via valuation expansion or contraction can easily dominate returns.

Investor sentiment is challenging to predict but relatively easy to measure. Therefore, we must appreciate our forecast and be ready to act on it if necessary. But at the same time, respect current sentiment and appreciate recent trends. As John Maynard Keynes once said:

“The markets can remain irrational longer than you can remain solvent.”

Be flexible and respectful of current trends and sentiment but cautious and aware of evolving market conditions.

While many celebrate Oct. 31, 2008 – the release of the Bitcoin whitepaper – as Bitcoin’s original birthday, others take a more technical approach to determining the true age of Bitcoin.

For the latter, Jan. 3 is the actual date Bitcoin materialized as a store of value and transferable currency.

As CoinTelegraph reports, the genesis block, a.k.a. the first Bitcoin block, was mined on Jan. 3, 2009, by its mysterious creator Satoshi Nakamoto.

What followed was years of triumph versus naysayers that included critics, mainstream media, politicians and governments worldwide.

From an inspired spark in the digital depths to a global system of empowerment. Happy Birthday #bitcoin. Cheers to 15 years of pioneering the financial revolution! pic.twitter.com/m0nJg2zmyU

— Mike Novogratz (@novogratz) January 3, 2024

And to celebrate that milestone, crypto market flash-crashed this morning with Bitcoin instantaneously puking from $45,500 to $41,000…

And Ethereum followed suite…

Over $550 million in crypto long positions were liquidated in the past 24 hours, per data from CoinGlass, including $104 million in Bitcoin longs in the past hour alone.

Cryptos are recovering from the initial puke and while the catalyst is unclear, some market participants are pointing to this FUD post on X by MatrixPort analyst Markus Thielen that suggested significant downside and expectations of an SEC rejection of a spot BTC ETF.  This is in contrast to the optimistic stance expressed by Bloomberg Intelligence and JP Morgan analysts.

Matrix on Target projects a January rejection for Bitcoin Spot ETFs by the SEC, cautioning traders to hedge long exposure. With #SEC Chair Gensler’s skepticism towards #crypto, a potential -20% #Bitcoin price drop is anticipated upon #ETF denial, though a positive end-of-2024… pic.twitter.com/IgaMhBJtiP

— Matrixport (@realMatrixport) January 3, 2024

There’s just one thing, 24 hours earlier, the same X user posted projections of BTC hitting $50k…

Anticipate a substantial #Bitcoin surge to $50,000 in January, driven by an imminent #BitcoinSpot #ETF approval, institutional buying, and factors such as supply shortage and historical trends, with potential for #altcoin season and a funding rate reaching +66%.

Read the full… pic.twitter.com/sueG5LqENp

— Matrixport (@realMatrixport) January 2, 2024

Take your choice.

And so with all that reactionary FUD, CoinTelegraph takes a bird’s eye view of the Bitcoin ecosystem 15 years on.

Bitcoin ATM Network

Bitcoin ATMs were first conceived nearly five years after the first block was mined, with historical data confirming that the first ATM went live in October 2013. The motive was to provide another avenue for people to exchange their local fiat currencies for Bitcoin.

While the Bitcoin ATM network saw staggered growth initially, thousands of Bitcoin and crypto ATMs were added yearly across the globe as mass Bitcoin adoption brewed. At its peak, nearly 40,000 Bitcoin ATMs were active on the network in 2021.

Crypto ATM installations growth to date. Source: CoinATMRadar

Post 2021, geopolitical tensions and negative investor sentiment amid a bear market saw an immediate but short-lived reduction in Bitcoin ATMs. However, as of Jan. 3, 2024, nearly 34,000 Bitcoin ATMs remain operational worldwide.

Close to 1M Bitcoin blocks mined

15 years after the creation of the first block, Bitcoin miners continue to mine blocks in return for rewards. The growing interest from individuals and corporations in mining Bitcoin confirms the process as a viable business model that also helps secure the Bitcoin network from external attacks.

Latest BTC blocks. Source: Blockchain.com

Millions of Bitcoin transactions that have been processed over 15 years have been permanently recorded in 825,000 blocks, and neither the miners nor the investors intend to stop.

Mainstream adoption of Bitcoin

Despite the strong resistance to mainstream adoption, those from hyperinflated economies first understood the importance of Bitcoin as the future of money.

El Salvador took charge of establishing Bitcoin as a legal tender and, in two years, showed the resilience of Bitcoin amid global economic turmoil.

El Salvador’s #Bitcoin investments are in the black!

After literally thousands of articles and hit pieces that ridiculed our supposed losses, all of which were calculated based on #Bitcoin’s market price at the time…

With the current #Bitcoin market price, if we were to sell… pic.twitter.com/gvl2GfQMfb

— Nayib Bukele (@nayibbukele) December 4, 2023

El Salvador President Nayib Bukele indirectly gave confidence to the leaders of other countries to reconsider Bitcoin’s proposition. On the other hand, several countries like China and Saudi Arabia continue to restrict the use of Bitcoin — given its ability to provide unsolicited freedom from centralization.

Bitcoin’s journey from worthless to priceless

Beating all odds, Bitcoin now boasts a nearly $900 billion market capitalization, a valuation accumulated in just 15 years. In 2010, an early Bitcoiner convinced a pizza joint to sell him two pizzas for 10,000 BTC. Today, he could start his own pizzeria business for not much more than just one Bitcoin.

Establishments across nearly all business verticals have started to accept Bitcoin in exchange for their services. From real estate and concert tickets to vacations and education, Bitcoin can be used to make almost any purchase without involving banks or other centralized entities. Read this article to learn more about how actually to spend Bitcoin.

Let us not forget that #Bitcoin is the 9th most valuable asset in the world. In less than 15 years, it surpassed 7,963 other assets to accomplish this. By the end of 2025, I suspect it to be in the top three. We shall see. #stackharder pic.twitter.com/kOYK5mqY49

— Oliver L. Velez ⚡️ 13%’er Bitcoiner (@olvelez007) January 2, 2024

As of January 2024, Bitcoin is the 9th most valuable asset in the world based on market cap alone. Professional trader and financial author Oliver Velez noted that Bitcoin surpassed 7,963 assets in 15 years to rank 9th and anticipated the asset to rank in top three by 2025.