Letter #5: #Bitcoin - The "Tweet" Heard Around The World
#Bitcoin is a rather innocuous hashtag that undoubtedly gets used hundreds or thousands of times every day across social media. So who could have ever imagined that a single use of #Bitcoin would cause the price of the world’s most valuable cryptocurrency to spike 15% in just one hour? Believable or not, that’s exactly what happened earlier this week.
In other news, it was quite a week in the investing world. Both Main Street and Wall Street were rocked as they watched the stock prices of many companies whose business models have been rendered obsolete by coronavirus and the digitalization of our world skyrocket far past their actual real-world value. Companies like GameStop and AMC Entertainment, whose stock prices have declined precipitously over the past several years, saw their stock prices gain 100%, 200%, 500% or more in a matter of hours.
It would have been hard to imagine a few years ago that one individual could have such a singular impact on financial markets. But such is the newfound power of the world’s richest man, Elon Musk.