hey guys how's it going it's Andy from Magooinvesting happy Wednesday
so we've had a pretty interesting week so far when it comes to the overall stock market
we saw a pretty big drop on Monday it started off around two percent down and then it kind of
got bought back towards the end of the day and we had some of the bigger losers from the DOW
being Boeing stock (BA Stock) and Coca-Cola stock (KO Stock) after they both downgraded by analysts
and then yesterday it seemed like the market was just kind of waiting for the results of
the election that was happening in Georgia and based off of what we've seen right now
it hasn't been officially called for both sides for both of the elections actually but it seems
pretty close at this point and I was expecting the market to sell off a decent amount because
a lot of the conversation going into the election was that if the democrats win the presidency but
they don't win the actual senate it's going to make it very difficult to pass some of
the legislation that would be negatively impacting some of the major corporations
but now that it looks like the democrats are going to have the house the senate and the presidency
I was very surprised to see that the market's actually up a decent amount at this point
right now the s p is up one point three percent Dow was up one point nine and the Russell 2000
small cap is up four point eight percent so it's very curious to see that actually happening at
this point so we're going to be watching that going forward but today I want to talk all about
cryptocurrency (Crypto) because it has been pretty much the talk of the investing world
for the past couple months because it has gone on an incredible run at the time of me recording this
uh Bitcoin (BTC) is up 3.7 percent on the day and it's up at 35000 and so if you've been on
this channel for a decent amount I have been a Bitcoin (BTC) (BTC) bull for a very long time
this is something where I bought in for the first time around six thousand about on the way up to
12 then it fell back down and in the past couple months it has been very interesting to see it go
from uh hitting 20 000 and having it have a little bit of a struggle to break that level to now being
up at 35 000 and so I’ll put that chart up right now in case you have not been paying attention
to how crazy of a run it's been so for people that are very interested in stocks which is
mainly the people that I have following me on this channel in today's video I wanted to talk about a
couple stocks that will do well as Bitcoin (BTC) continues to increase in value over time I know a
lot of people myself included for a while those very hesitant to buy into Bitcoin (BTC) because
it's not something I fully understand but it's something that I’m very excited about and that's
why I put it on my innovative stocks list because while I don't fully understand it I trust the
technology behind it and I think the value of it's only going to increase over time so today
I’m going to be talking about a variety of stocks that have exposure to Bitcoin (BTC) instead of
maybe people aren't as interested in buying directly into Bitcoin (BTC) but they want to have
just a little bit of exposure so these stocks have a varying level of exposure from just a little bit
to being pretty involved in the Bitcoin (BTC) mining itself before getting started I do have
to say that I’m not a licensed financial advisor and this is not financial advice anything you hear
in this video is just me giving my own opinions on the stock market and you need to do your research
for making any investment decisions also if you've been enjoying these videos really appreciate it
with a like and subscribe button as would help my channel out a lot so the first stock that I
wanted to talk about in today's video is going to be PayPal Stock (PYPL Stock) take a simple pypl
one of the major changes that we've seen as a maybe a reason why we've seen this incredible run
for crypto in the past couple months has to do with uh Paypal Stock (PYPL Stock) and
Square Stock (SQ Stock) getting involved with uh Bitcoin (BTC) and cryptocurrency and
so Paypal Stock (PYPL Stock) just a couple months ago decided that they were going to
allow people that are using their platforms to buy and sell Bitcoin (BTC) using their
Paypal Stock (PYPL Stock) wallets and through the end of 2020 they were not collecting any fees to
try to get a lot of their users to get involved with the actual cryptocurrency transactions
but starting in 2021 they're going to be charging 0.5 percent for every transaction
and so based off of the incredible size that Paypal Stock (PYPL Stock) is at this point
that's going to be a huge revenue source for them going forward and as a result of
Paypal Stock (PYPL Stock) getting involved in the Bitcoin (BTC) market we've actually been seeing
a Bitcoin (BTC) shortage which is partially to explain the massive increase in price that we've
been seeing some of the articles that I’ve been finding says that uh Paypal Stock (PYPL Stock)'s
been snatching up around 70 percent of the newly circulated Bitcoin (BTC) which
has resulted in the supply available dropping which has shot up the price and that fact has
definitely led to an increase in Paypal Stock (PYPL Stock)'s price over the past couple months
since they started implementing the cryptocurrency features Paypal Stock (PYPL Stock) is up around 30
overall so this has definitely been a very nice spike for them based off the incredible history
of their rapidly increasing transaction volume I think this is going to be a huge revenue source
for them going forward so when I put this on a scale of one to ten for how much exposure they
uh have with Paypal Stock (PYPL Stock) uh to cryptocurrency I would probably put this at about
maybe like a four Paypal Stock (PYPL Stock) is definitely doesn't need Bitcoin (BTC) to
do well to have their stock price go up but it's definitely been a reason why the stock
has gone up over the past couple months so this is a stock that I would love if I was trying to just
barely get involved with Bitcoin (BTC) because it does have the exposure it's only going to
increase their payment volume over time and it's a very exciting thing and their business is very
solid even without the Bitcoin (BTC) but then when we go to number two which is going to be
Square Stock (SQ Stock) ticker symbol $SQ this is definitely for someone that's more interested in
being more heavily involved with the Bitcoin (BTC) aspect of it and the reason behind that is that
Square Stock (SQ Stock) has also gotten involved in the Bitcoin (BTC) game but the
difference between them is that Square Stock (SQ Stock) is significantly smaller when it comes to
a payment volume aspect and so in the past I’ve always compared Paypal Stock (PYPL Stock) and
Square Stock (SQ Stock)s being very similar when it comes to you know their overall goals but
when you look at their overall size Square Stock (SQ Stock) is going to be relying
heavily on their Bitcoin (BTC) investment to push themselves forward going into the future and so
from the numbers that I could see they bought 50 million dollars’ worth of Bitcoin (BTC) a couple
months ago and that has definitely shot up in value since that point and then the
Bitcoin (BTC) transactions that they've been seeing in the past quarter have spiked their
revenue after users bought 1.6 billion dollars in Bitcoin (BTC) in quarter three so that is a huge
boost in their overall payment volume the fees that they collected on that resulted in eighty
percent of Square Stock (SQ Stock)s quarter three revenue coming from Bitcoin (BTC) and
they produced a gross profit of 32 million dollars which is 15 times larger than they saw uh from a
gross profit of 2.1 million dollars a year prior so compared to Paypal Stock (PYPL Stock) there's
definitely a company that's going to be benefiting more from the Bitcoin (BTC) explosion just because
as you can see it was 80 of their revenue in the past quarter Square Stock (SQ Stock) definitely
has a solid business model and it's been a company that I’ve loved for a long time but the difference
is that they are significantly smaller when you compare it to Paypal Stock (PYPL Stock) so
they both have these same positives going for them with their exposure to Bitcoin (BTC) but
on a scale of one to ten if I put Paypal Stock (PYPL Stock) like a four out of ten when it
comes to Bitcoin (BTC) exposure I would definitely put Square Stock (SQ Stock) closer to like a five
or a six because since it is smaller and a much larger percentage of their revenues coming from uh
Bitcoin (BTC) transactions if Bitcoin (BTC) just tanks in the next couple weeks they're probably
not going to have as much revenue coming from that whereas Paypal Stock (PYPL Stock) has the high
levels of payment volume to you know keep their revenue increasing over time so if I’m looking for
more Bitcoin (BTC) exposure while not directly buying in I think Square Stock (SQ Stock) is
a better option than Paypal Stock (PYPL Stock) but if I’m going for the safer option that just
has a little bit of exposure uh to cryptocurrency overall I think Paypal Stock (PYPL Stock) is the
better option I did want to bring up Facebook Stock (FB Stock) ticker symbol fb because they
did have some interesting stories going about cryptocurrency just a couple years ago so they
announced uh just a couple years ago they're going to be creating their own cryptocurrency called
libra which is expected to come out in 2021 but they definitely hit a roadblock and as a result
of some of the regulatory issues and some of the worries that a lot of people were having about the
you know the actual security of Facebook Stock (FB Stock) based off of their track record uh that has
not come to fruition at this point and one of the first things that resulted in libra being you know
stopped at this point was the fact that Paypal Stock (PYPL Stock) decided to back out of their
agreement and so Paypal Stock (PYPL Stock) has definitely been on board with cryptocurrency
for a long time and I’m very happy to see them finally get involved I think if
Facebook Stock (FB Stock) does actually come out with libra in the future that is not something I’m
ever going to be considering touching I’d more likely be to buy into Ethereum (Ether) which is
one of the altcoins out there uh then buy into something like libre just because I don't trust
Facebook Stock (FB Stock) as much next we're going to talk about Visa Stock (V Stock) ticker symbol v
for some smaller exposure to Bitcoin (BTC) I think Visa Stock (V Stock) could be a very interesting
way to do it and while they do not directly allow transactions of Bitcoin (BTC) at this point
that might not be that way forever from hearing the stuff that their CEO has said uh that they
are actively watching Bitcoin (BTC) and based off of the things that they've been seeing with the
pandemic in 2020 and going into 2021 the reliance on cash is definitely going to be going away in
the future and they see cryptocurrency has been a very interesting way to do that they have created
a Visa Stock (V Stock) credit card that does give Bitcoin (BTC) rewards instead of miles or cash
so they do have a little bit of exposure to it but this is something that I would
consider investing in if I want to have some Bitcoin (BTC) exposure in the future
Visa Stock (V Stock) is a massive company that is so well established that it's going to take
a lot for them to get involved but based off of their comments from their CEO I see them getting
involved with Bitcoin (BTC) within the next couple years so if Paypal Stock (PYPL Stock) was a four
out of ten and Square Stock (SQ Stock) was a five or six Visa Stock (V Stock) is definitely like
a one maybe a 1.5 or it does have a little bit of exposure based off of their credit card and
the fact that their CEO has been pretty bullish on Bitcoin (BTC) overall but it does not have as high
of a risk or reliance on the success of Bitcoin (BTC) as the other two then I’m going to finish up
this video talking about riot blockchain uh which is ticker symbol riot and so instead of buying
directly into Bitcoin (BTC) riot is a different option when it comes to cryptocurrency so you
can definitely buy directly into Bitcoin (BTC) Ethereum (Ether) dogecoin if even if you really
wanted to write blockchain is a mining company and they've recently surpassed one billion dollars
in market cap so instead of buying directly into the cryptocurrency you're buying into the
companies that are actively mining the Bitcoin (BTC) which is a very interesting thing and I
would highly recommend watching some videos on how Bitcoin (BTC) mining actually works because it's a
fascinating process and so they're currently based out of new York and their Bitcoin (BTC) mining
operation currently uses 16.3 megawatts of energy the reason I’m bringing this up is now that the
democrats fully control the house senate and the presidency based off what the democratic party has
been running on I fully expect to see a lot of green energy initiatives going forward and one
of the things that will benefit has to do with Bitcoin (BTC) mining because they are so reliant
on the cost of energy and so we have been seeing some numbers that 76 of Bitcoin (BTC) miners use
some sort of renewables and a total of 39 of the overall energy used comes from renewables and so
with the next political administration and if they heavily invest into clean energy and it
reduces the price where they can have higher margins on their mining operations this would
be a huge benefit to a company like riot that's so dependent on their energy costs so this is not
something that I fully understand at this point I think riot is a very interesting way to invest in
a cryptocurrency and it has more of a reliance on the you know the political administration
and the technology side of it instead of just the overall price and the usage of cryptocurrency so
this is definitely like a 10 out of 10 when it comes to exposure to Bitcoin (BTC) even though
you're not directly buying in so in this video I talked about Paypal Stock (PYPL Stock) which
definitely has some exposure but since it is one of the largest payment companies out there it's
not as reliant on the success of Bitcoin (BTC) whereas Square Stock (SQ Stock) is smaller in size
but as I mentioned eighty percent of their revenue from the past quarter came from the
1.6 billion dollars of Bitcoin (BTC) that was bought by their customers in quarter three
uh Facebook Stock (FB Stock) I’m going to be staying away from libra if it ever comes out
Visa Stock (V Stock) I would call like a one out of ten because it likely is
going to have some Bitcoin (BTC) exposure in the future and they do have that credit
card that gives Bitcoin (BTC) rewards their CEO has been bullish on cryptocurrency in the past
uh but they're not involved fully at this point so that's something to watch going forward and then
ride blockchain I’d call it 10 out of 10. it's a way to invest in a cryptocurrency that's slightly
different than buying directly into the actual coin so these are a bunch of different options I
haven't talked about crypto a lot on this channel based off of what I’ve seen in the past with my
channel when I talk about this I expect to have a lot of bots in the comments but I’m very curious
to see if you guys have been riding the Bitcoin (BTC) wave on the way up uh currently I think
my average price is around 8500 so I have had a very nice profit from 2020 going into 2021
and I don't expect to sell anytime soon next time we see a major drop I would definitely be adding
to my position and I have been adding on the way up but Bitcoin (BTC) has been very exciting for
the past couple months and it's going to be very interesting to see if this run continues
or if we're going to see a major pullback like what we saw at the end of 2017 going into 2018 so
thanks for watching I appreciate all support and I will see you in the next video