I/O Fund’s Interview with CoinDesk: Why Square’s Name Change to Block is Defensive
December 31, 2021
Lead Tech Analyst
Beth Kindig shared her views on Square’s name change to Block, Jack Dorsey stepping down as Twitter’s CEO, and the upcoming opportunities to watch in an interview with CoinDesk.
Here’s an overview of the discussion.
Square is technically getting disrupted by Blockchain and this is prompting Jack Dorsey to embrace Bitcoin. I had discussed this two years ago in an article for MarketWatch where I stated the following:
“Finance is changing rapidly through mergers and acquisitions, but not rapidly enough. There will be tremendous pressure for traditional payment processors to get with the times and adopt blockchain, or else they will be left behind by lower-cost competitors …. The real value to consumers and merchants has yet to be seen. Square may have replaced cash registers, but the fees the company charges are as old-school as ever. Square charges 2.6% plus 10 cents per transaction … Digitization in the finance industry is built atop age-old infrastructure and ignores the most obvious area in need of disruption: transaction fees. Visa and Mastercard are making acquisitions to remain relevant and competitive, while PayPal and Square are getting on more devices with peer-to-peer apps such as Venmo and Cash App. Those moves won’t lead to massive growth. An overhaul of the infrastructure via blockchain will take some time, and only then will investors enjoy serious investment returns.”
The fees that Square and other fintech names charge are the fees that blockchain promises to disrupt over time. We do not think Square is pushing for Bitcoin adoption and changing its name to Block out of strength, rather we think this is a defensive move.
Regarding Twitter, Beth Kindig points out in the interview that the social media site has many bots which can affect the number of advertisers on the platform sees. According to a Pew Study, 66 percent of tweeted links are shared by bots. Most websites do have some bot traffic at an estimated 29 percent, therefore some of this is unavoidable. The reason Twitter has higher bot traffic is because it does not require a network of friends/family to have a presence and someone with a very low follower count or brand new account can immediately click on ads and links. The CTO of Twitter has recently become the CEO, Parag Agrawal, and these problems are likely to persist under the new leadership as they did when he led the technical side.
How to Find the Next Opportunity
Cloud has been very resilient and we believe this sector will perform well during times of high inflation. We also think the market is currently oversold with the Russell 2000 index being more oversold than during March of 2020. During these times of indiscriminate selling, we stay firm on product and fundamentals as cloud, for example, drives down costs for the companies.
We believe the current sell-off was driven by a high inflation number rather than the Omicron variant. We believe Bitcoin will perform well during times of inflation while more speculative and high beta stocks will not perform well, such as IPOs. The bottom line will also begin to matter more.
Disclaimer: This is not financial advice. Please consult with your financial advisor in regards to any stocks you buy.
Gains of up to 403% from our Free Newsletter.
Here are sample stock gains from the I/O Fund’s newsletter --- produced weekly and all for free!
+344% on Nvidia
+403% on Bitcoin
+218% on Roku
*as of March 15, 2022
Our newsletter provides an edge in the world’s most valuable industry – technology. Due to the enormous gains from this particular industry, we think it’s essential that every stock investor have a credible source who specializes in tech. Subscribe for Free Weekly Analysis on the Best Tech Stocks.
If you are a more serious investor, we have a premium service that offers lower entries and real-time trade alerts. Sample returns on the premium site include 324% on Zoom, 601% on Nvidia, 445% on Bitcoin, and 4-digits on an alt-coin. The I/O Fund is audited annually to prove it’s one of the best performing Funds on the market with returns that beat Wall Street funds.
More To Explore
Evidence is Building for an Uptrend - Broad Market Analysis
In this last week’s Broad Market Analysis, Knox reviews the evidence building the current uptrend that could extend into Fall 2022. Watch the preview clips taken from I/O Fund’s 1-hour Premium Technic
Big Tech Earnings: Microsoft And Alphabet Signal Q2 Could Be A Bottom
Big Tech earnings were off to a solid start last week when Microsoft and Google reported stable revenue growth and margins that are unchanged from recent macro conditions. The strong margins were espe
Are We Finally Out of the Bear Market?
Knox continues the Bear Market correction discussion and analyzes FAANG stocks and three other premium stock positions. Watch this clip taken from the 1-hour technical stock analysis below for upcomin
Netflix Stock Stronger Than It Seems Following Q2 Earnings
Netflix is trading at a 10-year historic low valuation, which means this is an opportune time to discuss the pros and cons of this stock should there be upside potential.
Ad Tech Stock Valuations Historically Low - Q3 2022 Earnings
Beth Kindig looks back at Facebook ($META), the ultimate ad-tech stock between 2012-2018 to answer three important ad tech stock valuation questions.
I/O Fund in the Media: Semiconductor Stocks, CHIPS Act, and Why We are Bullish on Bitcoin
Lead Tech Analyst Beth Kindig joins Charles Payne of Fox Business news to discuss the $52B CHIPS Act, FABS Act, opportunities in tech that may be overlooked, and why I/O Fund is bullish on Bitcoin rig
Broad Market Analysis: The Bear Market Correction by Knox Ridley
Knox Ridley covers the Bear Market correction in this week’s Premium Stock Market Webinar. He discusses his technical analysis of six premium portfolio stock positions that only paid subscribers can a
Apple Vs. The FAANGs (Technical Analysis)
Apple Inc. (NASDAQ:AAPL) became the most valuable company in the world through creating and dominating the smart phone/mobile microtrend. As the majority of the global community went from zero smart p
Apple Is Tech’s Best Value Stock
Apple epitomizes what it means to be both a good value stock and a good tech stock with its strong margins, outsized cash flows, stable balance sheet, and a loyal base of customers supporting the bran
I/O Fund’s Current View on Bitcoin
In August of 2019 we released our first premium report on Bitcoin. At the time, Bitcoin was trading between $10,000-$11,000, following a bounce greater than 200% in less than a year. We believed Bitco