☠ Will Threads Kill Twitter Dead?

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What’s on the Menu 🍴

Welcome to the 831 new Daily Dough subscribers this week!

Meta is throwing a new curveball into the social media game with a fresh app called Threads.

As Twitter faces a Musk-led roller coaster ride, we're investigating if this newcomer has the muscle to knock Twitter out of the fight.

• Will Threads Kill Twitter Dead? ☠

• Another Fed Rate Hike? No problem 👌

• The Orwellian Threat of CBDCs 😈

• The REAL Cost of Your Next Big Decision 💰

Today’s newsletter is a 4 minute read.

Will Threads Kill Twitter Dead? ☠

There’s a new viral social media app bursting onto the scene this week: Threads

Created & launched by Meta (aka Facebook) as a potential alternative to Twitter, Threads is a text based app encouraging users to have public conversations.

Threads is currently trending #1 in the Social Networking category of the Apple App Store, and according to Mark Zuckerberg it already boasts more than 30 MILLION users! 🤯

We’ve long been avid users of Twitter, particularly within the loosely organized investing community there referred to as FinTwit.

We’ve given and received countless insights on stocks, crypto, personal finance, and beyond.

But Elon Musk has certainly brought rapid changes to the platform, leaving users like us worried about what the future of Twitter could look like.

Twitter’s algos have been tweaked to promote viral content from non-followed accounts while they throttle sharing of links & content outside Twitter’s walled garden.

So Threads launch comes at an opportune moment, but thus far the feature set is quite limited with none of the following features:

• ❌ Lists

• ❌ Bookmarks

• ❌ DMs

• ❌ Polls

• ❌ GIFs

• ❌ Advanced Search

• ❌ Scheduled Posts

• ❌ Spaces (audio)

Zuck & Co have committed to rapid feature development at Threads, but as it stands today Twitter still sits atop the throne in text based social media.

There are also questions about whether users can trust Threads’ parent company Meta to be a proper steward of users’ data & best interests given Meta’s questionable past in this area.

Personally we’d love to see Twitter and Threads start competing head-to-head on rich feature development, and there’s always opportunity for creator growth on new platforms.

We’re going to be experimenting with Threads in the coming months so please follow us there:

🧵 stockgeektv

🧵 chrisdunntv

🧵 shetalksfinance

Zuck vs Elon is shaping up to be an EPIC battle inside the octagon AND within the digital realm!

Another Fed Rate Hike? No problem 👌

Investors who were holding onto the Fed “pivoting” and lowering interest rates are now deflating with disappointment.

Fed Chair Powell has made it clear that they’re going to continue to hike interest rates until they reach their 2% inflation target (we’re currently sitting at 4% on the Headline Consumer Price Index).

Due to the recent Fed speak, the stock market is pricing in a whopping 86.2% chance of another 25 basis point hike.

Bears are continuing to lick their chops for a stock market selloff, and you’d think the Fed running full speed ahead with MORE rate hikes would do the job.

But the market is still holding up with signs of continued strength ahead.

How is this possible?

It’s likely that the market realizes we’re close enough to the end of the rate hike cycle.

So what will another 25 basis points will really do in the grand scheme of things from here?

While it’s true that it takes time for the rate hikes to be fully felt by the economy, we’re still standing very resiliently after moving to 5.25%.

The majority of the damage has simply been done.

So, the market is likely not too worried about another 25 basis points right now.

The Orwellian Threat of CBDCs 😈

Buy too many donuts? Denied!

Don’t spend your stimulus checks in time? Clawed back!

Forget about being able to stack cash under the mattress - they want to track track and control every purchase you make.

Eswar Prasad, a professor at Cornell University, first got on our radar after he wrote, “The Case For Central Bank Digital Currencies”…

And in a speech at the World Economic Forum in China this week, Prasad said the quiet part out loud…

You heard that right - they want the ability to approve or deny what you buy.

And if a dictator decides something is “undesirable”, you’re out of luck.

It gets creepier...

CBDCs could have expiry dates - like a carton of milk that's gone bad.

Your hard-earned dough could just vanish into thin air.

Or even worse, they could freeze your assets faster than a polar vortex.

Sure, Prasad spins this as 'programmability', but when your money has more controls than a NASA space shuttle, we've got a problem.

CBDCs could be tied to your social credit score and be debased or inflated at will.

Talk about a 1984 money-makeover!

Do you want a small group of central bankers having their fingers on the pulse of everything you do with your money?

So, before we hitch a ride on the CBDC bandwagon, let's remember - digital or not, our money should still be our own.

This is where truly decentralized digital currencies like bitcoin shine.

Unlike fake cryptocurrencies controlled by governments, bitcoin operates outside the whimsical desires of politicians.

Sure, the blockchain is completely transparent…

But nobody can tell you what you can buy, when you can buy it, or who you can sell it to you.

People are waking up to the importance of self-custody…

AKA having complete control over your money.

So, what can you do?

1. Get some bitcoin and stick it on a hardware wallet

2. Educate your friends and family about the dangers of CBDC’s

3. Voice your opinion against CBDC’s and vote for pro-bitcoin politicians

The REAL Cost of Your Next Big Decision 💰

Ever stood in front of the mirror, wrestling with a life-changing decision?

"Do I grab that sleek Tesla Model 3, or park that cash into some fast-growing tech stocks?"

Every day, you're playing a game of chess with your options.

It's the FOMO principle at play, my friend…

But in the finance world, we have a slightly more sophisticated name for it—Opportunity Cost.

Opportunity cost is the juicy steak dinner you miss out on because you opted for a kale salad—it’s the cost of your next best alternative.

Let's break it down:

• You've got $10,000 burning a hole in your pocket.

• You invest in bonds promising a modest 5% return.

• But wait, that mutual fund was offering a 7% return!

• The cost of missing out on that extra 2% return is your opportunity cost.

For crypto traders, it could be weighing the difference between bag-holding a dying small cap cryptocurrency, or cutting your losses and reinvesting in a new, exciting project.

So, how do you harness this newfound mental model?

Simple. Think before you leap.

Here are some practical steps:

1. Identify Your Options: Before making a decision, clearly outline all the options available to you.

2. Evaluate Potential Returns: For each option, consider the potential returns or benefits.

3. Consider What You're Giving Up: This is where opportunity cost comes into play. By choosing one option, what potential benefits are you forgoing from other options?

4. Make an Informed Decision: With a clear understanding of your opportunity costs, make your decision.

By following this process, you'll become a decision-making Jedi, always aware of what you're gaining and what you're leaving on the table.

Opportunity cost isn't just about getting your ducks in a row financially—it's about becoming a savvy decision-maker in the game of life.

Life tosses you an endless stream of choices, and each decision you make shapes your journey.

Weighing opportunity costs helps you play the game better, ensuring you're swinging for the fences every time.

Put simply, it’s about playing the game with no regrets.

Delicious Bites 😋

• BlackRock CEO Declares Bitcoin An “International Asset”

• Twitter receives money transmitter licenses

• AI generated QR codes are all the rage

• Treasury bills are paying their highest rate of interest in 20+ years

Food For Thought 🧠

“Given a 10% chance of a 100 times payoff, you should take that bet every time."

- Jeff Bezos

DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.