FINANCE & TECH

Does Kamala Harris Support Student Loans Forgiveness?

Here’s what Vice President Kamala Harris could mean for your student loans.
Here’s what you need to know.

Student Loans
Since last year, student loan borrowers have been wondering where President Joe Biden stands on student loan cancellation. They’ve asked questions like:

Will Biden cancel your student loans?
Will Biden extend student loan relief?
Will I get student loan forgiveness?

With congressional leaders focsued on pressuring Biden to enact wide-scale student loan forgiveness, there’s another principal who also has important opinions on student loans. Harris, a former U.S. senator (D-CA) and presidential candidate, has proposed several reforms to student loans and higher education. Let’s explore. (What Biden’s last student loan relief means for your student loans).

Student loans: student loan cancellation up to $20,000
Is student debt cancellation next? As a presidential candidate, Harris proposed to cancel up to $20,000 of student loan debt. Under Harris’ plan, student loan forgiveness would not be available to everyone. Rather, Harris sought to make student loan forgiveness available to certain borrowers. For example, borrowers who received Pell Grants, which are available to low-income students to help pay for college, could receive student loan forgiveness if they started and ran a business for at least three years in a disadvantaged community. The goal was to help spur economic stimulus in disadvantaged opportunities, encourage entrepreneurship, and to forgive student loans. (Biden extended student loan relief, but advocates really want student loan cancellation).

Student loan cancellation: not for everyone
As a moderate U.S. senator and presidential candidate, Harris did not support cancellation of all student loans. Sen. Bernie Sanders (I-VT) proposed cancellation of all $1.7 trillion of student loans, including all private and federal student loan debt. That said, Harris, like Biden, supports up to $10,000 of student loan debt cancellation. (Student loan borrowers will get $15 billion of student loan cancellation). As vice president, Harris has said that the student loan crisis “is real” and recognizes the need to find solutions. Similarly, while Senate Majority Leader Chuck Schumer (D-NY) and Sen. Elizabeth Warren (D-MA) proposed student loan forgiveness up to $50,000, they too don’t support total cancellation of student loans. Under their plan, Schumer and Warren would limit student loan forgiveness only to federal student loans and for borrowers who earn up to $125,000 annually. (Here’s who qualifies for student loan forgiveness right now).

Student loans: Harris supports tuition-free college
One way Harris has proposed to lessen the burden of student loans is to make two-year college tuition-free. Specifically, Harris has supported:

tuition-free college at two-year and four-year public colleges and universities for borrowers who earn up to $125,000 in annual income; and
doubling the maximum Pell Grant award.

Sanders and Warren both championed tuition-free college in the U.S. Senate and on the presidential campaign trail. Like wide-scale student loan cancellation, Congress has yet to pass tuition-free college. (If you’re waiting for student loan forgiveness, do this).

Harris also would cancel student loans for these student loan borrowers
Harris, like Biden, has advocated for cancelling student loan debt for student loan borrowers at at Historically Black Colleges and Universities (HCBU’s) and Minority-Serving Institutions (MSI’s). “In relation to the history of HBCUs, [students] decide to take on a profession of service, which often does not pay as well as if they go into the private sector and do other things,” Harris said. “So for those students who come out and have jobs that pay less than $125,000, student-loan debt will also be forgiven.”
Over the coming months and year, Harris, with Biden, could play a key role to shape the future of student loans, student loan forgiveness and student loan relief. The most recent extension of student loan relief for 90 days is one example. However, student loan relief won’t last forever. It’s also possible that Congress won’t pass legislation that reforms student loans. Until then, make sure you understand your options for student loan repayment.
Here are some popular ways to pay off student loans faster:

Student loan refinancing (lower interest rate + lower payment)
Income-driven repayment plans (lower payment)
Public service loan forgiveness (student loan forgiveness)

Student Loans: Related Reading
Is student debt cancellation next?
Student loan borrowers will get $15 billion of student loan cancellation
Do this while waiting for student loan forgiveness
Biden extended student loan relief, but advocates really want student loan cancellation […]

FAMILY & MONEY

Financial Stress is REAL. Here is what to do about it…

Are you feeling stress these days? Perhaps financial stress? You’re not alone. Some 55% of women, ages 30 to 55, with minor kids and household incomes less than $60,000 a year, report “high” or overwhelming” levels of financial stress. They aren’t the only ones experiencing high or overwhelming stress. So what is causing this stress?
Causes of financial stress
In his 2020 blog post, Jim Yih, a Canadian Financial Advisor highlighted seven causes in his blog post, 7 Causes of Financial Stress:

High debt levels.
Low savings rates
Volatile Stock markets
Real estate won’t be our financial savior
Demographics means more fear
The financial marketplace is increasingly complex
No formal education on money

Let’s examine debt, savings, and education further. Many people have the best of intentions to pay the debt. Unfortunately, many of those intentions were clouded by short-term desires or calamities. After the debt was added, then a breadwinner may have lost a job or a payment was missed while juggling other life issues.

Then ‘wham o!’, the interest rate doubled or even tripled overnight. An emergency fund seems like a nice idea but where would the funds for that come from?
Start saving into your retirement plan

If you are like 50% of Americans with workplace retirement plans, you aren’t saving into it. If you are participating and your company offers a match, you’re not getting the full match. You may have either taken a loan on your 401(k) or depleted it and suffered the 10% penalty when a short-term need arose.

There is no formal education in the schools about money. There is a hope by some policymakers and voter, that your parents had good financial saving and spending habits, was an expert in comprehending disability and life insurance, and actuarial retirement calculations. Yeah right!

Who’s teaching you about money? Herein lies the root of the problem. There is little formal financial education in the school system. There is very little offered in the workplace.
So many people have to learn from friends or family but that creates its own set of problems because many of them don’t have the knowledge, ability, or resources to teach others about money.
Financial stress is all too common in our society and we need to do something about it. The starting point is a little knowledge but true success comes from action. It comes from taking control of your financial affairs and developing good financial habits.
A financial stress reliever
While financial education is great, it is time-consuming and doesn’t in itself provide a calming voice for your financial stress if it comes from reading books. If you are getting your education from the media, they may have conflicts of interest and are not held to the same standard as a financial professional registered with the SEC or FINRA.
Moreover, what financial education should you start with?
If you are like most people you need an accountability coach and maybe someone to help you figure out how to pay down the debt. A lack of a sense of control is a primary factor for those employees reporting high or overwhelming financial stress. A CERTIFIED FINANCIAL PLANNER™ professional (CFP®) can help you get control.
Look for a CFP® professional who has a breadth of knowledge in financial fundamentals like setting up a cash reserve, developing a spending plan to address your debt.
If you are one of those stressed-out moms, they can help you address college planning and choosing a guardian for your child should something happen to you. This designation is one of a few accredited designations highlighted on the FINRA website.
f you are one of those stressed-out moms, they can help you address college planning and choosing a guardian for your child should something happen to you. This designation is one of a few accredited designations highlighted on the FINRA website.
A CFP® to combat financial stress
A CFP® professional takes an oath to keep your financial interests ahead of their own. All CFP® professionals aren’t clones so you should spend some time learning about their business practices and themselves.
For example, some charge a flat fee for all of their services, some charge an hourly rate, and some a fee for planning and a fee for monies you invest with them. Look for one who is empathetic and understands behavioral finance!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. […]

FOODS

Have you eaten this type of Salmon?

You know salmon is good for you—but, some kinds are healthier than others. Here’s how five registered dietitians rate different types of salmon for your health.The health benefits of salmonWhether it tops your sushi roll or your bagel, salmon is one of the healthiest animal proteins you can put on your plate. This fish, loaded with healthy oils, delivers a range of essential nutrients like vitamin D, vitamin B12, and selenium.Also, gram for gram, salmon packs more omega-3 than many of its underwater peers. Why is that a big deal? “Omega-3 fatty acids are essential fatty acids, meaning our body cannot make them, and we rely on [getting them through] our diet,” explains Rebecca Kerkenbush, MS, RD-AP, CSG, CD, FAND, who serves as president of the Wisconsin Academy of Nutrition and Dietetics.The benefits of these so-called “healthy fats” are substantial. Research published in The Journal of Clinical Investigation in 2021 suggests that omega-3s help lower the risk of heart disease.The study found that omega-3 fatty acids appear to trigger molecules that slow or stop inflammation. This may help prevent plaque build-up in our artery walls—a condition known as atherosclerosis.Still, omega-3s play critical roles throughout your body. As for the rest of the nutrients that salmon adds to your meal? Kerkenbush says a serving of salmon includes:protein that’s essential for growth, hormone balance, wound healing, and immune function.vitamin D that supports the immune, brain, and nervous system health while aiding in the body’s calcium absorption for great bones and teeth.B-vitamins that help convert food into energy, promote cell production and growth, and maintain healthy skin and hair.tryptophan, an essential amino acid that helps produce melatonin and serotonin—both which help regulate mood and sleep.How much salmon should I eat?“The [United States Department of Agriculture (USDA)] 2020 Dietary Guidelines recommends that Americans eat at least two to three servings of seafood—including salmon—each week to meet nutrient needs,” says registered dietitian Rima Kleiner, a spokesperson from Dish on Fish, a National Fisheries Institute program. A serving size is typically between three to four ounces, or the size of a checkbook.However, a USDA surveys show that only 10 percent of us are hitting this salmon recommendation. In fact, most people aren’t getting enough omega-3 fatty acids in general.While there’s no official daily intake recommendation set, experts advise that adults consume 250 to 500 milligrams daily—and up to 1,000 milligrams if you have a heart condition.(Feeling hungry? Here are some delicious fish recipes!)Which types of salmon are the healthiest?sergeyryzhov/Getty ImagesAs you’re practicing better omega-3 habits this year, there are some pointers to keep in mind when you’re shopping. “It’s important to differentiate how the salmon is raised to understand the differences nutritionally,” says registered dietitian Natalie Allen, a clinical assistant professor of biomedical sciences at Missouri State University.That’s because diet and habitat influence a fish’s nutritional profile—particularly farm-raised versus caught in the wild. Here’s how this registered dietitian says different types of salmon measure up so you can maximize the health benefits you put in your grocery cart.Wild salmon“Overall, wild salmon is superior nutritionally, but it’s also typically more expensive,” Allen explains. She says that wild varieties tend to have more minerals while farm-raised is higher in vitamin C, calories, and saturated fat—the type of fat we should be limiting in our diets.But the nutrients in fish depend on the waters through which they swim and the food sources they have access to. That’s why, on average, there are slight variations between wild-caught species.Wild Chinook salmonWild-caught chinook salmon, sometimes called “king salmon,” has the highest omega-3 fat content of commercially available species, says Mary Mosquera-Cochran, a registered dietitian at The Ohio State University Wexner Medical Center.This fattiness lends the fish heart-healthy benefits and a moist, buttery taste. But you can also expect a higher price tag compared to other wild species.A 100-gram portion of wild chinook salmon contains:179 calories3.1 grams of saturated fat2255 mg of omega-319.9 grams of proteinIt also packs more than half of our daily value of selenium, a trace mineral that plays an important role in maintaining reproductive health and thyroid function.Wild Sockeye salmon“Out of all the varieties, sockeye salmon is the highest in [vitamin] B12 due to its diet of plankton,” Mosquera-Cochran says.A vitamin B12 deficiency can wreak havoc throughout your body, affecting your heart, nervous system, oral health, and even balance.The deep-red sockeye salmon’s benefits can offer powerful combat against a vitamin B12 deficiency. A serving contains a whopping 130 percent of our daily vitamin B12 requirement, according to the USDA, as well as:153 calories1 gram of saturated fat1060 mg of omega-321.9 grams of proteinResearch published in Marine Drugs also found that sockeye salmon contains high levels of astaxanthin. This antioxidant gives the sockeye salmon its rich red flesh and is thought to protect our body’s nervous system.Wild Coho salmonAlso known as silver salmon, coho salmon are a medium-fatty variety with a milder texture and flavor. Like sockeye and chinook, a serving of wild coho has high levels of vitamin B12 and selenium, as well as:146 calories1.3 grams of saturated fat1317 mg of omega-321.6 grams of proteinWild Pink salmonPink salmon (also called “humpback salmon”) is the most abundant salmon species in the Pacific Ocean, according to the National Oceanic and Atmospheric Association (NOAA.) It’s also the most commercially available option.Pink salmon has a lower oil content that makes for a milder, lighter flavor—and it comes in pouches or cans, says Allen.While slightly lower in healthy fats than its counterparts, pink salmon offers high levels of selenium, vitamin B12, and vitamin B3. Also called niacin, vitamin B3 helps our body produce enough serotonin, a hormone that regulates how our brain cells communicate.A portion of pink salmon also contains:127 calories0.8 grams of saturated fat615 mg of omega-320.5 grams of proteinWild chum salmonWild chum salmon is the second most common variety available and, according to the Alaska Department of Fish and Game, it’s most often sold in cans or as smoked salmon products.It has lower fat content like pink salmon than other wild-caught species, which lends chum salmon its light, flaky texture. But a serving still far exceeds the amount of omega-3s experts recommend we get each day.A serving of wild chum salmon contains:120 calories0.84 grams of saturated fat706 mg of omega-320.1 grams of proteinFarmed salmon“Wild salmon swim between freshwater and the ocean consuming a natural diet of zooplankton and smaller fish,” says Alissa Rumsey, a Brooklyn-based dietitian and the author of Unapologetic Eating.But farmed salmon are typically raised in pens and fed fishmeal, fish oil, and other proteins that aren’t a part of their traditional diet in the wild. That’s why in general, wild-caught seafood species are more nutritious than their farmed counterparts.Still, most people aren’t getting enough servings of seafood to begin with, says registered dietitian nutritionist Lauren Moller-Seat at the University of Maryland St. Joseph Medical Center. “So, if you’re able, eating any type of salmon is better than nothing.”Atlantic salmonAtlantic salmon make up about 90 percent of the farmed salmon market, according to the Food and Agriculture Organization (FAO.) This is because it’s a protected species—so commercial fishing for Atlantic salmon is prohibited.While farmed Atlantic salmon tends to skew higher in calories and saturated fats than wild varieties, it also has very high omega-3 levels. According to the USDA, a 100-gram portion contains:208 calories3.05 grams of saturated fat2503 grams of omega-320.4 grams of proteinDoes eating salmon have any risks?mixetto/Getty ImagesWhether swimming in the wild or a farm environment, studies show that all types of salmon ingest some level of contaminants that can get passed onto our plate.However, an analysis published in the Journal of Nutrition suggests that the risk of contaminant exposure when eating salmon is offset by the benefits of getting enough omega-3s in our diet.That said, farmed salmon can contain certain pollutants, particularly polychlorinated biphenyls (PCBs.) These contaminants are associated with cancer and other health problems, Rumsey says.“With that in mind, wild fish may have more access to eating smaller fish that have ingested plastic pieces—and their chemicals—that are floating in the ocean,” adds Dana Hunnes, PhD, a senior dietitian at UCLA Medical Center.And more recent research indicates the levels of PCBs in farmed fish are in decline. A 2003 study conducted by the Environmental Working Group found PCB content five to 10 times greater in farmed fish than wild fish.Yet a 2020 study published in the journal Foods found that farmed Atlantic salmon actually had lower contaminant levels than its wild counterpart—suggesting an improvement in aquaculture practices and regulations over the last two decades.Salmon comes with a low mercury risk as well. “While larger fish like tuna or swordfish can be high in mercury, salmon, fortunately, doesn’t have that mercury build-up, so it continues to be a great seafood option,” Moller-Seat says.In fact, a joint report from the World Health Organization (WHO) and the FAO says that today, the most significant risk of eating seafood like salmon is not eating enough.How do I shop for different types of salmon?Rumsey recommends looking for salmon that originates out of Alaska, as the state adheres to strict sustainability standards.Beyond that, here’s what else to look for: “The most environmentally friendly salmon would be those that are wild and caught with a line-and-pole method,” Hunnes adds. Overfishing via industrial fishing methods contributes to population declines—and can threaten endangered or vulnerable species that get caught as bycatch.Seafoodwatch.org is a great resource to help you navigate which types of fish are most sustainable and safe.But from there, does it matter how you eat your salmon?Canned salmonThe exact nutritional content of a can of salmon will depend on its other ingredients—like if the fish is in water or oil and if there’s added salt. “But in general, canned salmon is just as nutritious as any other wild salmon,” Rumsey says. “And sometimes even more so.”For example, she says that canned salmon can contain higher calcium levels because the canning process softens the fish’s bones, so they’re edible.Smoked salmonAlexander Spatari/Getty ImagesOther forms of preserved salmon—like dried, cured, or smoked—can have higher concentrations of nutrients like vitamins and minerals than the fresh fish. At the same time, the macronutrients like fats stay the same, says Emily Clairmont, a registered dietitian with the University of Vermont’s Professional and Continuing Education.But there’s a catch. A serving of smoked salmon can contain almost a third of our daily recommended amount of sodium, according to the USDA.Raw or cooked?“Sushi-grade salmon has no regulation in the US,” Clairmont says. So if you’re looking to buy salmon to eat raw as sushi or sashimi, you want to make sure you work with a reputable fishmonger to ensure you’re getting a fresh, high quality, and safe product that’s free of dangerous parasites.Still, aside from personal preference, there’s not much benefit to eating salmon raw instead of cooked. “Cooking does not greatly alter the nutrition of salmon,” Allen says.The exception? Make sure to avoid frying or deep-frying your salmon, as this will increase its fat content and might burn off some nutrients. In fact, a study published in The Journal of Steroid Biochemistry and Molecular Biology found that fried salmon lost around 50 percent of its vitamin D content—whereas baked salmon lost none.Fresh or frozen salmon?While there aren’t studies comparing fresh and frozen salmon specifically, Clairmont says both are great options. “Based on the research of other frozen animal-based proteins, it’s assumed that there would be little to no difference nutritionally between fresh or frozen salmon filet.”Quality doesn’t suffer, either. Researchers at Oregon State University found that in blind taste tests, frozen salmon (and other fish) actually outperformed fresh options.Next, read what fish-eaters need to know about mercury in fish. And, if you’re looking to upgrade your wellness game this year, read 10 Easy Self-Care Swaps to Make in 2022. […]

FINANCE & TECH

Should I Pay Off My Mortgage?

If you have a question like this one, send it in. I’ll tackle case studies that have educational value.

“I am anxious to pay off my mortgage since, with the current standard deduction, there is no advantage in claiming mortgage interest.
“My wife and I are retired. I am 72, with a pension along with Social Security, and have $850,000 in my IRA. I have a mortgage balance of $134,000. To get that after tax I would have to take a distribution of $185,000, which obviously will reduce my portfolio dramatically.
“Is this a good move? My return on investment with Fidelity has been 10-15 percent annually with a 60/40 mix of stock and bond funds.”
Michael, Missouri
Readers send in queries like this. I’m going to be answering the ones that illustrate tricky tax and investment decisions.
My answer to the Missourian:

Good move? Probably. Retirees should pay off their mortgages. You’re lucky to be in a position to do that.
For many people, no doubt you included, taking out a mortgage in order to get into a house turned out to be a good decision. But we have to deconstruct home ownership. A mortgaged house is two things, an asset and a liability. Having a house is a good investment. Having a mortgage is a bad investment. The goal of a retiree should be to have a house without a mortgage.
The 40% of your IRA in bond funds means you are a lender. If the funds track the U.S. bond market then a good portion of your savings is being lent out, at low rates, to the U.S. Treasury. This part of your portfolio is earning 2% at best. Your mortgage is probably costing you 3% or more.
Borrowing at 3% in order to lend at 2% is a bad idea.
Two things cause people like you to hesitate before cashing in an IRA in order to pay down a debt: the taxes they’d owe and the IRA returns they’d miss.
Yes, the IRA withdrawal means writing out a check to tax collectors. You’re probably in a 27.4% bracket (state and federal combined), so you’re going to owe $51,000 on a $185,000 withdrawal.

But taxes on this money are inevitable. If you are past 59-1/2 (the cut-off to avoid penalties) and not expecting to see your tax bracket go down, postponing the inevitable does not leave you better off. If the IRA grows, so do the tax bills.
The arithmetic becomes clearer if you rethink what an IRA is. Where you see an $850,000 asset, I see something different. I see you as the custodian for an account that has two beneficiaries. You’re sitting on $617,000 that belongs to you and also on $233,000 that already belongs to tax collectors.
Look at what growth does to this account. If, for example, you’re able to double the portfolio at Fidelity, the account will then have in it $1.7 million. Of this, $1,234,000 will belong to you and $466,000 will belong to the tax guys. You’ve doubled your money and you’ve doubled the government’s money.
In effect, what you have is not an $850,000 asset but a $617,000 asset that’s all yours and that grows tax-free.
What, then, are you sacrificing when you take a big distribution? Assuming you take it out of the bond portion of your portfolio, you’re losing a return that comes to 2% pretax and, thanks to the wonders of IRAs, the same 2% after taxes.
And what are you gaining by ripping up the mortgage? You’re getting a guaranteed return of 3% before taxes. Thanks to the wonders of the standard deduction, you’re not deducting interest and that 3% mortgage is costing you the same 3% after taxes. So getting rid of a mortgage earns you 3%.

There it is. Paying off the mortgage costs you an aftertax 2% and earns you an aftertax 3%. It’s a winning move. It would still be a winner, albeit a more modest one, if tax rules change and you go back to deducting interest.
Now let’s tackle the other reason people stick with 3% mortgages, which is that they are investing money to earn 10% or 15%. This is a faulty comparison. High returns come from risky assets like stocks. The mortgage is a sure-thing liability (you can’t duck the debt), so it must be compared to a sure-thing asset (a loan to the U.S. Treasury).
The apples-to-apples comparison comes into sharper focus when I hypothesize that your entire $185,000 withdrawal comes out of low-risk bonds. At this first stage of your financial makeover, then, the stock funds aren’t touched.
Now you take a look at what’s left and see a Fidelity account that has a high percentage in stocks. Is that allocation too high? Maybe, maybe not. But that’s a separate discussion.
Selling bonds to pay off a mortgage leaves you better off no matter what happens to the stock market. Meanwhile, whether you have too much money in the stock market is an independent decision that shouldn’t influence your thinking about the mortgage.
Unlike comparing 2% to 3%, determining the correct level of risk for a 72-year-old is not a question that has a clear answer. Taking money out of stocks would lower your expected return but might be wise anyway. What are your living costs and how well are they covered by pensions and Social Security? Would your retirement survive a stock market crash with the portfolio you have now? Have a talk with your wealth advisor about this.

Whatever you do, don’t compare 10% stock market returns to 3% mortgages.
I said, above, that the mortgage paydown is probably a good move. Now here are some things to be cautious about.
First, your tax bracket. You may need to carve up the $185,000 distribution into thirds, spreading it over 2022-2024, in order to avoid being kicked from a 22% federal rate into 24%.
Next, your near-term plans. Any chance you’ll be moving to Texas or Florida? If so, hold off on excess distributions until you’re out of reach of the 5.4% Missouri tax.
Last, your end game. Is there a good chance that a diminished IRA will run dry while you’re still healthy enough to live independently? Would you at that point be averse to moving out—to a rental or to a smaller house—in order to extract some cash? And would you, in order to stay put, probably use a reverse mortgage to cover monthly expenses? If this outcome is likely, and if your existing mortgage has a lot of years to run, you should perhaps hang onto it. Its terms are much better than anything you’d get on a reverse mortgage down the road.
Do you have a financial situation like this? Send a description to williambaldwinfinance—at—gmail—dot—com. Put “Query” in the subject field. Include a first name and a state of residence. Include enough detail to generate a useful analysis.
Letters will be edited for clarity and brevity; only some will be selected; the answers are intended to be educational and not a substitute for professional advice. […]

MONEY

$1 Trillion Crypto Crash: Goldman Sachs’ Reveals Huge Bitcoin Price Prediction After Ethereum Bet

Bitcoin and cryptocurrencies have had a dreadful start to 2022, continuing the downward trend from the end of last year as price pressures mount.Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover hot new NFT and crypto blockbusters poised for 1,000% gains’

The bitcoin price has lost around 40% since peaking in November, down from almost $70,000 per bitcoin to lows this week of $41,000. Meanwhile, ethereum and other major coins have also crashed back, wiping around $1 trillion in value from the crypto market since its November high.
Now, Wall Street giant Goldman Sachs

GS
, has predicted bitcoin will increasingly compete with gold as a “store of value”—and could hit $100,000 within five years.

Sign up now for the free CryptoCodex—A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekday

“Bitcoin may have applications beyond simply a ‘store of value’—and digital asset markets are much bigger than bitcoin—but we think that comparing its market capitalization to gold can help put parameters on plausible outcomes for bitcoin returns,” Zach Pandl, co-head of foreign exchange strategy at Goldman Sachs, wrote in a research note. Bitcoin currently has a market capitalization of around $800 billion compared to gold’s $11.4 trillion.

“Hypothetically, if bitcoin’s share of the store of value market were to rise to 50% over the next five years (with no growth in overall demand for stores of value) its price would increase to just over $100,000, for a compound annualized return of 17% to 18%.”
Bitcoin’s reputation as a digital store of value similar to gold has been propelled by the soaring inflation that’s hit economies around the world over the last year. In May 2020, renowned investor Paul Tudor Jones put bitcoin firmly on Wall Streets’s map when he named it as a “the fastest horse to beat inflation.”
“Bitcoin has superior monetary qualities to gold, and once it reaches a critical mass of adoption as a store of value, bitcoin has huge potential to grow into a global reserve currency and universal unit of account,” Hong Fang, the chief executive of crypto exchange Okcoin, said in emailed comments, pointing to bitcoin’s scarcity via its fixed supply of 21 million coins, its digital durability and accessibility, as well as its resistance to censorship.
“Bitcoin is not just an asset class—the bitcoin network is proving to be a viable global payment network, with bitcoin being programmable money,” added Fang. “In 2022, we’ll continue to see bitcoin prove itself as not just a store of value, but also a medium of exchange and unit of account.”
The bitcoin price has rocketed a little over 400% since January 2020, riding an asset price boom that’s pushed stock markets to all-time highs—and helped the price of ethereum to outpace bitcoin.
Last year, a leaked Goldman Sachs report predicted ethereum, the second-largest cryptocurrency after bitcoin, has a “high chance” of overtaking bitcoin as a “dominant” store of value—calling it the “Amazon 

AMZN
 of information.” Investors have piled into ethereum over the last couple of years as a surge of interest in decentralized finance (DeFi) and the on-going non-fungible token (NFT) craze drives up the ether price.
CryptoCodex—A free, daily newsletter for the crypto-curious

The bitcoin price had a rocky 2021 as extreme volatility saw it swing wildly. Ethereum, the … [+] second-largest cryptocurrency, also bounced sharply, climbing to almost $5,000 before crashing back.

Coinbase

Bitcoin’s success over the last few years has pushed both companies and countries to begin experimenting with it like never before. Business intelligence software company MicroStrategy

MSTR
has led the way in converting its cash reserves to bitcoin—inspiring Elon Musk, the chief executive of Tesla

TSLA
, to add $1.5 billion worth of bitcoin to the electric car maker’s balance sheet in January 2021.
MicroStrategy chief executive Michael Saylor has predicted the bitcoin price could eventually hit $6 million.
Meanwhile, the Central American country of El Salvador has adopted bitcoin as its national currency alongside the U.S. dollar as part of a plan to integrate bitcoin into its economy and society. […]

FAMILY & MONEY

Kevin Durant reveals what he told Kyrie Irving about return to Nets

The Brooklyn Nets have Kyrie Irving back as a part-time player. Kevin Durant wants him to be more than that, but Durant isn’t going to take that matter into his own hands. Durant said after Friday’s loss to the Milwaukee Bucks that he has told Irving how happy he is to have the guard back, and that he would like him available for all games. Durant added, however, that he would not put any added pressure on Irving to get vaccinated in order to play home games in Brooklyn. […]

FAMILY & MONEY

Celtics coach Ime Udoka: Our players lack mental toughness

The Celtics have been consistently frustrating all season long, and coach Ime Udoka is definitely feeling that way after Boston’s latest loss.
The Celtics lost to the New York Knicks 108-105 on Thursday, blowing a 25-point lead and losing on a buzzer-beating three by RJ Barrett. The collapse was the latest in a string of them for Boston, which has blown four leads of at least 19 points in only 39 games. That had Udoka questioning the Celtics’ mental toughness and suggesting the team is not good at slowing things down during moments of high pressure.
“I think it’s a lack of mental toughness to fight through those adverse times,” Udoka said, via Tim Bontemps of ESPN. “To your point, it’s across the board. It’s a turnover here, a bad shot here, a missed defensive assignment here, and several missed rebounds tonight.

“So it’s a lot of different things. And then, like I said, a calming presence to slow it down and get us what we want is really what you need at that point. And sometimes we all get caught up in it.”
This is not a good look for the Celtics, who have been the subject of persistent culture concerns. Those issues date back to last season, when a team leader seemingly questioned the nightly effort from his teammates. The concerns have lingered this season, particularly after the Celtics’ two stars received some public criticism from Marcus Smart early in the campaign.
The Celtics are just 18-21 so far this season. They have time to salvage the season, but some things are clearly going to need to change. […]