Reggie Middleton is the founder and editor of the Boom Bust Blog. According to Middleton's blog, he "is an entrepreneurial investor who guides a small team of independent analysts to uncover truths, seldom if, ever published in the mainstream media or Wall Street analyst reports."

Middelton was a guest on Benzinga's #PreMarket Prep on June 3 to talk about Bitcoin, and why he is bullish on Google (NASDAQ: AAPL).

Middelton pays particularly close attention to the Bitcoin protocol. He notes that most people are not aware that the Bitcoin currency can be programmed, just like any other application.

“What I have decided to do was create a company that specializes in programming the currency to make ‘smart contracts,'” Middelton said to begin the conversation on the digital currency.

Related Link: Doug Kass Explains Why His Bearish Case Remains Justified

A smart wallet allows individuals to design and create a smart contract for a wide variety of applications. This includes trading stocks, options, bonds, commodities and other financial instruments, in addition to advanced merchant transactions such as international trade, shipping and commerce.

Middelton is a believer in the long-term success of Bitcoin.

“Bitcoin is backed by math. The fiat currency, such as the U.S. dollar, is backed by the full faith of the government. And you have to believe in that government in order for that backing to be true.”

The belief in governments historically comes and goes, Middleton explained, especially looking back to the demise of global empires over the centuries.

A digital currency like Bitcoin can be programmed to satisfy very detailed contracts between individuals and a business. A continued wide-spread acceptance of digital currencies has the potential to radically change a business transaction.

“That takes the middle-man out of the equation,” said Middleton. “The biggest middle-men today are the banks. The banks stand in between people and their money.”

Middleton argued that by taking the banks out of a transaction, such as purchasing a car, users of money and businesses benefit from an extreme boost in efficiency.

He added his belief that the majority of people don't grasp the potential benefits of a digital currency. The Bitcoin protocol and the back-end usage of the digital currency is more important than the actual price of the currency, Middleton said.

Away From Bitcoin - Onto The Stock Market

Middleton said that investors should always be careful, regardless if major indices are at all time-highs or not.

“You should always be careful,” Middleton urged. “Whenever there is a time you aren't being careful is a time you are taking undue risk.”

Middleton is very bullish on the tech sector because of continued advancements in mobile computing technology, backed by networking and communication advancements.

Middleton specifically highlighted that he is bullish on Google and other companies that are engaged in Google's expansion into other sub-industries such as graphics, self-driving cars and personal wearable technology.

On the other hand, Middleton doesn't share a similar bullish sentiment on Apple. In fact, Middleton claims on his blog that he is the only investor/analyst to publicly and timely call to short Apple at its all-time high and go long Google.

“Google has an extremely rich and clear pipeline,” Middleton argued. “But Apple has lost its way. Apple is making very expensive purchases such as the purchase of Beats.”

Dr. Dre and other investors involved in Beats will stand to benefit from Apple's multi-billion dollar acquisition, Middleton explained. However, Beats doesn't contribute anything substantial to Apple's pipeline when compared to Google.

“I am at a loss as to what they are doing,” Middleton said referring to Apple.

Related Articles
  1. Insurance

    Top 6 Car Insurance Companies in New York

    Read about the top private auto insurers licensed to operate in New York, and learn about recent trends in market share among these companies.
  2. Markets

    The 5 Biggest Chinese Natural Gas Companies

    Read about the top five Chinese natural gas companies as measured by gas production volume and learn a little more about their business operations.
  3. Markets

    The 5 Biggest Chinese Insurance Companies

    Read about the top Chinese insurance companies by market capitalization, and learn a little about their positions in the marketplace.
  4. Insurance

    Top 8 Car Insurance Companies in New Jersey

    Read about the top personal auto insurers operating in New Jersey, and learn about recent trends in market share among these companies.
  5. Stock Analysis

    How Much Coca-Cola Spends on Advertising

    Learn about Coca-Cola's ad spending and why the company has decided to spend the amount of money it does. Understand comparable companies and industries.
  6. Investing

    Welcome Back, Volatility

    Volatility is likely to resurface as the Federal Reserve gets closer to adjusting its monetary policy stance, even if that adjustment is a measured affair.
  7. Economics

    What Is The Labor Market Conundrum?

    We are facing a conundrum with investment implications: Why are wages still stagnant, when jobs are being created at the fastest pace since the late 90's?
  8. Investing

    Why Are Consumers In Hesitation?

    Diverging monetary policy globally and a stronger dollar continued to be key drivers of the recent underperformance and last week’s tumble in U.S. stocks.
  9. Economics

    Bulk Shipping Companies Struggle As Markets Soften

    The "soft" dry bulk shipping market that confronts shipping companies is a result of lower demand from China, and an excessive amount of bulk ships.
  10. Stock Analysis

    Sierra Wireless Benefits From These Megatrends

    We take a closer look at how Sierra Wireless' transition from 2G to 3G and 4G technologies, has impacted its business today, and the future expectations.
RELATED TERMS
  1. Fractal Markets Hypothesis (FMH)

    An alternative investment theory to Efficient Market Hypothesis ...
  2. Core Durable Goods Orders

    New orders for U.S. core durable goods, which are the total durable ...
  3. Investopedia

    One of the best-known sources of financial information on the ...
  4. Market Depth

    The market's ability to sustain relatively large market orders ...
  5. Closing Tick

    The difference between the number of stocks that closed higher ...
  6. Institutional Brokers' Estimate ...

    A system that gathers and compiles the different estimates made ...
RELATED FAQS
  1. What is the long-term outlook of the metals and mining sector?

    An industry agency council was established by the World Economic Forum in 2014 to serve as an advisory board on the future ... Read Full Answer >>
  2. What is the railroads sector?

    The railroads sector is comprised of publicly traded stocks for companies that operate railroad tracks and/or trains. Railroad ... Read Full Answer >>
  3. Who are Amgen Inc.'s (AMGN) main competitors?

    Biotech giant Amgen Inc (AMGN) bills itself as one of the first biotechnology firms. It was founded in 1980 and has grown ... Read Full Answer >>
  4. What's the most expensive stock of all time?

    Back in late August 2012, Apple’s (AAPL) stock price reached nearly $700 per share. The stock has since split but has yet ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!