submitted by /u/Joe-M-4
[link] [comments]    EXPERIMENT – Tracking 2020 Top Ten Cryptocurrencies – Month Fifty-Six – Up +617% The full blog post with all the tables is here. Welcome to the monthly recap for the 3rd of 7 homemade Top Ten Crypto Index Funds. The 2020 Portfolio is made up of: Bitcoin, Ethereum, XRP, Tether, Bitcoin Cash, Litecoin, EOS, Binance Coin, BitcoinSV, and Tezos. tl;dr: What’s this all about? I purchased $100 of each of Top 10 Cryptos in Jan. 2018, haven’t sold or traded, reporting monthly. Did the same in 2019, 2020, 2021, 2022, 2023, and again in 2024. Learn more about the Experiment history, rules, and FAQs (including the answer to the “WHY TETHER?!?!” question) here. All red month, XRP falls the least. BNB in overall lead by far, followed distantly by ETH. EOS in last place Total Crypto Market Cap up almost +1000% since Jan 2020. 2020 Top Ten is best performing of the seven Experiments (+617%) 2018+2019+2020+2021+2022+2023+2024 Combined Top Ten Portfolios are returning +167% vs. 64% if invested same amount and frequency with S&P500 Month Fifty-Six – UP 617% https://preview.redd.it/l7zc9a8h0kpd1.png?width=1095&format=png&auto=webp&s=c5a9f72d8417a1215411ec08d984254efaedab9a The 2020 Top Ten Crypto Index Fund consists of: BTC, ETH, XRP, USDT, BCH, Litecoin, EOS, BNB, BSV, and Tezos. August highlights for the 2020 Top Ten Portfolio: All red month, XRP falls the least BNB in overall lead by far, followed distantly by ETH EOS in last place August Ranking and Dropout Report https://preview.redd.it/sd5rvv6j0kpd1.png?width=370&format=png&auto=webp&s=b11f5c42544a49afed3cb7a9d5de8338cf2cab81 Top Ten dropouts since January 2020: after fifty-six months, half of the cryptos that started in the Top Ten have dropped out: EOS, BSV, Tezos, Litecoin, and Bitcoin Cash are gone. At #86, Tezos has sunk the lowest since January 2020. August Winners and Losers August Winners – None. XRP and Litecoin fell the least, down -6% and -7% respectively. August Losers – ETH and BCH both fell -23% this month, each losing about a quarter of its value. Overall Update – BNB remains solidly in first place, followed by second place ETH. 70% of cryptos at break even or positive territory. 2020 Top Ten is the best performing Top Ten Portfolio. At +617%, the 2020 Top Ten Portfolio continues to be the best performing of the seven Top Ten Crypto Index Fund Experiments. 70% of the 2020 cryptos are in positive or break-even territory. EOS, Tezos, and BSV are the lone exceptions. Binance Coin continues to hold a significant lead, with ETH in a strong second place. Bitcoin is a distant third place. The initial $100 investment fifty-six months ago into first place Binance Coin? Currently worth $3,672, an increase of +3,572%. In second place is Ethereum, up +1,793%. EOS is by far the worst performer in the 2020 group, down -82% since January 2020. Total Market Cap for the Entire Cryptocurrency Sector: https://preview.redd.it/debqlzql0kpd1.png?width=1226&format=png&auto=webp&s=eeaf370e9cba584a53ba46187bb6430253b9465f As a sector, crypto is up +959% over the fifty-six month lifespan of the 2020 Top Ten Experiment. There was no easy way to do it at the time, but if you were able to capture the entire crypto market since January 2020 (+959%), you’d be doing quite a bit better than the Experiment’s Top Ten approach (+617%) and ridiculously better than the S&P (+75%) over the same time period. Much more on the S&P below. Crypto Market Cap Low Point in the 2020 Top Ten Crypto Index Experiment: $185B in March 2020 (aka Zombie Apocalypse). Crypto Market Cap High Point in the 2020 Top Ten Crypto Index Experiment: $2.6T in October 2021. Bitcoin Dominance: https://preview.redd.it/o0o6b84n0kpd1.png?width=1088&format=png&auto=webp&s=01b5f6b3fc24a5fbe107ff0d244c3ed7df3c42b3 BitDom ended August at 56.3% and has seen a steady rise over the last few months. Here are the high and low points of BTC domination since the beginning of the 2020 Experiment: Low Point in the 2020 Top Ten Crypto Index Experiment: 38.1% in November 2022. High Point in the 2020 Top Ten Crypto Index Experiment: 70.4% in December 2020. Overall return on $1,000 investment since January 1st, 2020: https://preview.redd.it/j9odjl3o0kpd1.png?width=333&format=png&auto=webp&s=354eba8350160590cf48a6883f2ae58655ae4be9 The 2020 Top Ten Portfolio is now worth $7,172 (+617%) from the initial $1k investment. The 2020 Portfolio remains the best performing of the seven Experiments. Below is a month by month ROI of the 2020 Top Ten Experiment, to give you a sense of perspective and provide an overview as we go along: https://preview.redd.it/o36jwlsp0kpd1.png?width=1200&format=png&auto=webp&s=287a6e5790576f9572d886f5ec37c305c98f2874 Combining the 2018, 2019, 2020, 2021, 2022, 2023, and 2024 Top Ten Crypto Portfolios So what about combining seven years of the Top Ten Crypto Index Fund Experiments? 2018 Top Ten Experiment: down -7% (total value $927) 2019 Top Ten Experiment: up +400% (total value $5,001) 2020 Top Ten Experiment: up +617% (total value $7,172) (best performing portfolio) 2021 Top Ten Experiment: up +165% (total value $2,650) 2022 Top Ten Experiment: down -51% (total value $488) (worst performing portfolio) 2023 Top Ten Experiment: up +54% (total value $1,539) 2024 Top Ten Experiment: up -5% (total value $946) Taking the seven portfolios together: After a $7,000 total investment in the 2018, 2019, 2020, 2021, 2022, 2023, and 2024 Top Ten Cryptocurrencies, the combined portfolios are worth $18,722 That’s up +167% on the combined portfolio, the lowest level since January 2024. The peak for the combined Top Ten Index Fund Experiment Portfolios was November 2021’s all time high of +533%. Lost in the numbers? Here’s a graph to help visualize the progress of the combined portfolios: https://preview.redd.it/n43iw1xr0kpd1.png?width=1188&format=png&auto=webp&s=8056b9e75e0683d43eb55bd4e1a79e60a58d1afd In summary: That’s a +167% gain by investing $1k on whichever cryptos happened to be in the Top Ten on January 1st (including stablecoins) for seven straight years. Comparison to S&P 500 I’m also tracking the S&P 500 as part of my experiment to have a comparison point with traditional markets. https://preview.redd.it/lczzs0mt0kpd1.png?width=1088&format=png&auto=webp&s=12e9914e10f9520698ca81a54e833ef2e435a265 Since the S&P 500 has returned +75% since January 1st, 2020, that same $1k I put into crypto in January 2020 would be worth $1,750 had it been redirected to the S&P 500 instead. Crypto over the same time period? The 2020 Top Ten Crypto Portfolio is returning +617%, worth $7,172. That’s a difference of $5,422 on a $1k investment. But that’s just 2020. What about other entry points? What if I invested in the S&P 500 the same way I did during the first seven years of the Top Ten Crypto Index Fund Experiments since January 1st, 2018, what I like to call the world’s slowest dollar cost averaging method? Here are the figures: $1000 investment in S&P 500 on January 1st, 2018 = $2,110 today $1000 investment in S&P 500 on January 1st, 2019 = $2,250 today $1000 investment in S&P 500 on January 1st, 2020 = $1,750 today $1000 investment in S&P 500 on January 1st, 2021 = $1,500 today $1000 investment in S&P 500 on January 1st, 2022 = $1,190 today $1000 investment in S&P 500 on January 1st, 2023 = $1,470 today $1000 investment in S&P 500 on January 1st, 2024 = $1,180 today Taken together, the results for a similar approach with the S&P: After seven $1,000 investments into an S&P 500 index fund in January 2018, 2019, 2020, 2021, 2022, 2023, and 2024 my portfolio would be worth $11,460. That is up +64% since January 2018 compared to a +167% gain of the combined Top Ten Crypto Experiment Portfolios. To help provide perspective, here’s a look at the combined seven year ROI for crypto vs. the S&P up to this point. https://preview.redd.it/twqk228v0kpd1.png?width=1370&format=png&auto=webp&s=d9e2e24212814b9db0689ffaa8e3d532a7e2642a Conclusion: For those who have supported the Experiments over the years, thank you. For those just getting into crypto, I hope these monthly reports can somehow help with perspective as you embark on your crypto adventures. Buckle up, think long term, don’t invest what you can’t afford to lose, and most importantly, try to enjoy the ride. A reporting note: I’ll focus on 2024 Top Ten Portfolio reports + one other portfolio on a rotating basis this year, so expect two reports per month. August’s extended report covers the one you’re reading here, the 2020 Top Ten Portfolio. You can check out the latest 2018 Top Ten, 2019 Top Ten, 2021 Top Ten, 2022 Top Ten, and 2023 Top Ten reports as well. submitted by /u/Joe-M-4 [link] [comments] 

Amazon.com: Its Role in the U.S. Industry

Introduction

Amazon.com, often simply referred to as Amazon, has transformed from an online bookstore into a colossal global conglomerate that has fundamentally altered the landscape of retail, technology, and numerous other industries. Founded in 1994 by Jeff Bezos, Amazon’s rapid growth and diversification have made it a central player in the U.S. economy. Its impact is felt across various sectors, including e-commerce, logistics, cloud computing, entertainment, and even artificial intelligence. This article explores Amazon’s role in the U.S. industry, examining its influence, achievements, and the challenges it faces.

The Rise of Amazon.com

Origins and Early Growth

Amazon began as an online bookstore in Bezos’s garage in Bellevue, Washington. The vision was simple but revolutionary: to create an online platform where people could buy books. Bezos recognized the potential of the internet to disrupt traditional retail and chose books as his starting point due to their wide appeal and ease of distribution. By offering a vast selection and competitive prices, Amazon quickly gained a foothold in the market.

The company’s initial public offering (IPO) in 1997 marked the beginning of its journey toward becoming a dominant player in the U.S. and global markets. Amazon’s early success was driven by its focus on customer satisfaction, an extensive inventory, and a commitment to fast and reliable delivery. This focus laid the foundation for its expansion into other product categories and services.

Diversification and Expansion

Amazon’s diversification strategy began with the introduction of new product categories, such as electronics, toys, and apparel. This move positioned Amazon as a one-stop shop for consumers, significantly expanding its customer base. The company also introduced its marketplace platform, allowing third-party sellers to offer their products alongside Amazon’s own inventory. This not only increased the variety of products available but also created a new revenue stream for the company through commissions on sales.

One of the most significant milestones in Amazon’s diversification was the launch of Amazon Web Services (AWS) in 2006. AWS provided cloud computing services to businesses, enabling them to rent computing power and storage rather than investing in expensive infrastructure. This service quickly became a cornerstone of Amazon’s business, contributing significantly to its profitability and establishing Amazon as a leader in the tech industry.

Amazon’s Role in E-Commerce

Transforming Retail

Amazon’s impact on the retail industry cannot be overstated. It has revolutionized the way consumers shop, shifting much of retail activity from brick-and-mortar stores to online platforms. The convenience of shopping from home, coupled with Amazon’s vast selection and competitive pricing, has led to a fundamental change in consumer behavior. This shift has forced traditional retailers to adapt, leading to the rise of omnichannel strategies that integrate online and offline sales.

The concept of “one-click shopping,” patented by Amazon in 1999, further streamlined the online shopping experience. This innovation reduced the friction in the purchasing process, contributing to higher conversion rates and reinforcing Amazon’s dominance in e-commerce. Additionally, Amazon Prime, launched in 2005, offered customers free two-day shipping and other benefits for an annual fee, further solidifying customer loyalty and increasing the frequency of purchases.

Impact on Small Businesses

While Amazon has provided opportunities for small businesses through its marketplace platform, it has also posed challenges. On the one hand, small businesses gain access to a vast customer base and the logistics infrastructure that Amazon offers. On the other hand, they face intense competition, not only from other third-party sellers but also from Amazon itself. The company’s ability to undercut prices and its control over the marketplace platform have led to concerns about fairness and market power.

Moreover, Amazon’s algorithms and data-driven approach to retail have raised questions about the transparency of how products are promoted and priced on the platform. Small businesses often struggle to achieve visibility without spending on Amazon’s advertising services, which can be costly. Despite these challenges, many small businesses continue to rely on Amazon as a vital sales channel, underscoring its central role in the U.S. retail industry.

Amazon in the Logistics and Supply Chain Industry

Revolutionizing Logistics

Amazon’s impact extends beyond retail into logistics and supply chain management. To fulfill its promise of fast and reliable delivery, Amazon has invested heavily in building a sophisticated logistics network. This network includes a vast network of fulfillment centers, advanced robotics, and a growing fleet of delivery vehicles, including drones.

Amazon’s logistics capabilities have set new standards for the industry. The company has pushed the boundaries of what is possible in terms of speed and efficiency, challenging traditional logistics providers like FedEx and UPS. Amazon’s commitment to customer satisfaction has driven innovations such as same-day and even one-hour delivery in select areas, further raising consumer expectations.

In-House Logistics Services

In recent years, Amazon has taken steps to reduce its reliance on third-party logistics providers by expanding its in-house delivery capabilities. The launch of Amazon Logistics, a service that uses independent contractors to deliver packages, is a testament to this strategy. This move has enabled Amazon to exert greater control over the delivery process and reduce costs.

However, this expansion has not been without controversy. Amazon’s use of independent contractors has sparked debates about labor practices and the gig economy. Critics argue that Amazon’s business model places financial and physical burdens on its delivery drivers, who are often classified as independent contractors rather than employees. This classification exempts Amazon from providing benefits and protections typically afforded to employees, such as health insurance and minimum wage guarantees.

Amazon Web Services: The Backbone of the Internet

Dominating Cloud Computing

Amazon Web Services (AWS) has emerged as one of the most significant contributors to Amazon’s success. As the leading provider of cloud computing services, AWS powers a vast portion of the internet, supporting everything from startups to large enterprises. Its services include computing power, storage, databases, machine learning, and more.

AWS’s dominance in cloud computing has had a profound impact on the tech industry. By providing scalable and cost-effective solutions, AWS has lowered the barriers to entry for new businesses, fostering innovation and entrepreneurship. Companies no longer need to invest heavily in physical infrastructure; instead, they can rent the necessary resources on demand from AWS.

Economic Impact and Innovation

The success of AWS has not only boosted Amazon’s financial performance but also contributed to the broader U.S. economy. AWS has created jobs, driven innovation, and supported the growth of numerous tech companies. Its services have become integral to the operations of many businesses, from streaming services like Netflix to financial institutions and government agencies.

AWS’s role in advancing technologies such as artificial intelligence and machine learning has also been significant. By making these technologies accessible through cloud services, AWS has enabled companies to develop new applications and services that were previously out of reach. This has spurred growth in sectors such as healthcare, finance, and entertainment.

Amazon’s Influence on Entertainment and Media

Amazon Studios and Prime Video

Amazon’s foray into the entertainment industry began with the launch of Amazon Studios and Prime Video. These platforms have become key players in the streaming wars, competing with giants like Netflix, Disney+, and HBO Max. Amazon Studios produces original content, including critically acclaimed series like The Marvelous Mrs. Maisel and The Boys, as well as feature films.

Prime Video, available as part of the Amazon Prime membership, has become a major driver of subscriber growth. By offering a mix of original content and licensed programming, Amazon has been able to attract a diverse audience. The company’s investment in high-quality content has not only boosted its streaming service but also positioned it as a significant player in Hollywood.

Impact on the Publishing Industry

Amazon’s origins as an online bookstore continue to influence the publishing industry. The company has become the largest bookseller in the world, both in physical books and e-books. The Kindle, Amazon’s e-reader, revolutionized the way people consume books, making digital reading mainstream.

However, Amazon’s dominance in the book market has raised concerns among publishers and authors. The company’s pricing strategies and negotiation tactics have led to disputes over revenue sharing and control. Amazon’s influence over the publishing industry extends to self-publishing, where its Kindle Direct Publishing platform allows authors to bypass traditional publishers and reach readers directly. While this has democratized publishing, it has also led to an oversaturation of the market and challenges in quality control.

Challenges and Criticisms

Regulatory Scrutiny

Amazon’s immense size and influence have made it a target for regulatory scrutiny. In the U.S. and abroad, lawmakers and regulators have raised concerns about the company’s market power, labor practices, and treatment of third-party sellers. Antitrust investigations have been launched to determine whether Amazon engages in anti-competitive behavior, such as favoring its own products over those of third-party sellers on its platform.

The company’s expansion into various industries has also led to concerns about its dominance and potential to stifle competition. Critics argue that Amazon’s control over data, logistics, and retail gives it an unfair advantage, making it difficult for smaller companies to compete. In response, there have been calls for greater regulation and even the potential breakup of Amazon into smaller entities.

Labor Practices and Workers’ Rights

Amazon’s labor practices have come under intense scrutiny, particularly in its fulfillment centers and delivery network. Reports of grueling working conditions, high injury rates, and inadequate breaks have sparked widespread criticism. Workers have organized protests and strikes, demanding better pay, safer working conditions, and the right to unionize.

The company’s use of technology to monitor and manage workers has also raised ethical concerns. Amazon’s reliance on algorithms to track productivity and enforce performance targets has been criticized for creating a dehumanizing work environment. The company’s resistance to unionization efforts has further fueled debates about workers’ rights and corporate responsibility.

Environmental Impact

As one of the largest companies in the world, Amazon’s environmental impact is significant. The company’s vast logistics network and rapid delivery services contribute to carbon emissions and packaging waste. Amazon has faced criticism for its role in driving consumerism and its contribution to environmental degradation.

In response, Amazon has pledged to become more sustainable. The company launched the Climate Pledge in 2019, committing to reach net-zero carbon emissions by 2040. Amazon has also invested in renewable energy, electric delivery vehicles, and sustainable packaging. While these efforts are a step in the right direction, critics argue that more needs to be done to address the environmental impact of the company’s operations.