Apple’s Satellite Network Won’t Kill 5G

There’s a lot to cover in today’s Friday mailbag…

Crypto investing expert Teeka Tiwari talks about how to store your bitcoin… former Wall Street trader Jason Bodner reveals why he’s 100% invested in stocks right now… and gold investor Tom Dyson wraps up his road trip across the U.S.

First, a question for our tech expert, Jeff Brown, about Apple’s plans to beam data directly into your device from satellites it launches into space.

As regular readers will know, one of the profit opportunities we’ve been tracking for you is the rollout of the new generation of wireless internet technology, 5G.

Today, one of Jeff’s readers wonders if Apple’s satellite alternative – Apple-Fi – will kill 5G…

Reader question: Hello, Mr. Brown. Thank you so much for all of your input. It’s very helpful, as I’m still very new to any kind of investing. I keep hearing about Apple-Fi from other investors.

Supposedly, it should take over Wi-Fi. They claim it will be worldwide and a whole lot more affordable than Wi-Fi today.

Are you familiar with it? Can you elaborate on it at all? Thank you for all of your insight, and I look forward to hearing from you.

– Tara G.

Jeff’s answer: Hi, Tara. This has been a popular question with readers lately.

Here’s some background…

In late 2019, news broke that Apple was working on a project to launch a series of satellites. The satellites could beam data directly to Apple devices without relying on wireless network operators such as Verizon or AT&T.

Since that announcement, others have speculated this could herald the imminent destruction of today’s wired and wireless networks, including 5G.

But that’s complete nonsense.

Even if Apple employs this technology, our smartphones will still use 4G and 5G wireless networks for connectivity. Instead, we can think of a satellite configuration as an overlay network.

Apple would also have to put additional semiconductors and antenna technology into its phones to receive signals from the satellites.

Why would Apple do this? How would it use this satellite network?

It could certainly push out data, information, and video directly to its smartphone users. Theoretically, it could do this anywhere in the world with the right satellite network. The technology could also improve Apple’s own mapping technology and services.

Apple has hired an impressive group of executives with strong backgrounds in the satellite communications industry. But while the company is clearly serious about the project, it doesn’t mean this will become a commercial launch.

It’s possible we’ll see something roll out within the next five years, but I seriously doubt anything will happen this year or next.

An interesting question for me, though, is whether Apple will launch its own network of satellites or simply lease bandwidth from another network. If Apple’s aspirations are geographically limited, like in just the U.S. and Western Europe, a few geostationary satellites might do the trick.

But if Apple wants to cover the majority of Earth’s population, it will need a larger network of satellites. That might mean a partnership with a company like SpaceX and its Starlink project.

Ultimately, Starlink wants to launch as many as 42,000 satellites into space to provide internet connectivity to remote areas. Apple could simply strike a deal with SpaceX and use the Starlink network to accomplish its goals.

Starlink is not a threat to 5G either. When we use a satellite internet service, latency can be half a second or more. It might not sound like much, but the delays can be significant.

Consumers will not get 100 megabits per second to the home over a satellite service. Streaming video to a television, for example, could be quite difficult. And satellite services have always capped monthly usage.

If the cap were just 2 GB, most consumers would use up their monthly data cap within just one or two days.

Compare that to 5G wireless technology.

5G has a latency of only one millisecond. A millisecond is a thousandth of one second. And 5G speeds will average 1 gigabit per second (Gbps). I have personally experienced 1.7 Gbps in Washington, D.C. Peak speeds can reach 10 Gbps.

On top of that, 5G connectivity will be cheaper than paying for satellite internet. Which do we think consumers will opt for?

So even if Apple does get this project off the ground in the next several years, it still won’t be a threat to 5G.

In fact, some of the absolute best investment returns are in 5G-related companies right now. That will remain the case for years to come.

If you haven’t gotten exposure to the 5G trend yet, I recommend you do so soon. Every day, we get closer to the mass adoption of 5G technology. Once that happens, the largest gains will be gone.

To see which 5G stocks I’m recommending to my readers, go right here.

Next, a question about storing cryptos. Standing by with an answer is colleague and world-renowned crypto investing expert Teeka Tiwari.

Reader question: You recommended saving our cryptos to wallets rather than leaving them on exchanges.

I get that I have a private key in most wallets and not on the exchange. But how are wallets more secure than exchanges? Both keep centralized databases on their customers. So can’t both entities be hacked for our data?

– Michael C.

Teeka’s answer: Hi, Michael. Thanks for your question. It’s an important thing to get right.

There are many forms of crypto storage. To keep it simple, let’s explore three popular options and the risks associated with each of them. 

The first is exchanges. These are centralized entities. To a hacker, they’re honeypots of information and assets. And hackers have successfully made off with both in the past.

The second option is a digital wallet that requires customer information and allows users to handle their private keys.

Exchanges typically pool your assets together in a single wallet, hence the honeypot. Think of the difference between holding your crypto on an exchange versus holding it in a wallet like holding your money at the bank versus in your personal billfold.

A hacker would much rather steal money from the vault because the payout is much higher. The same goes for an exchange. There are a lot more assets to be stolen.

Additionally, with a digital wallet, you own the private keys and thus are the custodian.

The third method is a hardware wallet. That’s literally a piece of hardware. You use it to confirm a transaction. To move assets out of your wallet, a hacker would need this tangible hardware device, making it even more secure than a digital wallet.

Also, there’s no personal information needed for this option. The combination of these things makes it highly unlikely a hacker will spend your cryptocurrencies without your knowing. This makes a hardware wallet the most secure method of storage out of these three solutions.

Switching gears, a question for Jason Bodner at our Palm Beach Trader advisory.

As regular readers will know, Jason was one of the few guys on Wall Street authorized to make trades worth $1 billion… and up. He now helps his subscribers profit in the stock market using a strategy he developed after he quit his job on Wall Street.

And one of them wants to know how to think about how much of his wealth to put behind Jason’s strategy…

Reader question: Could you confirm if we need to invest 100% of our money in the stocks you recommend? Or do you recommend putting something in real estate, gold, cryptos, etc.?

I’m not a professional investor. But I’d like to hear your feedback, or if you believe in the Palm Beach Trader stocks 100%, because the return is higher than any other asset class.

– Gerardo H.

Jason’s answer: Hey, Gerardo. Thanks for writing in. I’m not allowed to give personalized investment advice. So, what I’m about to say will be more general – but useful.

In most cases, well-rounded investors should own a mix of stocks, bonds, metals like gold, real estate, and cash. That’s the prevailing recipe for preserving and even growing capital over the long haul.

The best mix of these assets depends on an investor’s age, marital status, whether they have children, and their retirement plan.

As a general rule of thumb, younger people with fewer liabilities and dependents can be more aggressive with their growth goals. That might mean more concentration in risky assets like stocks and less in more conservative assets like bonds or metals.

Older investors approaching retirement should be geared toward capital preservation and fixed income. They may favor bonds and precious metals.

For my personal account, I invest nearly all my money in stocks. But I’ve dedicated decades of my career to finding a formula that works – the system we use in Palm Beach Trader. This gives me a proven edge. I know stocks like the back of my hand. Better than I know real estate, gold, or anything else. So that’s where I’m concentrating my efforts.

With that said, I want to be clear – I do not recommend that approach for anyone else. You should certainly look to consult a professional for your own personal circumstances to find a suitable plan for you.

Either way, outlier stocks should always be a part of anyone’s overall portfolio.

We’ll wrap up today with the latest from gold investor and world traveler Tom Dyson.

In 2018, Tom personally invested nearly $1 million in gold. And he took off on a round-the-world trip with his ex-wife and three kids, living out of a suitcase.

Over the last two years, they’ve visited 30 countries, including China, Japan, and India.

This year, they decided to take an epic summer road trip around America’s heartland… using only back roads and dirt roads.

They’ve been to 22 states, from Florida to Washington… driven 12,000 miles… and slept in tents that weren’t hooked up.

This week, their epic adventure came to an end.

Yesterday, Tom and his family moved into their new home for the winter, the small ski town of Driggs, Idaho (population 1,660).

And readers of Tom’s daily e-letter, Postcards from the Fringe, congratulated him…

Reader comment: I realize it’s almost impossible to adequately express emotion through an email. But as I read your post about what you’ve learned from your travels, I was overcome with a feeling of love, caring, and support for you and your family.

I find your efforts to build/rebuild your family heroic. Going against the grain of our culture is not easy. I applaud you for your commitment to follow the road less traveled. You will very much enjoy your stay in Driggs.

Reader comment: Driggs is one of my favorite places in the West! The place gets really cold in winter, so prepare accordingly. Great community! I have really enjoyed your family’s adventures! Keep up the great work and writing!

Reader comment: While you guys are in Idaho, come on up to Coeur D’Alene to stay on our property. We’ve got six acres for the kids to explore, overlooking the beautiful lake, and you can see what Teeka Tiwari’s advice about bitcoin can build.

You can have your own floor to yourselves, hot water, a view to enjoy, and campfires at night. We’d love to have you. God bless.

That’s all we have time for this week.

If you have any questions for the Legacy experts, be sure to send them to us at [email protected].

Have a great weekend.

Regards,

Chris Lowe
October 2, 2020
Bray, Ireland