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You may have heard, or perhaps seen, that Sir Richard Branson finally made it into space.
On July 11th, after 17 years of development, he stepped onto Unity, the name of the rocket ship, and finally made a long-held dream of his reality.
And ended up beating fellow billionaire rival and Amazon creator Jeff Bezos into the bargain.
Sir Richard billed the flight as a test of the space tourism experience, one he expects to begin selling to customers from next year.
A few days later, Bezos himself made it into space on his ship, Blue Origin.
These are impressive technical feats of engineering and shows what’s possible when enough capital and creativity is put towards something. But this billionaire race to space is just a sideshow to the real story: control over the internet itself.
And with it comes arguably a once in a lifetime opportunity to make life changing returns for you.
And believe it or not, the real estate cycle is front and centre in this.
How can that be?
Read on.
“Better Than Nothing Beta Test.”
It’s probably time to introduce yet another billionaire into this story.
Heard of Elon Musk, perchance?
He’s the one who owns Tesla.
And owns a soon to be listed company called SpaceX.
So, Musk is barging in on the space race that Bezos and Branson have made the recent headlines in.
But his vision is different, game changing, and potentially the ultimate expression of one of the 18.6-year Real Estate Cycle’s most definable drivers.
And that is: a government granted licence.
Think of it like this. A licence is effectively great unbreachable moat built around your business that gives you a monopoly and one that is defended by the government.
This is Musk’s play here. Let me show you how.
Sending satellites into space is expensive. Really expensive.
Many companies have gone bust trying to corner the satellite communication market.
But Musk’s plan is different. If you look past the hype and social media posts, you’ll see the true genius of his business plan.
Firstly, turn the most expensive part of your start-up into its prized commodity. Tesla is a battery and real estate play, the car they produce is the expense turned into a commodity.
Likewise, the rocket ship being built for SpaceX.
Rockets are expensive, but what are they needed for? To send the satellites that Space X are building.
These are being mass produced on an assembly line. They will be used to build a constellation called Starlink.
The constellation will consist of thousands of mass-produced small satellites in low Earth orbit (LEO), which communicate with designated ground transceivers.
And their job? To provide global and cheap internet access for all.
So now SpaceX just nailed their most important customer.
SpaceX needs a continually full calendar of payloads to take to space, and Starlink always needs to get satellites up to build out its network. It’s a win-win.
Elon Musk is his own customer!
Third, he’s leveraging the U.S. government (read: taxpayer dollars) to fund the entire thing.
Starlink has been picking up lucrative US government contracts to provide satellite-based internet to areas across the United States.
The Starlink concept is simple. With a small, pizza-box-sized satellite dish, a user can access the internet from anywhere in the world, even the middle of a desert.
The service is currently being tested in a few countries. In true Musk fashion, they’re calling it the “Better Than Nothing Beta Test.”
Good luck trying to firewall this.
Again, you just won’t read the truth about how Musk builds his business in the mass media.
That’s quite deliberate.
Regulatory credits were designed by the US government to incentivise traditional car makers to reduce their carbon footprint and start producing so called ‘green’ vehicles instead.
As Tesla sells only electric cars, they have sold these credits to automakers who can’t meet these requirements.
Oh, did I mention Tesla received these credits for free? Suddenly, who cares how many cars they make a year compared to say Volkswagen?
Tesla also gets them in China, one of its biggest markets.
Now, hold that thought for a moment as we dissect the business model for Starlink.
The key to grabbing market share of the internet is the speeds you can promise consumers.
Currently testers have reported over 100 megabytes per second (MPS) downloads. By the end of the testing period, it is hoped that can be improved to 300 MPS.
The current US average is around 200 MPS.
Starlink’s original stated goal was 1 Gigabyte per second (GBPS) internet—four times the speed achieved in the fastest country in the world, Singapore.
And they’ve promised the US government they will provide the internet with zero contracts, early cancellation fees, and no data caps. For $99USD a year.
Once Starlink is fully operational, the idea is that most internet users won’t even use anything else.
Consider this.
As of early 2019, less than 5,000 satellites total had ever been launched.
Starlink projects that 12,000 satellites will be necessary to provide reliable global internet coverage at ultra-fast speeds.
That’s huge.
The first small batch of Starlink satellites was sent into space via SpaceX in May 2019. Right now, there are now nearly 1,500 Starlink satellites in orbit.
More importantly, the frequency of launches is accelerating—from six months between the first two is now down to just nine days between launches.
It is expected that this will become hourly.
And that’s not all. The company is planning a new starship rocket that will haul four times the number of satellites than is currently achievable.
Amazing to think then that the US government is picking up most of the cost.
It gets better. The satellites will be de-orbited after three or four years.
So just like Teslas, SpaceX will be able to upgrade them on a rolling basis.
In an early 2021 presentation, Starlink revealed the plan to reach speeds of 10 GBPSs—in part by using lasers to communicate between satellites.
This is going to revolutionize where, when, and how business is done.
And it’s going to have massive ramifications for global politics and the world order.
You really do have to ask: will there be room for another low-earth orbit internet satellite provider when Starlink has launched twice as many as satellites has have ever been launched?
The transformation of space travel as a tourist attraction isn’t the true space race. It’s this.
And if Musk’s plan come to fruition, it’s not even a race anymore.
More like game over.
Because we are talking here a global internet service provider ruled by just one man!
Maybe hyperbole but consider this.
You may have heard of the so-called “Great Firewall of China,” which the government uses to determine what users can access.
Russia, India, Iran, Syria, and Vietnam also have or are implementing similar programs.
Could Starlink circumvent these restrictions? How does one create a firewall for space?!
Time will tell.
SpaceX knows the entire space launch industry is only worth about $5 billion in revenue a year.
Global internet access? That’s an estimated $1 trillion+ market.
Maybe, just maybe, Elon Musk can win the space race all by himself?
How to find the next SpaceX?
Now anyone can buy shares of Tesla.
The smart money is now betting that SpaceX itself will soon be listed on a US exchange, probably the NASDAQ.
If you re-read this post again, it does add up to a very tempting case for you to get involved in the IPO for this company.
And if that’s you, I’ve got two things to say.
Firstly, this is an example of how one can cut through the noise and social media nonsense that percolates around anything that Elon Musk is involved in and peel back and discover what is meant to be ‘unseen’.
This is the benefit of applying a “real estate lens” across the economy.
To see the critical role a government granted licence had to create a natural defence for SpaceX and Tesla to stifle competitors and see the use of taxpayer funds which arguably should be better spent elsewhere in the economy.
Secondly, wouldn’t you like to possess the knowledge and foresight to find and potentially invest at the earliest stages of the next SpaceX?
Believe me, there are a few dozen other private companies which benefit from the same arrangements with governments worldwide that Musk does.
Ultimately, even though this is about space, the winner will be real estate.
Think of how much land will be required to track, manage communications, and relay a worldwide satellite-based internet?
If this market is worth trillions as Musk thinks it is, then once the gains manifest across the globe, what do you think ends up capturing it all? Yes, that’s right, the land!
Come on folks, we got to get serious here.
Don’t you want to find the next company like SpaceX before it becomes public? Isn’t the knowledge of the real estate cycle telling you just how lucrative this opportunity could be?
Imagine understanding this and turning it into your own personal investment advantage for you and your family?
It’s time to grab that advantage. You should start here and become a member of the Boom Bust Bulletin.
It will teach you what billionaire entrepreneurs know like Elon Musk but dare not say in public.
How important knowledge of the 18.6-year real estate cycle is in terms of timing, why it repeats and how, and why it will provide you with such an investment edge.
The truth is during the last cycle the companies that outperformed the market had the advantages that Elon Musk desires most from government.
Let’s use our inside knowledge to trade and invest with the real estate cycle and not against it.
And all for less than $4USD a month.
Incredible value.
Don’t waste your time or money any longer.
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Best wishes,
Darren J Wilson
and your Property Sharemarket Economics Team
P.S – Find us on Twitter under the username @PropertySharem1
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