I’ve always had a bit of a knack at seeing things that were going to happen ahead of them happening. Which has meant when possible I’ve been able to position myself and my family into a place whereby we have either profited or suffered the least damage possible.
Well since 2012 there has been talk of a soon to happen recession. I’ve paid it consideration and looked at it without emotion. My thoughts after each time I looked at it were that there was some merit, but not yet. There’s still a further way to go before the point is reached where the can, could no longer be kicked down the road.
Even earlier this year I still thought the next recession was a way off… However, in late October I saw how it would most likely happen, and roughly when.
I had the same feeling I’ve had on multiple occasions in my life and they have all served me well.
So I looked and looked deeply again. Very soon after I realised that because of a number of events that were happening, and likely to happen and because of the knock on effect, that the can kicking was very soon coming to an end.
As such I looked at all my options and came and put a strategy in place, that would put myself, my family, relatives and friends into a position to profit from the next recession/depression.
What I’ve written in this short and quite rushed book explains some of the key points of why I came to the conclusion I did, and what I chose to do about it, and most importantly why I chose to do it.
There are elements of mindset scattered within this, however, it is mainly about what’s happening, and how to avoid and profit from it.
I trust you enjoy it, even if it at first looks a little scary,
(Name purposely removed)
P.S. This short book is for subscribers to my mailing list and anyone they want to share it with. This is not me going back into the world of being a financial go to guy. If it was I wouldn’t be doing it this way. This is simply me as my subscribers trusted advisor fully explaining somethings I have discovered.
Also please note this has been turned around fast and has not undergone the usual grammar checks. So I apologise if, in my haste to get this to you as quickly as possible, the mistakes take some of the enjoyment away from your reading.
One more thing… This is a fast paced thing I am commenting on… The maths are based on the days I worked them out, and things that are moving fast change all the time… Don’t get bogged down with the detail, look to how I worked them out if you want to dig in…
How To Get The Most Out of This Book There’s a few things to consider whilst reading this… Slowing down and considering them for a few seconds will not only help prepare your mind, but also may save you a huge amount of money.
1. The most important thing is to remember to avoid judging this as much as possible. 2. The ability to rethink something comes from non-judgement and from continuous awareness that you could be wrong. 3. You are almost certainly going to be overwhelmed with what you are about to learn…
That’s okay, I’m going to throw a lot of points at you. Which means you may find reading this through two or three times will have the best effect. And where your ego really disagree with something I’ve said, or you don’t understand, go online and research the point I made further. But do it from a not needing to be right perspective. Because all learning ceases once you have reached a decision… And this is all about learning something you don’t know.
4. I will attempt to use a little brevity to lighten some of the heavy moments along the way… 5. This is probably going to be outside of most people’s comfort zones…
But consider this, if you had a friend who could tell you what was going to happen at a point in your life, would you like the chance to benefit from it, and most importantly step out of the way of things which could hurt you?
Sure you would… But we usually listen to advice and then ignore it. This is because our egos get in the way. What I am going to attempt to do here is get you past your ego so that you can accurately evaluate what I’m about to share with you…
6. And finally always remember your ego won’t want you learning any of this!
Disclaimer I am not a financial advisor, I am not regulated to give advice, these are my opinions and it is down to you to go and make up your own mind and do your own research - if you do not agree with this then please stop reading.
Chapter 1 The Tipping Point What macro stuff made me realise what was going to happen and got me to tell friends, family, and my children to do something with some of their money fast.
(The date when I started writing this was 14th November 2017)
The next predicted recession I think will actually be happening, circa 18 months to 3 years… But it may be sooner!
The difference with this one is it will be a ‘currency crash’ as the main problem. Which means all USD, GBP, EUR, YEN assets will deflate in value and cash will fall in purchasing value too.
I am not exactly sure what it will look like as the central banks have a tool box of tricks, but it’ll either cost you money, or you’ll make money… The idea of this short book was to give you that choice. This is the same choice I offered my family and friends… Except you don’t really know me the way they do.
My friends and family have seen me make a lot of money, and seen me call a lot of things right. Some of you may have seen that too, but most of you won’t have. So I have said in this short book far more than I had to say to convince my relatives and friends.
You may think it will be easy to scoot to the end and just check out my recommendations. However, as I teach with mindset, knowing the answers and knowing what to do does not equate to you doing it.
I have written this in order to give you the ability to argue with your ego. It’s going to give you lots of arguments to use in your coming battle with it.
Because what I am about to show you will cause your ego to attempt to put you in meltdown… So in order for you to not let the insights I am about to share with you go to waste, I need to first show you some things which you are likely not to know…
The coming financial crisis
Firstly this is not me in anyway talking the market down. This is me looking at stuff and interpreting multiple factors to lead me to conclusion which I think is probable…
Probable enough for me to move a lot of our own money about. Whether it will be probable enough for you, well that’s down to you.
We are either having a financial crisis, recovering from one, or waiting for the next one to come… The 1997 crisis I don’t really remember personally… But 2000, 2007, 2010 are seared into my mind :-)
Statistically we are overdue another one. According to history that is… But let’s put that to one side as anyone could say that… However, 18mths to 3 years doesn’t seem too unrealistic given historical data on recessions…
The next big financial crisis could come about by one of multiple problems. The last big one was caused by the banks packaging various people’s mortgages together and selling them as a Collateralized Debt Obligation (CDO). They put, in that wonderful product, (which made bankers a lot of money), a wide range of loans. This included a load of bad loans, which then inevitably (as history shows us) failed and led to a lot of the good ones failing too.
Here’s a few ways the next darn recession could start that I see today…
These are in no particular order… However, I think points 1 or 2 could be the match…
Side note: Don’t let me lose those who are new to thinking about money - this can get a bit deep, but you will profit from reading this even if you don’t act now.
Probable Recession Tipping Point #1
I think it'll probably start with the bond market as the European Central Bank attempts to taper it's purchases of other peoples debt. This will cause a spike in bond prices which will bring the whole thing down...
Basically one of the key players in this whole thing is Mario Draghi, he is the head of the European Central Bank, and up until now he’s been a kid in a sweet shop with too much money… Right now he’s had more than his fill and wants to stop buying… Only trouble is, his business with the sweet shop is the only thing keeping the sweet shop in business…
Why will him tapering his purchases cause this… Well it will drag up the rates on US treasuries and bonds from all over the world, which will get much more expensive. Which is when the phoney economy and Stock Market implodes.
This is because to afford the increase, the central banks will have to go from currently printing $200 billion a month to an even more extraordinary level. Yes you read it right… The guys who are running the money are printing $200 billion a month in a vain effort to keep the music playing.
If this happens then this will in my opinion be the prelude to hyper inflation. Hyper Inflation for those who don’t know is when a countries currency effectively loses all of its purchasing value. However, I also think the current debt monetization referred to lovingly as QE is actually the prelude to it… QE stands for Quantitative Easing, which is a fancy way of saying printing money… But I digress…
Now they (the Central Banks who are the bad guys in this whole drama) may be able to handle the inflated rates for a while by kicking this can down the road and printing say $400 billion a month, or $600 billion… Who knows? They may even be able to kick the can for another few years… So I may be warning you too soon!
But there will at some point relatively soon be a massive currency devaluation because of this. And I will be showing you what I think is proof of it happening right now, a bit later. Probable Recession Tipping Point #2
The world reserve currency is currently the Dollar, it has been since taking over from the British Pound in 1944. It did really well in, I think 1971 when Henry Kissinger convinced the Saudis to only sell oil in the dollar.
However, the Chinese got fed up with the way the US does things (funnily enough it doesn’t like the US continually printing money), so it decided to create a new currency, which is backed by Gold.
Here’s the big deal, the tipping point…
The Chinese have said that they will begin making their first oil purchases in Gold Backed Yuan by the end of this year.
Which means they won’t need to buy dollars to buy oil.
Consider this… If you could sell your oil to a country that paid you in money that was instantly redeemable to gold, would you prefer that to the paper money that the Federal Reserve is printing more of each month? …What does logic tell you that will do to the value of the dollar?
China spends around $400 billion a year on oil… Well not for much longer…
Apparently Russia has already agreed to selling China a lot more oil this way. So Russia doesn’t need dollars for this either… And apparently Saudi Arabia wants to do this too, so they won’t need dollars when selling to China.
In fact there’s a lot more countries looking to de-dollarize:
The image shows all the countries that apparently have abandoned the dollar, and the ones who are intending to as well.
Link to article with this image in
So apparently there’s 25 countries which have recently struck deals to trade outside the dollar.
Do you think this trend will accelerate or decelerate? If you think it will accelerate as I do then the knock on effect is big inflation in the US, and quickly followed by debt contagion amongst everyone else.
De-Dollarization - is the key word regarding China buying oil in Yuan. This does a lot for Gold too. As their currency is now using a lot of Gold.
And… Going slightly off point point… How much of Americas gold (sitting in the US) has already been loaned out? That is the question. The other question is, will those loans be recalled when the US Dollar falls???
Currently there’s about 10 trillion dollars outside of the US… What happens when the world doesn’t need these dollars anymore. Does over supply decrease value? Then inflation will explode.
I could carry on with this point but won’t… Probable Recession Tipping Point #3
As I mentioned before… Collectively right now the Central Banks are printing $200 Billion Per Month...
They are doing this when we are all supposedly doing well… That’s according to Bank of England head man Mark Carney. So they are printing $200 billion a month without a Crisis!
The European Central Bank (ECB) is printing $60 billion a month The Bank of Japan (BOJ) is printing $80 billion a month The Federal Reserve (FED) is printing $60 billion a month
Also as I said earlier… Draghi from the ECB wants to Taper his debts, but you can’t taper a ponzi scheme!
The Central Banks used to like printing a bit of money, because they used to get $1 of GDP growth for every $2.5 printed. Now it’s $1 of growth for every $8 or $9 printed. This is because banks are borrowing at zero percent interest and buying amongst other things, their own debt! - Used to be illegal, but thanks to lobbyists the law was changed.
Wouldn’t it be nice if you never had to pay off debt, and instead you could just print more money… That is the ponzi scheme of the central banks… It works as long as everybody isn’t doing it, but all the big banks are.
So this can be kicked down the road by them printing more… However, this didn’t work out well for a few well known countries… Probable Recession Tipping Point #4
The backbone of capitalism is interest rates. Without an interest rate you don’t attract capital, and capitalism is created by capital.
This means that, with negative interest rates and nominal inflation then you are losing 3 - 8 %+ on your money by putting it in the bank… Yes it’s an invisible loss as you put $100 in and get $100 out… But if it was in for say 3 years then you would have lost 9 - 25% of your moneys purchasing power…
How attractive does that sound to you?
Well what this means is that, first the people with a lot of money will stop doing it, and then it’ll eventually trickle down to people with some savings in the bank… Which means most money will eventually wise up and go somewhere that it is not being printed out of existence, and where it remains usable…
Capital needs to move for capitalism, and it’s called the velocity of money…
Well the velocity of money is at a near all time low…
Banks are paying off their own debt and not loaning it out. Instead they are using zero interest loans to buy stocks and artificially pump up the stock market in the elusive search for growth and profit.
And there is propaganda going on out there at the moment with prices (I.e. Isn’t the stock market doing well!)… This appearance of success gives people confidence, but the volatility in the market is as low as it was in communist Russia. There was low volatility in Russia and then it collapsed.
Why is it so low?
People (Companies, banks) are buying their own debt and their own stock with virtually free loans from the government. More on this later… Probable Recession Tipping Point #5 The currencies are crashing now, the only reason we don’t see it is they are all doing the same thing. However, if you measure the currency against Bitcoin the crash becomes clear.
Apparently the Bank of Japan (BOJ) are going to be the only money printers left in 2018 (yeah right!), so if that happens then the Yen could start to tumble in price finally.
Meaning Japan could be the cause of the currency crash. Why?
Because at the moment the cheapest loans are 0%-1% in Japan. So hedge funds are
borrowing in Yen, then buying bonds in US and high yielding assets and making an arbitrage.
Sounds okay at the moment right…
Here’s the problem…
If Japans currency crashes. Everyone has to sell their USD, GBP and EUR positions, and they sell their stocks in Japan… And they have to buy back Yen. What do the sudden sales do for USD, GBP, EUR?
This is debt contagion, and it spirals. Debt contagion is what happened in the sub prime crash of 2008.
The truth is we are in a depression now. It just doesn’t look like one, but we have had depressed growth of 2% since 2007, which should’ve been 3 - 3.5%… So the difference today would be enormous.
We will not leave this depression without fundamental change. Probable Recession Tipping Point #6
The cartel of banks (who actually run the world) are making a mistake in continuing to borrow money at zero rates from governments (who are printing it) and buying stock with it. Artificially pushing up the stock markets to a point where someone realises that companies making a loss each year are not actually worth what their share price says they are… At this point confidence will be lost…
However, those who can borrow at zero percent basically can’t lose money while the music is still playing, and they can’t be arrested for the crash either, so they are just playing the market for all they can get right now. Combine greed with no social conscious at all and you have a recipe for disaster, with none of the blow back hitting the perpetrators.
Also there are no more free markets… Which means one or more banks or companies are always manipulating the market.
Think about this… If there were free markets then there couldn’t be zero interest rates. No real lender would risk their capital to get nothing or even a loss in return.
If there were free markets then there would also be recourse to the people who commit high financial crimes. Actually if you’d like to see some real news rather than the gossip the traditional media shares, then there’s a fascinating documentary to clear up any doubt whether or not there are two levels of society, and one is above the law: ‘All the Plenary's Men’ Youtube - Click here to watch
Income hasn’t gone up, but asset prices are rising, what does that say? It says someone is manipulating the market.
Enter the central banks, the lobbyists and the banks in their desperate need for self interest and growth. So what happens when the central banks stop buying?
The truth is the central banks can’t stop playing the music as there’s not enough chairs for everyone now… And when one company or bank falls it will cause debt contagion.
Right now we are seeing growth at any expense! Probable Recession Tipping Point #7
Which nicely brings us to something nasty, which may not be as advanced as the other tipping points but still packs a punch.
You remember I mentioned that the financial instrument called a CDO (Collateralised Debt Obligation) was the thing that caused the crash in 2007/2008…
Well guess what the CDO didn’t actually die, it morphed into the CLO… Which is a Collateralised Loan Obligation… Basically the same thing, give or take a few details. And in the banks and hedge funds need for growth at any expense, they are now nicely rebuilding this market…
Apparently there’s $75 billion of pension fund money that has been dumped into them this year… This will kill off some peoples pension funds.
Now the market today is only about a fifth of the size of the crash last time, so it probably won’t be the actual tipping point, but it’ll sure help the currency crash gather pace, thanks to debt contagion.
Okay that’s enough potential tipping points…
I am sure there are other tipping points, but two of those convinced me, so you have six to consider…
So are there other signs of what I say is happening is?
Well we will see signs…
Things like Central Banks talking about negative interest rates - they’re all doing that.
Central banks talking about UBI - Which is Universal Basic Income… Where you me, everybody, gets money each month regardless of what you do. And then doing away with other benefits…
Insane, madness, right?
Well Finland is currently testing it on 2,000 unemployed people, and from the report I saw this week it looks like it’s working.
And Scotland is about to give it to every person in a single town no matter if you’re employed on not…
Real madness yes?
Well yes and no… It depends on where you look at it…
If all Central Banks did it and they all printed money together, then it’s arguable that this insanity could work…
But if one country does it then it’s currency would deflate against others.
The Central Banks idea was to loan money to the banks so that they would loan it out to smaller companies and people… The only problem with this plan was that the banks thought it was safer to keep the money and go into business for themselves.
So instead the banks settled their own debts, bought their own stock and are saving the rest… I think it’s called the ‘I’m alright Jack’ plan.
However, the central banks, who after getting this badly wrong are not stupid enough to fail to realise that we live in a consumer based economy which accounts for roughly 70% of GDP…
So they’ve figured out that if they give the money directly to the people then our wise overlords think they are more likely to spend it and so they will eventually get growth and so keep their legal ponzi scheme going.
However, tests have proven only 55% gets recycled into the economy. 55% spend it, apparently 5% invest it, and so the 40% of savers will get the money to keep… Yes?
Well how much are those Zimbabwe dollars worth today?
If you don’t spend it, it will be inflated out of value… A cunning plan right?
This Universal Basic Income is what’s known in the f i n a n c i a l w o r l d a s ‘Helicopter money’ and it’s one of the tools the Central Bank has, to try and jump start the economy now and somehow figure out what to do later…
Remember, they are only printing this money and as long as everyone is playing the same game, then they can get away with it for a while, and maybe a long while… So you could be in for some UBI if I’m right…
But it’s likely before that we will see something far less palatable…
You remember the Bank Bail out last time… Well there won’t be bail outs this time…
There will be the all wonderful, all taking… Bail in!
The test for this was done in 2013 in Cyprus when they bailed in $6 billion against a Cypriot Central Bank debt of $20 billion.
The $6 billion came 1/3rd from Cypriots, and 2/3rds from foreign nationals. Anyone whose account had less than $100,000 in it was safe… They just got to live in a seriously depressed economy.
Government people had loans paid off, or interest rates dropped to zero, and a lot of people in the know got their families to move money out before their money was taken overnight.
Side note: As it happens in the week before this happened a friend of mine was taking flying lessons in Cyprus…
Throughout the day private jets landed, the doors opened and people who showed up in limos put two to four suitcases on each plane. No one got off the plane and they were gone within 15 minutes of landing.
Now for a long time I thought this was some Russians getting their money out. Turns out it was actually other banks getting their money out before the bail in.
Well one of the other plans the EU came up with was to bail in some of the equity from your home!
That’s right, one of their plans to keep their thievery of your money going, is to bail in your home equity to bail out your country… Kinda gives you a warm feeling when you know your governments cares so much!
This little fact was one of the reasons I voted to leave the EU… But there’s also the chance they’ll do it in the UK too as I’m sure our government cares just as much.
While this is all going on the Central Banks will be talking much more about negative interest rates as being the solution to the next crisis…
They will be attempting to convince the dim witted or fiscally unaware that we can make it through, just give us your money and accept that you are going to lose money in the process… “No really, trust us… It’s what’s best for you!”
Now at that point or soon after it, say 18 months maximum after… The world will come to a watershed moment… Which is when they realize that FIAT currency is no longer acceptable.
(I explain in more detail what FIAT currency is in the next chapter, but in a nutshell it is money created by the Government like USD, EUR, GBP, JPY etc)
Think about it, we’re not in a crisis and they are printing $200 billion a month… How long do you really think it is before the music stops?
That’s an annualised pace of over $2.4 TRILLION in money printing every year.
That’s the size of the entire French economy being printed each year!
If you don’t believe this will unleash inflation at some point then consider that already in the US, inflation has exceeded the Fed’s targets on ALL FOUR of its measures.
And you must bear in mind, these are the “official” measures of inflation… the ones that don’t include things like food, or energy. When you account for the rise in the REAL cost of living in the US, REAL inflation in the US is closer to 6% right now.
In my opinion we have already started on the hyper inflation highway and in the UK the financial terrorists at the Bank of England have raised rates, and say that they may not come back down as they might not be able to control inflation otherwise…
So they printed a factory full of money and now it’s our fault they can’t control inflation.
Basically the amount of debt in the world requires low interest rates or the whole dance ends.
They have already lost this battle, they have printed too much money and given it to the wrong people - other financial terrorists like the wonderful JP Morgan…
If you don’t take my word for it, take a look at Gold priced in the USD, Japanese Yen, Euro, and British Pound. The precious metal has begun to break off to the upside in all major world currencies.
Gold “smells” what’s coming. It’s inflation. And smart investors are preparing for it now.
But there’s a problem with the Gold Market too…
The gold market isn’t a free market, it is being manipulated, just like the USD, GBP and all the others… Wall Street and the banks are controlling this keeping it low while they printed money and used it to legally inflate values and steal money from things like pension funds and the small investor.
There is one truly free market, but I’ll cover that later in the solutions part.
The world is going to come to an epiphany moment where they absolutely reject FIAT currencies for the ponzi scheme they truly are.
This will happen when the tipping point of enough people, being reached that understand that the Central Banks cannot ever stop printing the amount of base money, is reached…
People will soon realise that those efforts to prevent inflation by printing more money simply will never work.
This may seem obvious to the casual observer, or those who dabble a little in finance, but the central banks think that they know what they’re doing…
This means interest rates will have to be negative for a very, very long time….
I once predicted in 2008 that when the bank eventually lowered rates that they would keep them there until at least 2017, with maybe a trial rise once or twice before returning to virtually zero, or zero. Now this timeframe is massively extended even if that numpty currently in charge of the Bank of England thinks otherwise.
Gold money gets all this… Which will finally lead to a gold price run.
Anyway… Expect to hear more about Helicopter Money and Citizens dividends soon… Or even quantitive easing for the people!
How about a universal tax rebate to all households, financed by the central bank. This is for example what Australia did in 2009.
You’ve probably already heard of universal basic income… But probably didn’t think that was all going to be
Is this all too far fetched… Yes… Actually no.
In 2016, the European Central Bank (ECB) launched a TLTRO programme lending money to banks at negative interest rates, which amounts to a transfer to banks.
“TLTRO” stands for Targeted Longer Term Refinancing Operations… Although it should probably stand for “Try Lending This Rubbish Out!”
Quantitative Easing (I.e. the banks printing $200 billion a month) is supposed to be reversible because it is essentially an asset swap (even though the asset may be total sh*t), however, because they have now printed too much they can’t unwind it… And you can’t unwind a ponzi scheme anyway… But ‘helicopter money’ well that’s permanent from the start.
Consequently, a range of concerns include the fact that helicopter money would undermine trust in the currency (which ultimately would lead to hyperinflation).
There was one person prepared to speak out against it, a German Economist (and former Chief Economist at the ECB) Otmar Issing, who wrote in 2014 and later said in 2016,"I think the whole idea of the helicopter money is downright devastating. For this is nothing more than a declaration of bankruptcy of the monetary policy”.
Richard Koo another one of the few voices of reason makes a similar argument when saying, "if such envelopes arrived day after day, the entire country would quickly fall into a panic as people lose all sense of what their currency is worth."
On March 10, 2016 Mario Draghi the President of the European Central Bank, said in a press conference that he found the concept of helicopter money 'very interesting’.
This statement was followed by another statement from the ECB's Peter Praet who said, "Yes, all central banks can do it. You can issue currency and you distribute it to people. That’s helicopter money. Helicopter money is giving to the people part of the net present value of your future seigniorage, the profit you make on the future banknotes. The question is, if and when is it opportune to make recourse to that sort of instrument which is really an extreme sort of instrument."
In October 2016, a survey showed that 54% Europeans think helicopter money would be a good idea, with only 14% against. Sure sounds like a good thing if you don’t understand how money is actually created… ‘Free money, what’s not to love?’ Said the lamb on its way to being slaughtered.
And another thing… The central banks want to do away with cash. They’ve been trying to do it for a long time, and now they are removing the high denomination bills.
The EU axed the 500 Euro note in 2016, with it losing its legal tender status in 2019. There have been calls to remove the $100 bill, and in India they just removed the 500 Rupee note. Why would the central banks want to do away with cash?
Because when they control the value they can give negative interest rates, which means all a person can do is spend money as it’s costing them not to.
Meaning any savings you have will not be worth hanging onto.
There’s a few things to consider whilst reading this…
1. The most important thing is to remember to avoid judging this as much as possible. 2. The ability to rethink something comes from non-judgement and from continuous awareness that you could be wrong. 3. You are almost certainly going to be overwhelmed with what you are about to learn…
That’s okay, I’m going to throw a lot of points at you. Which means you may find reading this through two or three times will have the best effect. And where your ego really disagree with something I’ve said, go online and research the point I made. But do it from a not needing to be right perspective. Because all learning ceases once you have reached a decision… And this is all about learning something you don’t know.
4. I will attempt to use a little brevity to lighten some of the heavy moments along the way…
5. And finally always remember your ego won’t want you learning any of this!
So what if I’m right, what happens next
The dollar fails, and so does the Euro, so does the Yen, and probably the Pound too… Then you enter the alternative currency already set up for when the dollar fails called - Special drawing rights - also known as XDR or SDR
These are supplementary foreign-exchange reserve assets defined and maintained by the International Monetary Fund (IMF). The XDR is the unit of account for the IMF, and is not a currency per se.
And guess what…
YOU can’t have any of it as they are only for nation states. You go back to bartering for a while. Too far fetched? Ask the people of Venezuela, see if they think it's too far fetched.
But what’s more likely next is, we will see more and more printing of government money in one shape or another.
The problem with Government and Central Banks is they think the answer to the problem they’ve created is more Government and more Central Banks.
So they will print more and more, and vainly attempt to disguise inflation as it finally begins to hit. Though as I’ve said I think we are seeing massive and true inflation elsewhere, but I’ll cover that further on.
Now with hyperinflation or the failure of the banks there will be all sorts of problems and I’m not going to go into them all here…
But here’s just a taste…
First you get price increases, everything goes up except wages. There will be slow constant rises, or big hits.
This means there has been a decrease in purchasing power… So you can afford to buy less stuff, like food… At this point non-essentials cease to be in demand… Thus stumping businesses in the non-essential market which fuel the economy.
This leads to some or a lot of increased spending… Why? Well there is now a real fear of price increases which mean people bring purchases forward. This increased spending adds to inflation on products because demand rises and so do prices.
This also leads to decreased saving (saving being a wealth creator), because people become more and more afraid of keeping money as inflation is removing the value of the money they are keeping…
Which leads to buying and hoarding. Which brings about rapid price increases, which is due to a fear of price increases… But this can also be caused by speculators buying large quantities with the intention of selling them to people at a higher price.
All of this leads to hyperinflation, where inflation is over 100%…
Some economists consider it to be a much higher starting level at 50%/month…
But whatever figure you choose to use, hyperinflation goes a lot further than 100%…
Right now in Venezuela their monthly inflation rate is a whopping 33.8%…
In the first 8 months of 2017 prices rose 366.4%…
But even that’s nothing…
In Zimbabwe inflation hit 112.1% in 2001… By 2006 it was 1,281.11%. And then the currency collapsed in 2008!
At which point inflation stood at 231,150,888%.
But at the point of collapse in mid-November the inflation rate was a staggering 79,600,000,000%!!!
Using Zimbabwe as a guide, Venezuela’s currency the Venezuelan bolívar will probably collapse in 2019/2020.
In 1917 you could buy 5.77 German Marks with 1 US Dollar… At the end of the war in 1919 this was 32.85 Marks for a Dollar. By 1921 it was 83.02 Marks for a Dollar.
In 1922 it was 430.48 Marks to the Dollar… And in 1924 it was 4.329 BILLION Marks to the Dollar.
When currency down values past the point of return it only takes a few painful years for it to finally collapse.
Well that’s all very cheery isn’t it?
Now I don’t know what shape the recession/depression will take when we leave the eye of the storm. Maybe they have some magical way of kicking the can even further down the road for a few years… However, even if it looks normal, which I don’t think it will… There will be inflation. It just may go unrecognised…
Before we move on to that first I want to give those new to money and how it works a quick education on it…
Given that in a recent poll 85% of the members of the UK Parliament don’t know where money comes from or how it actually works I’ll assume at least 85% of the people reading this don’t either…
So to those who do know how it works forgive me for teaching you how to suck eggs, but this stuff is kinda important…
Chapter 2 This Is Where Money Comes From A VERY quick education on how money is created and how confidence affects its value.
We have what’s called a fractional reserve currency. Which basically means you put your $1,000 of savings in a bank, and the bank can now legally create new money from fresh air… Yes you heard it right… You give them your money, which is now theirs and not yours. It may be yours when you go back to get it, but that’s only if the banks doing well.
So they create it out of fresh air…For example, they can create into existence, thanks to your hard earned $1,000 a minimum of $9,000… (usually a lot more, and in fact can be virtually any amount dependant on the banks appetite to risk)…
But let’s just say they created $9,000… Which they can then loan out to someone and receive 1-5% interest on a mortgage, 4 to 9% on a personal loan, or 5 to 35% on a credit card. Remember this all comes from money they created from thin air because they are legally allowed to.
This ‘created’ money is only backed by the central bank saying it’s worth what’s printed on the paper.
It’s worth saying that again as it doesn’t usually sink in the first time you hear it…
This ‘created’ money is only backed by the central bank saying it’s worth what’s printed on the paper.
If you don’t believe me, get out a bank not and see what it says on it… I promise to pay the bearer of this note X amount… Basically it’s an IOU from the central bank.
So these never ending IOU’s continue to flow through our economy and this is by everyone agreeing that the music is still playing and the game isn’t over. If and when we stop thinking it is worth what it says, then the value falls off a cliff.
Well a few weeks ago I stopped thinking it was worth what it says. I am an early adopter too… So there’s probably no mad panic… But I digress…
Money didn’t used to always be this way, i.e. valueless…
Once upon a time money used to be backed by Gold, however, that was removed in 1971. Which meant the central banks could just keep printing money, and more money as they didn’t need any Gold to back it up.
Each year they keep the ponzi scheme running by printing more money and aim for 2% inflation each year.
Inflation is a stealth tax on your cash. Since 1913 the US Dollar (USD) has lost 97%, the British pound (GBP) 99% of their value through inflation.
It costs zero to create a dollar, and as time passes the value of the dollar decreases.
The USD, GBP the Euro (EUR), the Yen (JPY) are all called FIAT money… Which is paper money or coins of little or no intrinsic value in themselves and not convertible into gold or silver but made legal tender by fiat which is an order of the government.
So when the governments bailed out the banks and gave the bankers billions, it was all just ‘created’ money out of fresh air… However, the sums they created all went on the countries balance sheets. So effectively they loaned themselves money for nothing and paid for something they couldn’t afford to pay back.
So they created this money when frankly they shouldn’t have done. Instead they should’ve accepted that their largest social experiment ever had failed, and so done what Iceland did… Default on the debts, and jail the bankers…
At the time I praised Iceland for doing exactly what you are supposed to do in a capitalist society… I.e. if a business fails, let it fail…
Back in 2011 everyone scoffed at Iceland, but here’s a chart showing their Gross Domestic Product (GDP) today…
History has proven Iceland was right to jail the bankers and default on the debt. They can now grow their economy on solid foundations whilst the main countries affected by the crisis all decided to kick the can down the road and mortgage their great, great Grand children’s future… Whilst not jailing a single banker… And allowing the law to be changed so that there is no chance of jailing a banker from the Cartel of banks in the next financial crisis.
So basically you’re money is being stolen from you even if you cannot physically see it being nicked…
But what actually is money…
Well Aristotle defined the 4 key characteristics of money as…
1) It must be durable. Money must stand the test of time and the elements. It must not fade, corrode, or change through time. 2) It must be portable. Money hold a high amount of 'worth' relative to its weight and size. 3) It must be divisible. Money should be relatively easy to separate and re-combine without affecting its fundamental characteristics. 4) It must have intrinsic value. This value of money should be independent of any other object and contained in the money itself.
Well here’s how different stuff stacks up against those characteristics
So even the world’s default currency the US Dollar doesn’t stack up…
So what is the risk free asset? Most would think the dollar…. Well that’s at risk from seizure, confiscation, and it is inflated out of value… And you have no idea how many are going to be printed… So all FIAT currencies especially the ones with zero interest rates are basically a massive risk.
Money what is it - Any commercial bank could create too much and generate overindebtedness in the private economy, which is what has happened. But it does mean that money has no innate value, it is simply a marker of trust between a lender and a borrower.
Which means cash is floating abstraction. We are all able to use it because we mimic the way everyone else we know uses it. A store of value Money should be a store of value too, and you can’t have that if some numpty with a printing press can, at a moments notice, decide to print more of it.
Now I don’t expect the fact that it is actually worthless to be much of a surprise to anyone. In fact it still shocks me when people say they are surprised…
However, money as we know it is only a diminishing store of value, whilst the vast majority of people think it is. When that stops then the value is gone. This is similar to what happened to the UK bank Northern Rock in 2007…
In times of crisis things happen fast…
On Wednesday 12 Sept that year Northern Rock asked the Bank of England for some cash because it had a liquidity problem.
By Friday the 14th Sept there were queues out of the door and down the road with people filing to withdraw their money from their branch of Northern Rocks banks.
By Monday the 17th Sept there were more queues and the Bank of England stepped in to guarantee depositors.
Now if the bank hadn’t stepped in then at some point there would’ve been no more money to give out and those depositors would’ve lost their money.
This bank went from being valuable, to stock holders losing 70% of their money in just a few days:
The shares were later valued at… Worthless…
And that no shareholder would be compensated.
Confidence was lost, and the value went to zero.
Other examples of the value going to zero are Zimbabwe dollars, German Mark (Weimar Republic), Hungarian pengő, Enron, Lehman Brothers, Worldcom, Delta Airlines, Monarch Airlines.
Here’s a picture of someone sweeping up the bank notes from the street after the Hungarian pengő was replaced in 1946…
I think there are multiple things going to happen in the next 6 to 18 months which bring people to the watershed moment when they realize that FIAT currency is no longer acceptable.
Chapter 3 Where We Are Now The eye of the storm & how to find shelter In 2008/9 I wrote that if they didn’t do something to solve the problem and let the banks go bust that we would have to face the true storm later…
It is my opinion that we entered the financial storm in 2007/2008 (depending on where you live) and we really left it some time in 2011.
However, I don’t think this was us leaving it. It could’ve been if we’d done what Iceland did… However, because we didn’t, we gave the financial terrorists a free hand to see how much damage they could really do.
So now I think we are approaching the time when we leave the eye of the storm and return to it…
Thanks to the blatantly stupid policies we are going back into a storm which has gone from truly awful to a whole worse level. What action I’ve taken to avoid the storm for my family and friends
Below is one of several versions of more or less the same message I sent to those close to me.
Hi ******, I decided I'd make the mistake of telling some family and friends about this... I don't expect you to do anything with it, but I felt to not say something would be wrong.
Very shortly the next predicted recession I think will actually be happening, circa 18 months to 3 years (maybe sooner).
The difference with this one is it will be a currency crash as the main problem. Which means all GBP assets will deflate in value and cash will fall in purchasing value too.
The crisis could come about by one of multiple problems, the last one was caused by the banks packaging various mortgages together and selling them, and putting in the product a range of loans, including a load of bad ones, which then failed and led to the good ones failing too.
With this crisis, it'll probably start with the bond market as the ECB attempts to taper it's purchases, which will cause a spike in bond prices which will bring the whole thing down... as to afford the increase the central banks will have to go from currently printing $200 billion a month to an extraordinary level. This is the prelude to hyper inflation.
Now they may be able to kick this can down the road for another few years, but there will be a massive currency devaluation at some point because of this. Couple it with the new Gold backed Chinese currency purchasing Oil not USD before the end of the year and it will likely mean the crisis will hit sooner rather than later.
Long story very short, I'm recommending you buy some Bitcoin say 10% to 20% of your investment fund (cash), and do it very soon.
Now if you can't buy that because you think I'm some rambling idiot, then buy Gold or Silver as they will be doing very well too. Gold and Silver won't do anywhere near as well, but they'll do massively better than FIAT backed investments (USD, GBP, EUR are all in big trouble - something which happens when you sustain printing $200 billion a month for an extended period ;-( ).
Also expect to see a Northern Rock moment to validate all these ramblings, but it won't look exactly like that, it'll be on the large financial market. It won't even look like Bear Stearns, instead look to the Central Banks for this Northern Rock moment...
There is of course a chance one won't happen, and instead it'll be a Lehman moment instead in which case the early warning sign was not there this time, and the chance of doing anything will not be there too. There is the possibility that a state pension plan could be the Lehman moment.
I could go on, but the main point is, remove at least a bit of your exposure to FIAT currency and hedging against a devaluation.
The exchange I am using is here: https://www.coinbase.com
Though there are many others, here are the top rated ones: https:// www.bestbitcoinexchange.io/
If you can get the money in before 16th November, if you can't then still put it in, you'll just be paying more.
We've been in the eye of the last financial storm for years now and the really bad storm is coming soon.
Be careful who you listen to on Bitcoin (blockchain really) as very few understand how much it is going to effect everything financial in the next 5 to 30 years. Think of it as the internet in 1994/95 - I think blockchain is at least as big a deal as the internet was, and probably a much bigger deal.
As such I am now moving 1/3rd of my cash and my short term investments into it, and have recommended it to all my friends.
Whatever you do put something in, even if it's only a few thousand as putting skin in the game will dramatically change things for you... E.g. you can't learn to ride a bike from a manual... You have to get on the damn bike!
Now I know none of that will convince you to act, but I had to try as I am doing with all the people around me. Please prove me wrong and decide to act! Even if you only stick 1 or 2 thousand in it now.
Get in now or regret the loss. Plus you will be getting in anyway at some point... This is not going away... It is getting stronger, much stronger.
You have my two cents, do with it as you see fit, I just felt it would be wrong of me to not say something to those close to me, even if they laugh and do nothing.
However, if you do it and get stuck on the technical side, let me know.
(name removed on purpose)
There you have it the purpose of me writing this book is to encourage you to go and buy Bitcoin.
If you want to stop reading now and either go and buy some, or ignore what I’ve said and what I have to say then that’s your choice.
The rest of this short book I’m going to dedicate to sharing an understanding of Bitcoin and the Blockchain and how it will affect you whether you like it or not.
I will also be covering how to profit from it in the best way I’ve found so far.
But before I start you should know a key point… I am not an expert on this, I am not a Bitcoin expert… In fairness the man considered to be the best advocate of Bitcoin on the planet regularly says he is not an expert too! Why? Because it is in its evolution phase and is only just coming out of proof of concept…
Now I do know a lot, as when I research something, I really research it… And I probably know a lot more than most who are already in the market and have made much more money from it than I have. But there are also people out there who know infinitely more than me technically, and a lot more than me on macro-details.
Where I come in is that I understand a lot of how the effect of a butterfly flapping it’s wings here, means money will fall from a tree in another continent. This is why I have been able to spot a lot of things before they happen and profit from it.
I also have a duty of care to those who have entrusted me with their contact details and so because I saw this coming, I felt I should forewarn anyone who bothered to read this far.
So far in the book I have prepared your mind for what is about to come… So without further ado…
Chapter 4 The Future is Bright… Prepare to be blown away!
So I’ve just shown you a lot of the problems I see coming, there’s more too… But I thought that was enough bad news…
Now we get onto the good news, the really good news, and the amazing news…
Previously when people saw a recession coming the advice was sell all you can, move to cash and buy gold… But now there is a new option which at first may seem scary and unsafe…
But it is simply a case of you don’t understand it now, the older you get, your ego seeks to cocoon you from new stuff which is a bit complicated. However, succumbing to your egos desperate want to do that will probably cost you a high percentage of everything you’ve got…
And even if you have next to nothing then there are ways you can profit from this and move your life to a whole different level…
Why you need to learn this now even if you don’t want to
Right now you will be somewhere on the scale of bored to death or feverishly wanting to learn more about what I’ve discovered…
Speaking now to those who are more towards the bored to death end of the scale…
You won’t want to get your head round this, and your ego will be telling you to come back later… Or it will have already judged me to be wrong (without any justification) and right now you are probably fighting it saying, ‘But I find Andy usually makes very good points’, whilst your ego is telling you to quit as you don’t need to learn this.
Let me tell you where your ego is right… If you don’t mind walking into the next global recession/depression and being hit with whatever fall out it throws at you, then your ego is right.
If however, you would like to be forewarned, or you like the idea of profiting, or you like the idea of understanding something so you don’t make the mistake of selling just before the price shoots up… Then your ego is wrong and you need to be here…
Either way, a lot of what I am about to share is going to shake your understanding about things and give you a new perspective on your and your families future…
Or I have just failed to convince you and you didn’t even read this sentence :-)
Back to those who are interested or are keeping their egos need to judge in check for now…
My Bitcoin Story… Firstly, if you don’t learn this stuff now, then it’s going to cost you more to learn it in the future.
How can I say that? Well one day you will be getting your head around this whether you like to or not.
So now you can choose to and it’ll save you and make you money, or later you’ll have to learn it when all the prices are more expensive…
Trust me I know what I’m talking about here…
I first learned about Bitcoin on either the day it came out, or the day after in 2008. My friend said it wasn’t quite ready and would come out in 2009…
Quick as a flash I said I’d put $40 into it to begin with… I think it would’ve been about $0.008 at the time… But it could’ve been cheaper…
Then I briefly considered it in 2010 when I read something else on it, but thought I had far more important things to do!
Then in 2011 I saw something else which dragged me back to Bitcoin and the price was $1.00… But again it was outside of my comfort zone!
Then in 2012 I was beginning to make decent money again and restarted my investing ,again after a few years recovering… I decided to not buy Bitcoin at about $10.00… I thought there was a better place for the £20,000 I was looking to place at the time.
In 2013 I watched as the price started to sore… I almost bought in at $350 but I was too busy to figure it out, and I was on holiday so felt I’d leave it…
I then patted myself on the back for not getting in then and losing money as it went to $1,000+ and back down to $400ish…
I later heard it was down at $200 and so I felt I was justified to ignore it.
In 2015 I looked at it again, and then finally… I got on board at around $235
It gained a little, then lost money… Not too much but a bit, say 10%ish… My ego kicked in with, ‘typical this stops printing money the second you get involved.’ Fortunately I was able to observe my ego and not react to it…
My plan was a long term thing anyway, so I’d wait and see as I’d only put money in that I was okay to lose, which meant if I didn’t see it again, or for a very long time I was okay with that…
I carried on with life and forgot about moving more money in that I had earmarked to go there.
Now of course Bitcoin is about $15,000
Choosing to not pat myself on the back for my highly shrewd financial investment… Instead I sat back and looked at how lucky I’d been and how this had taken no skill at all.
In fact had I not listened to my rational brain (fed by my ego), then I would’ve sent both tranches and been able to buy a lot more Bitcoin at $2,500
I’ve spent since mid September filling my time watching videos on 2x normal speed and reading endless amounts of blog posts and articles. Then while I was recently on holiday I connected the macro dots of the coming financial crisis and the current economy regarding Bitcoin and finally, clearly saw the opportunity starring me right in the face.
My research has gone into overdrive since then and as you saw in my message I’ve encouraged all I thought would maybe listen to get involved too. I’ve also taken a stronger position in a number of Crypto currencies.
In a nutshell, Bitcoin, The Blockchain and Cryptocurrencies are where the internet was in about 1992 - 1994…
The proof of concept has almost been achieved, and currently they still have a heck of a lot to do with getting the maths problems solved so that Bitcoin can be used in the way we use our credit and debit cards now… But it’s getting close!
Now, the secret is do you want in, before it becomes mainstream or after?
Previously I said that there’s no free markets anymore that they are all being manipulated by the big financial players… Well all accept for Bitcoin, it is a free market. I’ll cover how later.
Right now the Bitcoin market is tiny by comparison to other markets. People think they’ve missed the boat, this thing hasn’t even got going yet… This is where the internet was in 92-94, the boat isn’t even finished being built yet… But you can get involved in it.
When I started looking in May this year the Market Capital was $81 Billion. Today it is $215 Billion. The market has grown 165% since I started in June…
But this is tiny compared to global markets…
The gold market is apparently $2.4 trillion… Though there are a lot of people who think the true figure for this is nearer $5 trillion.
The silver market is apparently $5 trillion too.
Apparently the global hedge funds control over $2.1 trillion.
The total of US pension funds is around $25 trillion
Over the 60 main stock markets around the world there is $18.5 trillion as of 17th Feb 2016… So this is a lot higher now.
Apparently the Chinese alone have over $27 trillion in savings… Let alone how much is in everyone’s savings accounts around the world.
The 15,000+ Saudi Princes have a considerable sum, and right now many are questioning whether they’d like that money to be in safer places than the banks given what’s going on in Saudi Arabia right now.
The derivatives market is estimated at $1.2 quadrillion… Some say it is only 10 times the size of the global economy though.
Now there’s some double accounting in there, and there’s a heck of a lot I’ve missed out too…
So a quick guesstimate as to how much asset money there is out there:
Yesterday when I created that chart I forgot to include the bond market which is far bigger than the stock market and is over $100 Trillion…
I also didn’t include the new numbers of people coming online 4 billion of which have restricted banking… I’ll cover how a big a deal that is further on…
But back to the chart…
This is an extraordinary amount of money when you consider that they only estimate $75 trillion in the world… Yet the global economy in 2014 was $78 trillion… So someones got their sums wrong somewhere, or they just decided to not count some of it…
That doesn’t really matter…
What does matter is the 0.01% that all Crypto currencies hold…
Bitcoin value as a whole right now is $119,718,354,532 (119 Billion to keep it simple).
As I type the price of Bitcoin is $7,177.01. If I had spent my $40 dollars in 2010 as I intended to then my growth would’ve been 897,126 x $40 = $35,885,040…
If I had put my £20,000 in, in 2012 then today that was $32,000 @ $10/Bitcoin = 3,200 Bitcoin… Which at today’s price is a pathetic $22,966,432!
But people think Bitcoin is high, overpriced, in a bubble. None or all of that could be true… However, I intend to convince you that it isn’t, and I will go much deeper on the bubble question later.
If 1% of the Gold market moved into Bitcoin then what would Bitcoin be worth?
The maths - $50 Billion moves into Bitcoin = the market goes from $119 Billion to $169 Billion… So a Bitcoin is now worth 142% of it’s current value so goes up to $10,191…(This is from November when I first started writing this)
Is that right? Or about right?
Because you are not factoring in scarcity of Bitcoin. The Fed can just print money, all central banks can… If you have good enough credit, then they’ll print you some more.
There are currently only 16,680,812 Bitcoins in the world, and there will only ever be 21,000,000.
This is not including forks for those in the know, but I am not going to discuss that multi-tangential discussion here. That will be later for any interested.
Getting back to the point.
Bitcoin is a limited supply, so when you buy one and put your $7,177.01 in… The true value is increased in a different way as there is limited supply.
So some experts say (I’m talking about Polymaths and really clever maths geniuses) that if 1% of Gold money moves into Bitcoin just as a hedge against it really taking
off… Then the value of Bitcoin doesn’t just go to $10.191… Instead it goes to $174,000. I think you may want to stop reading this right now and just consider how little money needs to move into Bitcoin for it to go up in value 2,424%. § Just so you know, Bitcoin is almost infinitely divisible, so if you put in just $100, and that amount of Gold money moves in… Then you get $2,424!
You times your investment by 24 basically.
But it gets better… A LOT BETTER!
Given the amount of money looking to come into Bitcoin, they are already saying it should hit $50,000 at some point next year. This would be a paltry 697% return on investment.
So $100 ONLY becomes $697!
The inventor of internet security John Mcafee, who is also a large Bitcoin miner has a bet on, that Bitcoin will hit $500,000 within 3 years… As John said when asked will he lose, ‘I don’t lose bets’.
There’s plenty of people who say Bitcoin will hit a million per Bitcoin at some point in the next 5 to 7 years… Some very clever people are looking at 2.5 million, and a few clever folks at about 5 million!
You may want to pause again as this could be life changing money for nearly all reading this. I suggest you re-read this section again, even if your ego tells you it’s too good to be true.
With Gold the exact amount in the world isn’t known… They are guessing… And they are always digging more up. However, Bitcoin will only ever have 21 million.
Stacks of Bitcoin have been lost, stacks more are held by the guy/team who created it, stacks more will be lost, and the vast majority of the remaining 14 - 15 or so million is held by long term investors.
Which means there’s actually only a few hundred thousand Bitcoins that actually change hands regularly.
What do you think that will do to the price when the hedge funds begin to move real money in?
This year the best performing hedge funds all had 0.01% of their fund exposed to Crypto currencies… Right now every hedge fund is looking at blockchain (the structure that Bitcoin and all Crypto currencies are built on).
Let’s say that in January they put 1% of their funds at risk… Bitcoin will probably hit $80,000 to $120,000 per Bitcoin.
Is this just hype though? Do the money people feel safe with Bitcoin and some other Crypto currencies yet? Some do, some don’t… It’s evolving FAST!
Let’s get your mind back into focus as I’m sure there’s a lot going on in there right now…
Right now your mind is probably on the scale of this is too good to be true - rising to - feverishly excited. Basically I’ve told you this to get you thinking and watching what’s going on inside your head.
What I’m going to do now is coldly take you through Crypto currencies and lead you towards my conclusions.
Whether you choose to accept them or not is entirely up to you.
Chapter 4 Lets ‘try’ to look at this calmly… You are about to see the future change
Side Note: Before I begin, please understand that as soon as this has been written new facts are being presented to me and therefore I will revise my opinions when confronted with these new facts. I have no need to be right.
What you are about to read is a collection of my notes and I have used the shortest time possible to collate them, so I may say things twice, and if I do you probably needed to hear them twice.
I know at least 95% (probably more like 99.5%) are not involved in bitcoin, and at best have just anecdotal interest in it… However, I encourage you to read this as if you do, and if I manage to share enough with you. Then both you and your family will benefit… Because Currency doesn’t matter until it does!
Most people mis-judge Bitcoin by doing far too little research (as did I). Many of the points I make below are coming in and haven’t quite happened yet, many have.
This sums Bitcoin up for me:
“Anyone who’s got a brain, a conscious and a desire to be free wants to be in crypto.” - Max Keiser What is Bitcoin and why is it going up in value?
Bitcoin is currency that exists on the internet to serve the needs of the internet.
Bitcoin, the entity itself doesn’t belong to anyone like the internet doesn’t belong to anyone. It is not owned by a bank or a government. It isn’t a company, nor is it a product or a service, it is simply an internet protocol. Its nature is that, it is a method of communication just like the internet itself or email.
• It is a shared good • It is controlled collectively by the participants • It is not controlled by any one person • It is decentralized • It is a digital currency
It is a nationless currency that is open and global and it is something that anyone can participate in without any id or passport…
And if you want, even without anyone knowing who you are.
Bitcoin is neutral, transparent, global and open… And belonging to anyone.
It requires no qualification to enter or access the system and is not under any control of any government or bank.
Bitcoin is in a nutshell is Freedom to do what you want with your money.
You can send and receive bitcoin from your mobile phone.
You download an app just like you download an internet browser, set up your own ID without proof and you can now receive bitcoin. And I think you can even do it without setting up your own ID too.
Just like the internet it is borderless, Bitcoin is borderless! (this is world changing, more on this later)
Which means there are no financial restrictions AT ALL to moving money. It is my understanding that when you change your Bitcoin back to FIAT currency and repatriate it, then your gains are taxable, and your losses are tax deductible.
At its core, Bitcoin is just a way to send and receive value without the need for a trusted middleman. It is a transfer device that sits outside of the traditional banking system.
Bitcoin is a trans national currency and the parts of the world that are struggling will be the ones who are the early adopters. (More on the world changing impact of this later too)
You can’t double spend coins, you can’t spoof (counterfeit), you can’t take your coins back, there’s no charge backs in the entire system. Once you have made a payment the payment is final, unless the recipient chooses to repay you.
When you own Bitcoin, you become the bank. Like HSBC, BOA, Barclays, RBS are banks. When you own Bitcoin you become the bank of you.
It is data that is shared worldwide that is guaranteed to be true and authentic. It removes trust from the equation!
It is a representation of what has actually occurred. There is no fudging the lines.
It can be as public or as anonymous as you want it to be.
This all means you can deal with someone and not need to know if they are trustworthy or not.
Bitcoin eventually will equalize opportunity to capital. It will in time allow free access to the stock markets to everyone on Earth. It has the ability to do more to prevent poverty than ANYTHING that has ever been created before BY MILES! (More on this later)
All FIAT currencies USD/GBP/EUR and many more all need trusted middlemen for you to send and receive value, and you pay them for that service, sometimes you pay them a lot. With Bitcoin you can move millions for a few cents or a few dollars depending on how busy the network is.
People say there’s nothing backing up Bitcoin, but that’s not true.
There are apparently over 100,000 developers working on the Bitcoin code, and working for FREE… There’s over 100,000 Bitcoin miners in Venezuela alone! Let alone the rest of the world!
These miners are currently using the same amount of electricity each year to back up Bitcoin as the country of Macedonia uses.
These miners pay with their own money for electricity to back up Bitcoin, and in return they are rewarded with a little bit of Bitcoin.
So is there anything backing up the US Dollar?
No, there's nothing backing it up…
President Nixon took it off the gold standard in 1971.
So the dollar really is... just a promise... an "act of faith.”
Bitcoin is an act of faith too, except it is backed up by an unbreakable cryptography that is reassessed by all the Bitcoin miners every 10 minutes!
That’s a lot of people keeping check on this being real and true every 10 minutes… How many are checking on the central banks?
Quick side note on Bitcoin and other Crypto Currency Miners:
Though I’m not going into this in detail in this book. Anybody with a computer and a good graphics card can become a Cryptocurrency miner. It means you are using open source software to solve big maths problems. The more powerful your machine + the lower the price you can get for electricity = the most profit. Crypto miners swap between the currencies they are mining depending on the profit level that day. This is one of the fastest new job creators in the world today.
Now back to the point…
If someone tries to fake something, then it’s down to a consensus of opinion as to who is telling the truth. Think about it like playing Football as a child.
Someone scores a goal, the goal keeper says it wasn’t a goal, and then the rest of the players reach a consensus as to whether it was a goal or not.
So to fake Bitcoin you’ve got to get over 50% of 100,000+ people dotted all over the world to agree with your version of events… Good luck!
Bitcoin launched in 2009 and has never been hacked. Apparently the NSA spent 6 months trying to hack it and concluded it would cost $35 billion to create 1 fake Bitcoin… I have heard this, but not seen anything to back it up, but then they don’t really say much do they.
The reason why it’s powerful against the NSA and who ever else attempts to hack Bitcoin, is that it has also been designed to self-protect. Which means anyone who wants to try to counterfeit it will have to expend so much time, computing power and
electricity to do so, that as soon as they begin to look at it they will realize they can make more from mining Bitcoin than trying to counterfeit it. So what really backs up currency? A digital currency is no different to other currency, ie. people have decided it has value. It's simply internet-based money. And is like any other medium of exchange. Everyday more people decide Bitcoin has a value.
One other key thing which backs it up is…
It now costs $1,000 in electricity to mine 1 Bitcoin, and the supply of new Bitcoin halves every year, so costs will double annually. Meaning the value should theoretically at least double annually.
Plus as the value increases the more miners come into the market and so the cost of mining will increase and the value of the bitcoin will increase too. Clever or what!
So there is proof of work with Bitcoin at it costing $1,000 to create each one… But it costs zero to create a dollar. They are created out of fresh air and less than 3% are ever turned into physical cash. …And as time passes the value of the dollar decreases.
As of 2017 the US Dollar has devalued 96% - 98% on what it was worth in 1913. As time passes there are less and less Bitcoin available, however, it can be broken down to an almost infinite fraction of a Bitcoin. So this means the price of Bitcoin rises whilst demand remains strong.
Today, the biggest US exports are dollars and government debt. The US government can create unlimited quantities of both… from nothing for free!
It requires no effort to create US dollars, which can then be exchanged for real things like French wine, Italian cars, electronics from Korea, or Chinese manufactured goods.
You tell me what has more value… Something they can print unlimited amounts of, or something which has a finite amount of which cannot ever be grown. One of these is a depreciating asset, and the other an appreciating one
So Bitcoins value is fueled by demand…
Here is a chart which tracks the number of Bitcoin Wallets using unique IP addresses, currently it shows over 700,000…
Which is tiny compared to the number of people in the world.
Simply put, the more people who use Bitcoin, the more valuable it will become.
It is thought that currently there are about 25 million people in the world who actually own bitcoin or another Cryptocurrency. However, the worlds largest exchange is currently adding 100,000 new accounts every day or so as demand is massive, and growing.
Which means demand is far greater than supply. A key thing in any true capitalist system. (More on this demand later)
In May 2017 the Cambridge Centre for Alternative Finance has set the number of active cryptocurrency users across the world at 3 million. It includes people who use either one or more cryptocurrencies that are currently available in the market.
However, as I previously said others think the number is probably more like 25 million, but I’m just guessing. Then again, anecdotally the lower number seems more likely given the number of friends I have using Cryptocurrencies. I digress…
So how far into this are we?
At the moment there are 3.58 billion internet users. It is expected that another 2.5 billion will come in before 2025.
Also world population will grow to 9 billion by 2040 minimum which should produce another 2.02 billion users.
That’s if you actually think this projected figure bears any resemblance to reality.
Going on history I’d say that something between 11 and 12 billion would be a more accurate calculation:
When widespread broadband is available, and people understand there is no need for bank accounts then Crypto will explode into everyday use. But that is a way off yet!
So let’s do a little calculation of all these numbers…
So right now there’s probably somewhere between 1 in 143 and 1 in 1,193 people using Crypto…
If you asked me to guess then I’d say the figure would be heading towards the 15 million plus. But forget that… Let’s just use the lowest and most conservative estimate of 1 in 143…
Now all of these people aren’t going to join… Well not yet anyway…
Remember they have no need right now.
When need kicks in the game changes, when FOMO kicks in the game changes, and when people stop seeing FIAT currency as valuable the game changes.
So this means there is massive opportunity for anyone getting in before the stampede. Well in my opinion anyway, which is why I recommended it to my friends and family, and why I wrote this for you.
Not convinced? Well the image above is from Google Trends… It was taken on the 8th Dec 2017…
Bitcoin price yesterday topped over $19,000 on some exchanges.
On the 6th of December in the morning the price was $11,900… So yesterday the price went up $7,000+… And today the price has fallen to $15,500…
And yet nowhere, not even at number 242 on Google Trends is anyone mentioning Bitcoin…
The problem people see on Facebook is their algorithm sends you more things you like. So you end up thinking everyone in the world is talking about the subject that you are interested in… It ain’t necessarily so :-)
Bitcoin hasn’t reached the mainstream yet… It hasn’t even got close to starting it’s real bull run.
Now those figures I mention are also based on figures at the moment when no one puts the majority of their money in bitcoin.
In fact virtually everyone in it are just using their ‘take a punt’ money, most people have $500 invested and no more.
Right now if you averaged the amount of money per Crypto user it would come out at about $8,600 each.
Well I know several people with millions. There’s a whole list of people I could name with tens of millions, and a few with hundreds of millions, and maybe one or two who have a few billion. And I know the creator of Bitcoin has $7 billion.
Apart from those notable exceptions most users are on $500 ‘take a punt’ money right now…
What happens to the value when they go from speculating to storing their money?
There’s a lot of private money out there…
When this goes mainstream and it becomes trusted in the same way as FIAT currency is now trusted, then the growth will be exponential.
Unless another currency overtakes Bitcoin as the reserve, then I see no reason why Bitcoins will not be worth 1 to 5 million dollars each in the future.
And for those who like the maths…
$100 buys 0.71% of a Bitcoin on the 15th November 2017… So that would make the £100 worth $7,100 to $35,500…
I don’t see a better bet for the average person than this, and it is also a hedge against me being right. What’s the worst that can happen, you lose $100!
People do not appreciate that for the first time we have an asset which is not only durable, portable, divisible and of intrinsic value which is independent of any other object and contained in the money itself… But, is also of limited supply.
We don’t know how much gold there is out there in the world yet to find. And if you believe the rumors then the US for one has a lot more than it says it has.
And there is also virtually no cost to store limitless value of Bitcoin.
Think about this…
The dollar is not limited in amount but it is extensible (which means it is designed to accommodate changes), Gold is limited in amount, but is not extensible.
Bitcoin is limited in amount and is extensible.
Which one do you think will win out?
The world has moved on a little bit since the creation of money, a long time ago, Bitcoin is the start of a revolution in what we know as money. What is the Blockchain?
The real strength of Bitcoin is the underlying network of highly secure computers that support it. These computers run a new form of database called "blockchain."
Blockchain technology enables you to move money and data without having to rely on a trusted middleman. No words can really describe how revolutionary it is…
If you think in terms of as impressive as the Gutenberg Press which led humanity out of the dark ages in 1440. Or the Steam Engine in 1763. Or the Internal Combustion Engine in 1859. Or the Telephone in 1876. Ot the Airplane in 1903. Or the Internet at the start of the 1990’s.
Just like all of those were massively disruptive to the status quo of the time Blockchain will be to us over the next 30 years.
You are looking at technology that is going to affect and disrupt most aspects of business and in how we trust, and it will affect the lives of almost every single person on the planet. I will give a few suggestions of how it will affect things other than finance later on.
The good news is you are almost certainly reading this now way ahead of when everyone gets to know this. Right now, this Blockchain thingy means virtually nothing to 99%+ of people. Which means opportunity for those who ‘get it.’
More simply… Blockchain is a line of code that is unique on a peer to peer basis. Peer to peer, means sending from one person to another (anywhere on Earth - no borders!) without anyone else ever having to be involved!
Blockchain is a distributed database. There is no controlling database. Everyone uses a protocol and all are peers, there is no hierarchy.
Here is an example of it:
how it works moving it between two accounts you’ve opened:
1. You go to the place where you want to send your Bitcoin and they give you a unique address like the one above to send it to. 2. You copy that code. 3. You go to your wallet or wherever you store your Bitcoin and you open up a send Bitcoin link. 4. It asks you how much. 5. You enter that. 6. It asks you for the unique address & you paste what you copied in. 7. You click send
30 seconds to 15 minutes later your Bitcoin is where you sent it.
You can send it anywhere around the world in the exact same process. The whole process takes 1 to 2 minutes without rushing. My first time took about 30 minutes because I was concerned about getting it wrong.
If you send it to the wrong address, i.e. you didn’t copy and paste it correctly then you will lose all you send! So I check the first 3 digits and the last 3 digits just to make sure I haven’t deleted one by mistake.
The blockchain is a link of every single one of these transactions that has ever happened. It is like triple entry book keeping. You send it, the receiver gets it, the network verifies it.
More simply the Blockchain is a database of who has what, or rather what public address has what.
The difference with this database over the common hackable databases like credit companies and all other institutions keep, is that it is decentralized… And so everyone has to agree what happened.
You don’t get some fool releasing yours and thousands of people’s details by mistake. You don’t get some corrupt person stealing because it’s all about proof of ownership which is protected by cryptography.
The future is blockchain, this is why most if not all governments are looking at it right now. Their idea is to create their own version of the blockchain for their individual currency. When they do that, then what have they achieved?
They will have achieved what they have been trying to achieve for over 100 years… The removal of cash from the system. This is anti personal freedom from my point of view.
The sad fact is… You are going to lose your cash one day soon anyway. So why not profit out of it now.
Personally I now think that Blockchain will end the current scam of currency debasement.
Right now we are all under the rule of the bankers, those who create and manage the currency. Blockchain changes that and puts the control out of any one persons reach. It turns it over to a consensus…
Blockchain is all about consensus, and right now there’s 5 constituencies within the consensus mechanism…
1. The Miners 2. The Merchants 3. The Web Wallets 4. The Exchanges and banks 5. The end users and the wallets they choose to use
So consensus now depends on all 5 parties achieving consensus…
As time goes on this need for consensus will eventually prevent hard forks. Can another Cryptocurrency come along and overtake Bitcoin?
Yes it can. But it is not likely to.
The biggest chance of this right now is one of Bitcoins own forks… A fork is where the developers disagree and a large percentage of people want to break off into a new fork.
There’s a lot of talk about forks at the moment, and there will be for another few years as this technology alters itself to handle the expanded demand.
When a fork happens a new fork off of the Bitcoin timeline is created and effectively everyone who holds 10 Bitcoin in one fork is supposed to be able to claim their 10 new coins in the new fork.
It happened to me with Bitcoin Cash (a fork) and I looked at one of my accounts one day and there was a load of new coins in there which I didn’t pay for! Sweet! It was like a share dividend! …And these were trading for $700 each at the time. They recently went to $2,500 each, and fell back to $1,000.
Other Cryptocurrencies are created independently of Bitcoin.
Some use the same or similar protocol (system) and another called Ethereum created a unique new blockchain which the majority of new Cryptos are building their business on.
There are hundreds of Crypto currencies, with more coming in almost everyday…
You will see that currently there are 1,293 Cryptocurrencies listed…
To put that into context before 2009 there were no Cryptocurrencies, and there were circa 190 currencies in the world.
When I started looking at this in May, there were 744 Cryptocurrencies listed. So since May there’s a new 549 currencies been created!
Right now there is an explosion of Cryptocurrencies going on, and it is the wild west…
That’s not to say there is not massive profits, and massive losses to be made. But it is a high risk game as with each new currency they come up with a new idea of how to do Crypto. The Bitcoin developers then see new things they like and if possible adapt Bitcoins protocol to suit the new innovation.
So the new Crypto is helping Bitcoins development.
And every Crypto currency that comes out competes against bitcoin for market share so can diminish Bitcoins value. However, because the market size is still so small,
and these other currencies (most known as alt-coins) are looking like wannabes, then Bitcoins share of the market remains dominant.
But with each incarnation it also validates the primary idea of Crypto currencies and therefore they feed into Bitcoins value proposition.
They also use Bitcoin as the primary way of buying and selling their Currency. Like the US Dollar is currently the world reserve currency, Bitcoin is the Crypto Universe reserve currency.
So my guess (as I have only been looking at this for a few months) is Bitcoin will continue to be the store of value and all other Cryptos will go through it.
This all means, that I think and have seen Bitcoin grow stronger as other Cryptocurrencies are created and added to the market.
There are sites out there with all the upcoming ICO’s (initial coin offerings) where you can buy in and get bonuses ahead of the coin or tokens launch… But that’s not really for this supposedly short book. The Network effects of Bitcoin The network effect is a phenomenon whereby a good or service becomes more valuable when more people use it. The internet is a good example. Initially, there were few users of the internet, and it was of relatively little value to anyone outside of the military and a few research scientists.
7 main network effects that make bitcoin unassailable
1. Speculation - You’ve got to be able to Secure your Bitcoin, trade your bitcoin, (wallets and exchanges)
2. Merchants who accept Bitcoin
3. Consumers who use Bitcoin because merchants accept it
These 3 things mean the price of Bitcoin goes up relative to other assets in the economy. Which increases the ROI for miners of Bitcoin.
4. More miners move in to secure the network
5. The developers - the smartest and most competent mathematicians are going to work on the Mount Everest of problems - they are releasing their creative genius. They do the work for free, because it is intrinsically fulfilling to them… They do not care about Bitcoins value, they do not care about you,they are solving huge problems and love it. They are doing what they love to do!
6. Financialization - the many routes for capital to come into bitcoin
7. The world reserve settlement currency in addition to other applications for establishing trust. (not here yet - but if it gets here then millions of dollars of value per Bitcoin)
Ebay went to the moon when it went from one network effect (buyers and sellers) to two, when it added Paypal.
Most people who look at it will see the tremendous advantage in jobs, growth and innovation in blockchain and would rather profit from it than try to fight it. Why does the price of Bitcoin vary so much and is it a bubble? The price fluctuates so spectacularly mainly because of the speculators not understanding the fundamental value of the technology.
That is what I have attempted to correct here by teaching the value of the technology to you. This is so when you join in, you don’t get spooked like the normal speculator will do.
You are seeing a currency devaluation not a bubble. You are seeing the early stages of a devaluation of the US Dollar, the Euro, the Pound, The Yen and every other FIAT currency on the planet.
As Bitcoins price rises the purchasing power of FIAT money diminishes at an almost ever increasing rate.
Now A bubble is something which bursts and dies… Whereas Bitcoin keeps coming back far stronger than it was before, this is not the nature of a bubble market.
There’s two demands on Bitcoin - the speculative demand, which is all over the place…
Then you’ve got the transactional demand, the utility this provides negates the value of it. In other words it doesn’t really matter what the price is.
Bitcoin is an equity based monetary system just like gold is. Can it become worthless?
Sure as can gold!
But with everyday it is around, trust is further built in it. So if it can’t become worthless, then how much capital will be allocated to it?
As I showed earlier, right now there is at least two hundred trillion dollars in gold, plus stacks in cash, trillions in bonds and stocks… You want to talk about a bubble, well the bubble is the FIAT currency bubble. This is a bubble that really can evaporate into absolutely nothing.
For FIAT currency to go to war with digital currency they basically going to war with maths, do you really think maths will lose?
2017 to 2020 is a race to accumulation. Probably 2017 to 2030 is a race to accumulation.
The Crypto market today is around $230 billion, it was around $200 billion when I started making notes for this a couple of weeks ago! When the internet bubble hit it was at 6.5 trillion.
Think about that for a second…
The Crypto market would have to grow 2,826 times bigger for it to become the size of the internet bubble… And that is without considering the value of the asset.
What you’ll hear a lot when you get started in this is people saying this is a bubble, it’s going to burst… These are uneducated as to bubbles.
What’s still considered I think as the biggest bubble of all time was the Tulip bubble of 1636-1637.
At the time the price of a tulip bulb went through the roof… (see next page)
Now at the time the average Belgian workers salary was 150-350 Guilders a year… What sort of price do you think Tulip bulbs were being sold for at the peak in 1637?
Have a guess before looking at the answer…
Remember we are talking about a flower bulb here, not Gold, not some extremely rare item that dropped from space… A flower bulb! How much do you think it sold for?
They sold for 4,000+ Guilders…
Now where most think Bitcoin is on that bubble chart is near the top, or over the top of where Tulip mania fell apart.
Personally I don’t think it’s in a bubble at all, it all feels mathematically about right to me (something I intend to prove at some point soon).
But… Sure it gets its highs and it gets its lows which are higher than previous lows. I think this is a result of not having much of an ability to buy shorts on the market. In other words, when it starts to rise it carries on too far, and then over corrects too harshly.
But let’s say I’m wrong and it is in a bubble… Where it is in relation to the Tulip mania chart above is probably 1632…
And… Just because a market is bubbly it does not mean it’s not going to expand!
I think this because there is massive addressable demand - we haven’t even started yet…
But consider this…
Bitcoin is not physical… So it’s almost nothing… Does that matter? Does it really matter that it’s intangible, and just digits?
Well consider this…
Airbnb is the world’s largest accommodation provider… I think the biggest used to be one of the big hotels… Yet Airbnb owns no property!
Alibaba is the world’s most valuable retailer… Yet they have zero inventory!
Uber is the largest Taxi company… Yet they don’t own any cars… And their drivers work for themselves…
Bitcoin could be called the worlds largest bank today… But it doesn’t hold any money.
You are now witnessing a massive disruption in the world…
So personally I think Bitcoins price could end up being a rounding error! If there’s a bubble… It hasn’t started yet! Does Bitcoin have any intrinsic value? Us using Bitcoin is what gives it intrinsic value.
The more we can say, “Can I take this token, coin, or digital whatever and use it to buy eggs?” Means it has real use value. …And right now there are debit cards you can load up with Bitcoin which you can use anywhere that accepts Visa.
As time passes, more will begin using these debit cards for everyday life…
Money value is created over time by adoption.
…And this will happen as Bitcoin evolves to a point where you can use it to buy
Which you can now, it’s just most people don’t know you can.
Bitcoin has many advantages over the Dollar…
Currently its advantages are making some people question the dollar…
As soon as what I’ve shared with you in this book becomes more widespread then it will make a lot, lot more people question the value of the Dollar too… And one day I think it’ll make everyone question the Dollar, the Euro, the Pound, the Yen…
What do you think that will do for the value of Gold & Silver as more and more people begin to first question the value of the folded paper in their pocket?
Blockchain is intrinsic utility as opposed to bananas which have intrinsic value.
Currently Blockchain to me has a massive intrinsic value as I see it changing the world… However, before starting to read all of this it almost certainly had zero intrinsic value to you.
So it’s down to what you think it’s worth.
Personally… ‣ I see it as having the ability to move the 3rd world up the scale and unleash all the creative minds currently going to waste there. ‣ I see it as being a bigger hand up for people in need than all of the charities in the world added together. ‣ I see it as having the ability to create an un-manipulated and therefore free market for all, not just the privileged few. ‣ I see it as having the ability to store unlimited wealth which cannot be removed from you unless you choose to let go of it. ‣ I see it as having the ability for you to become nationless in your financial dealings (with the exclusion of paying tax as due wherever you choose to domicile yourself). ‣ I see it as something that will evolve our species at a rate which we can currently only ‘hope’ for.
You can decide for yourself if you think it has value to you too.
Can Bitcoin be considered a store of value?
A store of value is the function of an asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved.
The most common store of value in modern times has been money, currency, or a commodity like a precious metal or financial capital…
So can Bitcoin achieve what’s needed for you to consider it a store of value?
Currently the price is fluctuating 30% either way and over very short periods of time. This is because there is no downward pressure on the market. When that changes then I think it’ll begin to look like what we think of as normal markets.
So the question is…
Do you consider the Stock Markets and the Bond Markets, and the Gold Markets a store of value? As their price fluctuates a lot, it’s just not a lot when compared to an evolving Platform that is barely out of proof of concept stage.
Some describe Bitcoin as just a payment system and not a store of value, personally I see it as both.
…And while we are on value I think it’s important to not focus on the price. The price makes us excited as it rises, and makes us doubt our choice of money placement when it falls. But over time you get resilient to these price fluctuations.
So I have found that I am less and less interested in the price, and more interested in learning about the underlying value so that I am not nervous when the prices falls as it will before it grows again.
The secret is to get in and have a play. If you don’t need the money back for a while or at a certain point, then I think it is a brilliant store of value as it is appreciating as the FIAT currencies are depreciating.
This also means other assets that are backed by FIAT currencies are depreciating against it too… So are they actually a good store of value? What money is actually coming in to the Crypto Markets? In a word lots…
Anyone who is anyone in the Hedge funds, Wall Street, Banking, and Central Banking world is currently looking at the Bitcoin market with a view to do something in the space.
Because Bitcoin is out performing BY MILES every other market on the planet.
The best performing hedge funds in 2017 all contained an element of Crypto currency. I know a lot are thinking of raising their stake from just 0.01% of their funds to maybe even 5%!!! Now this doesn’t sound like a lot, but it is a humungous amount of money.
The world financial sector started laughing at the idea of Cryptographic currency probably as soon as it came out. Almost all of them have stopped laughing now. Last year they started taking it seriously, this year their lack of attentiveness has smacked them in the mouth.
The Chicago Mercantile Exchange & Chicago Board of Trade otherwise known as CME Group announced its bitcoin futures specs a few weeks ago. I think that starts in Jan or Feb 2018. But it may be sooner!
Alongside this, the Chairman Emeritus of CME Group, Leo Melamed, told the press Bitcoin is set to become a new asset class.
When it receives that classification then Bitcoin will be around $100,000 minimum. That should happen within 18 months maximum. At this level… $100 now = $1,405 to $7,025.
Tim Draper is a guy who bought 30,000 Bitcoins a few years ago and predicted a while back that Bitcoin would be $10K by 2018. I think he’s probably right. My network of Crypto enthusiasts who I work with have a consensus of it hitting $20,000 probably by April.
Draper, is still bullish about cryptocurrencies. In fact, he thinks that digital assets like Bitcoin will be so prominent that using FIAT currencies in five years will be considered laughable…
Basically capital will go to where its treated best. At the moment the artificially inflated Stock Market looks best, then as the Central banks attempt to taper off the loans then the Bond Market will look great for a while… Then when anyone of the tipping points happens the money will go to the safe haven stores of value when a crisis hits. Gold, Silver, Bitcoin.
We currently don’t have a capital market, we have the illusion of a capital market, and we need a capital market to have a vibrant economy. You need a true fair free capital market where most especially interest rates are set by the voluntary interaction of buyers and sellers of borrowing and in lending money… and we don’t have that today. That’s yet another major thing we gain by blockchain.
The new Yuan currency which is backed by gold will take the USD away from oil soon, this will cause the USD to lose a significant amount of value.
This will push money into Crypto.
What’s more there is a lot of talk of Bitcoin possibly becoming a Gold substitute.
This month searches on Google for ‘Buy Gold’ were overtaken for searches for ‘Buy Bitcoin.’
The Gold market looks good in the next few years, but even Gold evangelists are looking at what they see as shocking gains in Bitcoin…
I wouldn’t be at all surprised if holders of Gold over the next 18 months didn’t put 5% of their money into Bitcoin thanks to FOMO…
Some experts think if they put 1% of their reserves in then Bitcoin will hit $1 million… However, if they put 5% in, then it will for sure… $100 now = $14,015.
In recent weeks the Russian Association of Blockchain and Cryptocurrency (RACIB) has reportedly received 40 applications from companies and individuals from European Union countries and China to place mining equipment in Russia to mine bitcoin. This was conveyed to Ria Novosti by the association’s president Yuri Pripachkin last week.
Russia has huge energy reserves and so produces very cheap electricity, which is perfect for Bitcoin miners… Couple that with Russias low tax level and it has made it a very good place to go to mine Bitcoin. Serious investment is coming in to set up large Bitcoin mining centres.
Russia itself is looking to release its own Cryptocurrency within the next 18 months to 2 years too. Personally I don’t think they’ll get it right because they will try to impose rules that don’t suit Crypto…
However, this move will popularise Bitcoin as a whole and attract new money to the market.
As for institutional money coming in, well it’s hard to keep pace with the spate of stories surrounding institutional support for Bitcoin right now.
But yesterday Coinbase who are the biggest Crypto exchange in the world announced that they are setting up a vault to try to offer mitigated risk to institutional investors. Basically guys stuck in the dark age and want to know their money is under lock and key, or rather behind a big safe door.
This isn’t for everybody, just the guys investing $10 million plus and the ones who can afford a $100,000 set up fee.
The reason I put this here is to demonstrate that serious money is coming very soon, and your opportunity to ride this wave is now! Not when you’ve saved up $1,000 or $10,000… Start with $100, $500 and then kick yourself later when you realise you should’ve put in more as I did…
Kicking yourself is good like this, as you’ve
grown in the process. Yes it costs you money, but there is value in that if you can see it.
There are now the family offices (accounts for rich families) looking to store multigenerational wealth in it.
There are multiple, multi-trillion dollar funds looking at Bitcoin. This is not a bubble, it’s just starting… As I said…
There’s a lot of money coming in, but not in yet. Personally I see it as shooting fish in a barrel at the moment.
I could go on here and explain numerous news stories right now, like why the worlds largest ATM manufacturer is looking to sell Bitcoins from its machines, and launches a new app to do it too. To another Hedge Fund about to launch a Bitcoin Future…
But I think you get the point that we are about to see a massive influx of institutional money into the market.
To the right you’ll see 6 images which were taken from March 2013 and then every mid November since then. It shows the different vendors now accepting Bitcoin.
As you’ll see the number is tiny still, but growing, and most importantly spreading. No one is paying them to do it, they are just doing it.
The problem with banks…
Bitcoin and other Cryptocurrencies are really a disruptive innovation for numerous industries, but the first one that is going to be hit is banks.
Why should we be glad to see the death of banks in their current guise…
There’s 3 massive problems with banks
1. If you hold money in banks, they own the money you don’t!
2. The banks get to spend that money on what they want. The economy is at risk dependent on where the bank spends that money!
3. Fractional reserve is not how money is created. The amount of money created is down to the banks appetite to risk, which is why leverage of 1,000 to 1 exists in places! And can be much, much higher too!!!
Bitcoin solves these 3 massive problems…
1. You hold the money, you are the bank, you own the money! 2. Peer to peer payment is independent of the banking world! 3. Bitcoin works the opposite to FIAT currency, which deflates over time while increasing the amount of it. Bitcoin inflates over time through a lack of it. It is also a foreign currency to everyone!
The real value of bitcoin is a transfer mechanism - to remove the need for the swift system, the foreign exchange rip off, to allow the majority of the human race who can’t get a bank account to grow themselves out of poverty
The reason I am not a fan of charity is that it sees the need and not the cause. Bitcoin removes a massive chunk of the cause. People in poor countries cannot save money, and if they do then they can’t get it out of the country - Bitcoin solves that.
Bitcoin liberates the way below average man…
Just imagine you live in a country where you can’t get a bank account, you can’t send money overseas, you can’t safely save… Do you think you could get out of the poverty trap?
Would you want charity, or would you want to be given the tools needed to not need charity ever again?
Now add in the power for the poorest person on Earth to collect and save money, and have it safe from deflation and theft.
A way to send money anywhere in the world without asking permission…
Do you think then that person could find ways to help themselves?
After all, they have something those in the developed world lack… time… And they don’t need to be paid much to transform their life.
I know dozens, if not hundreds of ways to make $10 in a day, but it’s not worth it to me, as my everyday expenses alone are many times that.
But to someone living on just $2 dollars, they could increase their income by 500%, and now they can be paid with virtually no cost, and safely keep the money.
When smart phones drop to the cost of just $10 each I see a whole new world opening up for the poorest people on Earth. Who then will no longer need the approval of a high and mighty bank to say whether or not they are allowed to give them, their money.
If that isn’t a good enough reason alone to support this I don’t know what is really.
The good news is once they eventually have to change and stop ripping people off, then I think the banks could go back to being something useful. But no point in looking at that now as it’s a long way off. Can the governments and banks stop Bitcoin? In short not really. The only way to do it now is for governments to give up using the internet, probably shut down the power grid, and shoot down the 42 satellites placed into orbit by some Silicon Valley Philanthropic institute.
The company whose name escapes me saw the potential for humanity which came from Bitcoin and looked into the ways government could stop it.
Basically, if a nation state stops it, like China banned it, at least it’s still banned I think at the moment… But it won’t be for long. Anyway, China has stringent controls on the internet people can get anyway.
Then this nameless company said that with a solar panel, a laptop and a small satellite dish, that if there were enough satellites then anyone could access the Networks completely off grid and trade their Bitcoin. As I understand it their final satellite is either in place, or will be in place by the end of this year.
And so with shutting down the internet, and switching off the power, both off the table, what’s next?
They can try and break it… Accept apparently the NSA tried that for six months and failed… So If they can’t shut it down or break it then they have to discredit it in some way… That’s if they want to stop it!
With each year that passes its strength grows immeasurably as its strength is in its adoption and distribution.
The real question that is going to eventually be understood by banks and governments is… ‘Do we fight this and get disrupted in 10 years, or do we join this and get disrupted in five but get a piece of the action?’
Whether they are swinging toward the fight it or support it side is not entirely clear at the moment. Because they recognise that Crypto Currency is going to disrupt their system and they are trying to figure out what to do about it.
The timeline is, first they will try to adapt, then they will try to co-opt, then they will try to adopt, then they will run their entire operation on top of it eventually.
Try to adapt - they are still not seeing it as the threat it is in my opinion. Even though Mark Carney the Governor of the Bank of England said, ‘Bitcoin could eventually remove the need for Central Banks.’ So he was probably sent to stand in the corner of a Private London club for a while for saying something so ludicrous (just a guess ;-)).
They will try to co-opt - Regulations… Not all are bad. Intervention by the state of New York led to a way of safely regulating some exchanges. If you want to operate an exchange in New York, then you have to be regulated. I actually view this as a safety net, but I may be misguided… We shall see.
Then they will try to adopt - The banks are interested in blockchain… But there’s a problem… Bitcoin is open, borderless, neutral resistant to censorship, international money that is not influenced by banks and governments.
What the banks would like is, to take the blockchain technology and turn it into a system that is, not open, not borderless, succumbs to resistance and censorship, and is completely controlled by banks…
You can’t do this… But they will try! …And that is very good news for those in Cryptocurrency investment… Because these attempts will slow the behemoth down while the maths problems are given more time to be solved by the smartest mathematicians on the planet, all working for free.
They will run their entire operation on top of it - This is the future, and this is a minimum of 5 years away, maybe 10 to 15 years for the oldest governments. Once they realise they have lost the war and Cryptography has won, then they will ‘hopefully’ look at how this can actually benefit government and the countries they supposedly serve. All elections could be run using Blockchain, all tax can be collected in only government currency. Staffing could be massively reduced at all levels of government and wages in all government employ or contract could be paid in only government currency. They would be forced to live within their means, or borrow sensibly. They could achieve all of that as long as they allowed the currency to be decentralised… § …Sorry, you should discard all of that as I don’t think that can even be ‘hoped’ for.
The reason Bitcoin is impenetrable is it has no central location. That means no government (including the U.S. government) can ever shut it down. To shut it down, they would need to put policemen next to every computer in the world.
Which means… Bitcoin is immune from government stupidity.
The very best attack a Government can really deliver is to slander it by saying it’s used for crime and terrorism…
You may have already heard them say that, 500+ times! As if the US dollar isn’t used for crime and terrorism!
Governments will use their influence with the media and get them to attack Bitcoin. Yet ignore the fact that because they have lost complete track of their own currency, it can and is being used by all the biggest crime syndicates around the globe… Double standards, a Governmental favourite pastime!
When you hear an attack against Bitcoin, look to why the person is saying what they are. • …Are they scared of Bitcoin? • …Have they done enough research? • …Are they using propaganda to make you think something? • …Are they desperately holding onto the ‘belief’ that they are right and Bitcoin is a fraud?
That goes for me too, this is about you thinking without over thinking. So always consider my ulterior motives. …Why am I spending so much time sharing this with you? …Is it for financial gain? …Is it for my own personal gratification? …Is it
because I want to help? …Is it because I am some misguided fool who has drunk too much cool aid? Is it because I feel a responsibility to say something?
After the Governments see that the attacks are not working and Bitcoin seems impervious to their influence, and whilst they are watching their citizens in droves sell their Dollars, Euros, Pounds… Then they’ll move to their next weapon of attack…
They will appeal to people’s patriotic duty to not switch to it…
When you see that happen you’ll know that the Governments are beaten and the end of FIAT currency will be imminent.
So basically the only thing that can be done to hurt Bitcoin is delay it. Crypto currency cannot be stopped.
Now others (the more enlightened countries) have decided to recognize Bitcoin as money.
Japan, the world's 3rd largest economy by GDP, officially green-lighted Bitcoin. It even issued 11 licenses for Bitcoin exchanges recently. Since then Bitcoin use in Japan has shot up.
Japan has been in a depression (even though they don’t call it that) since the early 1990’s, and I personally think they are currently willing to accept anything to keep the game alive even if it means committing suicide to their currency.
…And this just in, a survey in Japan showed almost 88% of the population has heard of Bitcoin. Though out of that number 82.9% said they hadn’t purchased it… And only 2.7% of the ones who know about it said they have purchased and currently own some…
This is in a country which has legalized it in April this year. This shows how slow adoption is when there is little need. Those numbers will increase somewhat in 2018 when Japan keeps printing Yen, and the other major currencies stop printing theirs… If they can of course!
Personally I think Governments will continue to realize that it's better to have a hand in how Bitcoin is shaped and regulated than try to destroy it (which they can't).
Think back to when the U.S. government finally realized that prohibition was unenforceable. Better to regulate alcohol and tax it.
The problem the governments have is they can’t figure out how to tax it. So basically they will have to change the way they tax things in the end.
The problems the banks are going to have are everywhere… They are going to miss out on their cut when you move money to different currencies.
They are going to miss out on holding your money for the several days of transfer.
They are going to find they have far too many staff. In fact without the need for 3rd parties then it is likely banking staff will be cut by 2/3rds before banks evolve into what they will become next.
Obviously I’ve no sympathy for the banks…
In the last 50 years everyday users have seen the following innovations, pay machines, credit cards, internet banking and Paypal, contactless payments…
The world has moved on in almost every other field but banking is still more or less as it was in the 19th century…. What do you think will happen with the pent up demand in this sector?
Old money opens at 8 and closes at 5 each day… With 24/365 currencies they are always there.
A mobile phone + Bitcoin = a bank - this is going to destroy the status quo!
Money is currently shackled to the 20th Century, Bitcoin changes that.
They could’ve so easily in 2010 looked at this digital money, thrown some chump change into it and become a powerhouse in the sector, but no they decided to laugh at it instead. “All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” - Arthur Schopenhauer, German philosopher The problem and opportunity is that at some point before the Governments and Banks decide to run their entire operation on it… Is that there will be conflict of biblical proportions between the decentralized system and the entrenched financial interest in the existing system.
They will lose, because they are fighting maths and fighting an enemy they’ll find extremely hard to find… But there will be casualties along the way!
The Bank of England (BoE) has said that Crypto currencies may threaten the financial stability of the economy. And they could create huge risks… Wooo Scary!
Translated for those who can’t see through Central Bank jargon that means opportunity.
BOE Chief Economist Andy Haldane suggested that the U.K. ‘could adopt a state-issued digital currency like bitcoin in order to lessen dependence on cash and monetary policy.’
The BoE also said Bitcoin could trigger deflation…
Now who else would like to pay less for the stuff they buy next week, next year?
I think I can count, everyones hand is up…
Deflation is good for us, and bad for Central Banks and Governments!
They have to use the term deflation as they can’t use the term lower prices… Because we’d think it was a good thing.! Because it is!
So why’s deflation bad for them? Lower prices equals lower tax revenue, and the government find it very difficult to lower wages :-)
Lets all share a moment of consideration for the far too many people paid with far too much of our money to do a job pretty poorly.
Governments also have the audacity to say that if prices go down then people will hoard their money!!!
Like that’s a really bad thing!
Basically this is the Government spinning saving and making it a bad thing!
And if people have savings then they can afford to challenge the status quo. The number one concern of all politicians is… Being re-elected!
Now all this isn’t about evil people
doing evil things, it’s about systemic corruption. Most of them genuinely think they are helping the economy…
The way the bankers are trained to prey on their own clients in search of their perverse incentives offered by a system of corruption… People just let things slide, and slide… And everyone is doing it, so they continue to do it.
The good news is in the short term any attacks help the network… The network gets stronger and so do the users… If you approach it as a long term holding position no matter what the price does, then when the price falls it hardens you up.
I could be wrong though…
Alternatively I could be wrong… Maybe they will give in without a fight, and accept that this is simply a better way for all except the central bankers…
After all… the International Monetary Fund Chief Christine Lagarde recently told Central Bankers that…
“It’s not wise to dismiss virtual currencies. Because they are gaining more adoption and traction.”
“Digital currencies might give existing currencies a run for their money.”
Whilst she doesn’t think that digital currencies will replace current currencies anytime soon because she thinks they are too volatile.
Her exact words were, “digital currencies are unlikely to replace traditional ones, as they are ‘too volatile, too risky, too energy intensive and because the underlying technologies are not yet scalable.'”
Though she also said that there will inevitably and undoubtedly be more technical innovation, and that digital currencies will continue to grow and thrive.
And even said… “Not so long ago, some experts argued that personal computers would never be adopted, and that tablets would only be used as expensive coffee trays, so I think it may not be wise to dismiss virtual currencies.”
So you never know, maybe the mainstream are just going to lie down and accept that something better has come along…
We shall all see!
And just in case you doubt all of this, on the next page there’s two charts…
The first is the standard chart everyone sees, where it looks like Bitcoin is in a bubble and will stop rising any moment now:
That is the chart everyone looks at, however, the 2nd chart is the less common one…
This chart is the Log Scale chart.
To explain the difference… The first chart is a linear one which shows all increases, say $10 to $15 are shown as that. Whereas a Logarithmic chart works on percentage of change.
On Linear say $20 to $25 would be represented as a $5 change. Whereas going from $10 to $15 was a 50% increase in value, and going from $20 to $25 was a 25% increase. So the Log scale gives a more realistic view in my opinion to value.
With that in mind the numbers on the right show, $10, $100, $1,000, $10,000… The next two are $100,000 & $1,000,000.
Looking at this chart with those numbers in mind… Do you think that there is a possibility, or even probability of this Log scale going to $100,000 in the next year to 18 months? How about it getting to the $1,000,000 mark?
Okay I’ve come off topic a bit and if I was editing this book properly then I’d move that bit to another section… But if you’ve read this far I think you’re getting the point…
Next I want to give you a couple of case studies which will explain the need for Bitcoin on a very basic human level… Venezuela a Bitcoin Case Study
For those who don’t know…
Venezuela is experiencing the worst economic crisis in its history.
Yet Venezuela is the 11th biggest Oil producer in the world. It produces 21.58% as much as the biggest Oil producer Russia.
But it sits on the worlds largest oil reserves!
Summed up for speed…
Oil revenue went up when Oil was at the high, they used the extra money to put in a range of social improvements. When the price of Oil fell, they could no longer afford the social measures, but they tried to keep them going too long and crippled their economy in the process.
This has all led to Hyperinflation (Hyperinflation for those that don’t know is the apocalypse for a countries currency. And pretty much devastates the people and the economy for at least 5 years).
Cash is now virtually useless in Venezuela thanks to hyperinflation. …So people are turning to bitcoin - People are finding Crypto mining is a way to survive in Venezuela.
There’s 100,000 mining operations there right now and increasing daily!
Venezuela is home to some of the worst hyperinflation since the Weimar Republic, a Big Mac costs about half a month’s wages!
Or rather, it did, until a bread shortage forced the burger off the menu. Their current inflation rate is about 1,600%!
However, this is still just getting going… The IMF says Venezuela's Inflation Rate May Rise Beyond 2,300% in 2018!
Professors and college students have mined bitcoin… So, rumour has it, have politicians and police officers. It has become a common currency even among nonminers: Peer-to-peer online exchanges allow everyone from shopkeepers to a former Miss Venezuela to buy and sell with bitcoin.
But recently, President Maduro has begun cracking down on mining operations, apparently finding in them a convenient political scapegoat. He also is now calling those who seek to profit off inflation ‘capitalist parasites.’ Yet trading bitcoin is still condoned. It’s as if Maduro realises that cryptocurrency is one of the few things holding the country together.
They are now evolving to mining Ethereum (the 2nd largest Crypto currency) as it only needs software and a video card for a PC apparently, so is far easier .
Given what I have said in the first part of this about the world’s Currency Crash… Then the chances are Venezuela will demonstrate what’s coming for the rest of the world. Where the citizens leave the nation state behind and what will emerge is a crypto driven society… Saudi Prince Alwaleed bin Tala is a Case study in ‘why you need Bitcoin!’
There’s a poster child story of why buy Bitcoin now, thanks to this Saudi Prince… He is a Billionaire Investor who is a major shareholder in Citi Group, Fox Disney, Twitter and many more…
I am told he thinks of himself as the Saudi Warren Buffet, and a couple of weeks ago he went on TV and said he, “I don’t believe in this Bitcoin thing” and that the virtual currency is “Enron in the making.”
He also said he didn’t like it because, “it’s fraud! Because there’s no central government, there is no central bank controlling it.”
Well guess what… His Government just arrested him and they have him under ‘house arrest’ in the Ritz hotel in the Saudi capital Riyadh… Where he is reportedly sleeping on an inflatable mattress!
They also confiscated bin Talal’s assets totaling around $33 Billion as part of an alleged crackdown on corruption by King Salman.
Boy I bet he wishes he’d kept a little of his assets in a place where no one could get at it.
There are now several thousand Saudi Princes that want their wealth or at least some of it safe outside of Saudi. But as they will soon find, having it in a bank outside the country is not safe at all.
For it to be safe, it must be outside of the system they control…
Basically the deal is, Freedom for a high percentage of their assets apparently… This is otherwise known as a ‘bail in’… Which you may remember we spoke about earlier… So is Bitcoin really as safe as I say it is?
In 2013, the U.S. government tried to seize apparently over 600,000 Bitcoins worth over $100 million (may have only been 44,000 depending on who you listen to).
The Department of Justice claimed the owner of these Bitcoins was breaking the law. However, because Bitcoins are built on blockchain technology, the Bitcoins were worthless to the U.S. government! Only the owner could sell or spend them! If he didn’t agree to the transaction, they could not be sold or spent. Period.
Now just to cope with the thousands of Princes who are shortly going to find out how unsafe their money is in other countries banks… Then Bitcoin’s going to have to go from $130 billion to several hundred billion in value… That is 3 to 7 x value on it’s own, without Wall Street, Hedge Funds, Indexes and multi-generational wealth.
…And if you’re wondering why you haven’t heard anything about a lot of Princes being under house arrest and having their assets frozen in what I think is the Saudi King just grabbing some money back to pay bills with… You haven’t heard because the mainstream media doesn’t want to upset the new Saudi ruler and report on what’s going on. Bitcoin the job creator
As opposed to the financial industry which is cutting jobs, there are hundreds of thousands of jobs being created by Crypto all over the world…
Bitcoin is barely out of proof of concept phase, and it is attracting the smartest minds on the planet.
Bitcoin and other cryptocurrencies created an estimated 250,000 jobs during 2014 (this list is only partial): • Script and Multisig developers • Java cryptocurrency developers • Microtransaction engineers • UX/UI crypto designers of user-only security protocols • Bitcoin and cryptocurrency crowdfunding planners and consultants • Cryptocurrency journalists • Cryptocurrency traders • Cryptocurrency technical analysts • ASIC chip designers • Bitcoin gambling website operators • Mining pool administrators • Cryptocurrency escrow agents • Cryptocurrency Exchange-Traded Fund (ETF) operators • Bitcoin fraud detection consultants • Cryptocurrency ATM designers • Virtual currency exchange arbitrators • Federated open transactions’ server operators
No one's wealth was forcibly transferred away from them to create these jobs. They've all been funded as consumers' top choices in resource allocation. There wasn’t a jobs plan, they didn’t ask for government funding to get it going… These jobs were created by a need for people to do them, and either the personal achievement or financial reward being there for them to do it. Why the news isn’t telling you any of this?
The news is no longer news, it’s gossip…
They don’t talk about the global economic problems, they don’t talk about 200-400 thousand french workers and students rioting against macrons changes that were in line with what the ECB and the EU wanted.
They don’t talk about oil poisoning children and them dying because of corporate greed. They talk about gossip.
A recent look at MSNBC host Rachel Maddow showed that 53% of all the stories she covered in 6 weeks earlier this year were about Russia.
Why? Because every time they mentioned Russia, the viewing figures went up, and so did the revenues. The media shows what is most profitable for the media to show.
Another example of their selective reporting which I still find stunning even as I type it…
They spoke about Chinas leader being raised to the same level as Chairman Mao, they made implications about it not being a democracy duh! We all saw that on mainstream media…
However, they failed to mention Chinas intention to rule the world through financial control over the next three decades! Chinas leader said almost exactly that and no one reported it!!!
Personally I think that’s more newsworthy and deserves at least a mention in-between the ridicule. Especially as I think the Gold-backed Yuan is going to be the Tipping point in my opinion. The current Currency Crash you’ve not noticed…
The currencies are crashing now, the only reason we don’t see it is they are all doing the same thing.
But if you measure the currency against Bitcoin the crash is clear.
When will everyone catch on to this? By everyone I mean mainstream people.
The financial powers are catching on now, and over the next 3 years it’s going to be very exciting.
However, if the powers that be manage to keep kicking the can down the road for another few years, then there is little to no need for people to notice, let alone get involved in Bitcoin. For now.
So depending on how much money they are willing to print, and how long before someone big enough decides to take their profits and run… Which leads to the house of cards coming down… I DON’T KNOW!
When something like this happens, adoption will be quick.
I’d say we’d go from less than 0.01% of people involved to 1% in the next few years. Then when a problem strikes it’ll raise to 5% within a year, then probably 20% the next year and 60%+ the year after. But that’s all just guessing based on how things are adopted after a tipping point is reached.
Adoption from 0.01% to 1% will come through a variety of things…
Speculators are the first line, I was originally one of those, now I think of myself as an investor in Bitcoin, even though I get no regular return. I do get the occasional ‘fork’ windfall… And if I wanted to rent my Bitcoin out I could, but currently choose not to.
Most, if not all consumers have a bad or poor experience when spending their money abroad. When they experience Bitcoin, this will change and attract more users.
Paypal and Ebay are looking at taking Bitcoin as payments. So is Amazon, and Amazon has even purchased the domain names for it’s supposed new Crypto Currency… Will I be buying Amazon’s new Crypto when it launches… Yes! And I’ll be buying Facebooks too, as they are apparently doing one too.
Chrome browser and others are making bitcoin interfaces available, this puts it in front of internet users.
Central banks are removing the higher denomination bill of cash as they see that as the way to halt money laundering. However, this also stops people storing their wealth under the mattress, an untraceable and safe alternative is needed, and Bitcoin fills this need. No it is not trusted yet, but 15 years ago no one dared use their credit cards on the internet.
Every central bank is trying to create their own version of blockchain. This is because they are scared of bitcoin and want to monopolise it before it becomes too successful. Whilst it’s motivated by Bitcoin, it is not connected to bitcoin, and is not threatening to bitcoin. In fact it makes bitcoin more valuable.
As to when exactly though… No one knows, which means there is opportunity to those brave enough to venture in at this point. Will my parents ever use Bitcoin? Probably…
Andreas Antonopoulos who is consistently voted as the most influential person in the world on Bitcoin tells the story of his Mum who needed to protect her money from the Greek government.
She moved her pension money and savings out before the Greek banks failed.
The Greek Government (bailing in) tried to confiscate 20% of her deposits, but her money had fled. Most were not so shrewd and bailed in money to their government at the bequest of the EU.
Shortly after she moved her money out, then the Government imposed currency controls, withdrawn controls, provenance checks, super taxes, emergency taxes, and started taking haircuts off the top of peoples bank accounts….
Can we even imagine our governments doing that?
Neither could the Greeks, which is why they lost their money!
I personally think this wonderful future or a variation if it may very well come to the rest of us soon, you don’t want to be scrabbling to learn Bitcoin and move your money at that time.
If it happens to your country… By then you want to have yours and as many of your family who will listen to you… Have their money out of the Governments jurisdiction and protected where it can only be touched if the person chooses to.
If his Mum hadn’t have moved her money out then her pension which was the cash proceeds of her parents property, she would have had 20% just taken from it. This at a time when she’s disabled and no longer able to return to the workforce. Financial apartheid…
Right now there is what’s best described as a financial apartheid happening around the world.
I’m not talking about the one that’s been going on for decades between the first and the third world. I’m talking about one which was born out of the last financial crisis with the term, ‘too big to fail’.
The bankers were not prosecuted for causing the 2007-2009 great recession because that was part of the deal!
‘Yes we’ll take your money, but we also aren’t going to prison!’
At the time I argued that the banks should be allowed to fail and we would find our way through it and build a better system.
Which is exactly what they did in Iceland, and now their economy is doing really well on solid foundations. See next image to see how well they are now doing:
But the Central Banks, the bankers, and anyone connected thought it would be in their interest for the music to continue. The only problem is that it would involve the Central Banks using up almost every tool in their tool box and crippling their future ability to protect against the bankers uncontrollable self-interest.
…The powers that be bought it and so the seeds for hyperinflation that had already been planted in 1971… then the other really big nurturing in 1999… and then finally the big bail out in 2008 (and subsequent money gifts) were allowed to grow.
Now the problem this created was a two tier money system.
If you are in the bottom part of this system, you’re paying 6 - 12% for a car loan, 4 - 35% for a credit card debt, 1-5% for a mortgage.
But if you’re in the top part of this money system, then you are either in the ‘too big to fail’ group, or you have sufficient money, such as Facebook, Amazon, Google, Apple etc…
If you’re in those groups then this affords you the opportunity to make spectacular profits.
You can go and borrow $1 Billion, at zero percent, and if you can’t afford to pay it back, then it doesn’t matter… Because you can borrow another Billion or more…
Now do you think if someone gave you a Billion, at zero percent, and said if you can’t afford to pay it back don’t worry… Then:
a) you’d be able to make money from it…
and… b) you’d take as much of this free money as you could…
Well that’s what the financial sector is doing right now, and has been doing since the economy started to look better after the last recession subsided.
So they can now basically not fail to make profits… And even if they failed that idiot test, they can just go and borrow more money at zero percent!
Every idiot should be able to win with the deck stacked that much in their favour…
However, it gets worse…
When they get it wrong with an investment… Happens a lot!
They sell it to the Central Banks… Those guys are also buying their bad deals… And when those deals fail… Then we, the little people owe that money too!
So what are they doing with their free money…
They are taking the stock market private for one…
There are a diminishing number of stocks available as companies are being taken entirely private. I forget the exact percentage that has left the Stock Market since the credit crunch, but I think it’s roughly 50%…
Why are they buying all of this? Well institutional investors can buy stocks at zero percent interest and so they buy stocks!
For example, Amazon bought Whole Foods recently. They did it with zero percent financing.
Amazon started making more money day one, and Amazons stock went up to a higher level than it cost them on the purchase…
This is what the giant companies are doing. In 5 to 10 years will there be a stock market?
Okay that’s too soon, but we are heading toward a Corporatocracy…
The dystopian future books which called that may have it right… It is an economic and political system controlled by corporations or corporate interests… Which controls the process of determining a society's economic and political policies.
Now correct me if I’m wrong, but that sounds like the actual reality in Washington
They also use their free money to buy back their own stocks… And they borrow the zero percent money to pay off their own debt!
In fact the biggest buyer of US equities by far is corporations buying back their own stock… Why not when you can borrow the money at zero percent to do so.
And in the process this boosts their stock price… Prices average investors out of the market place… and it boosts their…. wait for it… Christmas bonuses!
But if you’re the CEO then there’s plenty of ways to make more money too… As greed is good in their opinion…
For example, you’re the head of the company and award yourself an Option to buy stock worth $100 now in the future. You then direct your company to buy back it’s own stock.
Which therefore limits supply to the market and so the price goes up. No shock there…
The stock you have an option to buy at $100 is now worth $150. And you sell your option and pocket an extra few hundred million, maybe a few billion for doing nothing.
This used to be illegal, but now it’s legal to buy back your own shares and do exactly this. They can do this because they bought enough people off so they could change the law and do it. Now a casual observer or someone who dabbled in investments may call this insider trading… But nope, it’s been made legal.
If you slow down to think about it, it is horrific… But that’s not what this is about, the system is rigged against virtually all people. So you can either be vocal, or you can exit. I chose to exit.
However, the slight good news for all those in or getting into Bitcoin is… There should be a big bump around Christmas as the Christmas bonuses kick in….
And to those who think all what I’ve just said is just too far fetched… As far as I know it’s all true! And here’s a little something to rubber stamp it.
In October congress decided to have a late night vote to protect the banks from lawsuits…
Wait… What do you mean you didn’t hear about it on the news? :-D
Well thanks to this wonderful vote people will now have a much harder time taking financial institutions to court. The Senate voted to nullify a rule that would’ve allowed customers of banks, credit-card companies, and other financial institutions to join together in class-action lawsuits if they felt they’d been wronged.
After a split decision in the Senate, the deciding vote was cast by Vice President Mike Pence. All Republican Senators, save for Lindsey Graham and John Kennedy, voted for it. In the past, representatives of and lobbyists for the financial industry have argued that arbitration is better for both companies and consumers, because class-action lawsuits can be time-consuming and expensive. Their argument is that as companies fight off big lawsuits, the resources they’d need to do that could increase costs for customers in the long run… UNBELIEVABLE! So now consumers have to go for the Credit Institutions one at a time, and can’t go in force. So on each occurrence, who will run out of money first… Real people or those who are too big to fail and their zero percent endless supply of money.
We all have 3 choices…
1. You can do nothing… Ignorance is bliss!
2. You can become vocal and try and beat the cartel of banks…
3. Or you can exit…
When a collapse happens…
A week or so ago Bitcoin hit $13,500 in Zimbabwe as the Tanks rolled through the Capital…
The coup, but not a coup had begun and Bitcoin was about $6,800… But they were paying $13,500 for it.
This made Bitcoin in Zimbabwe more expensive than anywhere else in the world.
But even by the developing nation’s usual standards, the current dollar price is eyewatering, with BTC touching $13,500 at Zimbabwe’s only exchange.
The cause for the sudden spike is easy to attribute: with tanks rolling through the capital Harare and President Mugabe nowhere to be seen, the country was in meltdown.
Bitcoin flourishes in times of conflict, be they regulatory, market-based, or military.
Whether it’s global banking crises or increasing tensions between North and South Korea, when the world is at war, Bitcoin becomes a safe haven. For citizens in countries such as Zimbabwe, Bitcoin isn’t just a means of electronic cash or a store of wealth – it’s a lifeline! What happens if you’re right and Blockchain overwhelms FIAT currency?
When Bitcoin reaches the tipping point of smart people, then it will be properly articulated.
The arguments will become extraordinarily intelligent, and they’ll no longer be cyberpunks attempting to explain it anymore, it will be the smartest of the money managers.
I cannot do today what those smart people will be able to do in the very near future.
At that point everyone will understand what the value Bitcoin is, like I do today, and am attempting to convey to you now.
If you offer billions of people a currency without a flag that has the ability to be a store of value, then when the timing is right and it’s easy enough…
…Then they’re going to simply reject worthless paper currency.
“In Five Years Bitcoin Will Be So Relevant… There Will Be No Reason to Use Fiat Currencies” - Tim Draper
Back in 2016, www.News.Bitcoin.com reported on Tim Draper’s 2014 prediction that bitcoin would reach $10K per BTC in 2018, and at the time it didn’t look possible.
Now as 2018 approaches with just over a month left, Bitcoin’s price is very close to that region touching $8,350 per Bitcoin during the 3rd week of November.
Draper is well known for being very optimistic about the future of Cryptocurrencies by investing in many digital currency startups, and purchasing $20M worth of bitcoin in the 2014 Silk Road government auction.
Even now with a thousand bitcoin clones, Draper believes quite a few of them will work together in the future, but if Cryptocurrencies don’t become more simplified, they may not get adopted. This is why now is the opportunity. A glimpse at the future possibilities thanks to Blockchain
I could write a book on just the possibilities we can see today…
But back in 1991 you couldn’t conceive of Youtube or Facebook or even Amazon… Back then http hadn’t been finished… No one could conceive streaming for free HD videos… Back then they may have been at best a dream…
So the possibilities for Blockchain are limited to our imagination based on the perspective we have now.
Even the way money works will change on a fundamental level… For example, you can give someone a millionth of a Bitcoin for free… How can you give them a millionth of a penny? You can’t. So how we interact with money is going to change to an understanding we don’t currently have.
As for how usable Cryptocurrency will become…
My guess is that people will have a wallet of say 10 to 20 different currencies and when they go to pay for their meal, that their wallet will optimize to whichever currency has most value at that moment, and pay your bill with it. There may even be the waitresses QR code printed on the receipt so you can make sure she gets 100% of your tip.
Before http was invented no one apart from software geeks could use the internet. Right now they are developing the http for blockchain… It’s not done yet… But it will be, so you can either be holding value and watch it rise, or buy into it when it has risen… A choice :-)
If Blockchain doesn’t get simplified it won’t get adopted and that’s why there are good marketing people who will simplify all use of these things that are clumsy and a little complex today.
The rate of investment in blockchain companies is currently exceeding the internet in 1995…
What’s the single biggest disruption with Bitcoin? The banks…
We will soon no longer need the banks!
They will no longer be an essential piece of infrastructure needed by the world.
Because now people can hold money, transfer money, save money without a bank!
There will be a need for loans, so the banks will need to evolve to service that need, or go out of existence in the same way as Newspapers are slowly going out of existence today.
Bitcoin is going to ‘Amazon’ the banks…
The blockchain will be the store of knowledge in everything from Wine to fine art, and bitcoin will be the trusted store of wealth.
Here’s 8 somewhat transformative values of Blockchain:
• Including billions of people in the true global economy • Protecting rights through immutable records • Creating a true sharing economy • Ending the remittance rip off • Enabling people to own and monetise their data - & protect their privacy • Ensuring compensation for the creators of value • Creating the Halcyon days of entrepreneurship • Reinventing government
Blockchain is going to change the way we trust. - Richie Etwaru
What the internet did to publishing, Blockchain is going to do to about 100 different industries…
Title and deeds registry with proof of chain ownership will negate the need for a Solicitor/Attorney to gum up the works… Because Blockchain cuts costs, cuts risks and provides transparency.
The IP copyright changes will mean Singers can release say 100,000 limited edition singles with proof of ownership. Meaning they have a limited edition value, whilst all the world can listen for free. But if you want a real limited edition version you have to buy one of the originals.
Contracts will be done via the blockchain… E.g. I say I want this, you say I’ll deliver that by this date, you fail to deliver and the contract reverses.
Blockchain will be used for…
Digital identities, Passports, Birth Certificates, Voting, ID, car sales, car leasing, Car rental, Property ownership, shared ownerships, business ownership, shared accommodation, remove the need of passwords, where your food has come from, Education, Music & Entertainment IP, Stock Trading, Insurance, Healthcare, Energy, Sports Management, Drug testing, Public records, Wills, Inheritance, Law enforcement, Human Resources, Credit histories, Printing, Manufacturing, Crowdfunding…
And let’s not forget charity… It will be a massive impact on charity.
Blockchain is going to disrupt the world!
In 10 to 20 years there will not be a human being alive whose lives are not affected by this technology.
You are going to be forced into Blockchain use at some point in the next 10 years.
It is not something you can avoid unless you want to live off the land… And even then you’ll probably need it for money.
So the choice is, get involved now before the storm, before the masses join in… And become proficient at it before the hoard moves in… And probably make a huge return on your investment to boot… Or get in later and pay more!
The problem is choice… I already know what my future self will say… He’ll thank me… I only know that because I became informed, I wrote this to inform you.
However, you cannot learn this without putting a little hurt money on the table…
You cannot learn to ride a bike just by reading how to do it…
You have to do it to really understand how cool riding a bike is!
When is the Bitcoin mass expansion tipping point
What’s the timeframe?
Coinbase is adding 100 to 200 thousand customers a day at this point, so the tipping point is coming. The image below shows the growth in number of accounts.
On a maths basis the tipping point of something before it reaches a mass adoption point is approximately Pi, so 3.14%.
Currently there are said to be 25 million worldwide users, however, some say it’s a lot lower number than this, and think maybe as low as 3 million…
So we’ll do the maths on both.
There’s currently 3.6 billion people online (we’ll ignore the other 2.5 billion coming in the next 7 years for now). So the world tipping point is around 113 million users…
And apparently there are an average 150k of new users being added every day.
Conclusion the Tipping Point will be reached between 587 & 734 days - if the number of new accounts added doesn't increase or decrease.
Here’s where the tipping point started on the Tulip bubble:
Too long ago…
Well let’s look at a few other tipping points…
Here’s the phone, cell phone, smart phone adoption rates…
The big green bit was the landline adoption rate.
Things happen a lot faster now when the speed of communication is near instant around the world…
The chart here shows the cell phone tipping point was reached in 1990 after nearly 10 years of early adopters (Bitcoin came out 7 years ago).
The smart phone tipping point can probably be traced back to the day of Apple launching the iPhone 29th June 2007.
But is your ego still convinced the mass adoption is already underway?
Well how about one I’ve mentioned a lot in this book… The internet.
The tipping point was sometime during 1994 or 1995 in my opinion, and it’s rate of adoption was slower than mobile phones as it wasn’t that easy to actually get online unless you were the sort of person who was able to read manuals, and happy to fiddle about with it until you got it to work.
Most people remember the Windows 95 launch… Well this didn’t even have the internet on it, yet it was heralded as the most upto date operating software in the world.
Bitcoin is almost through proof of concept. It is closing down the usability issues… I may be wrong on my estimate of where it is, it may be 1991/92 in relation to the Internet.
However, it is probably going to start the mass adoption in around 550 to 800 days. (Date now as I type is Wed 22nd Nov 2017).
Anytime you get in before that will be great, but you can beat the pension funds into it now and buy it for a fraction of what it will be.
Check out once again the Logarithmic Bitcoin chart as I made a couple of notes on it just for fun…
On the left is the current Bitcoin chart. I’ve added the next two levels, $100k and $1,000k. I’ve put a trend line in, and I’ve marked the potential tipping point to mass adoption.
In the 550 day to 800 day window Bitcoin starts at $45k each and ends at $75k each. Personally I think this is an underestimate and those highs will be hit much earlier than I show there.
Because this trend line does not account for any of the new financial market money coming into Bitcoin. And it doesn’t account for the lack of available Bitcoin. As each person buys the number dwindles…
Today my group of Bitcoin addicts think it will hit $10k by Christmas and $14k to $20k within 6 months.
I’m struggling to come up with how to define what a staggering proposition this is as I’ve not seen anything like this before. I was blown away when I looked at the property market and saw it had a 35 - 50% lift coming.
But today I was chatting to a friend and mentioned that I was getting cheesed off with some of my minor Crypto purchases only making 20% gains before I sold them. If I had made those gains on shares I would’ve been ecstatic!
This is a different world, and the only way to accustom yourself to it, is to dive in with what’s a safe amount. Then learn more and gain confidence.
What happens when the rest of the world joins in?
Right now there’s about 100 million people working in developed countries that send money home to their families. Then there’s the 100 million who receive those payments too.
Each year they send roughly $560 billion home paying an average of 9%.
So over $50 billion a year comes out of the wages of mainly low paid workers and out of the hands of their beneficiaries.
So when they stop using Western Union and other FIAT currency money transfer systems, then their families receive an 9.8% level of income increase.
Then there’s the 2.5 billion people yet to come online who have no access to the banks… Right now they can access Bitcoin with just a text phone… But pretty soon the cost of Smart Phones will come down to nothing.
For example, in the future you may be given a phone for free if you accept ads, or you let them track your usage.
When this happens the playing fields will be levelled and people can begin teaching themselves thanks to Smart Phones. They then can enter the Gig economy and be paid $10 for a days work, which is a 500% increase for them.
There’s also the 4 billion people who have limited access to banks. We take for granted we can send money around the world. It’s a bit of a pain, but we can do it. Almost 4 billion cannot! Well they cannot for a little while longer!
There’s less than one billion of us who live in a privileged banking world. But people with just a phone that can text can now access Bitcoin. This will do more good for the world than anything ever attempted in human history. It is thanks to the platform the internet gave us.
If you invested $1,000 in 2010…
Here’s how much you’d have now in a variety of investments:
Netflix (2002): you'd have approximately $15,500 today. Amazon: you'd have approximately $10,542 today. Apple: you'd have approximately $3,683 today. Starbucks: you'd have approximately $5,431 today.
If however… and are you ready for this….
IF you'd invested $1,000 in Bitcoin you'd have approximately $154,780,000 today!
Yes, almost $155 million!
Why you will or won’t do this now
I just want to cover a little tiny bit on the problem you have now…
Life is going to do its very best to get in your way.
It did for me, and I had 1,000th of the knowledge I’ve just shared with you… My lack of knowledge has cost me MILLIONS… I have no idea what it will cost the people I informed about this book and who chose not to read as life was more important, or they didn’t want to learn about Bitcoin… But it will cost them A LOT!
But we’re not talking about them… You did read it, but your life is still going to get in your way!
And your ego is going to help it to do that…
Because getting started with Bitcoin is a little bit awkward… It’s not always easy, there’s little bits you get stuck on.
But you are going to either get in now, and find your way through these minor inconveniences, or you are going to get in later, maybe have it a bit easier… BUT YOU WILL PAY A LOT MORE!
And there’s also the problem of risk…
The biggest risk as an investor is the space between your ears.
The truth is: If you don’t start this in the next 7 days then you aren’t going to do it…
That’s the 7 day rule…
Your ego will tell you that you are going to get started, and that I’m wrong… But I won’t be as I know how peoples minds work.
The result of me being right is you will lose money. The result of you heeding the 7 days advice rule, is you will be in the market…
So the only way to stop me being right and you not getting involved is for you to start getting your money in within the next few days…
Now as I said it can be a little bit awkward. It may take 3 weeks before your money arrives in the account anyway. So the sooner you get started, the sooner you get in at a lower price.
When I sent the messages to my friends and family several of them asked me to get the money in quickly through my account. So I did.
Would I have liked to have achieved that, of course… Does it matter that I didn’t no…
Because I am not an expert trader, I am not an expert at every tiny nuance of Bitcoin and its developers, speculators, miners, whims.
I am good at spotting a storm coming, and getting to cover before the storm hits, whilst finding ways to increase my return on investment while I’m there. I am good at connecting unconnected dots and seeing how a big game is going to play out.
As such, getting in at $7,200, or $15,000 (the price I expect to be buying in at next year some time… Is just fine with me.
I tell you all this because your ego will keep you out by trying to convince you to wait for the perfect moment. You are not going to find the perfect moment to get in unless you get really lucky. So don’t over think it, and just get into the market.
My advice is not to get in this for a speculation play. It is to get into the market for long term growth. Personally I see $8,300 as the little tiny bit tagged on to the end of the real figures I’m looking at.
When you are at the point of pressing the button, your ego will tell you its unrealistically priced… At that point remember all the banks money, all the hedge fund money coming in, all the billions of people yet to discover this… Tell your ego to shut up, and press the damn button :-) What have you got to lose by getting involved?
This is all about understanding risk… Something which I have spoken about often… Most people only think they understand risk…
In investing the first rule is to not lose money.
However, the odds here favor the bold.
So if you can handle not seeing some of your money back for a while in return for a 15 to 77 times return in the next 3 years or so… Then why not do it, even if you lose money?
Yes I know this goes against the grain, and it has given your ego something to beat you with… But hear me out, as there is logic in this madness…
Think about it… If you put in only what you can afford to lose then the upside is massive and potentially life changing… Whilst the downside is affordable.
So let’s say you decide to put in $2,500 (maybe it’s less, maybe it’s more). But let’s just look at $2,500…
Let’s say I’m spectacularly wrong…
The currency loses value, another Crypto takes Bitcoins place and you’ve lost say 80 - 90% of your money. As Crypto isn’t going anywhere, Bitcoin may not win the and stay at the top, but Crypto will do!
At the end of the day I don’t know where it’s going for sure, and neither does anyone else. The people who say it’ll go to zero frankly do not know what they are talking about, as no currency ever goes entirely to zero. Roman Cestersi is still fetching money today…
So let’s say you lose $2,000 to $2,250…
But you also learnt all about Crypto Currency and you understood it because you were interested in it. Along the way you noticed another investment in the Crypto space and you put $100 into that… You got a 50 times return on that one.
Or you were able to get in on the one that became the new winner because you had an interest in the space…
Your presence wouldn’t have been there without your money pulling your interest back to it… So your downside is limited to the single loss, but your upside potentials are all over the place…
If I had just put the money in when I first thought about it, I would’ve been interested… So over the years I would’ve put more in as the price begun to rise…
How would I have known I’d make such a smart move? Because I’d have learnt what I now know about Blockchain. My presence in the space would’ve meant I’d bought a lot more while it was cheap.
The truth is, I know it’s cheap now today… But to you as a newcomer it looks expensive. It looked really expensive to me when I first bought in at $2,500 too…
In five years time people will be thinking back to the days they could’ve bought it at the $8,000 price…
But let’s say I’m wrong with all of that too…
And instead you just lose 80 - 90% of your money!
Does that matter?
Well it depends how you look at it…
To me it’s an insurance against me being right. If I’m right then I win, and if I’m not right I don’t lose anything I cannot afford.
So I have positioned myself mentally for a great long term investment strategy.
Now let’s look at me being completely wrong on the timescale too…
If the Central Bank manage to keep the music playing for another 10 years then that gives Bitcoin the opportunity to grow in a very powerful way and handle the future.
If the economy collapsed tomorrow Bitcoin is not yet ready to handle all the money the world has to offer. So growing steadily over 10 years is better than doing it all in 3 years and everything being painful and very scary!
…And if you think I am wrong about the printing of money won’t ever end in a crash then you need to seriously get some financial education regarding FIAT currencies…
We are almost at one of the biggest turning points in our history…
Crypto currency is like riding a bike… You can read a manual on riding a bike, but you won’t learn it well until you ride it.
All I’m telling you is also worthless, because you won’t truly get this until you buy some and see the price going up. At that point the knowledge you have learned here has translated into value.
My personal purpose here as your trusted advisor was to know I’d informed you, and put things together in a way which meant that most people would take action on the counsel I was providing.
It was also to know that I hadn’t missed anything out and you were then in a position to make the best informed choice you and your ego chose to. As with anything I teach, unless you choose to use it, then it is pretty much worthless.
Personally I think that there isn’t a person here reading this who can’t put $20 into this to give it a try… And most could easily put a minimum of $500! That after all is what the average investment in Bitcoin apparently is…
Think about it… A $500 insurance against me being right!
When that actually happens and you have a little skin in the game, then this all changes for you… It goes from words and transforms into something you begin to get…
And when you begin to get it, you’ll quickly realise you want to help your friends and family too.
Always remember this is riding one of the most wild rides in the world….
The most expensive two pizzas were bought in 2010 for 10,000 Bitcoins… At the time of writing that makes the world’s most expensive pizza now a cheap, cheap $41 million dollars!
The cryptographic currency is our future…
The band wagon is rolling, you can either get on board, or you can get run over by it. …There is no getting out of the way. My purpose here is to simply spread the word. So I’ve given you the tools needed to get you started.
That’s all you need to know!
In fact I’ve probably given you much more than you needed to know… If you think I haven’t, then that’s your ego thinking it…
Because I knew 1,000th of this and got involved… And if you really think you need more to get started then you are over analysing it and are going to suffer from analysis paralysis.
I’ve told you all this will happen… I’ve not kept any secrets back… There’s no ulterior motive…
But your ego has now unhindered access to your mind, and I’ve almost finished speaking…
So only you can choose to take action, or listen to your egos ramblings… Remember the 7 day rule… You have 7 days to take action or you won’t… Then that day will come in the near or slightly further away future where you’ll be forced against your will to act, and at that time you’ll still be extending it away even further because your ego just will not let you get in late and prove me right…
It’ll be screaming at you, ‘but what if the price goes down, what if the price goes down.’ …And your opportunity to get in when it was still only in 4 figures will be a distant memory…
Right that’s it…
I’ve given you enough education and tools to get you started. If you have heard enough, go and get started now…
The list of places to start are in the appendix.
Appendix - Getting Started: The first part of this appendix is for those who only want to put a little bit in. The 2nd part is for people who want to put $500+ in.
Firstly here’s a site to bookmark:
It’s one I visit 2 to 50 times a day. All Coins and Tokens are listed on this. Good figures to look at are the number of Cryptocurrencies the day you started on your journey. The market cap at the start, and everyday after. The trending for Gainers and Losers is always interesting… And the recently added under trending too.
If you visit that site and click on Bitcoin, you’ll see the button:
Whilst this is not the best way to start, it will get you in the game… And if you’re buying less than $50 then it’s a very quick way in.
You will probably need a wallet to take your new Bitcoin and put them somewhere safe.
The best offline storage I’ve seen is the Trezor Wallet - Below is the Amazon UK address… You can shop around and get it for less than $100 at times, I think I paid a bit more than that though.
For best online wallets, take your pick:
I suggest doing your own bit of research here. I haven’t used an online wallet yet as I keep my Bitcoin on the exchanges for now. That may/will change in the future. However, a friend recommended this as a good safe online Bitcoin wallet: https:// blockchain.info/ (but I don’t have one there, so am just passing a message here)
If you’re investing more than $500 then I suggest going to an exchange. The credit card fees are not there.
The link below is to this authors Top 40 exchanges around the world:
It shows you on this list the ways you can get money into the exchange… Most exchanges are different. Most are unregulated. I would suggest putting money in, and moving money around to other exchanges or wallets before you give any trust to any of them.
However, because of where your FIAT money is you may choose to just use an exchange as the easiest way to get your money in, maybe bank transfer, credit card, PayPal…
From that list above I have accounts with, Coinbase, Brittex, Local Bitcoins, Kraken, HitBTC, Polinex, and Gemini. However, This is not an endorsement of them… I only use a few of them.
My preferred route into Crypto is by using the exchange Gemini: https://gemini.com/
The reason I like it is it is regulated… The guys who own it are the Winkelhoff twins who were best known from the Facebook movie as the guys who sued Mark Zuckerberg.
They got into Bitcoin a few years later, they then helped get the regulations in New York set up and then set up their exchange. I send money from my bank account in US Dollars to Gemini. They send me an email to tell me it’s there and I then go and buy Bitcoin with it.
I then move some of it from there to other exchanges or wallets.
That’s it you are then in Bitcoin! Now all you have to do is check CoinMarketCap every few weeks and watch what happens when the price goes up or down…
Remember you are not speculating that this is going to go from $8,200 to $14,000… The game does not really begin until the price goes over $50,000…
Have fun… And if you feel like it send me a message sometime and let me know how you’re doing.
One last thing…
Here’s how you can quickly help us all…
If you found this book inspiring and you are going to now go and buy yourself some Bitcoin and learn more about Crypto then with one action…
You can help me… You can help yourself… And You can help others…
All you need to do is write me a couple of sentences saying about, how this book blew you away, or just helped you… What you are now going to do with the info… And why you think everyone should hear about it…
You sending me a response will help all of us!