Fellow New Gamer, At 11:01am AEST on 5 May, we issued a series of recommendations regarding the cryptocurrency markets… First came a warning. Centralised powers were about to take big swings at this ‘new game’… ‘We are going to see massive amounts of pushback from the centre brigade. Do you think the old gamers are going to just sit back and watch as all their power is taken away from them?’ |
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It happened. The old gamers gave crypto a series of body blows. Cryptocurrencies reeled. Speculators freaked out. The price of bitcoin had peaked at US$64,854 on 14 April 2021. One month later, it hit US$30,000. By July it had fallen below the $30k mark. At the time of writing, China’s still punching: its anti-crypto tack has shuttered bitcoin mining operations from Sichuan to Xinjiang. The crypto sceptics, financial watchdogs, central bankers and ‘old gamers’ are gleeful. But here’s what few of them admit or realise… Through all the volatility and price falls… The new game has held firm. The protocols and projects behind this new world of decentralised finance survived a massive stress test. Bitcoin mining is now moving from China to North America. ‘It's happening! Texas will be the crypto leader,’ tweeted its governor, Greg Abbott, recently. Companies, hedge funds and even countries…they’re not freaked by the selling. They’re upping their stakes. You’ve probably heard the recent news from El Salvador. Amid all the bearish headlines, that tiny South American country became the first nation in the world to designate bitcoin as legal tender (in conjunction with the US dollar, which is what they use now). Of course, that huge news was drowned out by negative headlines. And played down by critics and naysayers. And all the while, the smart money — the crypto ‘whales’ — have been buying. The ‘millionaire tier’ addresses holding more than 100 bitcoin have been ADDING to their positions since the first selling started on 21 May. We predicted that too, in our 5 May summit… ‘Their attempt at preserving the old system will fail; it’ll backfire. It will cause even more disruption. And more opportunities, if you’re actively looking for them.’ |
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So, what are those opportunities? Now let’s set the terms before you read any further. If you’re completely scared off by the recent carnage and chaos of the crypto markets, this is not for you. If you’re convinced that bitcoin having a big correction is a sign the whole crypto thing is a shemozzle and a scam, then let me save you a lot of time. What follows is not going to be of use to you. If, like us, you see the big picture…and the immense opportunities that have just opened up to you…then let’s talk strategies. Remember: this is probably the most important, fastest-moving, most chaotic tech-led disruption any of us will ever see. It’s a movement taking on some of the most powerful institutions in the world. There are literally trillions of dollars at stake. When you look at the new game through that prism, what’s been happening is not a shock, or even a bad thing. We predicted it. Because it was practically a certainty! Some healthy perspective, which is sorely lacking in mainstream coverage right now… - Bitcoin is STILL the best-performing asset over the past 10 years, five years, three years, and one-year (even after falling below $US30,000)
- Through this journey I’ve recommended altcoins that have made significant gains…as much as 11,000% for one of my subscribers. I’ll repeat that…11,000%.
- The cryptocurrency industry — and decentralisation, what we call the ‘new game’ — is STILL tracking to be a bigger disruption than the internet industry.
Extreme price cycles are part and parcel of all of that. The smartest investors look BEYOND the daily headline spew. Instead of looking at daily price action, THIS is the trajectory that matters (from a recent tweet from Charlie Shrem)… 
| Source: Twitter |
What’s next for the new game, I wonder? ‘Only minor G20 countries use it’? It’s entirely possible that’s the next step in 2022. El Salvador is such big news because it could cause a domino of interest from similar countries if the experiment turns into a success story. We don’t often realise it from our privileged position as a first-world nation, but a lot of countries are either slaves to a currency they don’t control (the US dollar) or helpless victims of extreme volatility due to shortcomings in their own currency. See Argentina, Turkey, or Zimbabwe in recent years for an example of how volatile ‘normal’ money can be too! Anyway, the point is there are pioneers in every facet of finance staking out a position in the new game right now. Not DESPITE the falling prices. But BECAUSE of them. Michael Saylor of MicroStrategy, for instance, is forging ahead with his corporate bitcoin holdings. He recently raised another US$500 million in debt to put into bitcoin. To him, he’s paying for valuable bitcoin with worthless fiat. He says: ‘The signal is monetary expansion everywhere. The problem is people are going to lose half their wealth in a few years. The solution is Bitcoin. The rest is noise.’
What follows is for big picture-graspers who are willing to tune out the noiseIf you believe in the fundamentals of this new game…you shouldn’t be wringing your hands or fretting over what your wallet is worth on a daily basis right now… You should, instead, be looking at this as a moment of extreme opportunity. One you may never be gifted again. It’s a brave and contrarian mindset to adopt right now. But think about it… It’s the brave contrarians — who made the right moves in times of chaos — who tend to reap the biggest rewards. This is a guide showing you some moves you can start making, right now, to set yourself up to do exactly that. So… What’s your best course of action from here — if you missed out at $12,000 to $20,000 bitcoin? What are the strategies to employ if you already own or trade cryptos? And most importantly… What’s the REAL story here for you as an investor? The story the mainstream isn’t telling you? Why is the smart buying on weakness, while the small holders are panic selling? Honest truth is cryptos are just a tiny part of what’s unfolding. We’re at an inflection point in investing. One that your parents or even your grandparents never had in front of them. As the banks and old guard fight to retain power, and a new, autonomous financial system starts to build, the opportunities for wealth creation right now are almost immeasurable. But none of this means anything until you take the time to understand it. And adjust your wealth for it. ‘We’re at the beginning of that “explosion part”,’ explains Dr Leemon Baird in a recent Smarter Markets podcast called ‘Understanding distributed ledger technology’. But what does that mean, exactly? And how do you tap into it? This report answers these questions. And we’re going to give you several specific strategies. Outlined in full if you read on. You don’t need to subscribe to anything. We give you what we think are our best approaches — free of charge — in the report that follows. All we ask is you keep an open mind. First up know this… If you missed out when prices were at much lower levels, you’ve just been given an ‘unbelievable gift’. That’s how I’ve labelled this recent stress test for my readers who are beginners here. The crypto market now sits at a combined value of $1.5 trillion. It was $2.5 trillion in May. You may never see an entry point like this again. That may seem like a bold claim. Given that — for all we know — crypto-assets could fall further in 2021. But, as I keep saying, what you need right now is a firm grasp of the bigger picture… My name is Ryan Dinse, and I was met with raised eyebrows when I gave a similar big-picture assessment back in 2018. During the last crypto winter two-and-a-half years ago I released a report titled ‘How Bitcoin Hits $55,000 in 2021’.It was a more than 10-times prediction that seemed outrageous to many back then. But I could see what was coming… I predicted the winter would end, cycle four would begin, and I got the price target pretty on-point. If anything, I was conservative. I see a similar dynamic in the crypto markets right now. Prices are no longer parabolic. It’s a perfect opportunity to get a stake in the system, especially if you haven’t already. But you need a shrewd strategy. You can’t just buy wads of crypto blindly because you think it’s a bargain. Bitcoin is gyrating insanely, even by crypto standards. Its annualised 30-day volatility just reached 116.62%. Cryptos and blockchains may well be the future of finance. But right now, that future is still a work in progress. That means huge potential rewards, but also huge volatility risk. You need a buy-in strategy that accounts for that volatility. We outline such a strategy, in three steps, for you below. What about the new field of earning income from cryptos?Are you doing that yet, or are you still leaving that money on the table? Steve Fisher, who wrote Residual Millionaire, defines passive income as free money… ‘…that comes in every month whether you show up or not. It’s when you no longer get paid for your personal efforts alone, but rather, get paid for the efforts of hundreds or even thousands of others and on the efforts of your money.’ |
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A new way to passively grow your wealth has come on the scene: investing in stablecoins. I’m personally using it to great effect. And I can attest that passive income earned from these special cryptocurrencies held firm during the stress test. It didn’t budge. Below I give you a SPECIFIC three-part crypto income strategy. It’s aimed squarely at complete beginners. Although I’m employing it myself with my own money, and it’s working fantastically. I walk you through it, giving you the SPECIFIC stablecoins — AND the specific platforms I plug them into to give me, at the time of writing, an average income of around 11.7% over the past three months. ‘Money manager Vladimir Vishnevskiy can earn a negative interest rate for holding a European government bond. Or he can pocket the annual equivalent of a 20% yield for locking money up in one of the wilder corners of the crypto market, known as decentralized finance, or DeFi. He decided to go for the 20%...’ Bloomberg, 16 June 2021 |
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And that’s net. Meaning it’s after fees. Right now, the very best bank savings rates in Australia give you between 1% and 3%. And even those are only available to you if you’re under 24 years old! And keep in mind this is 13.7% income from one of the simplest strategies available to you. As I’ll show you, those rates can climb when you employ slightly more nuanced strategies. Now, this is the crypto world, so those rates vary wildly from week to week. That’s something to factor in. Some of these advanced automatic income strategies…the ones that get you 20% plus…even the Wall Street pros are still trying to get their heads around. So, this is by no means without risk. That’s why I call this ‘speculative saving’. At least for now. But think of the alternative — 0.4% a year from Westpac, provided you deposit money each month? As I say, I’m about to share with you the simplest, lowest-risk crypto income strategies on offer right now. Where you absolutely smash those old game returns. And where you are the complete controller of your passive income. The three strategies outlined later should be your first move into this space… And then there’s the stock market. It’s time you looked at investing in the stocks of the future. Because ‘your father’s stock market is never coming back’… That was the blunt headline of a 3 June 2021 Fortune magazine article on what we call ‘new game stocks’. They’ve got that spot on. Chances are, by now you’re already wise to the fact that blockchain solutions are going to play a bigger part in the stock market going forward. That’s not news. But could they really dislodge the likes of Google, Facebook, Amazon and Apple? Could the household names of the 2020s all be linked to decentralisation? It might not happen overnight, but my answer is YES. If you’re looking for ways OUTSIDE cryptos to position yourself long-term for the new game, you should be hunting the first-movers here. That’s what I’ve been doing. And here are the early results… 
| Source: Fat Tail Investment Research |
I’ve been making first-mover ‘New Game’ stock plays in my previous newsletter, Exponential Stock Investor, since the end of 2017. These are ALL of the current open recommendations. Notice: not a single loss among them so far. Of course, it would be unrealistic to expect that to continue. In fact, we’re going to be even more aggressive with these kinds of plays in my new advisory, New Money Investor. We plan to ‘level-up’ on the gains you see above. But, in doing that, I fully expect to incur losses along the way as we go for the REALLY big gains here. Those price moves above are great. They prove the thesis — each stock is centered round one of three categories — New Game Finance; New Game Big Data; New Game Biotech (blockchain-enabled biotech). As I say, the gains are good. Not one loss as of yet. But not spectacular. Not at this early stage. But, as you’ll see below, we’re moving into a new phase… There’s a whole new breed of blockchain-powered companies only just coming online, and beginning to rise. And I’m not talking about the obvious contenders like Riot Blockchain or Coinbase. So, who are the hot up-and-comers taking on the big, centralised digital monopolies? Read on to find out… Then there’s the quiet rise of gold, and how to play it — new game-style…As bitcoin retreated, its grizzled old rival advanced… Gold broke the key psychological level of US$1,900 as cryptos sold off. Inflation lurks. Stock markets teeter. Fear grows as the Delta variant spreads. So, what to back in this seesaw world? Gold or bitcoin? Finance is made up of bickering tribes. There are gold bugs. And then there are bitcoin enthusiasts. And never the twain shall meet, right? Don’t be so sure… Gold was the original bitcoin, before the elites took it out of the hands of the people. This process began in the early 1900s and it hasn’t stopped. The revolutionary thing about bitcoin and blockchain technology is that it will reverse this centralisation trend. If I’m right about this, it will shine light on the darkest corners of the financial world, and lead to true price discovery. And gold could be one of the biggest beneficiaries. We’re digging into a revolutionary new way the ‘crypto kids’ are getting exposure to a rising gold market… Two ways, actually. We name these specific ‘new game’ gold plays below. Plus… We’ll introduce you to a new and exclusive mobile phone app that’s only just gone live…It’s designed to make executing all the crypto strategies outlined below a lot easier. Especially if you have less technical knowledge. You can download this new app to your phone — I’ll show you how later. And it will make every strategy we explore easier, cheaper, quicker to execute and more secure. ‘There are a lot of financial institutions that should be concerned… banks should be scared.’ Billionaire investor Mark Cuban in a blog post in June 2021 |
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It’s just one new tool in a new system. A system with an end-goal to replace centralised institutions like banks and financial intermediaries. A system that is exploding — in spite of the ups and downs of crypto prices themselves. In May 2021, new game investors put as much as $86 billion into various new game programs. That’s compared to just $1 billion one year ago. It’s a system that gives you full control of your financial future. With no third parties making decisions on your behalf…and taking a cut in the process. What we’re going to do below is give you some strategies to get you in the game now. Because, make no mistake — Specific actions — taken right now — could define the rest of your life…What does bitcoin, Ethereum [ETH] or any other crypto cost at the time you’re reading this? You tell me. Come Christmas time, will we be in the midst of a crypto winter, or hitting new highs again? Anyone who tells you they know is lying. Truthfully: You need to block all that out… As journos and punters focus on the price lurches, wiser minds realise something far more profound is unfolding here… This hype cycle is very different from 2013 and 2017. The black swan of COVID-19…currently swamping the world with its latest mutation… The straining of the global financial system to deal with it… The unprecedented levels of crypto adoption by institutions… The rise of something called decentralised finance (DeFi)… And now a suspiciously coordinated effort to pour cold water on it all… These are all new, unique inputs. Put simply: We are entering a new epoch in finance and investing. We call this epoch ‘the new game’. The pandemic, and its ensuing monetary policies, pushed a huge crowd of new investors into crypto. Many of them — mostly the small players —just got scared off by the recent stress test. But none of this changes the fact that, at the same time, the entire financial landscape is being rewired. It’s a rewiring every bit as weighty as the introduction of computers, and then the internet. If you can shut the noise out — focus on that one fact — and make the right moves, right now… …you stand to win spectacularly. You could be substantially wealthier by the end of this decade. That requires, first and foremost, an understanding of this new game. Once you have that, a lightbulb will go off. You’ll see the hyper-volatility in a new light. You’ll realise it’s neither unexpected or shocking. But it IS risky. And will be for some time. You need to be smart. If you make the wrong moves — in the wrong way — you can lose a lot of money. Over the last decade, remember, bitcoin saw a daily price change of 10% or greater over 300 times. This is because the new game is still in the price-discovery phase. A process of collective learning and exploration…mixed with bouts of fear and greed. It’s also now a process where the ‘old gamers’ lash out. An ingrained system of grifters, middlemen and leaners see this emerging system grow and mature. And they do not like it. Not one bit. It’s no longer something they laugh at and belittle. It’s an existential threat. As such, this new game has been hit and hit and hit again, from every angle. This has been the pattern of the last decade. But in 2021 the attacks have taken on a new, desperate viciousness. And they have failed. Repeatedly. Stress test: PASSEDThe most recent combo of punches were the most savage yet. Punch one: Elon Musk declared Tesla would no longer accept bitcoin payments. (As I’ve showed readers of my advisory, New Money Investor, there’s a self-interested reason Musk did this. It’s nothing to do with bitcoin’s environmental impact, which he’s clearly known about all along…) Punch two: the US announced a money laundering probe into Binance, the world’s biggest crypto exchange. Punch three: China said (yet again) it’s going to crack down on crypto mining. It appears to be following through. Global regulators have thrown everything but the kitchen sink at digital assets. But you know what? The new game passed the test. Look, that’s a hugely important point you need to understand. I need you to read the following quote very carefully. It comes from ex-Goldman Sachs executive, and popular crypto advocate, Raoul Pal. And it outlines perfectly what a seminal moment this recent new game stress test was (my bolding added): ‘Something to get your head around: ‘Headline: A major asset class crashed 42% in 14 days, wiping out $1.02trn in value in an orgy of liquidation of people up to 100 x levered, with very low regulation. Many tokens fell up to 70%, including unregulated lending and borrowing biz. ‘Beneath the headline: Crypto had a major, major VAR-shock test and NOTHING happened. Leverage liquidation was offset by overcollateralization. No one was left holding the baby. No firm went under. The Fed didn't need to step in. Defi didn't break and carried on near normal. ‘There were no daisy chains of collateral losses. There was no collateral pressure. Stablecoins remained stable. A few exchanges went down for an hour or two. No exchange big losses occurred, no need to mutualise losses either. No protocol failed. No firms needed rapid funding. ‘No one had open ended losses. The system didn't break. It offered zero systemic risk to the broader financial world. Speculators lost money and that is it.’
Speculators took their licks. And the rest of the financial world carried on as normal. That, reader, is the new game in fully functional action. And what a difference to the traditional investing world, eh? There was no begging bowl put out to government, no cries for bail-ins or bail-outs from so-called capitalists…just an acceptance that you take individual responsibility for your actions, good or bad. This is how free markets SHOULD work! But the main point is that the system stood up to the test. What’s more, as a tech-led revolution, it’ll only get better from here too. That’s what makes this such an urgent paper. It means you can enact these strategies to get exposure with even more confidence than even, say, six months ago. Because you’ve seen, firsthand, how robust the new game is. So, let’s talk strategies. This first strategy is for you if you’re not yet exposed to cryptos... GET IN: HERE’S HOWFOR NON-CRYPTO-HOLDERS: A sensible strategy for easing into this market — regardless of price levels...As I said, I don’t know what crypto prices are as you read this. They could have broken back towards bitcoin $40k. Or they could just as easily be falling back to $20k. They’re that volatile. But we can safely say two things… Barring some huge surge, they’re not as high as they were earlier in the year. And the so-called smart money — meaning the ‘rich list’ or ‘whale’ money — is using this to buy coins on the cheap. Blockchain data from analytics firm Glassnode shows accumulation by the whales has only sped up in recent months. Why? ‘Bitcoin’s “Rich List” Continues to Snap Up Cheap Coins’ CoinDesk, June 2021 |
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Because they see an old game morphing into a new one. The opening of a whole new chapter in history for money. And the chance to get a stake now at distressed prices. If you agree, then you have an opportunity here. Especially if you’ve not gotten into the game yet… Believe it or not, this is the position my New Money Investor co-editor Greg Canavan now finds himself in. He has small, speculative stakes in certain cryptos. But, unlike me, he’s yet to take a big position. Greg’s doing that now, though. With the following strategy… As I mentioned, as smaller holders sold crypto recently, many of Australia’s wealthiest investors have been BUYING. But they were doing it the tapped-in, connected, well-advised way wealthy people often play in situations like this. They’ve exploited lower valuations by going into very new, specialist crypto asset management funds. For ‘sophisticated’ investors only. Meaning those with over $2.5 million in investable assets. If you’ve got that kind of money to play with, by all means seek those new crypto vehicles out. If you don’t — and you’re totally new to the new game and have picked now as the time to get in — then here is our suggested strategy… In the 12 years since it was born, bitcoin has become the ‘blue chip’ of cryptocurrencies. We consider there is at least one other contender for long-term supremacy in the new game. But, as an entry-point, bitcoin is still your smartest move right now. It’s going to remain the world’s most-used crypto for some time to come. It’s the best store of value right now among all crypto assets. It’s the best crypto-hedge if, like us, you suspect inflation is going to be an issue in the medium term. There’s good reason to believe it will go further into the mainstream, gain further institutional adoption, be used by more people to transact, and gain further in value as the new game progresses. None of these are controversial claims about the value proposition of bitcoin long-term. But, given no-one knows where it will go short-term, how do you take a position? You do it smartly. In the 2000s, I was a financial adviser for a large Melbourne-based institution, with over 600 clients and managing $150 million in funds. In my final two years in this role, I was the number one planner in terms of hitting targets. Mostly because of client referrals. So, I’m going to dust off my financial adviser hat for you. As Greg says: ‘This volatility is not going anywhere. And it’s going to keep you awake at night if you go all-in, all-at-once with a big chunk of your portfolio. ‘So, if I’m going to become a proper stakeholder, using depressed prices we now have, I want to be sensible about it. I don’t want to be stressing in a month if prices have another drop.’
Here’s the strategy I’ve suggested to Greg, and I’m suggesting to you now… - Decide your stake in the game. When you’re putting a new speculative asset into your portfolio, you manage risk at the portfolio level. You first need to decide what allocation of exposure to the new game you’re comfortable with. It might be 1%. It might be 10% or more. Only you can decide that. You balance risk, volatility and long-term opportunity in making this call.
- Decide your crypto. Again, this is your decision. But I would advise bitcoin as your first port of call for the reasons above. Sure, you could take a super-punt on less-established coins like Aave [AAVE]. That went up a ludicrous 63,532% in the last 12 months. But it’s since had a downturn even more savage than bitcoin’s. A smart entry level right now is to back the new game’s biggest ‘blue chip’.
Dollar-cost average (DCA) into bitcoin. This strategy reduces volatility risk. Let’s say you decide your all-up position is $20,000. You DON’T stake all that today, and then see a portion of that turn to dust if there’s another big down move. Instead, you buy a regular amount of bitcoin once a month (or fortnight) until you reach this maximum allocation level. I recommend doing this over a 12-month time period. It’s how you insulate yourself from bitcoin’s price volatility. DCA takes away the pressure to ‘get the timing right’. If prices go down, you’re simply buying more bitcoin, and if they go up, you’re buying less.
Dollar-cost averaging into bitcoin right now doesn’t seem revolutionary. We’ll get to the clever strategies shortly. But if you’re yet to dip your toe in, the three steps above are what we suggest. You’re taking volatility out of the equation as you build your stake. So how do you it? and what’s the best Australian exchange to use? What’s the best, most secure way to store your accumulating crypto? Remember, this is an important feature of this new game. You don’t want to rely on middlemen holding your cryptos. If the exchange gets hacked, if it goes down, if it changes its terms on you— that’s not good. So, what’s the best way to ensure you control your crypto assets at all times? I answer all those questions (including the wallet I personally use for my long-term bitcoin holdings) in the first issue of New Money Investor. (By the way, it’s no hassle to take a subscription to look at this issue, right now. There’s a 30-day refund period. And there’s a whole bunch of more nuanced recommendations, strategies and materials as well. You can get instant access to everything simply by commencing your subscription with a 30-day trial period. If you decide this is not for you…let us know in 30 days and we’ll refund your small subscription fee in full.)
So that’s the start-out crypto strategy out of the way. Now we move on to the juicy stuff! Remember: I use all the strategies in this report with hefty amounts of my own personal capital. This is how I’m getting very big passive income. I’m not telling you to do anything I’m not doing myself, right now… GET INCOME: HERE’S HOWThree ways I’m using my own money to generate income from cryptocurrency… |