Bill’s Blog October 1, 2020
Bold statement, but very true. In past writings on the topic, I stated that in 2014 or so I really started to hear regular commentary on this new technology. My first response was to ignore it, as I really did not understand it. But, by early 2017 after yet another video by a techie, it was like the light bulb came on. This was going to be a game changer industry much like the internet was; global in impact and I finally could see it as a high-risk speculation. So, I took a course and listened to many podcasts and videos explaining the technology and why it was so important. You should NEVER invest or speculate in any asset class without understanding it at a high level. Better yet, do a deep dive… and so I did this for 2 months.
Once I understood the RISKS and potential rewards; I set aside a small amount of capital that I was prepared to lose 100%. I opened my first crypto exchange account after studying the many options… That was a bit stressful, yet it all worked out. For those who do not remember, 2017 was the greatest bull market for Bitcoin and many of her sister altcoins (whether worthy or not…all boats rise in an extreme bull-market). To put it in perspective, if you had just speculated $10,000 and put 5K in Bitcoin and 5K in Ethereum on January 1, 2017… you would have been very close to a millionaire in less than 11.5 months (assuming you then had the sense and courage to sell 100% (in Canadian dollars)). Thankfully, I too did well in 2017.
There are only a few times in a person’s life that can create life changing profits – real serious multiplication of your wealth. I believe there are game changing projects that are being developed and that can potentially create a significant opportunity. The KEY is you need to educate yourself, take action and be willing to take a small but calculated risk of capital with a handful of crypto/blockchain projects.
As with any new innovation, there are a few real contenders but the majority are pretenders as they will experience 100% failure for many reasons (lack of expertise, conflict in teams, not taking regulation or legal matters seriously or insufficient capital to name a few). Just as a note, the exact thing happened in the 1980’s and 1990’s Tech-Revolution with the explosion of internet companies: the home computer phenomena (my first home computer was $4200…I was so excited) and the myriads of dotcom’s…ever hear of Wang Computers or Netscape? As I write, there are 7273 crypto projects listed on CoinMarketCap.com and probably over 95% will become the next dodo bird. Those have been extinct for over 100 years….
Why I am excited about this industry? Well, blockchain technology is such a superior way to:
– safely transfer or store data & titles
– do faster, lower cost and safer financial transactions
– create binding smart contracts and
– if applied to elections, would prevent voter fraud
That’s just to name a few.
There are 100’s of real-world applications for blockchain. Cryptocurrency is mainly used as an umbrella term for all of the projects; however, in the purest sense it is for peer to peer or B2B financial transactions. You can purchase things globally or send family/friends money without multiple middlemen and excessive costs…just a smartphone. Currently there is only about .05% of the globe using blockchain; but this is rapidly changing. Twenty-five million people are using or participating in Bitcoin currently and the total market cap of all crypto’s is about $340 billion USD. In the next bull run I believe it will far exceed a trillion dollars.
What is exciting is seeing some of the largest corporations in the world in multiple business areas investing billions into crypto projects. Many are developing their own blockchain projects. Central banks (may not be a good thing), governments, the financial/accounting sectors have jumped in with both feet. China is about to launch their own digital Yuan named the Digital Currency Electronic Payment (DCEP). You can see the full article here: https://capitalistexploits.at/china-is-about-to-release-the-worlds-first-national-digital-heres-why/ .
The trend will rapidly continue to expand, and one day in the near future there will be no paper currencies anymore. All technology can be used for either good or bad. If crypto/blockchain are used to benefit the 3.2 billion un-banked, to prevent fraud, to lower costs to governments, businesses and people…then there can be huge benefits for humanity. If the technology is used to control, monitor and track ever transaction, use it for capital controls under the guise of security…then avoid those types of projects and use decentralized crypto-currencies. Only time will tell, but I’m certain this technology revolution will not cease. The question is: will you become a student of crypto/blockchain and participate in it with significant upside potential? I continue to hear of billionaires, hedge funds and Wall Street experts jumping in with sizable capital.
Some of you are thinking: “this is way too complex, and I don’t have time to spend hours learning about crypto”. This may be true for many, so I am offering a 3-hour consulting session that covers all of the basics:
- Learning from legitimate sources, crypto research and market updates
- Deciding: Are you a trader or an investor/speculator?
- Major risks to avoid
- Choosing an exchange and a wallet or wallets
- History, risks and potential rewards
- Knowing if a project is legitimate or a scam?
- My Top 16 Picks
I can offer the consulting in person, online (Skype or Zoom). We can do a group session in the Fraser Valley or the Lower Mainland (I will offer a group rate). My consulting rate is $125.00 per hour for individuals. Depending on the size of the group we can negotiate a fair group rate. If this interests you, please reach out to me at bill@fivefoldfinancial.ca or 778-539-7107 or contact me via my website: www.fivefoldfinancial.ca
Best regards,
Bill