MODULE 2 (FUNDAMENTALS)
There are many factors and variables to take in consideration, don’t just buy Bitcoin (BTC) because someone said it was a good investment, perhaps a good store of value but investment? that is still up for debate… so please do hear me out on this.
Everyone is
investing for different reasons.
And there is a
huge difference in Investing in Cryptocurrency vs Trading Cryptocurrency.
Assuming you must
pay thirty-thousand dollars ($30,000) for a single BTC. Looking at the
Fibonacci retracement among other factors and indicators, BTC could very well
reach one-hundred thousand dollars ($100,000) in the next year, and
five-hundred thousand dollars ($500,000) in the next five years, and
one-million dollars ($1,000,000) in the next ten years.
Your investment
would have returned a whopping seventy thousand dollars ($70,000) at the first
milestone, four-hundred and seventy-thousand dollars ($470,000) at the 2nd
milestone and nine-hundred and seventy-thousand dollars ($970,000) at the 3rd
milestone.
Now let’s assume
your neighbour have invested thirty thousand dollars ($30,000) the exact same
amount in another project (penny on the dollar) because these alternatives
(ALT-coins) have better growth potential based on their innovative technology
and other factors. Find a coin according to the variables to be discussed and buying
it at $0.002 will result in fifteen million (15,000,000) units. The price of
these coins reaching $1 dollar in one year from now is more probable than BTC
reaching a million in the next ten years and certainly ends up being a far
better investment and proven strategy. Riskier some may say, no doubt, but we
are not throwing our hard-earned money after projects with no utility and not
before doing our homework, and neither should you. After a thorough
investigation and assessment, you should be able to determine and find
exceptional projects.
Besides, the
Scripture says, “invest in seven ventures, yes, in eight; you do not know what
disaster may come upon the land.”
One hundred
thousand dollars ($100,000) into eight exceptional coins is twelve-thousand
five-hundred dollars ($12500) per project which should really hedge you
thoroughly and certainly has made many millionaires several times over in the
last bull run.
TIP: Go figure, the more
people using the exchange the more their token will grow in value (FTT, BNB,
OCE, HT, KCS, CRO to name a few). Some of these tokens are still way undervalued.
You also must understand
that there are many institutional organizations that does not use gold as a
safe-haven or a store of value, they use government debt. Cash is a safe haven,
as well as Sovereign debt or the Index fund (Bonds and Stocks) such as the
S&P500, Vanguard fund and the Dow Jones. Assuming there are between three
hundred (300) and four hundred (400) trillion dollars’ worth of fiat
instruments (cash debt, stock, commercial real estate, index) at least half of
that is seeking a Store of Value. Institutions do not buy a million dollars’
because they believe in every single asset class in the Vanguard fund or stocks
proportion to their market caps, that’s not why they buy the index. They would
buy the index because they had a million dollars and they know, when they leave
it in cash, it would debase in purchasing power, so they need to put it into
something going that will bring in more than the economic hurdle (cost capital).
Some people and,
or institutions choose to preserve their wealth by buying land, not because
they are emotionally attached to the land they bought, others choose to
preserve their wealth by buying debt. There is over a hundred trillion dollars’
worth of sovereign debt (10, 5, 3, 1-year treasuries). There is at least twenty
trillion worth of debt that is negative yielding. Why buy a bond, that you have
to pay to own? The obvious answer is they don’t want to hold the cash or bury
it under their mattress or hold metal in their basement, so they buy a bond
until they figure out what to do. The amount of wealth looking for a safe-haven
store of value is roughly between hundred trillion and two-hundred trillion
dollars. With this in mind, some say Bitcoin is a pure index of the economy
without counterparty risk, without executional risk, without credit risk,
without debasement risk, without tax risk to name a few. It’s just a matter of
time before institutions hops over, and, or migrate to Bitcoin, OR in my
opinion gets tokenised into alternative tokens (ALT-coins) for their technology
or project status, for reason you have heard people say, we are in the “early
days” in the cryptocurrency space.
Imagine you’re
back in 1970. And I tell you that more people would send mail electronically
than through mail carriers. You’d probably think that was incredible. Or you’d
think that I was crazy. Fast-forward 50 years, and today, people send more mail
over the internet than through the postal service. That’s the thing about
ground-breaking technology. In the early stages, we don’t always see how it’ll
change society. In the same way, we may learn from what use to be the worlds
most recognised photographic brand called Kodak and their demise. And we have
yet again arrived at a similar juncture of what is referred to as the “internet
of value.” We have had the internet of information that has connected billions
of people through information, but what we did not have and the thing that was
missing prior to Bitcoin or cryptocurrency in general, was the internet of
value. Put it another way, if you are in Bangladesh, I could send you content,
photos, letters INSTANTLY but couldn’t send you value INSTANTLY, or at least
not up until now.
For any donations above $20 I will ship the Cryptocurrency Trading Exploits publication for free. Send me proof of deposit to clicks2life@gmail.com with your name and shipping address.
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