Cryptos Are Pumping Again. Here’s How to Play It
It appears obituaries for the cryptocurrency market were premature.
Never has an asset market had more column inches writing it off.
Never have a bunch of analysts been proven more wrong.
Consistently. Over and over again.
Because most cryptos follow these two big ones, loads of them are rebounding as well.
Is that the latest ‘crypto winter’ over and done with then?
Way too early to tell. If it is, it was a short one.
It’s equally possible it wasn’t a winter at all, according to Ryan Dinse. Just a big correction in the latest bull cycle.
Wherever prices go from here, it’s very important you study the new research we’re releasing on this here in The Daily Reckoning Australia tomorrow. It comes in the form of a five-part, how-to guide. And it gives you some tactics you can employ now to exploit this specific period in the digital currency and blockchain markets.
I’m very pleased our back-of-house team has been working double time to get this research to you.
There’s momentum behind cryptos again, which started last week. They’re still well down from this year’s highs. But it means you may only have a small window until they’re heading towards US$60k again. Nothing is certain, of course. They may drop back. But now is the time to employ a simple set of strategies that could potentially pay off amazingly over the long term.
As Publisher of Fat Tail Investment Research, I’ve been involved with a lot of really useful projects, opportunities, and ideas for freethinking investors.
The concept of a decentralising world is a cut above.
In a way, this transcends them all.
For that reason, I believe How to Play the New Game will be one of the most valuable knowledge-gathering exercises you’ll ever be involved with.
As I say, it’ll be sent to you tomorrow, hopefully early in the morning.
Although we’re going REALLY close to our publishing capacity to try and get it to you before the weekend, such is the urgency we see here, after events of the last 10 days or so.
There is one thing I want to make clear, though, before we publish this new guide…
This is not just for those already in the crypto game.
You’ll get something out of it even if you’re a crypto sceptic…or if you don’t own cryptos, or feel you’ve ‘missed the boat’ on them…and if the words ‘blockchain’ or ‘ledger’ leave you confused.
I’ve personally had stakes in a number of cryptos for several years now. But by no means am I a cryptocurrency fanatic. I still don’t have a complete understanding of exactly how this evolving market is going to fit into the conventional financial system (the old game).
But I can tell you this…
Some of the simple strategies I’ve seen in the first drafts of this guide have completely opened my eyes and blown my mind.
Cryptos are just one small part of this puzzle.
In a way, they’re a red herring.
The ‘new game’ is a much more far-reaching phenomenon
There is another side to bitcoin and cryptocurrencies in general. One you absolutely must understand before you even get to the price. When you look at it through this lens, you realise just how big the game-changer taking place right now actually is.
Bitcoin isn’t just electronic money. It’s underpinned (and given value) by blockchain technology. Another term for this is distributed ledger technology.
‘So what?’ you might ask.
Well, distributed ledger technology can do a few things.
It can facilitate transactions between two parties directly; no middleman required.
It can record those transactions (and the ownership trail) without the need for a central party to ‘keep the records’. The record is maintained on the blockchain.
And no one can mess with it. It’s ‘immutable’.
To put it simply, this is a free-market system developed in response to a corrupt and broken monetary system.
This has profound implications for your wealth
Especially so if you make it your business to understand it before most others do, and then take a few specific courses of action on the back of that understanding.
This is what How to Play the New Game is all about.
But who owns and maintains the blockchain, exactly?
Surely SOMEONE has to be in charge of it.
As you’ll see tomorrow, that’s old-game thinking.
In the traditional financial system, the banks/central banks/governments have a monopoly on the payments system. And they are the prime beneficiaries.
The beauty of the blockchain system is that it is open-source. Everyone and no one owns it. It is maintained via the age-old principle of self-interest.
That is, the bitcoin ‘miners’ (or ethereum miners, or whatever) need to devote significant computational power to ‘mine’ a bitcoin. And there is good competition for it. This competition constantly strengthens the blockchain system.
Same self-interest. Different game.
In this way, the new money system is reinforced and strengthened by miners acting in their self-interest. This creates an almost frictionless system devoid of ticket clippers and parasites.
But perhaps you’re wondering, ‘How can bitcoin or other cryptocurrencies be money when its value is so volatile?’ It’s a good point.
What you’ve seen in recent months — and especially in the last week or so — is evidence that cryptocurrencies are still clearly in the price discovery phase.
Pricing the stock market is hard enough.
Pricing cryptocurrencies is a far-less-exact science than even that.
A market where swings in value of 30% or more is not the safest place to be — let’s be clear on that too.
But it is a market where the potential returns are huge — if your thesis is proven correct over time…and you’ve had the guts and the smarts to make certain moves while prices are still being ‘discovered’.
Remember what the stakes are here…
A new system is rising to allow you to bypass the legacy financial system and all the parasites that clip your ticket in exchange for doing very little.
And that you’re buying into that system now, at a discount, while the mainstream remains uncertain about it.
The trend to centralised control over the monetary system is not going to dislodge easily. For the past 100 years, the sociopaths running the world have increasingly centralised power structures. Money, banking, media, and information have all become far more concentrated.
Concentration of power leads to greater control.
And the control of money is the ultimate goal.
But if this new system stops all that in its tracks?
Well, to say it would be the ultimate disruption is an understatement.
We’ll show you just how much of a disruption this will be — and how ordinary savers are using it to make multiples higher yield than what you can currently get from the banks — in How to Play the New Game.
How do you adapt your wealth-building strategy to this new game?
That’s the million-bitcoin question!
Watch your email inbox tomorrow…
For now, over to Catherine.
Publisher, The Daily Reckoning Australia
PS: Our publication The Daily Reckoning is a fantastic place to start your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here.