Hi, yesterday I shared the following update with members here, including a “tip” that “One of the coins, ZIL is currently well down and I explain why I think it has the possibility to 10 X” – it shot up 42% since yesterday!
We continue to live through extraordinary times. A global pandemic, followed by a war on mainland Europe. Combined with China’s ongoing supply chain issues (I predict this will be the Feds excuse when they change course later in the year)!
Then the Federal Reserve after massive flooding of FIAT dollars which has contributed greatly to the boom in stocks and assets. They then continue to follow the same old playbook, raising interest rates, in a slowing economy whilst reducing the balance sheet at the same time. Even though it didn’t work as recently as 2018 nor 2009 nor 9 out of 10 times in the past.
I covered this in recent posts, including my plan to buy some stocks and especially gold, silver, and other metals. I explained in this post that I was hoping for pullbacks as I feared I had missed the moves. Six weeks later prices have dropped significantly as cash flows into the “safe haven” dollar.
Now the majority of retail traders and investors will be too scared to buy: I talked about the situation and my plans in the mid March update: alternate-investing-in-fx-crypto-stocks-gold-in-2022/
I commented in the article that “crypto up until this year, was relatively easy since 2020…. now we have to start thinking more mid to long term. We have had an incredible 18 months where it has been difficult to not make a profit, now things have become much harder so we need to adjust accordingly.”
Once again fear and greed rule the markets. This is why I preach that it’s vital you make a plan before the event before the emotions kick in and you make irrational decisions.
Crypto in 2022:
Back in 2020 when Bitcoin was around $10,000 I asked the question…
Should I still buy Bitcoin? The answer was a resounding yes!
So what about now in 2022?
I remain convinced that Crypto and blockchain technology is here to stay for all the reasons I have stated throughout the journey on this website. In the video, below, I explain why I believe that to still be the case. Retail users are up 7 fold year on year and more importantly, institutional investors increased NINE times.
If you recall, in the first webinar I hosted in October 2020, when BTC was around $8000, I explained why the big boys coming in was essential for the continued expansion in the crypto space. Since that time we have seen adoption by many giants of the banking and financial world.
If you need a refresher of what I said at that time and especially how I believed that inflation was likely to become a big problem, Almost a year to the day before Fed Chairman Powell acknowledged it was now a problem!
This year the adoption by mainstream banks and Wall Street institutions continues to grow, including many companies who previously slated BTC et al as a “scam, ponzi, nonsense, tulip bubble.”
Many of these companies already had indirect investments in Bitcoin by buying shares in companies, like Microstrategy, which have Billions in BTC held in their treasury. Jamie Diamonds JP Morgan for example, hold over 10% despite the fact that he has been one of the most prominent BTC haters.
Now these companies, having completed their due diligence are ready to enter the crypto space directly. Ray Dalio’s Bridgewater, which manages over $150 Billion of client funds is now taking a more direct approach as you can see in this article
GS Private Wealth Management alone has over $230 Billion under management. Blackwater with around $10 TRILLION under management is tip-toeing around the edges at the moment.
Finally, pension funds:
Many have some exposure indirectly to crypto and blockchain technology as explained in this article from Forbes: Pension And Sovereign Wealth Funds Eye Crypto As Regulators Focus On A Global Crypto Framework
if the pension funds ($55 Trillion) get DIRECTLY involved that is going to be mind-boggling amounts potentially joining the space and in the case of BTC, chasing a limited supply. Mid term I remain convinced that the only way is up!
I explain in the video why in my opinion the Pension funds HAVE to get involved and some, like the Houston Firefighters pension fund are dipping their toes in the water with a $25 million investment in BTC & ETH right now.
If I was new to Crypto what would I buy first?
Taking into account all of the above I would buy some Bitcoin and Ethereum as they are the projects that the big institutions will feel most comfortable with from a regulatory point of view.
This could still be a wild ride as the big guys try to “shake the tree” and scare retail traders into panicking and getting out. Me? I am HODLING- now you understand why holding on to crypto through these wild swings is known as HODL “Hold On for Dear Life”!
Many stock market gurus are quick to comment that “if you had bought $10,000 worth of Amazon or Google in the late 1990’s you would now be a multi-millionaire.” When looked at historically it is a no brainer BUT that removes the emotion that buyers were subject to during that time. As with all revolutions in technology, it was a wild ride. There were only around 20 million people using the internet at that time. There were experts who said that “the internet will never catch on”! There were surges up and down in price.
I explained the same scenario in a recent post about gold. I was buying in the early part of this century 🙂 when it was less than $400 an ounce. Did I hold it all the way to $2000? What do you think!
As ever I am NOT a licensed financial adviser in ANY jurisdiction. I simply share with you my opinion and what I am doing. You of course need to do you own research and whatever decision you make, do not risk money you can not afford to lose.
That way it is a lot easier to HODL and ride out the storms both up and down.
This is part of the video update for members of my Crypto Investing Website. I share all my reasons and a few investing and trading ideas, but it would not be fair to them if I shared my portfolio and specific investing ideas.
If you want to know more about Crypto Check Out Why I Believe Everyone Should get involved in crypto