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 2^nd milestone and nine-hundred and seventy-thousand dollars ($970,000) at the 3^rd 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.