Crypto-CRASH: The June Opportunity

Recently, I had to take my truck in to get some repairs and my Uber driver started asking me questions regarding investing. His big question was about cryptocurrency, especially Bitcoin.

He was a millennial and was wondering where he should put his money when he starts to invest. I first started with the basics; How it’s not about the amount of money to invest; it’s all about time and compound interest. For example, when you have a mortgage, you pay 5x the price of the house. I explained how compound interest works in the same way, just in your favor and not the mortgage company’s.

He wanted to know more details, such as what is cryptocurrency exactly? What are the risks? Is it a good investment?

According to Google, cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank using blockchain technology.

Well, in the Trump economy, crypto has come on the scene to appear as if it were brand new. The unknown, a mystery, but that is because most people have never lived in the Jordan Belfort world of penny stocks.

Penny stocks are like crypto in the sense that the only thing that drives the price is the activity of the stock. If a company does get some good things going, and it graduates to the next level — off of the OTC Market and gets to the Nasdaq — it gets a real value based on assets, revenue, and projections.

But the wild west OTC companies that just go public to sell shares is the same exact concept of cryptocurrency. It is only driven by activity. This is why the Trump Social Media Economy is the perfect place for it to thrive.

It is because the value is all public opinion. No different than any other fiat currency. The only difference is it is driven by public popularity, not government manipulation.

So, am I a fan or a foe of crypto? The answer is neither.

What I would say is to watch the news, not CNN… Watch the word of the people, keep an eye on YouTube, Instagram, Twitter, and Tech groups to assess when the views are pointing to fear or pointing toward greed.

If the views are pointing toward greed, then it’s a great time to watch, but when the fear hits, it’s time to look at buying!

Let’s take some recent news 6/13 as an example: Ethereum gets a $20 million dollar hack.

That news sent fear through all the cryptocurrencies. Today, they are all down. Now, here is what is going to happen next. The fear will subside, there will become a new normal and the new Crypto Czar Valerie Szczepanik will come out with some new plan to stop hacks on crypto and assure the American public that there is nothing to worry about again.

So, what I would say right now, while it’s down, treat it like you would any stock you’d think is going to gain momentum again. Why? Because crypto is popular among millennials. It will remain relevant due to its connection to the new generation.

What is my reason for believing this?

Two reasons.

Bad or good, people like crypto because of its immature anarchist flavor. And people won’t stop talking about it on social media, and it provides stability to the financial markets on the African continent. As long as crypto stays a part of the millennial conversation, and provides a hedge against bad financial management in government, it will keep growing, even though the government is getting involved.

We have a generation that has taken personal ownership of this currency and wants it to become a way of life worldwide. So, as long as it remains the people’s currency, we will keep seeing it come back.

My belief as always, what gets the views in our new Trump economy will always have perceived value. Next week, we will talk about why Africa is guaranteeing crypto won’t go away, and the future of marketing in the Trump economy.