Bit of a break in proceedings today, publisher James Woodburn here.
I just wanted to give Rum Rebellion readers some advance notice of something big happening for you later this week.
You may well have noticed in recent weeks a friendly quarrel between Greg and Vern about cryptos.
Vern thinks they’re a ‘cult’ reminiscent of the dotcom era.
Greg used to think that…but now he’s not so sure…
I encourage all our editors at Port Phillip Publishing to have their own views and to argue for them passionately.
I’m just not quite used to such open warfare inside a single e-letter.
They say there’s no one more passionate than a recent convert. And if you fall into Greg’s camp, you’re going to love what we have in store later this week.
This is Sam Kim of the Umbrella Network:
‘There is something good growing among us. In the coming years, it will remove a layer of intermediaries that controls our most precious assets, governs our access to our own data and charges us for the privilege in a variety of ways. This group of technologies will change the way we bank, transact, borrow and save. They will let us interact with each other directly and trustlessly. Collectively, these applications are known as decentralized finance, or DeFi. And if you haven’t heard of them yet, you will.
‘When most people think of blockchain technology, they equate it with Bitcoin. But a few years ago, with the advent of Ethereum and smart contracts came the ability to program the blockchain to perform actions far more complex and potentially far more beneficial than just sending and receiving crypto funds. DeFi projects are visceral examples of this transformation.’
Sometimes a new trend bursts forth so quickly, and so powerfully, you’re insane to ignore it.
Like Vern…and, until recently, like Greg, you may well have been wary of cryptocurrencies.
You perhaps equate all these insane price rises and frothy mainstream media coverage with a bubble.
And it’s partly true.
There probably is some irrational, speculative thinking driving crypto prices to record after record.
But as the quote above says, focusing only the digital currency aspect misses all the wider ramifications of the current transformation taking place in finance.
Take the exponentially exploding
world of ‘crypto income’…
If you’re sick of the lack of options there are right now when it comes to generating income from your savings, DeFi is now putting some rather interesting options on the table for you.
The roots of decentralised finance (DeFi) have spent the last few years bedding in. What you’re seeing right now is them breaking the surface into the mainstream.
And new ways for income-strapped savers to get yield — away from the banks and the stock market — is a huge and growing part of this.
These strategies make it possible to get income from a cryptocurrency as an alternative to getting interest on your cash, or dividends from your shares.
Things are moving here at a crazy pace, even compared to a year ago.
NOT JUST FOR CRYPTO-MAXIMALISTS
If you think earning an income this way is just for 22-year-olds who trade Cardano on their phone in between Pilates session which they’ve paid for in bitcoin…you’re wrong.
Anyone can do this now. And many people of all ages and levels of experience are.
As Entrepreneur put it recently:
‘The onset of DeFi has been beneficial to both the crypto maximalists as well as the traditional investors looking for yield.’
As Alex Wearn, CEO of decentralised exchange IDEX, says:
‘There are a lot of ways to earn interest in cryptocurrency including “bitcoin rewards” credit cards, crypto lending services, and DeFi (decentralised finance) yield farming.
‘Some of these require little to no crypto knowledge (bitcoin credit card rewards), while others require deep technical knowledge (yield farming).’
If you’ve never considered earning an income from cryptocurrencies, now is the time to get a good understanding of it.
Through this week and next, we’re going to start giving you some tips on the best methods…as well as the risks involved at these exciting but early stages of the crypto-income boom…
A new way to get income in a low interest rate world
Hang on, though. Aren’t bank interest rates going to go up soon anyway?
If you’ve got a few hundred grand saved, isn’t there a chance you’ll be able to find much better term deposit rates on it later this year or next year?
Recently there has been a bit of talk in the news about rising bond yields and inflation. And the possibility of interest rates rising.
Don’t believe it.
If you’ve been reading The Rum Rebellion this year, you’ll know that Greg did a very popular presentation called ‘Life at Zero’. In it he outlined a solid case for interest rates staying incredibly low for years to come.
‘The point is that zero, or near zero, cash rates are here to stay,’ says Greg.
‘And when inflation does eventually pick up in the years ahead, the job of the central banker will be to keep nominal rates below the rate of inflation, meaning REAL rates stay negative.
‘That’s because the only way to overcome such massive debt levels is to hold real interest rates in negative territory for as long as possible. So you’re going to be stuck with “life at zero” for a long time to come.’
The old guard are trying everything to keep the old, centralised financial game alive.
That means low interest on your savings and investments, if you keep playing by the old game rules.
And that’s where these new vehicles for income are stepping in…
Due to a high volume of interest we’ve decided to devote a significant amount of resources to getting you up to speed with these vehicles.
And a whole lot of other opportunities springing up in this brave new world of DeFi.
Group Publisher, The Rum Rebellion
P.S: In a brand new report, market expert Vern Gowdie warns of the dangers waiting in a post-COVID-19 world. Plus, he outlines the steps you should take now to protect your wealth. Learn more.