We’re shaking things up this week here at The Rum Rebellion.
Greg Canavan has been working on a rather unconventional new educational project. One that we’ll be ready to share with you in a few days’ time.
We realise a lot hits your inbox. While we like to think The Rum Rebellion is a primary info source for you…there’s a good chance we’re not the only e-letter you subscribe to.
But I really do recommend you tune in over the next two weeks or so.
You’re going to have your eyes opened.
And you’ll soon realise you’ve only been fed 10% at best of the true scope of what’s taking place in the cryptocurrency market at the moment.
Because let’s face it…
There’s a lot of hype, overexcitement, and media froth around everything crypto right now.
And that’s annoying.
Because something genuinely disruptive is happening.
In a way, though, all the mainstream silliness is a bonus for us.
It’s distracting everyone from the deeper opportunities brewing.
And we’re going to start exploring them in depth for you this week and next…
Here’s a prime example of the ‘noise’ at the moment:
‘A crypto-powered lottery has helped one lucky winner turn $74 into just shy of $40,000.
‘PoolTogether doesn’t cost money — in a sense — to play; instead, you enter it by depositing cryptocurrency tokens. It uses those tokens to generate a yield, and it’s this yield that is put into the lottery and shared out among those who participate.
‘So, it’s a matter of perspective: You’re not losing anything by participating, although you are missing out on some yield that you otherwise might have gained.
‘On March 14, 2020, this particular user put $74 worth of the DAI cryptocurrency — a decentralized stablecoin pegged to the US dollar — into one of the pools. It sat there, generating a very small amount of yield, which was being put into the lottery.
‘On April 9, the user struck lucky, winning the lion’s share of the $33,100 prize (made up of DAI) and the $32,700 loot box, which comprises four tokens including Compound and STAKE. There were 4,754 players in the lottery. In total, they won $39,600.’
Even separately, the terms ‘no-loss’ and ‘lotto’ don’t exactly exude credibility.
Put them together and the impression is even worse.
It’s no wonder so many of our readers (as well as our own Vern Gowdie) find it hard to take all this crypto stuff seriously.
Then there’s the giant distraction of the IPO of the most well-known cryptocurrency exchange, Coinbase.
Its stock market debut feels like it’s already got twice the amount of headlines as Airbnb’s IPO last year.
Top-tier investment firms have dived in eagerly. The stock opened at $381 a share, 52% higher than the reference price.
Now here’s the thing…
If you’ve been actively ignoring the cryptocurrency and blockchain conversation the last decade, now is the time to wake up.
Don’t be dazzled or distracted by the mainstream’s take on these stories.
‘The biggest day yet in the crypto world,’ is how tech policy site Protocol described the Coinbase IPO.
But that is not the real story.
THIS is the thing that matters most to your own wealth…
Let’s take a giant step back.
Stock and bond markets are at record highs. New records are so regular they have become just normal.
Last week, for instance, the Dow hit yet another one on the back of more supposed ‘blowout economic data’.
Speculation in all kinds of risk assets is nuts. And getting crazier by the week.
Shell companies (the so-called ‘SPACS’), digital art, wine, all sorts of collectables…
You have to go back to 1999 to see so much rubbish being traded at ridiculous prices.
And there’s been FOUR TRILLION DOLLARS and counting in the US’ COVID stimulus. That’s already as much as the US spent on the Second World War.
But then there’s something else bubbling away at the same time…
The hyperbolic jump in cryptos you get bombarded with daily.
Bitcoin, Ethereum, Dogecoin, Cardano…a new breed of altcoins is rising…Avalanche, Cardano, Polkadot, Cosmos, the Graph and more…
Wall Street’s finally getting into this game in a concerted way.
People are flocking in increasing numbers to new, decentralised ways to get income. Zero or near-zero interest rates set by central banks is the main driver here.
As Entrepreneur writes:
‘Before the advent of DeFi, crypto owners did not have access to any decentralized avenues for lending, farming, staking their assets. Now, there are a plethora of ways through which token holders can see their assets multiply from passive income.’
Most central banks are also now busy developing cryptos of their own.
Fact is, they can either try to subvert this trend to their own ends…or slow it down.
They can’t stop it. Bans, taxes…they’ll use their mates in the regulator’s office to put roadblocks in the way wherever they can.
Ultimately though, the end of a system that cuts out literally hundreds of billions of dollars of waste every year in middlemen ‘taxes’ will be too important to stop.
But most importantly, what we’re seeing is…
The second financial ecosystem is finally making its way into the real world
From the world of ‘DeFi’ (decentralised finance) to in-game assets to collectibles to a safe haven from the fiat system of money itself.
These ideas — many of which we’ve hotly debated here for years now — are now being discussed seriously in the corridors of corporate power.
But so what? What does this mean for YOU, exactly?
Isn’t it all going to fall away when this current crypto bubble bursts?
What should I be doing with all this in mind?
This is where we come to a set of ‘rules’ or guidelines we think investors should start following, ASAP.
To get your head around all this.
To understand the difference between what’s noise and what’s real.
And to put yourself in a position to benefit from this transformation for the rest of this decade.
More to come…
Group Publisher, The Rum Rebellion
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