We must at all times remember that crypto exists within the larger world, and is affected by world events. Sometimes it would be fun to ignore the news of pandemics, politics, death tolls, opinion polls, hyperinflation and wage stagnation, but then we would have no idea why the squiggly lines of crypto are going up and down.
Amongst the bad news of China’s seventeenth crypto crackdown, ongoing pandemic updates and other tragedies, it was heartening to see some good news mixed in.
Japan still has illness and issues, but the Tokyo Olympics demonstrates the unstoppable human spirit, our eternal drive for overcoming obstacles, setting new records and aiming to our best.
The world still has environmental issues, yet a couple of billionaires still chose to launch themselves into space, just for a bit of fun. It was great to see the 82-year-old Wally Funk finally getting to space, after qualifying for a trip in 1961, but being repeatedly knocked back because of her gender. Funk had been setting records since her early teens, being first in her aviation class and also the youngest woman to qualify for the Women In Space program. She now holds the record for the oldest person to go to space. Clearly, it is never too late to be what you wanted to be.
Meanwhile, back on earth
Until Elon Musk builds the Mars Marriott Hotel, even the billionaire playboys must make their home down on earth for now. Earth used to be a planet where every creature could live in harmony with the environment, there were no borders and no one had to “pay to play”. Over time, things became more complex. We now find ourselves with environmental and economic disasters that will require a whole new level of skill to overcome.
When Einstein gave his famous quote, “We can’t solve problems by using the same kind of thinking we used when we created them”, he was speaking about the creation of atomic weapons, and the futility of war.
Einstein went on to say that people of great compassion such as Confucius, Buddha, Jesus and Gandhi had actually achieved more for humanity than science had done, and that to minimise war, what we needed was more focus on the heart and less on the mind.
We may draw a very long bow to compare the destruction of cities via machines of war to the destruction of people’s lives by economic injustice, but there are some parallels. One could see that the 2008 GFC, like many wars and disasters before it, was arguably created by a ruling elite who remained largely unaffected, whilst the bottom 99% of people suffered the greatest losses.
Our earthly issues of war, environmental disaster and economic inequality are predominantly man-made by a ruling elite intent on their own gain. Overcoming these issues requires a new level of thinking and possibly an entirely new model of behaviour.
Electric cars, recycling rocket-ships and introducing crypto to the masses will not solve all of our problems, but it can be a great start towards a new paradigm.
Flying in the face of adversity
Whilst bitcoin prices clutched the canvas for a few weeks after the Chinese crackdown on mining, the more resilient crypto miners relocated to more favourable locations. Smart money loaded up at discount prices, and several legacy and whale accounts purchased more crypto while it was low.
(Legacy crypto owners are those who were around in the very early days, whilst BTC creator Satoshi was still active. Whales are those who own vast amounts of crypto, with around 1000 BTC required to qualify for the moniker. It is interesting to note that people who had bought bitcoin for under $1000 “back in the day” were still buying at prices around $30 000. Do they know something?)
After several weeks of sideways movement, crypto markets started to rapidly rise once more. It seemed the early movement may have been due to an unconfirmed rumour that Amazon would be either buying, using, or accepting bitcoin as payment. When these rumours were later proven false, prices continued to rise.
Perhaps the cold fact of continued cash printing by central banks was still driving markets inexorably upwards, and the six weeks of languid performance was just a blip, or a pause before new highs. Perhaps more people were starting to realise that cash printing will lead to inflation, and that owning anything of value is better than holding cash. We cannot say for certainty now, but in a few years’ time, looking back on the 2020’s, we may see a decade where the human spirit survived not only a pandemic, but an economic meltdown.
How did we go this month?
The puppy pack has been taking pandemics and panics in their stride since before they became household names. Many months before the virus outbreak in China, we had already pre-warned investors of upcoming economic crash, hyperinflation, negative interest rates and the need to stockpile scarce commodities such as crypto, silver and gold.
In August 2019, we asked, “What happens if the USD falls?”
In October 2019, we advised investors to “prepare for GFC2”
The first COVID cases started in China in December 2019… the rest is history.
Everything has unfolded as we suggested it would: interest rates are officially negative in many countries, and effectively negative in most countries, as cash returns are lower than inflation. Economic inequality continues to rise, as those who are holding cash are becoming poorer, whilst those who hold scarce assets are getting richer. If you are a BostonCoin investor, thank the abundance goddess Lakshmi that you are in the latter camp
“Forewarned is forearmed” as the proverb says. By clear vision and right action, we have been able to rise up around 10% this month and over 400% for the year; going for gold whilst others are merely brassed off. How are things with you?
Winners this month include
PowerLedger up 222%
PolkaDot up 372%
LivePeer up 595%
XYO up 1569%
ChainLink up 1683%
BOS NAV at 30/07/2021
BOS price 165.998388
MOM up 9.92%
YOY up 435.7%