Want to get rich off crypto mania? Stay away from ‘arcade tokens’
From E.B. Tucker, Editor, Strategic Investor:
The way you buy, sell, and own everything in your life is about to change.
From your house to a mango at the grocery store, every transaction you make will be faster, cheaper, and part of a permanent, searchable record.
The technology behind bitcoin makes all this possible. What I want you to know is that this life-changing technology has nothing to do with the value of a bitcoin.
If you don’t know what a bitcoin is, don’t worry. Most people forking over their life savings to get one don’t know either. It’s a digital token rewarded for proof of work on a blockchain.
Think of it like this… Say you’re playing pinball at an arcade. Each time you defeat a level in the game you receive a token as a reward. The first level is pretty easy. You beat it and receive your token. But each level gets more and more difficult, and you still only get one token for conquering each.
After a while, you attract some attention from spectators. They see your impressive hoard of tokens. They want some for themselves. Some play the machine next to you. Others aren’t very good, so they offer to buy some of yours.
The crowd gets bigger. People you sold tokens to resell them to others who want to be part of the group. The tokens are worth a lot now. You play harder and harder to keep earning tokens as the game and competition from other players gets progressively more difficult.
The token frenzy gets so out of hand that people will pay anything to get one. The mania can go on as long as nobody stops to consider that these arcade tokens are only worth what the next buyer is willing to pay for them…
Hardcore bitcoin fiends won’t like my suggestion that the digital coins they hoard are as worthless as arcade tokens. The value of bitcoin is not in the tokens… it’s the underpinning that makes the tokens possible.
That underpinning is what will revolutionize every transaction you make.
Crypto Technology Is Not the Same as Cryptocurrency
The revolutionary part of bitcoin is the cryptographic system behind it. That technology takes trust and transparency out of the hands of middlemen and turns it over to mathematics.
For instance, Walmart recently developed a system to instantly track produce from the field to the store shelf. Right now, this takes a week and it still can’t know exactly which mango came from which field. In the event of a recall, this is a multimillion-dollar nightmare.
It partnered with IBM to design a produce-tracking system using the same technology that made bitcoin possible. In a trial, it took only 2.2 seconds to do a search that previously took more than six days.
This technology will make Walmart more efficient and its food safer. The company won’t need to buy one bitcoin to make it possible.
Stock and bond sales, real estate transactions, and every other transaction we make will soon benefit from this technology. They’ll be cheaper and more reliable. You won’t need to buy one bitcoin to benefit.
The Definition of Mania
I first learned about bitcoin in 2009. My friend Tim asked me if I wanted to go in with him on some old computers he’d string together to “mine” bitcoin. Bitcoin sold for about $2 at the time. I declined his offer.
What Tim wanted to do was use idle computing power to solve mathematical equations receiving bitcoins as a reward. These solved equations verify transactions on the bitcoin network. The computers in the network are “miners.”
Back then, an old laptop left on all night could solve the next equation on the chain of bitcoin transactions. They get progressively harder. Strung together, these transactions are a “blockchain.” They create an irrefutable record of ownership without depending on one central middleman.
Today, it takes much more computing power to earn a digital token.
Here is a picture of what one of these crypto-mining facilities looks like:
The room pictured above is filled wall to wall with general processing units (GPUs). A GPU is one part of a computer. It’s the same part Pixar uses to
I visited a cryptocurrency mining operation recently. It housed 10,000 GPUs in two buildings. It chartered a 747 cargo plane to deliver them.
When the price of digital tokens was at all-time highs, competitor mining firms popped up all around them. I think these crypto-mining firms are brilliant. They’re spending top dollar to produce digital tokens people can’t get enough of. The frenzy won’t last forever. While it lasts, companies like the one I visited will make all the money they can.
Keep in mind, the blockchain technology that Walmart used to track a mango from
Where This Is All Going
Just like it did for Walmart’s produce-tracking system, blockchain technology will revolutionize your financial life in the coming years.
In the past, we relied on middlemen to create trust between buyers and sellers. Now mathematics replaces them. On a blockchain network, participants verify that each party agrees to the terms of the transaction using cryptography.
This revolutionary system takes power out of the hands of a central authority. At
The experiment worked. The bitcoin rewards created
How to Make Lasting Money off the Crypto Mania
If you want to make lasting profits off of crypto mania you won’t do it owning digital reward tokens like bitcoin or its 2,000 sequels.
Instead, look to the companies that will harness the blockchain’s power. We talked about IBM and Walmart. Both companies will benefit tremendously during the blockchain revolution.
Zillow (ZG) is another company set to benefit. Buyers of a median-priced home in the U.S. pay as much as 11% in soft costs purchasing that home. They employ an average of eight people to get the transaction closed. Selling agent, buying agent, title agent, closing attorney, surveyors… the list goes on.
Your home already has a unique parcel identification number assigned by your county. Zillow has this information cataloged in its database. It’s accessible through the company’s app. In time, we think it will use this data to create low-cost closing solutions reducing the expenses tied to buying a home. Blockchain technology will make this possible.
Major U.S. banks will benefit from blockchain tech, too. The cost of administering a checking account is $400 per year, on average. But new technology will reduce administrative overlaps.
Brokerages will save, too. The two-business-day boondoggle to settle stock transactions will shrink to seconds.
The list of beneficiaries goes on. The thousands of digital reward tokens – cryptocurrencies themselves – however… they don’t make the list.
If you want to make money on the blockchain revolution, buy the companies set to benefit.
Stay away from digital coins. After all, you don’t understand what people are talking about when they describe them to you anyway.
P.S. If you own bitcoin or other cryptocurrencies today, I highly recommend (at the very least) recouping your initial investment TODAY.
Leaders from the top 20 countries are meeting to discuss an important change to the money we use. They’re fed up with bitcoin. They want to take back control of your money. And they’re willing to kill bitcoin to get it.
I just put together an urgent presentation with all the details. Click here to view it now.