In today’s Exponential Investor

  • Easy-to-find podcasts
  • CBDCs
  • 45X, 10X and 7X

I hope you’re enjoying our new website and the new design on our emails.

We’re very proud that we’ve managed to drag the Exponential Investor site up to the level a free daily e-letter about exponential investing should be.

As promised, this week I’m going to show you a couple of things that have changed from a functionality point of view too. This should help to navigate through and find content much easier than before.

One area that we’ve received feedback on in the past is around our podcast episodes.

As you know, each Friday Kit Winder and I get together to discuss some of the things we’ve been keeping an eye on during the week. I know podcasts aren’t for everyone, but so far, they appear to be well received by people who sometimes do want to hear from us directly rather than always reading what we have to say.

But our podcasts have previously just been mixed in with all our other articles, never in one easy-to-find location.

That’s all changed.

Under the “Videos & Podcasts” section in the menu bar you’ll find all our podcasts in one specific location.

They’re chronologically listed, with the most recent up top. By clicking through on each one, you’ll find a brief description of the topics we cover.

This should make it easier to find something we’ve covered before or that you want to listen to again.

Now it is a videos and podcasts section. Which means we will be adding more video content here too in the future. Right now, it’s mainly the podcasts. But keep an eye out for when Kit and I start adding some videos there too.

Again, if you’ve got any feedback about our all-new site, please make sure to let us know by writing in to [email protected].

The inevitable world of CBDCs

I thought I’d revisit something I wrote to you about last August.

It feels like a world away, but it was only six months ago. It was still technically summer and we were even allowed outside.

I’d just been to a food and drink festival local to me. And I’d been chatting with a couple of blokes about digital payments.

One, the merchant I was about to buy some wine from, explained how in this Covid-19 world it was a necessity for him. Without touchless payments he’d struggle to survive. People had a new aversion to cash as they believed the physical units of exchange were “superspreaders”.

The other fellow however was all about cash. He didn’t trust digital payments. Just another way to track where he was and what he was doing.

He had a damn good point.

What he was actually describing was how a world of central bank-backed digital currencies (CBDCs) is likely to play out. That’s my view at least. There’s no real need for CBDCs other than greater control and surveillance. It won’t change their monetary policy, and it won’t change their manipulation of the financial system to feed an endless cycle of debt and asset inflation.

But in my view, it’s also inevitable. Soon enough every central bank will issue their own “digital currency”. Of course, this has great implication for cryptocurrency.

Not in a bad way, but a good way. That, however, is a discussion I’ll hold for another day.

Back to my discussion from August. What we know is the introduction of things like touchless payments isn’t innovation spurred on from central banks or even retail banks. It’s financial technology (fintech) that pushes the innovation agenda.

Revisiting our crypto-not-crypto ideas

Financial technology that companies try to enable for the masses, eventually the big banks soak up and adopt for themselves. Within that creates a huge opportunity for investors.

Investing in fintech can be a very profitable play. Some of the best companies in fintech are private, some can be invested in via crowdfunding and secondary private markets. Some are also publicly listed.

This world of fintech also extends beyond the traditional financial system. It now branches into the world of cryptocurrency.

What we know is that cryptocurrency is also developing technology, financial technology. So it makes sense for “fintech” opportunities to pop up that blend the “old world” into the “new world” of finance.

There are some people that will never invest directly in cryptocurrency. For one reason or another they don’t trust it, they don’t believe in it, they don’t think it has any value.

But they can also see the potential opportunity it creates – no one is that stupid to ignore the money that can be made.

And as I explained last August, there can be ways to make money in crypto, without having to invest directly in crypto.

Three of the “crypto plays that aren’t crypto” I introduced to you in August were,

  • Argo Blockchain (LSE:ARB)
  • RIOT Blockchain (NASDAQ:RIOT)
  • MicroStrategy Inc. (NASDAQ:MSTR)

Let’s check on their performance since that article on 12 August:

  • Argo Blockchain (LSE:ARB) – up 4,258%
  • RIOT Blockchain (NASDAQ:RIOT) – up 1,433%
  • MicroStrategy Inc. (NASDAQ:MSTR) – up 702%

Hmmm. Well I guess there are two ways to profit from the revolution in cryptocurrencies.

Now again, you might still think crypto is a massive bubble, waiting to pop. And you might be sat out of the direct crypto opportunities.

You might believe the only market to make money on is the stock market. Which is fine, I get that. But I wonder, when you see stocks like those, doing numbers like that, are you still not convinced of the crypto opportunity?

My point is, when there’s a world-changing investment opportunity in play, there are two ways to approach it.

Get directly into it. In this case, investing in direct crypto assets. Or get indirectly into it. In this case, investing in crypto-related companies that are listed on public markets.

Ignore it completely at your own peril.


Sam Volkering
Editor, Exponential Investor