In today’s Exponential Investor…
- The prediction that came true
- Snowmen and snowdogs
- Exiting the banks
Merry New Year!
I hope you had an enjoyable and fun Christmas and New Year.
I also hope you got my video message last week. If you happened to miss it, I’d suggest you head over and check it out, before I kick off proceedings for a new year. You can find my final message from 2020 here.
I also hope that you’re as excited about 2021 as I am.
You see, I was pretty optimistic about 2020 around this time last year. That didn’t quite turn out as I’d expected.
Heck, 2020 didn’t turn out as anyone had expected.
Except for one thing…
There was one thing that happened that was absolutely predicted. In fact, it’s one thing that accelerated in 2021 and reaffirmed its position as one of the most important investment ideas the world has ever seen.
Eventually the winter thaws
One of the great things about living here in the UK is the winter.
I know that’s somewhat daft coming from an Australian, but hear me out. At Christmas time in Australia it’s all summer barbeques, beach, rivers, lakes, sun and fun.
Sounds great doesn’t it? Well it’s not. Not in the way you might think. Christmas in summer is nice, but it’s never really all that “Christmassy”. The festive spirit isn’t as strong in Australia as it is in the UK.
Here, what makes Christmas and the holiday period so festive, is the ever-lingering potential of having a white Christmas. This year we just missed out. But a day later, we got the dumping of snow we’d been hoping for.
My son loved it, my dog loved it, my wife loved it, even I loved it. We had the snowman constructed in the backyard, the dog bounding through the snow half disappearing with each leap, I even had my snowboard out to slide my son around on in the backyard.
The good thing is the snow has lasted a good week and a half. But it’s now on the way out. I walked down the stairs today and had a peek outside, the snow was starting to disappear. It was now melting away. The ground was thawing out and the chill was easing.
I said to my wife, “Oh no, the snow is melting.”
She said, “I know, but I’m kind of glad to see it go.”
She had a point. The snow was fun, great to play in, but after a week or two, it just becomes annoying. It’s harder to get out and do things, it can even make a routine drive quite the sketchy adventure. While it’s nice for a little while, when it thaws and melts away, well it’s actually a good thing.
The idea of a thawing winter has been something that’s played on my mind, actually well before the snow fell and dusted the neighbourhood this December/January.
That’s because another winter had been in the midst of thawing out, the snow melting away and the clearer skiers heading towards us.
Winter to summer
From 2018 to March 2020 the crypto world went through a period that’s widely regarded as the “crypto winter”.
This is how the wider crypto community describes a period when values of crypto languish from previous all-time highs.
This crypto winter is something that really indicates the downward cycle of a crypto price cycle relative to fiat money prices.
In reality these periods are actually where a lot of the grunt work happens. It’s where development, creation and innovation end up being most fruitful.
During the up-cycles when prices relative to fiat money are pressing higher, the common term used is to “hodl” – that means to hold on tight and ride those values higher.
But in crypto winters the term “build” becomes the dominant narrative – that means to build, develop and push the whole ecosystem forward.
It’s during these crypto winters where the foundations for the next cycle are built. It’s these crypto winters where the obsession and focus on prices fades away and work gets done.
It’s what sets up the next bull run and allows things to shift up a gear and really roll out the revolution at hand.
All the while, everyone who really understands what’s happening during these crypto winters keeps in the back of their mind the knowledge that eventually the ice thaws, the snow melts away, the winter comes to an end.
That’s exactly what we’re seeing now, and that’s exactly what we’ve been telling our subscribers for the last few years during the most recent crypto winter.
As of this morning, it’s fair to say, we’ve stepped into the new crypto bull cycle. With bitcoin’s fiat-relative price up around $31,500 and Ethereum’s fiat-relative price up around $1,000, we’re marching on to a period now where the foundation that’s been set is used to springboard up to the next level.
What’s important to remember during this next cycle, is that prices in fiat money terms will get eye watering. I mean, $31,500 for one bitcoin is pretty crazy right? $1,000 for one ETH also, getting to dizzying heights.
It’s all relative.
It’s all also a deeper story that’s playing out. That deeper story is one where the reliance on traditional centralised financial systems is fading away. The concept of being able to exit one financial system and stick a foot in another alternative one is fascinating, exciting, a little terrifying but a true financial revolution.
Yet that’s exactly what’s happening right now. And it’s something that I saw coming years ago. It’s one of the core messages and themes in my book, Crypto Revolution: Bitcoin, Cryptocurrency and the Future of Money.
The idea the traditional financial system is failing is one that 2020 highlighted with great focus. People can see the central bankers and governments are failing to manufacture any kind of trust in the traditional system.
If 2020 was the year of Brexit, then 2021 may very well be the year of the central bank exit, the “Banxit”.
People are looking for a way out. And before 2008 there was no way out. Not any more. Now we have a way out from the tyranny of central banks and financial authoritarian rule. The way out is crypto, understanding that is one of the most liberating ideas you’ll come across this decade… this century… this millennium.
The crypto revolution is here, it’s only just starting and there’s massive opportunity in play.
Editor, Exponential Investor