Super news for investors, retirees & more
Bostoncoin update Nov-Dec 2021
Super news for investors, retirees and more
There is a lot of news coming out on crypto markets and projects. As recently as two years ago, you would be hard-pressed to find a story on Bitcoin once a week in the mainstream media. Nowadays, there can be 3-4 stories per day on different crypto projects, updates on markets and legislation. Some TV news channels even have Bitcoin prices in their base-screen ticker, alongside prices for stocks and the values of the Yen, Euro and USD.
Increased media coverage is excellent for mainstream adoption, which brings both price increases and price stability. We still have drops in crypto prices, however, the drops seem to be smaller and faster. When Bitcoin prices dropped briefly last month, the government of El Salvador jumped in to buy more Bitcoin reserves, and pushed the price back up again.
We are witnessing some amazing changes in the world, which cannot be overstated. A digital currency that was once mocked as only suitable for nerds or criminals is now the currency of a nation, a store of value for Wall Street billionaires, and growing in price, speed, utility and value.
Cryptocurrency was designed to be egalitarian; a money “by the people, for the people”. Despite accumulating amongst billionaires and in a few multi-national corporate balance sheets, crypto seems to be still doing a great job at getting into the hands of emerging markets and the unbanked citizens of the world.
Citizens of emerging nations who have never had a bank account, due to high fees, lack of banking infrastructure or lack of government ID, can still hold a crypto wallet on their $25 smartphones, and join the worldwide crypto economy. It truly is a super revolution.
Rumours abound that the next countries to adopt crypto as a national currency may be Cuba, Ecuador, Panama, Mexico, Zimbabwe, Iran, Senegal, or some other emerging economy, especially those who have suffered hyperinflation or IMF currency manipulation. These rumours are just that for now, as nothing is confirmed, but stay alert for when the tides shift, as trillions of dollars can flow very quickly when required, and you want to be ahead of the wave.
A short security aside before more Super news
Speaking of upcoming waves, this one is a long way off yet, but be assured, it will come. We are talking of crypto regulation. Currently there are rules and regulations around stocks, shares, bonds and other financial products, but crypto legislation is lagging far behind the industry growth.
Despite the best efforts of the SEC, ASIC, APRA and other governing bodies, there are still scams in stock markets, such as “pump & dumps”, “boiler rooms”, early access scams and calls from those who pretend to be stock brokers but are imposters running sophisticated Ponzi schemes.
You can protect yourself somewhat from the first two by watching movies, namely, “The Wolf of Wall Street” and “Boiler Room”. Protect yourself from the latter by avoiding anyone who calls you to offer hot tips. A real broker does not have to cold-call people with “insider tips” and ask for money; they have a legitimate business, only deal in publicly available and well-publicised stocks and they await your call.
It is likely that scams in crypto will continue for the foreseeable future, as they are lucrative and hard to stop. However, a little bit of prudent legislation could assist investors by making new crypto projects subject to just some of the regulations surrounding stockmarket listings.
Whilst we are not legislators and this is beyond our scope, we would suggest that some transparency over business operations, structure, ownership, custodians, trustees, R&D and founder/employee criminal background checks may be in order.
Many new crypto projects can allocate large portions of their tokens to the team, which could then be sold when investors come in. We would not mention any names here, but a quick check has found some projects allocating anywhere from 20% up to 75% of tokens for themselves, meaning that new investors could see their investment drop by 20-75% if the team chose to sell.
For the record, Bitcoin allocated 0% to the founders (early users such as Satoshi, Finney & Wright had to mine their first Bitcoins using their computer power). Bostoncoin also allocated 0% to the founders. From the CEO, CFO, CS and down, anyone who owns Bostoncoin, purchased it with their own money. And now, back to the super news…
Look, up in the sky…
In Australia and New Zealand, it is known as superannuation. The USA has 401K’s and Roth IRA’s. Canada and the UK have a Pension Plan. Many countr