Hodling crypto will starve the banks

More and more people are investing in Bitcoin and other cryptocurrencies lately. Some are more interested in making money from it, and others are more interested in changing the world. Luckily, investing in Bitcoin and other cryptocurrencies is a great way to accomplish both goals simultaneously. The more cryptocurrency you buy and hold as opposed to saving and investing in traditional financial assets, the more you will starve the banks, and inevitably they will die from this starvation.

AUM: the Bankers’ most important number

Assets under management (AUM) is the single most important number in the banking business. This number represents the total market value of assets managed by banks and financial institutions on behalf of investors. The definitions vary by company but in addition to investment assets such as stocks, bonds, and other financial derivatives, they often include bank deposits and cash.

AUM is so important because the mix of assets determines the overall strengths and weaknesses of financial institutions (i.e. AIG and Lehman brothers were weighted a tad heavy in subprime mortgage derivates). Financial institutions also use AUM as a marketing tool to attract large investors who want to know the relative size of their assets compared to other competitors.

Bitcoin: a huge threat to Bankers’ AUM

Given the importance of the AUM figures, now let’s take a look at how Bitcoin and other cryptocurrencies pose a threat to the assets under management for financial institutions.

  1. For all intents and purposes, Bitcoin and the overall cryptocurrency market has outperformed all asset classes offered by financial institutions. The capital gains clocked by crypto assets are more practically measured in X’s (i.e. 10X gains – or 1,000%) on a yearly basis as opposed to the % increases expected in equities (i.e. 7% for the S&P 500 index).
  2. In addition to acting as a speculative investment asset for many investors, cryptocurrencies has be used effectively as digital cash and are highly liquid. Bitcoin and other cryptocurrencies can indeed be used as a savings account and withdrawn from and deposited to as needed.

There is little point in leaving your money with a bank at this point as interest rates are non-existent. However the banks continue to loan our money out to others for a profit but do not share any of these profits with us.

The need for a global currency

We also need global currencies and don’t trust any centralized body to run this currency, seeing what’s happened and continues to happen across the board with the fractional reserve central banking system.

Censorship resistance

We can spend and transfer bitcoin and other cryptocurrencies without having to give any reason or explanation whatsoever. Once we create a transaction, it is confirmed by a global, decentralized network of computers who all agree on one truth. This is quite a cool thing. In fact, we as cryptocurrencies love it and banks do not offer this.

We actually own our cryptocurrencies

Leaving our wealth in banks in the form of deposits and other investment accounts is quite a risk to take. With crypto, we get to hold and truly own our wealth ourselves without needing to trust any third party.

The banks and proponents of banks will downplay this risk, but it’s quite important to remember what happened to people in Greece and Cyprus in recent years. The banks stole their money to pay for their government’s mismanagement of their economies. People in other countries like Zimbabwe and Venezuela don’t have any protection from this at all, and our friends over there have been quite savvy to join the cryptocurrency movement en masse.

Bitcoin is here to stay. Banks are not.

Bitcoin is not going anywhere. People across the world are all buying more Bitcoin and other cryptocurrencies. Simply put, it’s a better place to keep our money. We get bigger rewards for keeping our money in cryptocurrency, have more freedom to use it, and don’t need to worry about banks lending it out or not allowing us to access it.

The more cryptocurrency we buy in lieu of traditional financial assets and savings/checking accounts, the more banks and other financial institutions will need to borrow from their competitors. If financial institutions don’t adapt to incorporate cryptocurrencies into their services, the banks will surely starve, and eventually die out. Hodl crypto to starve and kill the banks.

Hold On for Dear Life

Mining Proof of Stake coins puts the power of Central Banks in your Laptop

As part of my quest to build out my crypto battle chest with well-diversified crypto investments, I began to do more heavy research mining Poof of Stake (PoS) coins and the options on the market.

Proof of Work (PoW) mining vs. Proof of Stake (PoS) mining

PoW vs. PoS

The difference in how you’re paid mining rewards

With PoW mining, you run computer hardware to confirm transactions and secure the network to earn mining rewards.

With PoS mining, to earn mining rewards you simply hold (a.k.a.) stake your coins in a wallet and stay connected to the network to earn mining rewards.

Staking Wallets for Profits

PoS mining coins bring profits in the form of more coins at rates ranging in general, anywhere from 5% Annually to hundreds of percentages, for example 200% or 808%. That’s right, 3x or 9x the original amount of coins you invested in.

Staking Wallets for Profits

Some of the most widely adopted PoS coins earn approximately 5% rewards, including NEO, PIVX, Reddcoin, and Stratis.

Now 5% per year may not sound like much if you think about the price volatility of cryptocurrency, but it’s important to note that a 5% increase in coins is very different, and arguably better than a 5% short-term increase in price.

Mining reduces your price risk in the long run

Once you have traded your fiat currency to cryptocurrency, you expose yourself to the price risk of the cryptocurrency market with your set amount of coins, and your options to generate profit involve either sitting and waiting for price appreciation or trading.

Price Risk Management

When you mine, you generate more coins at all price levels, and over the long term you have more holdings regardless of the price of the coin.

Staking wallets pay you in more crypto!

Earning more cryptocurrency is a different form of profit than price appreciation. When you are increasing your coin balances with PoS mining and the price of your coins also increases, you are making gains on both ends: more coins and price gains.

If it hasn’t dawned on you yet exactly what this means, here is some visual aid.

Money PrinterCryptocurrency mining is like having your own money printing machine

This is exactly why mining Bitcoin and Alt-coins is in such high demand. Everyone is trying to get a piece of the action, and the truth is that there are high startup costs and technical difficulties to get a Proof of Work mining operation up and running.

 

With this overview in mind, we see that this is a great way to grow your wealth in cryptocurrency and diversifies your strategy to be less reliant on the price appreciation of your crypto holdings.

Buyer Beware: Higher Reward = Higher Risk

On my quest to learn more about PoS mining, I stumbled upon some higher yielding small cap coins with mining rewards of easily over 100% per year which are very small in market capitalization.

Small cap cryptocurrencies under the $300 Million market cap level are generally considered very risky, and tend to have a lot more volatility and pump and dumpers using them.

Considering the high level of risk, now we have an expert in this space who put out a book on the subject: Junsun Chan.

How to Mine Bigly for 200-808% Annual Returns on just a Laptop

Mine Bigly by Junsun Chan
Mine Bigly by Junsun Chan

In his book (available on Amazon) Junsun outlines a system for mining high-yield PoS coins for profit with just a laptop and a little bit of electricity.

The book quickly drives into the concept of mining as printing money out of thin air.

When you hold Proof of Stake coins that generate more coins of themselves, and you take a portion of those coins to an open exchange like Binance or Kucoin to trade them for Bitcoin, you are essentially printing money, like central banks do with fait. The coins you mine can be exchanged directly for fiat currency like US dollars on Coinbase.

What do you need to get started?

Very little is required. All you need to get started are things you probably already have!

1. A computer or laptop with operating systems Mac OS, Windows 7, Windows 8+ vista (recommended), or Windows 10 (PRIMARY recommendation)
2. Internet connection
3. Seed money of about $50 or less to buy bitcoin and start mining. You can use less cash but bear in mind results will take longer to be realized.

Three High-Yield PoS coins that will put power of the Central Bank in your computer

1) 808Coin pays an 808% annual staking reward
808 Coin Proof of Stake
2)  Sprouts pays a 200% annual staking reward

Sprouts Coin Proof of Stake

3) Condensate (RAIN) pays a high but randomized staking reward
  • My RAIN generated +7% rain in just 12 days, which is around 200% annualized

Condensate Rain Proof of Stake

The first two coins, 808 and Sprouts are Junsun Chan’s top 2 recommendations. Junsun goes deep into explaining how these coins work in his book you can buy here.

The third coin on the list, Condensate (RAIN) is another one I came across, and seems to have more going for it in terms of a long-term purpose other than making people money.

The aim of Rain is to create a secure and robust network that is supported by its users in a meaningful way. To make it figuratively and literally rain on the community, and to utilize this network to partner with climate researchers and scientists to help better understand the world that we all live in.

Breaking down the benefits to using this PoS mining strategy

1. Never have to talk or interact with anyone. This is all automatic with a one time setup on your computer to start mining. No sales work! Hooray!
2. No need to invest in any hyip scam of any kind or 3rd party “cloud mining solution” that turns out to be another scam.
3. You control 100% fully all the money and coins in your wallet.
4. You gain the power of central banking and literally print money out of thin air. This is the miracle of bitcoin altcoin mining and I TEACH YOU its SECRETS.
5. EARN UNHEARD OF 200%-808% annual returns! This is NOT a typo! And the insane part is you can do this for less than $5 a month in electricity costs; I live in New York City and its expensive but power costs to mine costs this little to me.
6. The 6 compound/withdraw strategies that you can use to grow your bitcoin mining operation while withdrawing profits reasonably. Breaking even has never been easier for you!
7. Written primarily for poor people in mind, I am an unemployed actor and had to scrounge for money. This will be a god send for anyone needing a long term money making solution that they can start using TODAY to plug their financial woes.
8. Gain the knowledge of traditional central banking so you can understand that what you’re mining bitcoin-altcoins for is just the foundation of something much greater and freer.
9. Persuasion “hacks” that were learned and mastered from psychology masters such as Mike Cernovich (Gorilla Mindset) and Scott Adams of Dilbert fame. Emotional control over yourself will help you and all crypto currency adopters for the coming fight ahead to ban and restrict bitcoin.

Once you’re set up, you won’t have to invest any more money (if you don’t want to) or effort after the initial set up. You can start as low as $50 (my minimum recommended). In fact, I encourage to start off slow and small so you can learn how crypto currencies work and when the bitcoin is flowing into your wallets, then you can “ramp up” if you choose for MORE profits!

If you choose to invest and mine any of these PoS cryptocurrencies, remember to DYOR (Do Your Own Research) and that this is not financial advice. Hold on for dear life.

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