written by reader Jeff Brown financial upheaval teaser

By kanakaa, November 26, 2020

I received a bleeding edge newsletter with an article by Jeff Brown stating that a financial upheaval is imminent. I have also had various other articles in my inbox warning of an end to the dollar and such. I am wondering if you know anything about this and/or the blockchain and crypto investments he’s touting.
His teaser begins:
Dear Reader,
A major tech shakeup is underway…
For hundreds of years, governments have kept tight control over our cash.
But soon, their money monopoly could grind to a halt.
This is a fast-moving story…
And not all the facts are in.
But here’s what we know for certain:
Tech billionaire, Mark Zuckerberg, is plotting a move so big, it’s hard to believe.
The New York Times reports:
facebook cryptocurrency
Let me say that again…
Mark Zuckerberg is planning to launch a new technology.
A separate, competing financial system!
And he’s not alone.
As you’ll see, Amazon is close on his heels.
Google is readying its own currency.
And according to the Securities & Exchange Commission, Apple is getting in on the act, as well.
If all goes as planned…
These actions could soon trigger a massive change to money, as we know it…
And forever alter how we spend… save… and invest — practically overnight.

I find it frustrating that these newsletters are saying we shouldn’t leave money in the bank, and then say we shouldn’t invest more than we can lose. It seems contradictory at best.
Any thoughts on this?

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

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Zeflik
Irregular
November 28, 2020 2:13 am

We should not invest more than we can lose is about the “high risk high reward” investment like crypto´s. There are plenty RELATIVELY SAFE investments over which one can read in the stockgumshoe articles.

👍 77
Travis Johnson, Stock Gumshoe
November 30, 2020 10:10 am
Reply to  kanakaa

Everything holds risk.

The dollar has been depreciating and losing value for at least 100 years, and will likely continue to do so — but when you buy companies that have actual value, that provide a service or product that is in demand and likely to be in demand in the future, then the currency itself is not necessarily what determines the value of the company. It will impact the share price, since if the dollar is worth less in the future than that company should be worth more dollars, but unless the company is dependent on a particular relative currency valuation (particularly if they’re an importer or exporter of commodity goods, without pricing power), then the currency is not the driver.

👍 16553
bunion132
Irregular
November 29, 2020 6:27 pm

& @Zeflik, I echo your misgivings on investing in crypto’s, ranging from the high risk/high rewards pitched by newsletters to warnings of doom-and-gloom if we don’t subscribe to them. Many of these newsletters have ended up in my Spam folder. But wait, there’s more as these “rats and roaches” continue to multiply geometrically! Purging them from my Inbox has become a job in itself.

It’s not for lack of trying to understand the mechanics and logistics involved with investing in bitcoin & altcoins. I finally concluded that I must be a simpleton for not being able to wrap my head around all that reading and video watching. It didn’t help that this simpleton got spooked upon learning that any government can decide to replace its current fiat currency with ONE, official digital coin and deem all other coins and former paper money illegal.

That being said, I don’t believe all is lost if one wants to experience a little bit of the crypto action without joining the pesty newsletters. There are the picks-and-shovels plays, the more obvious ones being blockchain companies and semiconductors that coin mining depends on.

And then there’s my recent favorite, Silvergate Capital/Bank (ticker SI). Based in Silicon Valley, it enables the movement of digital currency between exchanges and investors, on top of the usual banking functions. Travis sleuthed out the following tease in February of this year:

https://www.stockgumshoe.com/reviews/early-stage-investor/mccalls-crypto-bank-about-to-take-off/

Silvergate IPO’d in Nov. 2019. Ignoring the prudent advice of waiting about 6 months after IPO date, I risked volatility by opening a position a few days after the Gumshoe tease. But hey, the pandemic crash in March sent all stocks plunging anyway, and I sold my position.

This past October, one month shy of its 1st year anniversary, SI’s price was still $2 cheaper than when I first bought it at ~$16-ish despite the pandemic recovery, so I reopened a position. Now at a year old and thanks to double-digit % price surges in cryptocurrencies this November, SI trades ~$33 as I write this. Not bad for a picks-and-shovels play, huh.

So Jeff Brown and his Silicon Valley cohorts, newsletter pundits and Geek-wannabes can just keep playing in their crypto playground. This simpleton is a contented outlier.

👍 329
gumshoe3434
Irregular
gumshoe3434
December 15, 2020 5:21 pm

Silvergate Capital Corp (SI) and now maybe HIVE Blockchain Technologies (HVBTF)/ Cubic Corp (CUB)

👍 3
veretax
Irregular
veretax
December 17, 2020 12:44 pm
Reply to  gumshoe3434

HIve, and Hut 8 have been bullish picks for the last month, already doubled my money once on it.

👍 5

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