Rickards: “This $0.70 Crypto Game Changer Could Make You a FORTUNE in 2018… Starting Next Monday”

What's being touted as the first recommendation by Rickards' new Crypto Profits newsletter?

By Travis Johnson, Stock Gumshoe, January 22, 2018

Pretty much every publisher has jumped on the cryptocurrency bandwagon, and this latest one shouldn’t come as much of a surprise… Jim Rickards has styled himself as a currency guru, with his “Currency Wars Alert” and plenty of pitches about the impending demise of the dollar or other major currency moves in recent years, and now he has launched a new service about cryptocurrencies with Agora.

That service is called Rickards’ Crypto Profits ($2,000/yr), and he says he’ll be providing one recommendation per month… but that it’s just now that he has decided to recommend his first cryptocurrency.

So what is it? That’s the deep, dark secret that we’re teased with in the ads. Here are the clues he drops:

“A few days ago Jim Rickards told me he’s ready to make his first ever cryptocurrency recommendation…

“It’s a tiny crypto that’s trading for just around $0.70… [N.B. let’s check the price again before we record. Even if it’s higher, we still expect it to go much higher. It’s actually $0.53 as of Wednesday morning; a better entry point]….

“Jim says this window of opportunity to cash in BIG could close as soon as next Monday.”

OK, so there’s the urgency that every good teaser pitch requires — they know damn well that if you say, “this might rise 1,000% in a year” that you will probably take your time to think about it before giving them your credit card number… maybe even talk it over with your spouse, do some research, you know — be thoughtful.

But if they say “you’ve only got a few minutes to decide, this will be old news by Monday!” — well, then they’ll be able to convince quite a few folks to jump over the fence and come join their party right away, without looking around to see if maybe there’s an angry bull on that side of the fence… or even just a lot of cow manure to slip on.

That’s made even worse by the wild and crazy cryptocurrency markets, of course, since everyone has heard stories of the neighbors or in-laws or whoever else that got 10,000% returns on some cryptocurrency or another and is living on easy street… the “FOMO” trade (fear of missing out) is helping to drive even the stock market to wild new highs, but in the cryptocurrency world it sometimes seems like FOMO is the only thing driving prices. That discourages research, thinking, and caution, and encourages fast decisions and rash choices… like, for some people, plunking down $2,000 for a completely nonrefundable subscription like this new one from Rickards.

So at least slow down for a moment and think about that: How many things would you buy, sight unseen, for $2,000, with no recourse if it turns out that it’s junk? (or is even just completely different than you expected?) Some of you can afford that and would write it off with a laugh, I’m sure, but that’s a lot of money for most of the folks who see these investment newsletter ads — for the average person in the US, that’s about three weeks of take-home pay (or, worse, most of the money they had set aside for retirement savings for the year).

But enough preaching from me… what is this cryptocurrency that Rickards is pitching? Here are the hints I gleaned from the pitch:

“In the last few months of 2017, this coin already grew from around a penny to approximately 70 cents per coin….

“This $0.70 cent coin is better than bitcoin.

“Bitcoin doesn’t hold a candle to this coin….

“Some publications are already calling this crypto “the biggest winner” of 2018.

“CNBC calls it the “new hottest cryptocurrency of 2018.”

“And Fortune says we could see $87 billion flowing into this tiny crypto by next year.”

But the big urgency here, we’re told, is that IBM is “backing this currency” … and that there’s some kind of news expected:

“Soon, IBM is going to make a massive announcement regarding its plans with this coin…

“It could happen as soon as next Monday.”

And there is apparently other adoption happening, too:

“Deloitte has started implementing this coin for internal transactions and witnessed a 40% reduction in their costs….

“This is not just some random no-name company.

“It’s Deloitte, one of the largest accounting and consulting companies in the world.

“If you’re running a bank, wouldn’t you like to cut your costs by 40%?

“Of course you would.

“That’s why a dozen banks have already lined up to adopt this coin…

“With more on the way.”

So what little cryptocurrency are we being teased with here? This is almost certainly the Lumens token, from Stellar (often the cryptocurrency itself is called Stellar), usually abbreviated XLM. This one has grown quickly, now it’s a top-ten coin when measured by the size and dollar value of the circulating supply (the “market cap”, per coinmarketcap.com, is about $8.5 billion now — still tiny compared to bitcoin or ethereum, which together account for more than half of the dollar value of all cryptocurrencies put together, but much larger than most of the thousands of “tokens” that are vying for cash and attention).

And yes, Stellar has partnered with IBM and Deloitte — the goal is to build a network for fast transactions across currencies, with Lumens being the interim currency that is used to make everything work quickly. It is a cryptocurrency, but it’s not one that’s built on mining or on work — the participants in the system don’t earn tokens, but everyone who wants to use Lumens to facilitate transactions will need to have some inventory of the tokens in the future. The security of the system seems to be built on their own “consensus protocol,” whereby different participants in the network and choose who to trust to verify transactions. So it’s a blockchain, a public and distributed ledger still, it’s not a private or proprietary network (like Ripple is, apparently), but it’s one that is supported by partners and participants, not by miners who compete to participate.

Sounds kind of interesting as a concept, though I have no idea what kind of math you have to do to try to determine what a “lumen” should be worth. The transaction fee is set at .00001 XLM for each operation, and I guess the assignment of “trust” and the actual sending of a payment would be two operations, so that’s .00002 XLM for a basic transaction, or at the current price of something close to 50 cents per XLM “token”, that would be a fee of one thousandth of a cent. Each account is required to hold a reserve of XLM as well, at least 0.5 XLM (about 25 cents), so in order to participate in this network as a sender or recipient you’ll have to have at least a quarter “invested” in Lumens. Both of those requirements seem to be set solely to discourage bad actors and hacking, the actual fees go back into the pot and, essentially, help to fund stellar’s R&D and create the 1% annual inflation that is written into the network, from what I can tell.

So yes, it is a real cryptocurrency that is being tested by some real technology and financial services companies — though those relationships are almost certainly not exclusive in any way (IBM is doing a lot of blockchain work, presumably with many of the existing networks as well as in building their own proprietary software). I have no idea whether that means XLM has any kind of edge on becoming the foundation of the global money-transfer system in the future, every large bank and financial institution is researching blockchain integration or implementation or creating their own blockchain-inspired protocols and it’s probably going to be a while before any consensus emerges about what blockchain or cryptocurrency protocols become valuable business tools or get effectively “built in” to the next generation of internet protocols.

Here’s how Stellar describes itself, in bitcoin terms:

“The main differences between the Stellar network and Bitcoin are the following:

  • Stellar is based on a consensus algorithm rather than mining. This means transactions confirm in a few seconds.
  • The supply of lumen increases at a fixed rate of 1% a year.
  • Stellar aims to let you transact in your currency of choice (fiat or digital).

“The hope is that the currency itself will be mostly a behind-the-scenes currency, and that the Stellar network will help provide more liquidity between currencies.”

They even have the beginnings of a graphic novel that illustrates their notion of “consensus,” which even a dummy like me can appreciate.

I can’t tell you which cryptocurrencies will go up or down, of course, because there’s almost no economic rationality tied to any of the cryptocurrencies. I can’t tell you with any certainty why bitcoin should be at $100 or $1,000 or $100,000 per token, which means that, as far as I’m concerned (and yes, my brain is limited in its ability to process these ideas), these are simply speculative barometers of sentiment.

Which isn’t to say that blockchain or distributed ledgers are a passing fancy or a fad — I do think there’s a chance that they could form the foundation of the next internet, and that we’d all probably be better off if that’s what happens… but drawing any kind of line between that sentiment and a price, in US$, for any particular cryptocurrency is nonsensical to me. And any guesses about “valuation” are, frankly, even tougher for a token like Stellar Lumens, where there is not even a reward to be earned for building and maintaining the network.

What does that mean? Most cryptocurrencies are, to my way of thinking, really a distributed reward system, with the benefits of creating a new web protocol “token” being shared among those who invented it, those who work to support it (the miners who verify transactions), and those who fund the company that’s developing it (the ICO “investors”), and the “real” part of that work, (the micropayments that miners receive for verifying transactions, for example), has been completely overshadowed by the speculative folly of bidding up the future value of those tokens.

So I get the idea, and it makes sense and we could see some really powerful technological changes in the next decade if and when blockchain technology is used to dramatically improve and democratize the internet (and make transactions far faster and safer, obviating the need for all those “trusted” counterparties like banks), but I still can’t tell you whether ethereum should be worth $5 a token or $50,000, or whether Stellar Lumens and its consensus-based verification model will be in huge demand. To me, that’s all fuzzy guesswork (I do own small chunks of a few of the big cryptocurrencies, ethereum and bitcoin and bitcoin cash, but I’m fully accepting of the fact that those positions could go to zero overnight).

And with that, dear friends, I’ll pass it back to you to discuss — I can tell you that Rickards is almost certainly touting Stellar Lumens, and he thinks IBM might make some big, loud announcement about it sometime, and IBM is already a big participant in the nascent Stellar network of “validators’… but I suspect that “announcement” talk from Rickards is as much about inspiring your quick action in pulling out your credit card as it is about any fundamental reason why the Stellar Lumens story will change overnight.

So… whaddya think? Excited about Stellar Lumens or any of the other blockchain or cryptocurrency tokens out there? Have a valuation argument you want to make? Think I’m a knucklehead? (You’re not the only one who has that sentiment, don’t worry.) Our ears are open, please fill ’em up with a comment below.

P.S. The most rational explanation I’ve read for bitcoin and blockchain and the potential value that many of us see in these ideas (if not necessarily in any specific token) was in the New York Times Magazine last week — definitely worth checking out if you’re just trying to get your head around the whole crypto topic in general.


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211 Comments on "Rickards: “This $0.70 Crypto Game Changer Could Make You a FORTUNE in 2018… Starting Next Monday”"

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John
Guest
0

A very good summary and I agree. I have lost all or any faith I had in reading Rickards. He is the only one making money out of overpriced advice, most of which is unreliable, to say the least.

Williams
Guest
0

Can you cite some examples of unreliable advice? His recommendations in his newsletter seem to be doing well and his commentaries are in my opinion very informative. He explicitly predicted the Trump win and Brexit, placing him in a tiny minority of pundits. He was, however, wrong about the last Fed rate rise. I cannot stand his crass advertising with Agora, but he has a serious side and his arguments seem plausible to me.

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Phillip
Guest
0
Oh yes, Williams, I can provide some examples. His newsletter recommended the UK stock Carillion when it was over 200 pence. And after numerous profit warnings, continued to rate it a HOLD at around 20. It has since gone into liquidation, delivering an unbeatable 100% loss to his subscribers. Fortunately, contrary to the exceptionally incompetent trading advice given, I had stopped out long before. On the currency side when GBP was around 122USD at the start of 2017, he said it was going to 100 and lower, and I duly went short. It is now at 141 (of course one… Read more »
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jeremiahberndt
Irregular
62

I have tried to formulate educated opinions about some of the cryptos but it just seems impossible. It truly feels like betting on a 1000 horse horserace. So many interesting, similar, but nuanced ideas and nothing that seems to make decisively more sense than anything else.

jrad2244
Member
2

I’ve read James Altucher; he discounts 95% of crypto-currencies with good reasoning – his scale of value includes the crypto meeting a real need, having experienced management, being established and a few more common-sense guidances – the more interesting part of the digital craze is the blockchain technology, being adapted to many bricks and mortar sectors. I think that they are not going away – there is potential in amongst all the hype.

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Dc5555
Guest
0

I agree with this assessment . The question then becomes as an investor how do we take advantage of the Block Chain tech.

tmreyna1
Guest
0

How does one purchase Stellar

Mike
Guest
0
To purchase stellar, you first need to buy some Litecoin on Coinbase. then you need to get an account on Bittrex or Binance. Binance is easier and Bittrex is currently not accepting new customers. Once you have some Litecoin on Coinbase , you can send it to your Litecoin wallet on Binance. Once your Binance account is funded with Litecoin, go to the exchange on Binance to buy Bitcoin then exchange it for XLM. The only reason that I use Litecoin is the transaction fees are cheaper. Don’t send Bitcoin because they currently are experiencing scaling issues of high trans.… Read more »
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mrmicrobrew
Irregular
16

Wow, what?! A purchase takes that many transactions can’t be good. I’ll pass!

sschechter
Member
50

mrmicrobrew — that extra bit of complexity has caused many people to miss the boat. Its a different paradigm for sure, but once you get the hang of it its not that difficult to make these kind of purchases. And I agree about litecoin being the transaction coin of choice over bitcoin right now

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sschechter
Member
50

I mentally committed to buying bitcoin at $8 but never figured it out and forgot it

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archives2001
Irregular
71

Kickin’ yer butt around the block a few times, eh mate?

gummytree
Member
-24

Ah, well schlechter…. that is the uncouth Am. way of saying it. I hope you come back soon!

krybuk
Member
0

Same thing with me, I even opened Coinbase account a few years ago, never founded it, then forgot. about it all… Kicking miself…

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gummytree
Member
-24

Oh mein Gott Schlechter. Mag nicht aber. Vergiss
es! Passiert mit uns alle. Um $8 Dollar BC zu kaufen ist ein Traum – aber bringt viele schlaflos nachts ausserdem. Just forget and relax mein Herrn. Etwas neues kommt wieder gleich.

tromans
Irregular
11

I suppose I am a sad case too! Registered with Mount Gox in the early days, couldn’t for the life of me see it as more than Monopoly money or even a scam. Was glad I didn’t buy as Gox went spectacularly out of business a year or two ago!

Will the crypto maniacs on here tell us if they have made silly money or not. I fail to see how you can recommend it if not!

gummytree
Member
-24

And why… Please explain for us common folks.Oh and please explain why every of you uses the word PARADIGM… it is SO not very ENGLISH !

d3t0x
Irregular
56

Well said

Kelly Mitchell
Guest
0

There’s just not enough LTC crosses. I think cryptopia has a bunch, but I would never send a noob there.

gummytree
Member
-24

I agree…what a long way away from buying a hell of a lot of Dollars with a couple of Pounds or Euros at the Airport ! Wouldn’t it have been nice if Santoshi had linked BC with Fiat Currency at the onset…and we all then could have treated BC as a commodity instead of having to have a Degree in Computing to execute .

d3t0x
Irregular
56
It’s not as ridiculous as it may seem but it’s certainly not e-Trade…and the sheer amount of research on the newer ICOs can be daunting but at the same time for accredited investors…that is one of the more amazing ways to get residual income etc. In many ways, imagine if you had to wait for a DTC of stock to make it from one exchange to the other to then trade or change brokers etc…and you could even keep the stock certificates in your house… How long would that take to trade? You can pretty much do the same thing… Read more »
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Kelly Mitchell
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0
I disagree. Most of the investing money I’ve made has been in crypto. Because of the difficulties, it means many people won’t bother… until it’s easier. Which it will be – that’s almost inevitable. When that happens, there will be far more money available (crypto etf that invests in alt-coins, for example). It also makes it more difficult to trade, meaning buyers are usually hodlers – this puts in a price floor. Thirdly, there is no pin to pop the bubble – in other words, these exchanges have no shorting mechanism for most coins. Modern bubbles pop based on panic… Read more »
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frank_n_steyn
Irregular
117

I agree, relenting control of your $ is usually the step in turning it over to a conman.

Patricia Namyalo
Guest
0

IT IS BECAUSE IT SHOWS YOU THAT THERE’S VALUE IN WHAT YOU ARE INVESTING IN. THE POTENTIAL THAT IN THE FUTURE THESE COINS WILL INDEED BE USED FOR PURCHASES.

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Eric Miller
Guest
0
lol…Completely get it. It can be a bit confusing. In the area of crypto or digital assets, I think it best to approach a coin as you would a company, as a long term investor. Look for the company and the team behind the coin. I will share a recommendation but of course you must do your own research and decide for your self how much you willing to invest and how much you can lose, given that the digital asset market is very very new and quite volatile ( this is changing due to the SEC and regulations that… Read more »
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Eric Miller
Guest
0

mrmicrobrew,

One other thing, you can eaily go to Bitstamp which is an exchange in digital assests just like the traditional exchanges. you will have to get verified of course, as should be the case, but once you are, you can simply purchase XRP directly with your own US dollars. Simple that’s it. no converting from ether to lite coin back to Bitcoin etc…

You will have to get a secure wallet, which is where you store your purchased digital assets. If you have any questions, feel free to shoot me an email.

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fabian
Guest
0

Good post Mike. Thanks.

AJ Girardi
Guest
0

How do you buy Ripple?

capital744
Irregular
7

you can buy Ripple the same way, but I wouldn’t recommend it. Check out EOS, NEO, and Cardano(ADA) for 3rd generation platforms with great potential for growth..

capital744
Irregular
7

Never Invest money in Crypto that you are not willing to lose. It’s highly volatile and risky. Long term outlook is amazing. Short term gains and losses are unpredictable.

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archives2001
Irregular
71

Lot’s of ‘pumpers and dumpers’ for sure!

Eric Miller
Guest
0

AJ,
Simply go to Bitstamp which is an exchange for digital assests, set up an account, get verified and once you have been verified you can purchase RIpple (XRP) directly with USD. I would highly recommened buying a hardware Wallet, which is where you store your coins off of the exchanges. Exchanges can be hacked and your investment stolen. example of a hardware wallet is Ledger Blue or Nano S. These are two of the best around.

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jim
Guest
0

It sounds so simple…:-))

JOHN
Guest
0

sound like a PITA buying and selling!

BrianH
Guest
0

Truly. EG- localbitcoin.com linked banks only recognize IOS!.

Ken
Guest
0

there is an old expression regarding having to be “a Philadelphia Lawyer to figure that out” that applies here.

dr dolittle
Irregular
0

hi mike so i tried coinbase and theyre so over loaded theyre system is failing to allow you to add credit or debit cards. the verification process is flawed in one way and then on another way it just basically shut down.
i wasted hours trying to make it work.
who else can i use to purchase XLM?
thanks

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George
Member
11

I signed up with Gemini some time ago but haven’t traded yet. I believe they are SEC regulated.

toddba
Member
1130

I had been using Coinbase and buying with a Capitol 1 Visa until a few weeks ago when they froze all crypto transactions. Very annoying to say the least. I found out about the denied purchase from Coinbase, not Capitol. Which is odd because when I made my 1st transaction, Capitol e-mailed me an alert asking if I had attempted the transaction. For the next 4-5 weeks I had no issues whatsoever. Not sure if it’s fraud protection or they’re feeling threatened.

FWIW, I’m in Cardano

Cheers – Todd

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pdglynn12
Guest
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Hi, buying the bitcoin sounds like as show stopper for me – doesn’t it take a few thousands to buy one bitcoin? I only wanted to invest a few hundred dollars.

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pdglynn12
Irregular
5

Travis answered this above – can buy in increments

Peter
Guest
0

XLM is also available on Kraken.

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Jobanz
Guest
0

I bought XLM thru Bittrex as I believe in the company & its potential growth

jrog116
Irregular
10

Great analysis. I haven’t had much luck with my two Agora
$2,000 services. Not going for another. I do agree with him on gold and am investing more for insurance than profit.

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Lee Lowe
Guest
0

I hope you asked for your money back. If not do so. If they refuse file a claim with federal trade commission and attorney generals office. These have to stop.

gummytree
Member
-24

I agree guys ! I just read the lot from all of them – then await my Mentor Travis to sort out the “Chaff from the Grain” and ‘listen’ to his mind…he is a ‘Monument’ and a saviour in a corrupt world of Teaser Companies who Cannibilise each others thoughts and findings and fleece our hard owned pennies/cents for their Copycat teasers. Let us all continue to donate $ 39 to Travis to become an Irregular and just sit and wait for the Exposition of all these useless TEASERS, What do you say Travis?

jh4255
Guest
0

I ask for a refund and was told they do not have a refund policy. I feel that I saw one on their presentation, but it has been deleted.

fabian
Guest
0

My wife got had with Jimmy but got a refund. I never sign up for a letter when the guy brags about his government contacts or army experience. I just pay my taxes that makes me whiner winner every time.

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macaries
Member
11

What Date is his next Monday? These non mineable alt coins are dime a dozen and have fickle base too volatile for me On Thursday the 4th January it hit a high of $0.91 then settled to $0.70 and in my opinion its been falling back towards $0.20 and you will never see it in the top 10 again. EthereumDashBitcoin Cash is what I’m into

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