$1 Billion is nice…$50 billion is better

Monday, 4 December 2017
Melbourne, Australia
By Bernd Struben

  • Short the bolivar and long on bitcoin
  • The first billion-dollar bitcoin returns
  • Flip Trading in volatile markets…

Tomorrow is the big day.

It’s the day our in-house crypto expert Ryan Dinse releases his ‘Crypto Flip Trade Portfolio’. The countdown clock is ticking. But you can still sign up here to receive his full dossier in your inbox tomorrow afternoon.

Please note, though, that we’re only sending Ryan’s ground-breaking new research to readers who have registered their interest. And it’s completely free.

Who is Ryan Dinse?

If you followed along with Port Phillip Insider last week, you’ll have a fair idea already. If not, here’s a quick recap.

Ryan has over 15 years of experience in the financial advice industry. He was a full time small-cap trader for three years, and a successful financial advisor for a large Melbourne-based institution for seven years.

He’s a member of Fintech Australia and was a certified member of the Digital Currency Council (DCC) in 2013. The DCC is a US based organisation that trains financial advisors in cryptocurrency mechanics.

Now I’m not sure what you were studying up on in 2013, but cryptocurrencies certainly hadn’t hit my hot topic list yet.

Ryan’s put all that experience and training to good use. Over the past two years he’s worked closely with Lykke, a Swiss-based blockchain FX trading company, developing pioneering ideas in financial services.

Since joining us at Port Phillip Publishing in May, Ryan’s put his decidedly out-of-the-box ideas to work.

His recently launched small-cap investing service, Exponential Stock Investor, focuses on small companies who are set to gain the most from the rapid evolution of blockchain technology.

One of the stocks gained 146% in just the first month following his recommendation. (Details here.)

But Ryan thinks you can potentially do better — much better — than 146% gains in one month. He details precisely how in the ‘Crypto Flip Trade Portfolio’.

Sign up here to make sure you receive the complete dossier, at no cost to you, in your inbox tomorrow.

More, after the markets.

Markets

Over the weekend, the Dow Jones Industrial Average closed down 40.76 points, or 0.17%.

The S&P 500 fell 5.36 points, or 0.20%.

In Europe, the Euro Stoxx 50 index finished down 42.38 points, or 1.19%. Meanwhile, the FTSE 100 fell 0.36%, and Germany’s DAX lost 162.49 points, or 1.25%.

In Asian markets, Japan’s Nikkei 225 index is down 67.45 points, or 0.30%. And China’s CSI 300 is up 0.76%.

In Australia, the S&P/ASX 200 is down 1.06 points, or 0.02%.

On the commodities markets, West Texas Intermediate crude oil is US$58.22 per barrel. Brent crude is US$63.58 per barrel.

Gold is trading for US$1,274.71 (AU$1,678.80) per troy ounce. Silver is US$16.40 (AU$21.60) per troy ounce.

One bitcoin is worth US$11,432.61.

The Aussie dollar is worth 75.93 US cents.

Short the bolivar and long on bitcoin

I’m not sure if this is an endorsement for the sweeping changes wrought by cryptos…or a sign of how desperate Venezuela’s president, Nicolas Maduro has become.

But apparently, Venezuela is looking to launch its own cryptocurrency, called petro. If all goes to plan, it will be backed by the nation’s natural resource reserves.

As you likely know, Venezuela has been battling runaway inflation since the end of Hugo Chavez’s reign in March 2013.

According to Business Insider, inflation rose by over 50% in Maduro’s first year as president. And the inflation rate is expected to reach 2,300% by the end of 2017. (Puts Australia’s ‘stubbornly low inflation’ problem into perspective, doesn’t it? Careful what you wish for, RBA…)

With the value of the bolivar deteriorating at a rapid pace, the nation released a new 100,000 bolivar note last month. Though even before inflation began to bite, the new note was worth less than US$2.50 on the black market, according to The Associated Press.

Which leads us back to the petro. From The Australian Financial Review:

Less than three weeks ago, S&P Global Ratings announced that Venezuela was in selective default for failing to make $US200 million ($263 million) in overdue coupon payments on its bonds.

‘[Maduro’s] presidential announcement on Sunday (Monday AEDT) highlights how the Trump administration’s sanctions are hurting Venezuela’s ability to move money through international banks. Sources say compliance departments are scrutinising transactions linked to Venezuela, which has slowed bond payments and complicated the oil exports.’

If Maduro’s government can successfully launch its own crypto, it will certainly make the US led financial sanctions trickier to monitor. That’s one of the selling points of cryptos, after all. They remain largely outside of the control of central and commercial banks, and governments.

Of course the petro, if launched, would be a government backed digital coin. As such, I’d expect it to come under the same inflationary pressure as the bolivar.

The bolivar is down around 57% over the past month. Bitcoin on the other hand, is up 57%.

You can see why Venezuelans are piling into bitcoin. Even as they’re reduced to weighing their lower denomination notes for the weekly shopping, rather than counting out a trolley full of bills.

It’s hard to say if they’ll embrace petro with equal enthusiasm. But one thing I can say is that if petro launches, Ryan Dinse will be keeping an eye on it for us. And whether petro rises of falls against bitcoin and other established cryptos, he’ll be working out the best way to Flip Trade it for big profits.

That’s the beauty of his new method for buying and selling cryptos. Although not without risk, it gives you the potential to make money from cryptos whether they’re rising or falling.

Ryan reveals all in his ‘Crypto Flip Trade Portfolio’ dossier we’re releasing tomorrow. If you haven’t signed up to receive that yet, for free, just click here. It will only take a minute.

The first billion-dollar bitcoin returns

You’ve heard of bitcoin millionaires.

With the spectacular rise of bitcoin, there are more than a few of them out there. And even more of us enviously reading about those newly minted millionaires and muttering, ‘If only…’

You’ve probably also heard of the Winklevoss twins. They’re the brothers who, allegedly, came up with the idea for Facebook. Before Mark Zuckerberg, again allegedly, swept the rug out from under them.

Whether their claims are true or not, Facebook did payout US$65 million to the brothers in 2008. And in March 2013 they invested part of this into bitcoin.

From The Sunday Telegraph:

A $US11 million ($14 million) bet on bitcoin made by Tyler and Cameron Winklevoss more than four years ago has ballooned by almost 10,000 per cent after last week’s price surge. It is believed to be the first billion-dollar return made by a cryptocurrency investor, a landmark moment for the controversial asset…

‘“We’ve never sold a bitcoin, we’re in it for the long haul,” Cameron Winklevoss said two years ago. Tyler Winklevoss, who has said the currency could be worth trillions, told London’s The Daily Telegraph last year that Bitcoin was “like a better version of gold”.’

Flip Trading in volatile markets…

Buy and hold investors of bitcoin, like Tyler Winklevoss advocates, have unreservedly done well over the past four years. Though not all of them had the foresight — or means — to plunk down US$11 million.

Have a look at the chart below:



chart image

Source: CoinDesk
Click to enlarge

It’s hard to see on the chart. But back in March 2013 bitcoin traded for a low of US$33 and a high of US$95. That compares to the current price of US$11,432.61.

That’s roughly a 10,000% gain from its March 2013 high. And more than 30,000% from its low, if you’d timed it just right.

Will bitcoin soar that much again over the next four and a half years?

Possibly. But it could ‘merely’ double. Or it could fall by 50%…or more. That’s where Ryan Dinse’s Flip Trading method can make the difference between life changing gains…or losses.

Have a look at the following chart:



chart image

Source: CoinDesk
Click to enlarge

This shows you the price of bitcoin over the past seven days.

The price fell to US$9,238 last Thursday, before its erratic rebound.

Now the Winklevoss twins may have lost a bit of sleep — and more than US$100 million — during the downturn. But by holding tight they didn’t lose any money. In fact, are back up above last week’s peak.

But they missed out on the potential offered by the week’s volatility.

Cryptos’ volatility often gets a bad rap. But as in the stock market, active investors actually crave volatility. When done right, it allows them to sell out of falling stocks and buy into rising stocks, rather than holding them all for the long run.

Pinpointing which cryptos are rising when bitcoin and other core cryptos are falling — or vice versa — is one of the strategies Ryan Dinse explains in his brand new dossier, to be released tomorrow.

Like Peer Coin, which gained 40% last week at the same time that bitcoin plunged 20%.

No one else I’m aware of, anywhere, is talking about buying and selling cryptos, and potentially turbocharging your gains, the way Ryan’s worked out.

It’s truly revolutionary.

To find out whether or not this is a strategy for you, make sure to register here.

Cheers,
Bernd