Who’s the real charlatan here?

Friday, 18 May 2018
London, UK
By Sam Volkering

  • Don’t ask an economist about technology
  • Get the right info from the people that know

As it stands we now publish three different crypto advisory services.

Those are Sam Volkering’s Secret Crypto Network, Crypto Tech Investor and Extreme Crypto Trader. Now it’s quite possible you subscribe to one of those. Maybe two of them. Maybe all three.

And it’s also very likely that you subscribe to none of them.

Yep. Believe it or not, some people still don’t believe this whole ‘crypto thing’ is really a thing.

Trust us, we’ve seen it all before. We’ve heard people call it ‘tulip bulbs’, ‘bubble gum wrappers’, ‘spaceships’ and ‘the cult with the bitcoin Kool-Aid’.

We’ve also seen economist after economist come out and slam bitcoin and crypto markets. We’ve had billionaire after billionaire call it ‘rat poison’ and claim it’s all going to end very badly for investors.

For example take this ‘opinion’ piece in the AFR from Nouriel Roubini, professor of economics at the Stern School of Business, NYU.

In the Wild West of ICOs, most cryptocurrencies are issued in breach of these laws and regulations, under the pretense that they are not securities at all. Hence, most ICOs deny investors any legal rights whatsoever. They are generally accompanied by vaporous “white papers” instead of concrete business plans. Their issuers are often anonymous and untraceable. And they skirt all AML and KYC regulations, leaving the door open to any criminal investor.’

Clearly blanket statements are a favourite of Roubini’s. And clearly he’s never participated in an ICO before. Nor has he ever registered an account with an exchange, or actually bothered to do any in depth research into crypto.

But his fun doesn’t stop there…

First, the markets.


Overnight the Dow Jones Industrial Average closed down 54.95 points, or 0.22%.

The S&P 500 fell 2.33 points, or 0.086%.

In Europe the Euro Stoxx 50 index finished up 29.33 points, or 0.82%. Meanwhile, the FTSE 100 gained 0.70%, and Germany’s DAX climbed 118.28 points, or 0.91%.

In Asian markets, Japan’s Nikkei 225 is up 84.23 points, or 0.37%. China’s CSI 300 is down 0.057%.

In Australia, the S&P/ASX 200 is down 4.00 points, or 0.066%.

On the commodities markets, West Texas Intermediate crude oil is US$71.58 per barrel. Brent crude is US$77.50 per barrel.

Gold is trading for US$1,289.65 (AU$1,718.85) per troy ounce. Silver is US$16.54 (AU$22.01) per troy ounce.

One bitcoin is worth US$ 8,013.27.

The Aussie dollar is worth 75.16 US cents

Don’t ask an economist about technology

Roubini finishes his scathing attack with,

That is precisely where the ICO charlatans would effectively take us – not to the futuristic world of The Jetsons, but to the modern Stone Age world of The Flintstones where all transactions occur through the barter of different tokens or goods. It is time to recognise their utopian rhetoric for what it is: self-serving nonsense meant to separate credulous investors from their hard-earned savings.’

Double ouch!

Sounds like Roubini is a fan of the existing, broken, rigged financial system we all currently rely on today.

Actually perhaps the real question to ask is where are the real charlatans? In crypto, or in the current financial system? Maybe Roubini is a charlatan of the traditional system?

He almost got one thing right. There are some in the crypto world that are looking to scam people out of their money. But find me an industry or market in the existing financial system where that doesn’t happen?

To blanket assume that ‘all’ ICOs are full of charlatans and scammers is naïve and dangerous.

Clearly Roubini has some ‘cred’ in the world of economics. But he’s ignorant to the underlying benefits of crypto networks and blockchain development.

He doesn’t address how you can utilise tokens as a transfer of wealth, or a medium of exchange across borders with little to no friction. Tokens aren’t all designed to be money. Some have the benefit of access, as a unit of payment for a service or a rewards based system.

And soon enough they will be able to interact and talk to each other across different blockchains. Through the development of atomic swaps you will be able to trade cryptocurrency across different chains.

There’s more technical detail to this. But the future of these atomic swaps means seamless interaction between cryptos that are inherently different. Don’t think of all these different cryptos as some sort of Flintstone barter Stone Age world.

Think of it as a unified network of internet currency that you can use anywhere, anytime for anything. It can be instant, low cost and borderless. It cuts all the frictions, restrictions and costs we find in the current global financial system.

This is all one big technology revolution, and to only look at it from the point of a monetary economist, is stupid.

It’s why listening to these mainstream voices can be dangerous. You simply don’t get the full picture. You don’t get the insight and in depth knowledge that you need to really capitalise on this crypto revolution.

That’s why we have three different crypto advisory services. To explain and detail everything you need to know to benefit from this tech revolution.

We cover what it means when the CFO of Commonwealth Bank leaves to join a crypto company. We explain how bitcoin has the potential to be the world’s first true global reserve currency of the future.

We define the difference between an infrastructure crypto like ethereum and an energy crypto like power ledger. Yes, there’s a great deal of difference.

And we point out how to spot scams. How to avoid red flags. And how to filter all the noise in this crazy space.

Get the right info from the people that know

Look, maybe you’re new to it all. And maybe you still side with the likes of Roubini. If so, you’re likely not getting the basic information about how to take your first baby steps into this arena.

And that’s where the advice we provide in Secret Crypto Network is exactly what you need. For example in the last couple of weeks we’ve been providing a ‘Crypto School 101’.

This is tackling one by one some of the most important things you need to know about crypto. Our first week we covered crypto ‘wallets’. This week we wrote about transactions and trading. Next week we’ll cover risks and threats.

We also have instructional videos on how to set up hardware wallets. And how to trade on an exchange. And of course we make crypto recommendations that get people started in building a long-term crypto portfolio.

Now it’s clear that with any investment strategy you simply don’t put all of your eggs in one basket. Investing 101 makes that pretty clear.

And we always take a smart approach to how people should approach crypto investing. You need to know the risks and that you should never invest more than you can afford to lose.

But in our view every single investor in the world should have some exposure to crypto. How much or how little is up to you.

But with the right information, the right insight, analysis and recommendations we think you’d have to be bonkers not to open your minds to it even just a fraction.

However, start small. The onus is on you when you get into crypto. You control the investments. You’re responsible for their safety, transfer and storage. That means you do need to know what you’re doing. And that’s why we think our Secret Crypto Network service is one of the most important services you’ll ever come across with crypto investing.

It’s entry level. It prepares you for your first foray into crypto. It’s the ‘hand holding’ needed to get started, start small and build crypto confidence. And it’s important to help you mitigate some risk, spot scams and navigate the crypto world independently.

Or maybe you think we’re a bunch of charlatans like Roubini. Maybe you still think this is all one big scam with a fiery end just around the corner.

If so, no problem. There’s plenty of great opportunity in ‘traditional’ assets. But if there’s just a little part of you thinking, ‘hmm, maybe it’s something I should have a little exposure to,’ then you should come join us at Sam Volkering’s Secret Crypto Network.

And if you’re a more advanced crypto investor then Crypto Tech Investor and Extreme Crypto Trader might be right up your alley too. But these are really for those already in crypto and who know how to work their way around wallets, blockchains and exchanges already.

With all that said, the next step is to figure out if you’re a believer in this revolution or not. If you are, welcome. If not, why not?

Too risky? Too hard? Too new? Maybe all three. But if we said we could help step you through it, break those barriers, would you want in? We’ll let you answer that question yourself. But if you do, then start here.