Exclusive: the future of stock markets is crypto
Friday, 8 June 2018
By Sam Volkering
- Exclusive access for my next ICO
- Granny writes in
- The transition from stocks to crypto
I’m on a road trip today. Actually a rail trip. That’s why I’m writing to you from Edinburgh, Scotland. Going to get some ‘neeps & tatties’.
In all seriousness I’m up here to speak at an upcoming crypto project. It should be fun!
And just last night I was in a conference call with another crypto project I’m analysing.
On the conference call the six of us covered four countries and six time zones.
We all had a chuckle at the thought of that. One of the participants remarked that a decade ago none of us would have envisioned we’d all be in this space. ‘Crypto’ was the stuff of a sci-fi novels.
Fortunately, through modern tech and the crypto revolution we were all here.
The call served two functions. It gave me another chance to grill them on the project. I’ve been working on this one for around three months now.
But it also let us define how I’ll be getting exclusive access for subscribers of Crypto Tech Investor.
We’re getting in at pre-sale. And at this point of the process there’s no other subscriber base with access. None.
No YouTube ‘shillers’. No online promoters. Just my subscribers. That’s the lengths I go to. Those are the contacts I’ve got. That’s the pull I have in the crypto world. And I put that to good use for my Crypto Tech Investor subscribers. If you’re not a subscriber and you want to get in on these opportunities, find out more by clicking here.
Now I don’t mean to sound like a big head (okay maybe I do a little bit). But eight years of toil and graft is starting to pay off. I’ve been called crazy, a ‘crypto evangelist’, and a member of the ‘crypto cult’. I’ve been laughed at on live US television for my views on crypto.
Yet the way I see this playing out is more certain than ever before.
The speed at which this industry is advancing is like nothing I’ve ever seen. It’s a stark comparison when I think about the progress of the ‘conventional’ financial system in the same time frame.
In fact the way we see this develop may mean the current system you use today — cash, assets, stocks, trading and investing — could radically change as soon as next year.
More on that shortly.
First, the markets…
Overnight the Dow Jones Industrial Average closed up 95.02 points, or 0.38%.
The S&P 500 was down 1.98 points, or 0.071%.
In Europe the Euro Stoxx 50 index finished down 1.05 points, or 0.030%. Meanwhile, the FTSE 100 declined 0.10%, and Germany’s DAX is down 19.02 points, or 0.15%.
In Asian markets, Japan’s Nikkei 225 was down 92.06 points, or 0.40%. China’s CSI 300 is down 1.60%.
In Australia, the S&P/ASX 200 is down 4.10 points, or 0.068%.
On the commodities markets, West Texas Intermediate crude oil is US$65.66 per barrel. Brent crude is US$77.06 per barrel.
Gold is trading for US$1,298.25 (AU$1,697.50) per troy ounce. Silver is US$16.95 (AU$22.16) per troy ounce.
One bitcoin is worth US$ 7,628.40
The Aussie dollar is worth 76.05 US cents
Bitcoin, stocks, same-same but different
It’s incredible how fast the world of crypto moves. Remember, bitcoin’s genesis block was only on 3 January 2009. That’s just nine years ago. Bitcoin will be ten next year.
Of course the core development of bitcoin started before 2009. Its origins go back as far as the 80s and 90s. But it wasn’t until that first genesis block that the world really even had cryptocurrency.
And since then…well you’re pretty clued up about it now. Geez, if you’re not clued up about it then where have you been living? In just nine years crypto has taken the world by storm.
Now, I’ll go out on a limb and say the term cryptocurrency (or more colloquially ‘crypto’) isn’t new to you.
However I’m still not convinced the entire readership across Port Phillip Publishing is switched on to what’s really happening in this space.
But you will be. When you’re trading stocks in the same way you trade crypto, you might really get it. Or when you’re trading your ‘tokens’ instead of stocks, then you’ll really understand.
You see, we’ve been highlighting the ease and speed at which you can buy, sell and trade crypto for years. It’s fast, immediate and low cost. There are no borders, time restrictions or ‘business hours’.
It’s why last week after writing about how markets should be easy for ‘Granny’, we got this wonderful reply in our mailbox from one of our readers, Jill.
‘I loved your Granny story. I am a 72-year-old Granny. I started trading shares in 2004 for the first time. It was quite easy to register, the hardest part was learning how to use the computer!
‘I used your advice at PPP from around 2006 -7. And did quite well. Thank you.
‘I registered for cryptocurrency trading in July 2007 and found it quite difficult. Perseverance was the key and enough free time to spend on it, was a bonus.
‘I have learned to pay my bills using Living Room of Satoshi. Bit of a challenge. I joined Coinbase first. Quite hard to use. Then Coinspot, very easy to use. Only difficulty for me is Mobi. But still working on that one.
‘I don’t have a lot tied up in Crypto, just use to keep my brain active.
‘Thanks for all your help at PPP.
I love this letter.
Perseverance is the key, Jill. Spot on!
And it’s a reminder that once you get over any initial frustrations, crypto can be a rewarding endeavour.
Paying bills with crypto – now tell me if you ever thought that would be possible a few years ago?
While Jill does note that it was easy to register for share trading in 2004, we know that today it’s a slightly different story. At least it is if you want to trade on international markets.
Coincidentally I got the following message today from a mate who’s trying to buy some overseas stocks (edited to remove expletives).
‘[Stupid] overseas shares. I placed orders for Alibaba, Microsoft and Berkshire yesterday morning. By the time the order is placed by Etrade custodians (which is well into their days trading) prices move.
‘You are limited on the price you can set. Then it takes 48 hours to deal so it’s a bloody lottery if your order gets filled. You then got to wait for it to get rejected before you go through the whole process again.
‘It took me a week to buy Ping An. Berkshire had a 2% rally overnight so my order will get killed again. It’s [very] annoying.
‘Meantime you miss your price and currency. Short of having an offshore account with a US broker here has to be a blockchain alternative.’
Have you ever tried to buy stocks on the Toronto Stock Exchange? What about the markets in Hong Kong, Singapore, Germany, Stockholm, Tokyo, London’s AIM market, the Netherlands or the Indian Stock Exchange?
Our guess is probably not. Why not? There’s an abundance of amazing companies outside of Australia. In fact the Aussie market is roughly 2% of the world’s major stock markets.
On that basis if you only stick to Aussie markets you’re missing out on 98% of global opportunities.
The reason most people don’t invest outside of the country is it’s too hard. Or it costs too much. Stock markets are a wonderful place to build wealth. But there has to be an easier way.
It’s a similar problem in the UK. Just trying to find a broker to even trade on the ASX is a nightmare. Meanwhile I can set up a Binance account and trade crypto anywhere in the world in minutes.
Our analysis tells us the future of trading stocks will be via crypto. There’s no reason why we can’t trade stocks 24/7, 365 days a year. There’s no reason why you must only trade on the ASX Monday to Friday between 10am and 4pm.
The problem is existing systems can’t handle that. They’re not built for it. They’ll never be able to do it.
Which is why security tokens are coming in crypto. This is where your share or equity (stock) in a company is attached to (or represented by) a crypto token. You will then be able to trade it on any major crypto exchange, anywhere in the world.
That’s stock trading for any company, in any country, from anywhere in the world. It will be fast, easy, instant. It will turn stock markets on their heads.
Think about the potential of that.
Imagine you’re a medium sized business. You’re maybe looking to ramp up growth. You’re thinking about doing an IPO on the ASX.
But the costs and burdens are a nightmare. Instead you still issue equity (stock) to investors that carries all the rights of a normal stock. However you launch it as a token sale (ICO) on a platform like Polymath and issue security tokens instead.
Now you can tap investor capital from anywhere in the world almost instantly.
And you also get to be listed on Binance, the world’s largest crypto exchange.
That would mark a complete shift in how people think about stocks and trading.
That’s the future we’re heading towards. I’ve been saying this for some time. And now concrete proof is starting to flow through.
Circle is one of the world’s biggest crypto platforms. They’re looking to get a banking licence in the US. This would ultimately lead to them operating security token services.
And Coinbase, one of the world’s biggest crypto exchanges, is on track to operate a regulated ‘broker-dealer’. As the company reported:
‘If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).’
This supports our view that the way we trade, even our definition of stocks and securities, is about to radically change.
It’s going to present enormous opportunity for investors and traders alike.
The future of markets is exciting, and you can put it all down to the crypto revolution.
Until next week,