Update October 2017. Investment landscape

On October 1, 2017 by Phil Champagne

This was published in our newsletter. We do not always publish our newsletter on the blog, this is one of the exception.

october

Investment view

Remember Tezos recommendation?

In June newsletter, I told you I was investing in Tezos ICO (Initial Coin Offering) and suggested you look into it. Well, if you did like I did, you will be smiling. I wasn’t expecting to see any pricing for it until the Tezos network was fully launched and running, allowing people to transfer them for trading. Apparently, there is a futures market that has been established where people can already trade Tezos to be exchanged once the network is running. Check these links below:
https://www.tradingview.com/chart/ICjoQAjN/
https://www.cryptocompare.com/coins/xtz/overview/USD
If you remember, Tezos (XTZ) was trading at 6000 for 1 Bitcoin (0.00016667) or basically 1 Tezos was worth 0.16667 millibitcoin (mBTC). At that time, in US dollar it was about 40 cents per Tezos. According to this, it is now trading at 0.0003930, 2.35 times the original investment or a gain of 135% in Bitcoin. Since Bitcoin increase in US dollar since then, the gain are even higher measured in US Dollar. In US Dollar, Tezos is trading at $1.68, hence 4.2 times the original investment, or a gain of 320%. And the damn thing has not even been deployed yet!
Let me remind you of the potential. It has the ability to rival with Ethereum, giving Tezos the potential for another factor of 50 to 100 just to catch up with Ethereum market capitalization. And that’s excluding any additional market rise of the cryptocurrency market in general.
As you might have heard, Ethereum had some serious issues last year with DAO hack that demonstrated the flaws in the Ethereum smart contract programming language making it difficult to catch issues. As such, millions of dollars were stolen by a hacker. There was again a repeat this summer with another flaw in the ubiquitous Multisignature smart contract used by many in Ethereum, millions of dollars stolen again.
Tezos team has made it clear they want to avoid such issues by using an industry standard of formal verification. All critical systems where failure cannot be allowed such as aviation or finance (hello Ethereum???) uses formal verification to solidify them as much as possible.
Functional programming is a programming paradigm that greatly facilitate formal verification and as such, Tezos has been coded in OCaml and the smart contract will be coded in a new language called Michelson, both of which are functional programming language. You can be assured the financial service will recognize this as a major factor favoring Tezos over Ethereum.
So, I would say, hold on tight to your tezos for a larger smile on your part. But I’m not a financial advisor, just telling you what I’m recommending to myself ;-)

What should you own you ask?
Keep your Bitcoin, more and more it is becoming the new Gold Standard. A digital gold standard. Remember that to catch up to gold’s market capitalization, BItcoin would have to be priced above $300,000 per Bitcoin. Since it is currently trading around $4300, there is still a factor of near 100 possible in more gain. Remember, there are only 21 million bitcoins but there are more than 35 million millionaires in the world. If you do not own any bitcoins, you should consider it.
By the way, I highly recommend watching Andreas Antonopoulos discussion here. Remember mp3 and napster how it disrupt the music industry? Bitcoin is ready to do that to the banking sector
https://www.youtube.com/watch?v=43Ucj6_Erb0

Silver and Gold next move?

How can you tell when Gold and Silver are about to change direction? Answer: When the Governments and large banks are doing some weird moves. I’m not sure if you know, but Fort Knox has not got any auditing since the 1950s and here we have this recent visit of it:
http://www.zerohedge.com/news/2017-08-24/mnuchin%E2%80%99s-pr-visit-fort-knox-proves-nothing-about-us-gold-reserves
Officially, the US government claims they own 8000 tons of gold. Do they?
Why did the Secretary of Treasury – Mnuchin – not take a selfie while inside Fort Knox? I mean, that’s simple to do. Why going through this charade of a “visit” to Fort Knox only to give the general investing community a comforting view of “all is good and safe” – while not even adding a selfie touch to it.
This reminds me of the same move by the Bank of England in 1999 to 2002 to sell all their gold reserve when it was a the lowest value. The real estate was to keep the price depressed as long as possible. They had kept a control on it (price decline or flat) til the peak of 1980. But since 2002, the price has kept rising from $250 at the time to now $1350 per ounce.
Moral of the story: buy gold and silver (silver mostly) and get that stored by the Brinks (check for example Mike Maloney’s GoldSilver.com/storage)

Real Estate?

The acquisition team in Montana made a latest acquisition in Arizona. For more information for those interested, you would need to contact us.

Latest Blog

Might be technical for some of view, but the essential is that you don’t have to worry too much about Bitcoin’s new SegWit feature. The major benefit it will bring will allow Lightning Network to be used which can enable millions of transactions per second. A major breakthrough, hence more utility added to Bitcoin. More “smart contract” as well.
https://medium.com/@egg_descrambler/does-segwit-drop-the-security-of-bitcoin-down-a-notch-58c41b20bb95

And this is about how Blockchain has been used by the banking industry afraid of this new competition (pure and open method) and as such are trying to “mimic” it. But more often, blockchain is not a fully decentralized peer-to-peer ledger, but just a “glorious” database.
https://steemit.com/bitcoin/@eggdescrambler/how-blockchain-became-a-marketing-buzzword-strip-of-any-reference-to-bitcoin

 

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