Just thought I'd lay out my 10 year plan, maybe the ideas may interest somebody. I will be 40 (ish) years old - actually aiming for a kind of semi-retirement. Property for holiday lets: I have one small property with an older relative living in it who just covers the mortgage and will do until that mortgage is paid off (18 years). That's a super long-term investment and I kind of see that as an inheritance (as I won't be getting actual inheritance from parents). Property worth approx £160k currently. I have one property which is let out as a holiday cottage. After all expenses, including the management, of it I am averaging £1000 profit per month, I don't really put in any time into the running of this. The plan is to get at least another 2 holiday lets which will hopefully bring in similar profit. This could be a very easy semi-retirement gig managing these. I found a property nearby recently for £600k which was a large house with 5 small one-bedroom holiday apartments attached - this would be perfect! I would have cleaners working them, maybe a management firm running it. Cryptocurrency: (dollar cost averaging) Bitcoin - The most decentralised and adopted crypto, it looks like it's won the race. Monero - massively undervalued privacy coin, it's pretty much the only coin currently used on dark web markets (good indicator for future adoption). Ethereum - Bit of a gamble, but looks promising. On release of ETH 2.0 they will offer a 6% annual interest on your holdings if you 'stake' it. I honestly believe the cryptocurrency market could increase X 50 in the next 10 years, it is a hedge against all the money printing which is going on. IF it goes 50X then my holdings should buy me the previously mentioned house with holiday lets. Stocks/commodities etc: (dollar cost averaging) I hold some Gold ETFs, but am currently sat out of stocks. Gold is a good hedge investment. I plan to DCA into a REIT (real estate investment trust which often give 8-12% returns)). Pensions: I may have some measly amount in a military pension (9 years service) - probably £50 per month by the time I reach it (67 years old). I'm not wasting my time with pensions, the state pension is a giant ponzi scheme as far as I'm concerned and I don't trust other people enough with my money to play with it in a private pension pot. I've literally just joined this group and have noticed it's pension heavy so maybe I'll be swayed a bit. Just to give an idea of roughly what I can dollar cost average - I can save approx £2k per month at the moment (work abroad). I'll keep a bit of cash but will mostly be DCA'ing into crypto, gold and a REIT. Cash is only going to be worth less and less each year! So not to waste money:
Won't have flashy car - something cheap and works
Buy all my furnishings etc second hand (gumtree/marketplace) No shopping in Next or Ikea
No takeaways, limit meals out
Pay off credit cards every month
Don't have kids, don't get married
All the obvious smart money management.
Hopefully I will be able to sit back in 10 years with some holiday lets under the belt bringing in a few quid and I can spend the winters somewhere sunny.
Wandering From the Path? | Monthly Portfolio Update - August 2020
Midway along the journey of our lifeI woke to find myself in a dark wood,for I had wandered off from the straight path. Dante, The Divine Comedy: Inferno, Canto I This is my forty-fifth portfolio update. I complete this update monthly to check my progress against my goal. Portfolio goal My objective is to reach a portfolio of $2 180 000 by 1 July 2021. This would produce a real annual income of about $87 000 (in 2020 dollars). This portfolio objective is based on an expected average real return of 3.99 per cent, or a nominal return of 6.49 per cent. Portfolio summary
Vanguard Lifestrategy High Growth Fund $733 769
Vanguard Lifestrategy Growth Fund $41 794
Vanguard Lifestrategy Balanced Fund $78 533
Vanguard Diversified Bonds Fund $110 771
Vanguard Australian Shares ETF (VAS) $216 758
Vanguard International Shares ETF (VGS) $64 542
Betashares Australia 200 ETF (A200) $237 138
Telstra shares (TLS) $1 540
Insurance Australia Group shares (IAG) $6 043
NIB Holdings shares (NHF) $5 532
Gold ETF (GOLD.ASX) $121 976
Secured physical gold $19 535
Ratesetter (P2P lending) $8 998
Bitcoin $177 310
Raiz app (Aggressive portfolio) $17 421
Spaceship Voyager app (Index portfolio) $2 759
BrickX (P2P rental real estate) $4 477
Total portfolio value $1 848 896 (+$48 777 or 2.7%) Asset allocation
Australian shares 41.5%
Global shares 22.6%
Emerging market shares 2.2%
International small companies 2.8%
Total international shares 27.6%
Total shares 69.2% (5.8% under)
Total property securities 0.2% (0.2% over)
Australian bonds 4.4%
International bonds 8.9%
Total bonds 13.3% (1.7% under)
Gold and alternatives 17.2% (7.2% over)
Presented visually, below is a high-level view of the current asset allocation of the portfolio. [Chart] Comments The portfolio has increased in value for the fifth consecutive month, and is starting to approach the monthly value last reached in January. The portfolio has grown over $48 000, or 2.7 per cent this month, reflecting the strong market recovery since late March [Chart] The growth in the portfolio was broadly-based across global and Australian equities, with an increase of around 3.8 per cent. Following strong previous rises, gold holdings decreased by around 2.2 per cent, while Bitcoin continued to increase in value (by 2.5 per cent). Combined, the value of gold and Bitcoin holdings remain at a new peak, while total equity holdings are still below their late January peak to the tune of around $50 000. The fixed income holdings of the portfolio continue to fall below the target allocation. [Chart] The expanding value of gold and Bitcoin holdings since January last year have actually had the practical effect of driving new investments into equities, since effectively for each dollar of appreciation, for example, my target allocation to equities rises by seven dollars. New investments this month have been in the Vanguard international shares exchange-traded fund (VGS) and the Australian shares equivalent (VAS). These have been directed to bring my actual asset allocation more closely in line with the target split between Australian and global shares set out in the portfolio plan. As the exchange traded funds such as VGS, VAS and Betashares A200 now make up nearly 30 per cent of the overall portfolio, the quarterly payments they provide have increased in magnitude and importance. Early in the journey, third quarter distributions were essentially immaterial events. Using the same 'median per unit' forecast approach as recently used for half yearly forecasts would suggest a third quarter payout due at the end of September of around $6000. Due to significant announced dividend reductions across this year I am, however, currently assuming this is likely to be significantly lower, and perhaps in the vicinity of $4000 or less. Finding true north: approach to achieving a set asset allocation One of the choices facing all investors with a preferred asset allocation is how strictly the target is applied over time, and what variability is acceptable around that. There is a significant body of financial literature around that issue. My own approach has been to seek to target the preferred asset allocation dynamically, through buying the asset class that is furthest from its target, with new portfolio contributions, and re-investment of paid out distributions. As part of monitoring asset allocation, I also track a measure of 'absolute' variance, to understand at a whole of portfolio level how far it is from the desired allocation. This is the sum of the absolute value of variances (e.g. so that being 3 per cent under target in shares, and 7 per cent over target in fixed interest will equal an absolute variance of 10 per cent under this measure). This measure is currently sitting near its highest level in around 2 years, at 15.0 per cent, as can be seen in the chart below. [Chart] The dominant reason for this higher level of variance from target is significant appreciation in the price of gold and Bitcoin holdings. Mapping the sources of portfolio variances Changes in target allocations in the past makes direct comparisons problematic, but previous peaks of the variance measure matches almost perfectly past Bitcoin price movements. For a brief period in January 2018, gold and Bitcoin combined constituted 20 per cent, or 1 in 5 dollars of the entire portfolio. Due to the growth in other equity components of the portfolio since this level has not been subsequently exceeded. Nonetheless, it is instructive to understand that the dollar value of combined gold and Bitcoin holdings is actually up around $40 000 from that brief peak. With the larger portfolio, this now means they together make up 17.2 per cent of the total portfolio value. Tacking into the wind of portfolio movements? The logical question to fall out from this situation is: to what extent should this drive an active choice to sell down gold and Bitcoin until they resume their 10 per cent target allocation? This would currently imply selling around $130 000 of gold or Bitcoin, and generating a capital gains tax liability of potentially up to $27 000. Needless to say this is not an attractive proposition. Several other considerations lead me to not make this choice:
The problem may solve itself as portfolio grows - Growth and continued investments in the portfolio will tend to reduce the variance caused by gold and Bitcoin. The asset allocation targeting approach I adopt has seen continued contributions to equities, reducing the ability of these alternative assets to add to future variance.
Falls in Bitcoin or gold values will also solve the problem - Conversely, price falls in Bitcoin or gold will tend to reduce the variance issue, and such price falls have significant precedents, with for example Bitcoin holdings falling to a value of around $50 000 as recently as January 2019.
If neither of these happen, there may be bigger issues to solve - The only scenario where neither of these alleviating factors occur is should gold and Bitcoin continue to rapidly appreciate compared to other assets, in which case it is difficult to see the value of reducing exposure now.
Does Bitcoin even fit the asset allocation model? - Bitcoin in particular is not a well established or accepted asset class as yet, so it may not be appropriate to apply traditional allocation rules to it - it may be functioning more as a hedge or option against extreme states of the world. Linked to this is the high degree of volatility in Bitcoin. Adopting too tight a target on Bitcoin holdings would potentially see a need to buy and sell Bitcoin frequently, where my intention is to actually never purchase any more.
This approach is a departure from a mechanistic implementation of an asset allocation rule. Rather, the approach I take is pragmatic. Tracking course drift in the portfolio components As an example, I regularly review whether a significant fall in Bitcoin prices to its recent lows would alter my monthly decision on where to direct new investments. So far it does not, and the 'signal' continues to be to buy new equities. Another tool I use is a monthly measurement of the absolute dollar variance of Australian and global shares, as well as fixed interest, from their ideal target allocations. The chart below sets this out for the period since January 2019. A positive value effectively represents an over-allocation to a sector, a negative value, an under-allocation compared to target. [Chart] This reinforces the overall story that, as gold and Bitcoin have grown in value, there emerges a larger 'deficit' to the target. Falls in equities markets across February and March also produce visibly larger 'dollar gaps' to the target allocation. This graph enables a tracking of the impact of portfolio gains or losses, and volatility, and a better understanding of the practical task of returning to target allocations. Runaway lines in either direction would be evidence that current approaches for returning to targets were unworkable, but so far this does not appear to be the case. A crossing over: a credit card FI milestone This month has seen a long awaited milestone reached. Calculated on a past three year average, portfolio distributions now entirely meet monthly credit card expenses. This means that every credit card purchase - each shopping trip or online purchase - is effectively paid for by average portfolio distributions. At the start of this journey, distributions were only equivalent to around 40 per cent of credit card expenses. As time has progressed distributions have increased to cover a larger and larger proportion of card expenses. [Chart] Most recently, with COVID-19 related restrictions having pushed card expenditure down further, the remaining gap to this 'Credit Card FI' target has closed. Looked at on an un-smoothed basis, expenditures on the credit card have continued to be slightly lower than average across the past month. The below chart details the extent to which portfolio distributions (red) cover estimated total expenses (green), measured month to month. [Chart] Credit card expenditure makes up around 80 per cent of total spending, so this is not a milestone that makes paid work irrelevant or optional. Similarly, if spending rises as various travel and other restrictions ease, it is possible that this position could be temporary. Equally, should distributions fall dramatically below long term averages in the year ahead, this could result in average distributions falling faster than average monthly card expenditure. Even without this, on a three year average basis, monthly distributions will decline as high distributions received in the second half of 2017 slowly fall out of the estimation sample. For the moment, however, a slim margin exists. Distributions are $13 per month above average monthly credit card bills. This feels like a substantial achievement to note, as one unlooked for at the outset of the journey. Progress Progress against the objective, and the additional measures I have reached is set out below. Measure Portfolio All Assets Portfolio objective – $2 180 000 (or $87 000 pa) 84.8% 114.6% Credit card purchases – $71 000 pa 103.5% 139.9% Total expenses – $89 000 pa 82.9% 112.1% Summary What feels like a long winter is just passed. The cold days and weeks have felt repetitive and dominated by a pervasive sense of uncertainty. Yet through this time, this wandering off, the portfolio has moved quite steadily back towards it previous highs. That it is even approaching them in the course of just a few months is unexpected. What this obscures is the different components of growth driving this outcome. The portfolio that is recovering, like the index it follows, is changing in its underlying composition. This can be seen most starkly in the high levels of variance from the target portfolio sought discussed above. It is equally true, however, of individual components such as international equity holdings. In the case of the United States the overall index performance has been driven by share price growth in just a few information technology giants. Gold and Bitcoin have emerged from the shadows of the portfolio to an unintended leading role in portfolio growth since early 2019. This month I have enjoyed reading the Chapter by Chapter release of the Aussie FIRE e-book coordinated by Pearler. I've also been reading posts from some newer Australian financial independence bloggers, Two to Fire, FIRE Down Under, and Chasing FIRE Down Under. In podcasts, I have enjoyed the Mad Fientist's update on his fourth year of financial freedom, and Pat and Dave's FIRE and Chill episodes, including an excellent one on market timing fallacies. The ASX Australian Investor Study 2020 has also been released - setting out some broader trends in recent Australian investment markets, and containing a snapshot of the holdings, approaches and views of everyday investors. This contained many intriguing findings, such as the median investment portfolio ($130 000), its most frequent components (direct Australian shares), and how frequently portfolios are usually checked - with 61 per cent of investors checking their portfolios at least once a month. This is my own approach also. Monthly assessments allow me to gauge and reflect on how I or elements of the portfolio may have wandered off the straight way in the middle of the journey. Without this, the risk is that dark woods and bent pathways beckon. The post, links and full charts can be seen here.
I did it today. On my 47th birthday, I reached $3 million in cash & investments, a paid off house & 2 cars. I have reached my FI target of $100k @ 3.3% SWR. I knew it was going to be close with the markets, payday, and my company's equity coming in today. Plan is to FIRE in 3 months. $3 million was a symbolic number, I could have FIREd 2 months ago at $2.95 million and lived pretty much the same life. However, I am getting another ~$70k in equity in 3 months and would like a bit of a buffer especially with the volatile markets. Also, the plan was to take a nice trip to Europe in August - I don't see that happening. It is crazy, I know of many people who are laid off, working reduced hours, worried about their job or tapping into debt. And I am making plans to quit working. Mega edit: Asset allocation Cash & short term investments: 25% (increased 10% from equities due to C19) Employer's Equity: 10% Equity ETFs: 45% (down 10% - sold in early march, will buy back in later) Bond ETFs: 10% Crypto: 10% Please bring on the flames for timing the market, but I sold early-ish, it helps me sleep at night, and right now I am trying to be more conservative vs. aggressive. The crypto is a flyer. I bought casino level bitcoin in 2012 at $18, then sold a bunch when it went up to $150. Then bought a bunch more at $1000, and have been selling little bits for a few years. Total investment: $45k, total value sold and still held: $500k. I would like to sell more, but it has a capital gains tax liability, so FIRE with no income next year would help reduce taxes. About my journey Grew up middle class. Money was tight from time to time, but I never really saw that. Part time job when I was 16 for spending cash. Never went into debt. Saved a little. Went into a good college for STEM, received $8000 total for tuition from family and received a student loan for $1000. Did a few paid internships while in college. Paid off the loan with my first post-school paycheck. Graduated in the tech industry in 97. Started full time at the last internship. $40k base. Stayed there for 2 more years, increased base by 20%. $48k base. Left (co-worker left and pulled me), for a ~100% increase. $90k base. Stayed there 6 months (dying ship), left for ~10% increase. $100k base. Stayed there for 2 years (all of my managers up to CEO left in 2 weeks), left for a 0% change. $100k base. Stayed there for 1.5 years, was let go, started consulting at +50% (but no benefits). $150k consulting. Consulted for 8 months, left when project was wrapping up for -40% (+10% from previous full time) $110k base. Stayed there for 11 years (company was acquired 3 after years), increased pay by ~20% in 11 years. $133k base. Left for 5% increase. $141k base. Worked there for 6 months (bad fit), left for 5% increase. $150k base. Here now. Making about 4x after 20 years. Did not include any bonus (or not), benefits (health/retirement/etc...) stock options, quality of life, etc.. Current investments Canadian ETF / funds I invest in in decreasing amounts. XGRO VCN VXC VAB VT TDB900 TDB902 TDB909 TDB911 Tangerine Balanced (part of emergency fund) TDB661 CDZ
Uniswap on Fire, $UNI Options Broke 4 Records within 2 weeks
https://preview.redd.it/k5tfld8ch1t51.jpg?width=1280&format=pjpg&auto=webp&s=62b80c63d9f5887d52a4bef1b9d6cbb809180bc8 After 3 years decentralized exchanges has been through, the market presented a rapid trend especially after AMM (Automated Market Making) was introduced into dex, it lifted up the dex volume from millions to billions. Uniswap, as the most renowned decentralized exchanges, did a huge effect on AMM into decentralized exchanges. Uniswap is a smart contract based on Ethereum for users to swap ETH and ERC20s. The CPMM (Constant Product Market Maker) that Uniswap uses enables users to exchange ERC20s in their token pools. It not only changes the “order book” trading mode, but also lowers the barriers of market-making, which allows every user to become a market maker to a specific trading pair, and earn profits from it. This mechanism is innovative in the yield of DeFi and tries to grab more users from centralized exchanges. After 2-year development, Uniswap became the most renowned DEX based on Ethereum. To stabilize its own market-making, Uniswap did not launch its own governance token until the end of August. The born of SUSHI, which stole more than half of liquidity on Uniswap by their token incentive mechanism. It caused Uniswap once fell to the 10th of all the DeFi projects. After then, Uniswap launched its own governance tokens. After the SUSHI chief cashed out by selling his SUSHI, Uniswap attracted their lost users back with its liquidity that is stable and of high yield. At last, everyone witnessed the king came back and ranked the first TVL on DeFi. On the occasion, BitOffer listed $UNI on their options trading. And 4 records have been broken within 2 weeks: 1. $200 millions Breakout of the Daily Trading Volume: From June to September, the trading volume on Uniswap surged from $1 million to $1 billion. The fact above caused most eye-contacts from the cryptocurrency industry. Therefore, after $UNI was listed on BitOffer Options, the volume on BitOffer UNI Options broke out $200 million, and it is still increasing. In the near future, the daily volume on UNI Options is hopefully to break $1 billion. 2. 100,000Daily Active Users As for now, the total DAU on BitOffer is more than 200,000, and a half of them trade UNI Options. Those users can be divided into 2 types: Buying Options Only & Hedging their UNI Perpetual Swap. Moreover, the second part took up more than 60%. Either traditional finance or cryptocurrency, Futures trading is much more popular than spot trading. To hedge the risk, users who know how to hedge always choose to trade options and futures to set up an arbitrage strategy. As the cryptocurrency developed while DeFi getting hot and the TVL of Uniswap keeps increasing, the number of users who use Options to hedge the risk of the trading perpetual swap will be much huger than now. In addition, since the volatility of $UNI is higher than that of Bitcoin and Ethereum, so buying $UNI Options only or hedging their UNI Perpetual Swap can both have a huge profit space. 3. $UNI Options Owned Most Transactions on September Since September, after $UNI was listed on exchanges, its attentions and participants kept being the top among all the DeFi tokens. Under such a phenomenon, $UNI Options owned the most transactions in September. According to the data on BitOffer, the transactions on BitOffer reached 500,000, which is 2 times to that of LINK Options, and 1 time to that of Bitcoin Options and ETH Options. After Dual-Currency, BTC Ups & Downs, and Cryptocurrency ETF, $UNI Options made it. 4. The Most Likely Products to Investors According to the DAU and daily trading volume of $UNI Options, its audience is much more acceptable than $UNI Perpetual Swap. They are both UNI derivatives but they occupy of $UNI Options is less than UNI futures, but it still has a huge developing room, and that is why investors hold a confident view on $UNI Options, which is expected to have a billions trading volume as $UNI spot trading and futures trading. In addition, with BitOffer, the most renowned Bitcoin Options provider, $UNI Options will attract more and more attentions from the market.
Global internet / internet everywhere is being worked on with Space-x "StarLink", thousands of satellites connecting everyone globally to the internet. Therefore infrastructure for the digital currencies,
Too private makes it ideal for illegal activities. / Can't be controlled as easy, taxed as easy.
All of the above is a partial list of factors devaluing the Dollar and trust in it from several ways and views. At the end of the day it has a huge amount of enemies, that are all looking for ways to get out of it. Some of what I'm seeing personally.
Prices are outpacing wages.
Education is required for a good job vs how things used to be, jobs are getting more technical for same wage value.
Real Estate has been rapidly climbing in price, even homes that haven't been remodeled. A $80,000 home in my area is now $180k in the last 6-7 years. Wages haven't moved.
Rents have been climbing with the real estate prices.
Taxes have increased on said real estate
Insurance cost are up
Repair costs are up
It is a death spiral for the working person, where it used to be "No more than 30% of your wage going to housing" It is now well over 50%....Just look at this recent post in Frugalhttps://www.reddit.com/Frugal/comments/ifqah1/is_it_normal_for_a_third_to_a_half_of_you?utm_source=share&utm_medium=web2x&context=3 This death spiral I foresee getting worse. And historically any "tax" / regulation cost will just be passed down to the consumer in form of increased prices until people / businesses move elsewhere as we've seen in several cities around the US. So what can we do? Buy Gold! Silver! Bitcoin! Stocks! I hear people roar, They aren't exactly wrong as history shows... but have you considered the 30-40% tax on the "gain"? Even when that asset buys the same value before tax? What if the government makes it illegal like the 1933 order: 6102 Where you couldn't own gold for nearly 50 years? You're frozen out, or even out on taxes (which will likely be more strict and controlled later in time). I'd say Invest in things that will
Help you be independent
Can help you save
That you will use anyways in normal living
Things that can be productive not only for you, but for others $
Bonus points if its easy to trade off / has demand
Extra bonus if it is durable (lasts many years)
Helps your health
Metals are the next step when a person has plenty of the above. You get to a point where you have hundreds of thousands, if not millions that you need to condense into something real. It is all about the savings or productivity gain of the investment. For instance I would wager that many preppers have gotten more use / value out of a $800 clothes washer than a $800 rifle. (have you ever had to do manual laundry???) Sure the rifle will hold value...but it often doesn't pay you back with time / what it saved and / or what it has produced during its life unless you are using it. Same can be said of security cameras, a generator, a tractor, trailer, garden, tools, ect. Look at history even, in countries that have experienced hyperinflation people that already had tangibles they regularly use were way ahead. It could even be honey, a tool, extra maintenance parts, can of food, that bottle of medicine, a computer to keep your intel on point, (cough # PrepperIntel plug) use of your equipment to do or make something for someone. Real Estate is good too, it rides inflation well and has many ways of being productive. Your metals could be sitting there like the rifle, and could be subject to hot debate and laws. Meanwhile that garden is paying back, chainsaw is helping saw up wood, or your tractor is helping a job, your tools just helped you fix something / saved you much loss, Your security stopped a loss not by a person, but an random animal stealing things. Or that $25,000 solar array is paying you back by the day in spades...while making you independent...running all your tools you're using to make things to sell, and even heating / cooling some of the house with the extra juice while places around you experience rolling blackouts. You were even smart and took the current 24% tax benefit the government has saving you $5000 on it for batteries. Don't get me started if you have an electric vehicle with solar... I'm rambling at this point...and all those stealthy / direct and passive background savings...even if the crap doesn't hit the fan. So anyways, With out of control central banks and big governments, digital currencies, How do you think it will play out? Are we heading to dystopia?
Should I liquidate all of my positions and invest in GLD options instead?
I currently hold a bunch of positions, too long to list but mostly in renewable energy & technology and communications. I have about 20 positions from options to stocks all my options are Calls of course. I'm getting a little nervous being exposed to such a volatile environment with very unpredictable events that can unfold quickly and unexpectedly. knowing that the pandemic will most likely last through at least mid next year and that the economy will continue to suffer from poorly coordinated pandemic measures and economic fallout. and that the Fed is not even thinking about thinking about raising rates, with infinite QE and a threat to increased inflation rate... Gold and precious metals in general have become a magnet safe haven for dumb old money (which lets face it, that's where all the real wealth and market movers are) I doubt they'd be willing to invest the majority of it into bitcoin, just old money... and so with this crisis continuing for at least another year or so, with the economy in a total mess and global tensions rising. supply chain disruptions etc. etc. I could keep going. I see no where for gold but up for a few years at least, and suddenly 3000 and 4000 seems realistic. I'm seriously considering liquidating everything and putting it all into ITM call options for the GLD etf, or better yet buy call options directly on /GC as I have access through thinkorswim. any thoughts and input on my thinking? I just want to feel a little safe, and at the same time enjoy good returns.
https://preview.redd.it/vs9skcucdep51.jpg?width=960&format=pjpg&auto=webp&s=ef2a99d9a6e5aa67bd68294cc0fff429bd9dde08 Institutional investors typically have strict requirements in terms of risk management and compliance with applicable securities laws and regulations. They usually allocate only a small part of their investment portfolio to new asset classes such as Bitcoin, primarily with the purpose of investment portfolio diversification. Currently, institutions can either buy Bitcoin directly or get indirect exposure through available Bitcoin investment products. Institutional investors typically have direct exposure to Bitcoin using cryptocurrency exchanges and OTC trading desks.
Institutional Exposure to Bitcoin
https://preview.redd.it/n790vo6fdep51.jpg?width=960&format=pjpg&auto=webp&s=0f16172602bedf1446071516277f9dab9e48139a Many institutional investors still do not have exposure to Bitcoin because of the regulatory uncertainty, lack of reliable valuation models, and high market risks. At the same time, institutions are interested in allocating capital to Bitcoin because it’s not highly correlated with traditional asset classes and has generated outstanding historical return. Institutional investors typically do not have in-house expertise in the Bitcoin market and prefer to have indirect exposure to Bitcoin using currently available investment products, such as Grayscale Bitcoin Trust (GBTC) and crypto hedge funds.
Institutional Demand for Bitcoin
https://preview.redd.it/5s4ry32idep51.png?width=673&format=png&auto=webp&s=9c8885104377d9ed4f79a12b0f67efe1f292e6a8 Genesis, one of the largest Bitcoin lender and OTC liquidity provider, has issued Q2 2020 report where crypto market trends are discussed. Based on this report, the institutional demand and participation in the crypto space is growing substantially. Here is Genesis’s statistics for Quarter 2 2020: $2.2B in crypto loans has been originated. For comparison, this is a 324% increase in loan originations from the same quarter last year. Genesis had $1.42B total active crypto loans as of June 2020. $5.25B of spot volume has been traded through their OTC desk. $400M derivatives volume traded since June 1, 2020.
Conservative Investors Allocate Capital to Bitcoin
Wanted to share some of the more successful tickers that I'm currently invested in. Been seeing a good amount of posts where people are looking to diversify so I hope this helps any one who may be looking for new stock ideas. My portfolio sways more towards tech and renewable energy 🤙🏼 Tech: AMD - great performer in the microchip space. People keep bashing them because they're now about half the market cap of intel. I honestly see them continuing to take market share from intel because of their new products and chip capabilities ATVI - gaming has been a great play in general. The pandemic has increased revenue across the board and new COD releases in Nov. New gen consoles also coming out will give them GBTC - trust that mimics the value of bitcoin. Once Bitcoin or crypto gets an ETF I'm planning on buying that with most of this money RKT - started investing around the ipo ($18) with stock. Made a bunch on options and sold those Monday when it was in the $29s. Now holding only shares through earnings, which are averaged up to ab $21/share. This is most definitely a long hold in my portfolio Energy: BE - a little volatile at times but good upside. They're also landing some big contracts that have to do with hydrogen energy conversion on tanker ships which to me is just cool as hell lol ENPH - been a big riser and a good portion of my portfolio (since it was at $4 in early 2018). Still has room to grow, their microinverters are unmatched in the industry, and lots of solid partnerships PBW - clean energy ETF with solid growth TAN - solar ETF with solid growth TSLA - not worth investing pre-split at this point, but it's worth monitoring for any post split volatility. Sounds funny but the $420/share meme will definitely be a factor Other: LOW - picked up Lowe's when I started getting into RKT. Solid performer and since home ownership is increasing it seems like a good play for the rest of 2020 Like I said above I hope this helps! Definitely open to watchlist suggestions in the comments if y'all got any!! RKT to tha mooon!
Stock Crash later This Week (Calling the Top) - Strategy to Accumulate More BTC if You Have Little
There are ton of economic metrics being released next couple of days (Aug 13/14) that includes retail sales, productivity, jobless claims, and so forth. I don't see things going back to normal and a lot of people are still out of work now this time with less money in their pockets. Many do not have savings. I was not smart enough early on to research buying bitcoin until 2017 when I got reked buying in too late at 14k and held until around 8k on the way down. lost 8g and sold out into stocks. Made up my losses over time and then some. Recently got back in bitcoin at 9k last month. Still holding 60% of my money in stocks, as well as precious metals and a small bit of cash. Stocks look Frothy with bubbles in every direction from youtube influencers pumping equities, zombie companies, and bankruptcy. Also, the 30 yr treasury yield will be below 1.20% and possible dollar rise off what looks like a double bottom low. QE will increase the dollar value temporarily surging it, stocks BTC, and gold will drop. again, potentially worse than March. PLAN TO ACQUIRE MORE BITCOIN: Avoid losing money in the market crash by selling most of my equities today and purchasing an intermediate term investment grade bond etf, and intermediate US Treasury bond etf which would most likely prevent any significant loss in a crash while providing roughly a 5% 1 year return in the case this scenario failed to occur. keeping an eye on BTC with the intent on investing LONG if the price of BTC were to crash the same way back in March. I am trying to load up, who the F*ck is with me? https://www.youtube.com/watch?v=vj-Ib6_yWgA
https://federationofglobalmerchants.com/2020/08/14/gold-and-silver-where-do-they-go-from-here/ Investors know by now that one of the leading indicators of an unstable and unpredictable stock market is a surge in the price of precious metals like gold and silver. In February, amidst the COVID-19 pandemic, the markets officially entered a recession, even though just months later several of the major indices have reached all-time highs. It was a brief dip into recessionary territory, but this sort of volatility is what gives investors hesitation in putting their money into the stock market, rather than something that is perceived to be more stable. Gold future contracts are selling well above $2000 per ounce for the rest of 2020 and well into 2021 as well showing that investors are confident that gold will continue to rise in price. Silver is also surging reaching new all-time highs on a daily basis. So investors may be curious as to how to get into this red-hot market, especially as the markets continue to fluctuate. Gold: For centuries now gold has been literally the ‘gold-standard’ of currency and wealth. Dating back all the way to around 40,000 B.C. in Spanish caves, gold is a naturally occurring element that has both fascinated and lured people for as long as barter systems and wealth has been recorded. Currently, gold is enjoying its highest valuations in history as investors flock to the stability of the precious metal through various streams. So what is the allure of gold and why is it so stable? Warren Buffett once said, “Gold is a way of going long on fear.” That is quite a statement from perhaps the greatest investment mind of our generation. But what does this mean for the novice investor? Even the most successful blue-chip stocks can crash. Obviously the more prominent and profitable companies with mega market caps will not crash as easily as smaller companies, but given the volatility of the pandemic, we can see anything happen. But as stock markets fluctuate on a daily basis, the price of gold remains mostly stoic. Not as manipulatable as stock prices, gold is as steady as it gets for investors. What makes gold so stable? It is a combination of factors, first and foremost, it is a physical and tangible element which makes it possible for people to store and stockpile. It does not corrode or wear down over time, making it durable and ensuring that the value remains. There is also a finite supply of it in the world. This reinforces that it will always keep a certain level of valuation as the supply is kept in check. Today, as the Federal Reserve tries desperately to pump money into the American economy to stave off a global recession and keep companies afloat. Printing more American dollars helps in the interim, but it is a temporary band-aid for the bigger problem. As more of the dollar gets created the more it gets devalued as a form of currency. This is another reason why gold is skyrocketing. The two valuations always work inversely to each other, so as the greenback continues to plummet, the price of gold will continue to surge which makes perfect sense if one thinks about it. The value of gold is priced in American dollars per ounce, so if the value of an American dollar retreats, the cost of gold will rise in response. So how can investors take advantage of the current state of gold? In the age of internet investing, there are plenty of ways to invest in gold or anything in that matter. Most American platforms give inventors the ability to buy fractional shares of companies. While this comes in handy for expensive stocks like Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), or Tesla (NASDAQ:TSLA), it also allows investors to diversify their funds across multiple companies to form a basket approach to an industry. There are also plenty of ETFs or Exchange Traded Funds, available for investors to consider. These funds have the diversification of a mutual fund or index fund, but trade like individual stocks. Here’s a few of the better gold ETFs to consider if you are looking to get into the industry:
IAU – iShares Gold Trust: One of the better known gold ETFs out there, iSHARES is a reputable brand with great overall market performance. The fund has returned over 17% to inventors already this year, and with the price of gold projected to continue to rise, this fund should keep delivering for investors into next year.
DGL – Invesco DB Gold Fund: Another well known and reputable ETF, the Invesco Gold Fund has slightly higher fees than iSHARES but has also had a slightly better return so far this year.
IAUF – iShares Gold Strategy ETF: Another iSHARES ETF, this one has parts of IAU, as well as gold futures contracts, to get a long term forecast of the price of gold so the investor gets exposure to a wider range of gold options.
There are dozens of other ETFs available for investors that cover everything from miners to the finished products. Mining company stocks are another great way to get exposure. As the demand for gold increases, these mining companies should see a rise in their revenues and eventually, their profits as well. These changes will be reflected in their stock prices and we have already seen some of this already this year.
ABX – Barrick Gold: One of the largest gold mining companies in the world, this Canadian company has seen healthy gains in their stock price so far in 2020. Over the last 52 weeks, Barrick investors have enjoyed a 131% increase in stock price. With mining projects ongoing in Canada, America, Australia, South America, and Africa, Barrick has already announced that it is on track to achieve guidance this year despite closures from COVID-19.
FNV – Franco-Nevada Gold: This stock price rose almost 15% in July alone. Franco-Nevada operates as a funding company to gold mining companies, rather than actually doing the mining themselves. Sustainalytics, a guidance and analysis company, rated Franco-Nevada number one amongst 104 precious metal companies.
NEM – Newmont Goldcorp: The largest gold stock by market-cap and the only stock to trade on the S&P 500, Newmont is probably the safest company for gold investors to invest in. On top of steady returns and low volatility in the stock price, the company pays a fairly healthy dividend as well.
With gold at all-time highs, we can begin to question how high the precious metal may go. With a second wave of the coronavirus making its way around some parts of the world, and America, still making its way through their initial wave, the uncertainty that exists in today’s markets may continue into 2021. Some Wall Street analysts have forecast gold to rise as high as $10,000 per ounce, but that seems like a little ambitious. Gold has just recently hit all-time highs at $2000 per ounce and to imagine that it can run up another 500% in the next few years seems far-fetched at this point in time. That would require the markets to enter an extended bear-market, which of course is possible after a decade of a bullish run, but it would also require the American dollar to continue to be further devalued. Gold is pegged to continue to rise for the rest of this year though and well into 2021. That means investors and analysts are foreseeing a further devaluation of the American greenback as well as continued volatility in the markets and economy. Is gold a safe haven? Some people believe it is, but if you are an investor that enjoys high returns over long periods of time, investing in precious metals may not be for you. Investors love the stability of gold but the returns are never astronomical, with the last few months being an exception. It helps to have a portion of your portfolio dedicated to precious metals to diversify and protect you from any sudden market corrections, but investors should not be looking at gold as a short-term way to get wealthy. Silver: The other precious metal that has been flying sky-high of recent months is silver, the eternal younger brother to gold. Mined from silver-ore, it is a highly malleable metal that was once valued higher than gold by the Ancient Egyptians. Today, it is relatively low in price per ounce compared to gold, reaching all-time highs recently of just under $30 per ounce. Silver is another stable alternative to gold, and at lower prices, it may be a little more affordable for the novice investor to jump into. Like with gold, silver has an inverse relationship to the American dollar, and to all currencies in general. Again, this is another reason why silver is hitting all-time highs right now, with silver future contracts predicting a steady rise to mirror gold, well into 2021. There is also something that Wall Street calls the gold silver ratio, which is exactly what it sounds like: the ratio of the price of gold per ounce to the price of silver per ounce. This ratio has historically moved together, which makes logical sense if both precious metals are independently moving inverse to paper currencies. Historically, the gold and silver prices do move together though as the general ratio has been in the range of 17:1 to 20:1. Silver also has numerous ways for investors to get involved in, including silver mining and production companies, as well as the ever popular silver ETFs. These Exchange Traded Funds have gained popularity amongst retail investors in recent years as a way of purchasing a diversified product as a single equity with low costs, and no trading fees if your platform allows it. Here are a few of the better performing silver ETFs that investors can look into adding to their portfolios if they are interested in the precious metal:
SLV – iShares Silver Trust: Probably one of the better known silver ETFs, this is fully backed by silver bullion and coins held in a vault. While usually fairly steady, this ETF has enjoyed a 52-week increase of 152% with much of that coming in the last few months.
SIVR – Aberdeen Standard Physical Silver Shares ETF: Very similar to SLV but with lower fees, this is an ideal fund for novice and experienced investors to get into as they start to diversify their portfolios.
DBS – Invesco DB Silver Fund: Again another stable ETF for investors to get into, and another good performing one as well. Just as with their gold ETF, Invsco focuses on silver futures contracts for this fund, so it is a nice long-term play if investors are bullish on silver.
Just as with gold, investors can get a slice of the silver pie by buying shares of silver mining companies as well. Here are a few of the top silver mining company stocks that investors can look into adding to their portfolios.
PAAS – Pan American Silver Corp.: This Canada based miner is focussed on the exploration, development, extraction, refining, processing, and reclamation of silver. They operate mines in Peru, Mexico, Bolivia, and are developing more as well for the future.
WPM – Wheaton Precious Metals: Another Canadian based company that deals with miners of gold, silver, palladium, and cobalt. Wheaton is not a direct miner, rather they purchase these precious metals from other mining companies.
AG – First Majestic Silver Corp.: Canadian companies seem to be dominating the silver industry, and First Majestic is another of those. This company focuses mainly in Mexico for gold and silver.
Silver may never be as popular as gold for investors to keep track of but the two precious metals move in a synchronized fashion, and both are looked upon by investors as safe havens for their money when the market is in flux. The rest of 2020 seems like a wildcard right now, with many analysts expecting a further correction to the markets at any point. There seems to be an inevitability to a market crash of some sort, whether it is as big as the one that happened back in February and March, remains to be seen. Investors are looking at the precious metal industry to hold their funds to wait out any sort of correction or crash. If this does happen, we may expect a pullback in precious metals too as investors selloff to get back into some stocks at their low levels. Such is the ebb and flow of the economy during turbulent times like the current one we are in. At the same time, what if a market correction does not happen? Will the uncertainty continue or will investors feel relatively secure in the way the markets are progressing? This could cause a reduction in the demand for silver and gold, culminating in lower prices in the future. Of course this also depends on the Federal Reserve diminishing their rate of printing paper currency to bailout the economy, which does not seem like a reality in the short-term at least. Another point of contention for investors is the ongoing economical and political tensions between China and America. The two world powers have been feuding for the past couple of months over various things, but it escalated as China social media app Tik Tok gained popularity in North America. It was alleged that TikTok was sending data and information from mobile phones back to China, though nobody is sure of their intended use of this data. Regardless, the markets have stumbled several times lately because of this. Both sides have threatened economic sanctions and the banning of certain product use in each country. The prices of silver and gold have shot up as the tensions have escalated between the two governments, as investors flock to the precious metals. Many of the biggest companies on the major stock indices rely on China for materials or production, so any sort of breakdown in supply chains could cause an enormous change to their stock prices. An example of this is a sudden 5% correction in the price of Apple (NASDAQ:AAPL), as it was thought that iPhone sales would decline if China’s chat platform WeChat was banned in America. There are other factors that may have an effect on gold and silver prices as well. In this modern economy, many of the retail investors have trended towards younger adults with a sudden influx of income. Popular platforms such as Robinhood combined with increased time at home during the quarantine, have caused retail investor usage to skyrocket during the pandemic. Many of these investors are more lured in by the shiny new objects of cryptocurrencies like Bitcoin. Perhaps we will start thinking of these cryptocurrencies as a modern day version of precious metals one day, as many investors and some analysts, believe that Bitcoin may be a safe haven in the future. Already, the price of Bitcoin has risen above $12,000 in August, mirroring the highs of gold and silver. If the demand for Bitcoin rises higher than the demand for precious metals, we may see an investor migration to cryptocurrencies rather than tangible metals. Conclusion: Gold and silver are staples of our global economy, and will continue to be so as long as the demand for precious metals exists. In times of uncertainty, gold and silver are viewed as safe relative to the volatility of the stock market. Sure, their prices can vary as well, but because they are tied to a less dynamic valuation that is based on an inverse relation to paper currency, their prices will not and can not fluctuate as much as the liquidity of individual stocks. As long as the world remains in flux, there will be a general feeling of instability, especially for global markets. A second wave of COVID-19 in the third or fourth quarter of 2020 could prove to be enough to push the markets over the edge and into another recession. The bull market has been rallying for over a decade now, with astronomical gains over the last few years, especially for sectors like the big tech FAANG stocks. Another factor to consider is what a Biden government could bring to the world if he is elected over President Donald Trump in October. A new government could ease some of the tensions with China, as well as within America itself. These are all big what ifs, and could all have potential impacts on the economy and the world. As long as all of these factors are up in the air, investors will be looking to gold and silver as ways of stabilizing their portfolios and protecting their finances from a potential market crash in the future.
To be clear, “shorting” is profiting when the underlying asset decreases in value. If you think Walmart stock price is going to fall (or gold or the US Dollar or anything else), you can buy Put options or other assets that INCREASE in value when the underlying asset DECREASES in value. A while ago, there was talk of a Bitcoin ETF. Basically, it would be like a “stock” whose price is correlated with BTC price. But unlike owning real coins, you could buy Put options against the stock, effectively “shorting” it. Is there any practical way right now to short Bitcoin? Spoiler alert: I think the bumpy road we’ve been on since May is going to get much worse before it turns around.
AMA AT DETECTIVE ID (25/06/2020) Before welcoming any questions, I would like to briefly introduce STATERA PROJECT. Statera is a smart contract deflationary token pegged to a cryptocurrency index fund. By including STA in an index fund with Link, BTC, ETH, and SNX you can buy one token and access the price action of four of the leading cryptocurrencies. You can also invest directly in the index fund (balancer pool) and receive the benefits of fees and BAL tokens paid to you while also having an automatically balanced fund. Lastly the deflationary mechanics of STA increases the chance for positive price action while decreasing beta (volatility). This is all found in a smart contract that is fully decentralized, the founders can no longer augment the contract in any way and this has been confirmed by a third party code audit through Hacken. Q1 : please explain in more detail about Statera, what is the background of this project? and when was it established? The dev of this project had previously created another deflationary token BURN. When the Balancer Labs released the Balancer Protocol, he had an idea to combine the two, deflationary token and a pool of tokens, making the first deflationary index fund. It started in the end of May and on the 3rd iteration, May 29th - a trustless version was launched that we see today. As briefly explained earlier, STATERA or STA is an Index Deflationary Token built on Ethereum blockchain; Index: Contains a token suite of world class leading crypto assests BTC, ETH, LINK, SNX with STA. Deflationary: On every transaction of STA 1% of the transacted amount is sent to 0x address on ethereum, burned forever, thus reducing the circulating supply of STA Index+Deflationary: STA is mixed with BTC, ETH, LINK SNX in a portfolio, backed by liquidity on a protocol known as balancer (balancer.finance) This platform serves as a market maker for the token suit. The Index suite is of equal rate of 20%, that is 20% of BTC, ETH, SNX LINK and STA, Thus, anytime there is an increase in value of any of those coins or tokens, balancer automatically trade them for STA in order to keep the token suit ratio balanced. And anytime there is an increase in the value of STA, the same process applies. while doing this trade, it enables further burning on every transaction, thus facilitating more token scarcity. In addition to this, Statera was deployed with contract finalised, that is, the index suite can not be altered, It is completely out of Dev's control. Q2 : What are the achievements that have been obtained by Statera in 2020? And what goals do you want to achieve in 2020? By this we assume the questionnaire is asking for a roadmap! First, the project is barely a month old, and within just a month, our liquidity has grown from $50,000 to over $400,000 currently above $300,000. Among the things we have accomplished so far is the creation of market value for STA's Balancer liquidity pool token BPT, which is currently over $1000 per one BPT. Regarding what we set to achieve: The future is filled with many opportunities and potentials, currently, we are working on a massive campaign to introduce our product to the outside world. We have already made contact with different and reputable forums and channels regarding marketing and advertisement offers, some which we are currently negotiating, some which we are awaiting response. All we can say for now is that the Team is working hard to make this the Investment opportunity every crypto enthusiast has been waiting for. Statera has the goal of putting cryptocurrency into every portfolio. We believe we have a product that increases the returns of investing in cryptocurrencies and makes it easier to diversify in this space. We have done so much in June: articles, how to videos, completed the audit, tech upgrades like one token liquidity additions, and beginning our many social communities. We have been hard at work behind the scenes but things like sponsorships, features, and media take time, content makers need days if not weeks to develop content, especially the best of the best. We are working tirelessly, we will not disappoint. We have plans for 2020-2025 and will release those in the next month. They are big and bold, you’re going to be impressed by the scale of our vision, when we say “Cryptocurrency in every portfolio” we mean it. In 2020 more specifically we are focused on more media, videos, product offerings, and exchanges. Q3 : What is the purpose of STA token? How can we get STA? The purpose of STA is an investment in the first deflationary index fund. The whole index's value rises from these aspects: 1. The index funds (WBTC,WETH,SNX,LINK) appreciate in value 2. When the index tokens are traded, the pool receives transaction fees - 1% 3. STA burns on transactions, so it's deflationary nature increases its value as the total supply drops 4. Balancer rewards Index holders with BAL token airdrops every week You can invest via the 'Trade' links in stateraproject.com website. Easiest way is to do it using ETH. The monetary policy of our token is set in stone and constantly deflationary. This negative supply pressure is a powerful mechanism in economics and price discovery. Through the lowering of supply we can decrease your beta (volatility) and increase your alpha (gains). Our token is currently only top 40 in liquidity on Balancer, however our volume is top 10! You want to know why? Because Statera works. Statera increases arbitrage, volume, fees, BAL rewards, and liquidity. Our liquidity miners in our Balancer pool are already making some of the highest BAL rewards on the platform, one user we spoke with made 18% in June, that’s over 150% APY! Our product is working, 100% (or you could say 150%), and when people start to see that, and realize the value, the sky's the limit. Q4 : can we as a user do STA mining? The supply of STA doesn't increase anymore, it only decreases due to the burn feature. So there is no way to mine anymore STA. Only way to acquire the tokens is via an exchange. The monetary policy of our token is set in stone and constantly deflationary. This negative supply pressure is a powerful mechanism in economics and price discovery. Through the lowering of supply we can decrease your beta (volatility) and increase your alpha (gains). Our token is currently only top 40 in liquidity on Balancer, however our volume is top 10! You want to know why? Because Statera works. Statera increases arbitrage, volume, fees, BAL rewards, and liquidity. Our liquidity miners in our Balancer pool are already making some of the highest BAL rewards on the platform, one user we spoke with made 18% in June, that’s over 150% APY! Our product is working, 100% (or you could say 150%), and when people start to see that, and realize the value, the sky's the limit. Q5 : The ecosystem of a public chain has a lot to do with the level of engagement and participation of third-party developers. How does Statera support the developers? Not really. Our project is focusing on investment opportunities for the cryptocurrencies. The cryptocurrency tokens that are not used and are just sitting in a wallet can work for you by being added to an index fund and appreciate in value over time. First off, what we have created is a new asset class, I’ll repeat that, a new asset class. This asset has never existed: “Deflationary Index Fund,” what does that mean for finance? What will developers do with this? It’s hard to give a finite answer. We hope there are future economic papers on our token and what it means to be a deflationary index fund. With the addition of synthetic assets and oracles you can put any asset into the DeFi space: Gold, Nikkei 225, USD, etc. STA can be combined with any assets and bring the benefits of it’s ecosystem and deflationary mechanism to that asset. STA, the token itself, also gives you access to the price action of any asset it is paired with. Put simply STA’s balancer pool(s) give you a benefit in holding them, and STA’s price will reflect it’s inclusion in Balancer Pool(s) (and possibly future financial instruments), so STA is a bet on DeFi as a whole. When we say as whole, we mean as whole: what happens if you include STA in a crypto loan, or package it with a synthetic S&P 500 token, or use it as fee payment in a DeFi platform? Being fully decentralized it is up to our community to make this happen, social engagement and community are key. We are constantly bringing community members onto our team and rewarding those that benefit the ecosystem. in addition, Statera is a fully community project now. Paul who is the current team leader was an ordinary member of the community weeks ago, due to his interest and support for the project, he started dedicating his time to the project. Quite a number of community members are also in the same position, while Statera was developed by an individual, it is being built by the entire Statera community Community Questions (Twitter): Q1 From: @KazimKara35 The project tells us that the acquisition and sale of data between participants is protected by code of conduct and how safe is deployed on the blockchain, but how do you handle regulations while operating on a global scale? Statera is decentralized token, similar to other utility crypto tokens and same regulations apply to it as others. his is actually a benefit of our decentralized nature. This isn’t legal advice, however in the past regulating bodies have ruled that the more decentralized a project is, especially from launch, the less likely they are to be deemed a security (see: Ethereum). This means they can be traded more freely and be available on more platforms. We are as decentralized as you can be. The data itself is all secured through the blockchain which has been shown to be a highly secure medium. We do not store any of your data and as long as you follow best practices in blockchain security there are no added security risks of using Statera. We don’t, and literally can’t, hold anymore personal information than is made available in any blockchain transaction. and that "personal information" is more likely than not just your ethereum wallet address, no "real world" data is included in transactions Q2 from: @Michael_NGT353 What is Mechanism you use On your Project sir? Are you Use PoS,PoW or other Mechanism Can you explain why you use it and what is Make it Different? Our token is an ERC-20 token and it's running on the Ethereum blockchain. The Ethereum's POW mechanism is currently supporting the Statera token We run on Ethereum, so we are currently PoW. With ETH 2.0 we will hopefully be PoS this year (hopefully). We use it because ETH has over 100 million addresses and around a million daily transactions. We are currently at about 1,900 token holders, we are just touching the edge of what is possible in this market. We chose the biggest and the best network available right now to launch our product. We think the upside is huge because of this choice. Being the biggest network it is also one of the most secure, no high risk vulnerabilities have been found in Ethereum or in our code (we've had our code audited by a third party, Hacken, and you can read their audit on our Medium page), so we also have security on our side Q3 From : @Ryaaan_Nguyen Can you list some of Statera outstanding features for everyone here to know about? What are the products that Statera is focusing on developing? As mentioned earlier by GC, First off, what we have created is a new asset class, I’ll repeat that, a new asset class. This asset has never existed: “Deflationary Index Fund,” what does that mean for finance? What will developers do with this? It’s hard to give a finite answer. We hope there are future economic papers on our token and what it means to be a deflationary index fund. With the addition of synthetic assets and oracles you can put any asset into the DeFi space: Gold, Nikkei 225, USD, etc. STA can be combined with any assets and bring the benefits of it’s ecosystem and deflationary mechanism to that asset. STA, the token itself, also gives you access to the price action of any asset it is paired with. Put simply STA’s balancer pool(s) give you a benefit in holding them, and STA’s price will reflect it’s inclusion in Balancer Pool(s) (and possibly future financial instruments), so STA is a bet on DeFi as a whole. When we say as whole, we mean as whole: what happens if you include STA in a crypto loan, or package it with a synthetic S&P 500 token, or use it as fee payment in a DeFi platform? We touched on this a bit in the question on what makes us special compared to other exchanges. We have created a product that synergizes with Balancer Pools creating a symbiotic relationship that improves the outcomes for users (our product can also synergize with future DeFi products). By including STA in an index fund with Link, BTC, ETH, and SNX you can buy one token and access the price action of four of the leading cryptocurrencies. You can also invest directly in the index fund (balancer pool) and receive the benefits of fees and BAL tokens paid to you while also having an automatically balanced portfolio (like an index fund with dividends). Lastly, the deflationary mechanics of STA increases the chance for positive price action while decreasing beta. We want to package Statera with assets across the whole cryptocurrency space, with an emphasis on DeFi. We also want everyday people to be able to invest quickly in crypto while also feeling reassured their investment is set up to succeed. We are focused on developing a name brand that people go to first and foremost when investing in crypto: cryptocurrency in every portfolio. This is all found in a smart contract that is fully decentralized, the founders can no longer augment the contract in any way and this has been confirmed by the third party code audit. This is a feature in and of itself, some argue that Bitcoin’s true value is in it’s network effect, first mover advantage, and immutability. Statera is modeled on all three of those and has those features in spades. The community now owns our token, the power in that, giving finance and power to the people, is why we are here. Q4 From : @futcek What do you think about the possibility of creating new use cases in DeFi space for existing real world assets by using crypto technology? What role do you see in this creation for Statera? I think my answer above actually answers this perfectly, Statera in and of itself is a “new use case”, a “deflationary index fund” has never existed, I’ll copy and paste the other relevant part: “With the addition of synthetic assets and oracles you can put any asset into the DeFi space: Gold, Nikkei 225, USD, etc. STA can be combined with any assets and bring the benefits of it’s ecosystem and deflationary mechanism to that asset. STA, the token itself, also gives you access to the price action of any asset it is paired with. Put simply STA’s balancer pool(s) give you a benefit in holding them, and STA’s price will reflect it’s inclusion in Balancer Pool(s) (and possibly future financial instruments), so STA is a bet on DeFi as a whole. When we say as whole, we mean as whole: what happens if you include STA in a crypto loan, or package it with a synthetic S&P 500 token, or use it as fee payment in a DeFi platform? Being fully decentralized it is up to our community to make this happen, social engagement and community are key. We are constantly bringing community members onto our team and rewarding those that benefit the ecosystem.” Statera is a way to make your investment more successful, and owning Statera let's you benefit from other people using it to make their investments more successful (a self feeding cycle). Q5 From : @Carmenzamorag Statera's deflationary system is based in that with every transaction 1% of the amount is destroyed, would this lead to lack of supply and liquidity in the long term future? How would that be fixed? The curve of supply is asymptote, meaning that it will never reach zero. The idea is that the deflationary process will slowly decrease the supply of STA, which – combined with a fixed or increaseing demand – will result in STA appreciating in value. Evidently, as the STA token increases in value, the amounts of STA being traded will slowly decrease: The typical investor might buy 10.000 STA at the current rate, but in the future (proportional to an increase in the valueation of STA) this number will tend to decrease, hence the future investor might only buy 1000 STA. This of course results in less STA being burned. Additionally, STA is divisible to the 18th decimal, why – even if the supply was to reach 1 STA – there would be a sufficient supply. Well this would be a question for a Mathematician, and luckily we’re loaded with them (as seen above)! I’ll try to illustrate with an example. 1% of 100 million is 1 million, 1% of 10 million is 100,000. As we go down in supply the burn is less by volume. What also happens at lower supply is higher prices (supply and demand economics). So those 1 million tokens burned may be worth $20,000, but by the time overall supply is at 10 million those 100,000 tokens may also be worth $20,000 or even more. This means you transact “less”, if you want to buy 1 Ether now with Statera you need 8,900 STA which would burn 89 tokens. If Statera is worth $100 you only need 2.32 statera (.023 tokens burned). Along with this proportional and relative burn decrease, tokens are 18 decimals long, so even when we get to 1 token left (which mathematically would take decades if not centuries, but that is wholly dependent on usage), you are still left with 10 to the 18th power, or one quintillion “tokens”. So it’s going to take us a while to have supply issues :) Nuked Phase (3rd Part) Q) What is your VISION and Mission? Our working mission and vision: Mission: Provide every investor with simple and effective ways to invest in cryptocurrency. Decrease volatility and increase positive price pressure in cryptocurrency investments. Lower the barrier to entry for more advanced investment tools. Be a community focused and community driven cryptocurrency, fully decentralized by every meaning of the word. Vision: We aspire to put “cryptocurrency in every portfolio”. We envision a world where finance is given back to the people and wealth building strategies withheld only for affluent individuals are given to all. We also strive to create an investment environment based on sound monetary policy and all the power that comes with a sound asset. Q) What are the benefits of STA for its investors in long term? Does STA have Afrika as an important area for its expansion? We have ties to Africa and see Statera as a way for anyone and everyone to invest in cryptocurrency. The small marketcap of statera makes it's price low and it's upside massive. Right now if you wanted to be exposed to the price action of four cryptocurrencies (BTC, ETH, Link, SNX) Statera is a way to gain that exposure in a way that has a huge upside, compared to the other four assets, there are risks in investing in any small cap but with those risk come outsized rewards (not investment advice and all answers are solely my opinions 😊) Q) In the long run, why should we trust and follow STATERA? How do you raise awareness and elimination of the doubts of investors / partners / customers?. You're really asking "How do I trust myself and other crypto investors" The project is FULLY decentralized, it is now in the hands of the community. We would venture a guess that the community wants their investment to succeed and be worth more in the future, so you are betting on people. wanting to make themselves money on their own investment. This is a pretty sure bet. The community being active and engaged is key, and we have short term and long term plans to ensure this happens Q) No one can doubt the strength of #Statera. But can you tell us some of the challenges and difficulties you're presently facing? How can you possibly overcome them? We're swinging outside our weightclass, we don't see litecoin or SNX, or any other crypto product as our competition. Our competition is NASDAQ, Fidelity, etc. We want to provide world class financial instruments that only the wealthy have access to in the traditional world to everyone. Providing liquidity, risk parity, being paid to provide liquidity, unique value propositions, are all things we want to bring to everyone. However we are coming up in a hectic space, everyday their is fud and defamation on the web, but that is the sandbox we chose to play in and we aren't grabbing our ball and going home. We can tell you that we will not disappoint and fighting all the fud that comes along with being a small and upstart project only fuel our fire. Building legitimacy is our largest challenge and looking at our audit, financial report, and some things you will see in the coming weeks, we hope you see we are facing those challenges head on. Q) What is the actual uniqueness of #Statera.??? Can you guys please explain tha advantages of #Statera over other projects.?? When we launched there were no other products like ours. There are now copies, and we wish them the best, but we have the best product, hands down. Over the next couple weeks this will become apparent, if it hasn't already, also a lot of the AMA answers dug deeper into our unique value proposition, especially the benefits we provide to Balancer Pools which shows the benefits we would provide for any index fund. We are a tool to improve cryptocurrency investing Q) Fragmentation, layering and cross-chain are three future solutions for high-performance blockchains. Where is Statera currently? What are the main reasons for taking this direction? We operate on the Ethereum chain, as it upgrades our services and usability will upgrade. We are working on UI and more user friendly systems to onboard people into our ecosystem Q) How STATERA plan to make room and make this project known in the world of crypto, full of technology and full of new projects very good in today's market? We think we have a truly innovative product, which - when first understood - appeals to most investors. Whether you want a high-volatility/medium-risk token like STA or whether you are more conservative and simply just plan on adding to the Statera pool BPT (which is not nearly as volatile but still offers great returns). We plan on making Statera known to the crypto world through a marketing campaign which slowly will be unravelled in the comming days and weeks. If interested, you can check out an analysis of the different investment options in the Statera ecosystem in our first financial report: https://medium.com/@stateraproject/statera-financial-reports-b47defb58a18 Q) Hello, cryptocurrencies are very volatile and follow bitcoin ... and does this apply to Statera? or is there some other logic present in some way? is statera token different from a current token? Are you working on listings on other exchanges? Currently uniswap is somewhat uncomfortable for fees. We are also on bamboo relay, saturn network, and mesa. Statera will be volatile like all cryptocurrency, this is a small and nascent space. But with the deflationary mechanic and balancer pool, over time, as marketcap grows it will become less volatile and more positively reactive to price. Q) Security is one of the most essential characteristics for a project to get reputation. How can #Statera Team assure to their community that users assets and investments will stay safe from unwanted agents? We have been third party audited by the same company that worked with VeChain to audit their code. Our code has been shown to be bulletproof. Unless Ethereum comes up with a fatal security flaw there is nothing that can happen to our contract (there is no backdoor, no way for anyone to edit or adjust the smart contract). Q) Many investors see the project from the price of the coin. Can you give us advantages why Statera is so suitable for long-term investment? and what makes Statera different from other similar projects? Sometimes the simplest solutions are the most effective. A question you can ask is “What if this fails”? But you can also ask, “What if this succeeds”? Cryptocurrency is filled with asymmetric risks, we think if you look into the value proposition you will find that there is a huge asymmetric risk/reward in Statera, and we will make that even clearer in our soon to be released litepaper. You are on the ground floor of a simple but highly effective solution to onboarding people into defi, cryptocurrencies, and investing. Our product reduces volatility and increases gains (decreases beta and increases alpha in investor terms), which is highly attractive in any investment. The down side is there but the upside outweighs it exponentially (asymmetric risk) Q) What your plans in place for global expansion, are Statera focusing on only market at this time? Or focus on building and developing or getting customers and users, or partnerships? Can you explain this? We have reached out to influencers in other countries and things are in the works. We have also translated documents and are working on having them in at least 4 languages by the end of July. We were founded globally, our team is global, and we are focused on reaching all 7 billion people. Q) Now in the cryptofield everyday there are new projects joining in the Blockchain space. They are upgraded, Well-established and coming up with innovative technology. How Statera going to compete with them? What do you think, one day Statera will become useless And will be lost into the abyss of time for not bringing any new technology? We are the first of our kind, no one had a deflationary index fund before us. Index funds will be the future of crypto (look at the popularity of etfs and indexes in the traditional markets). We are a tool to make your index function better and pay you more. As long as people care about crypto index funds they will care about the value STA brings to that. We have an involved and long term plan to reach dominance over a 5 year span, this is not a flash in the pan, big things coming Q1. You say that the weight and proportions of your tokens are constant. So how have you managed to prevent market price speculation from generating hypervolability in your token price? Do you consider yourselves a kind of stablecoin? Q2. How many jurisdictions allow the use of Stratera products and services? Are they available for Latin America? @joloroeowo The balancer ensures an equal ratio of 20% amongst the five tokens included in our fund. This, however, does not imply that the tokens are stable. Rather, the Balancer protocol helps mitigating price fluctuations. Q) How can I as a Statera participant participate in liquidity mining, and receive BAL as reward? What are the use cases of $STA token, and how are users motivated to buy and hold long term? The easiest way is to go to stateratoken.com and click trade then BPT. You can also buy all five tokens and click on portfolio then add liquidity. Balancer is working on a simpler interface to add liquidity with one token, we are waiting on them. I think we explained the use cases above Q) What do you plan have for global expansion, is Statera currently focused solely on the market? Or is it focused on building and developing or acquiring customer and user or partnership relationships? Can you explain it? We are currently working on promoting the project and further develope our product, making it lucrative for more new investors to join our pool and invest in the STA token. Q1) Statera have 2 types of tokens, so can you tell me the differences between STA and STAC ? What are their uses cases? Is possible Swap between them? Q2) Currently the only possible Swap or "exchange" possible is Uniswap, so you do have plans to list the STA token into a more Exchanges? STAC is obsolete, we only have STA and BPT (go to our website and click on trade) stateratoken.com BPT gives you more diversification and less risk, STA gives you more volatility and more chance for big gains. Q2 we are on multiple exchanges (4), bamboo relay, saturn, and mesa we do have plans for future exchanges but the big ones have processes and hoops to jump through that can't be done so quickly Q) What business scenarios can STATERA support now? In which industries can we see the mass adoption of STATERA technology in the near future? Statera increases the effectiveness of your cryptocurrency investments. Specifically it makes cryptocurrency index funds function better, netting you higher returns, which we have already seen in just one month of implementation. Right now, today, you can buy our BPT token and increase the functionality of holding a crypto index fund. In the future we want every single web user to see and use our product Q) Do you plan to migrate to other platforms like Tron, BinanceChain, EOS, etc. if it is feasible?? Migrating our current contract is not. Starting new offerings on those other chains could be possible, they aren't on our radar currently but if the community requests them we are driven by our community Q) ETH Blockchain is a Blockchain have many token based in it, i have used ETH blockchain long time and i see it have big fee and need much time to make a transcation so Why you choose to based STA in ETH blockchain not other like Bep2 or Trc20 ? Simply: 100 million addresses, 1 million transactions a day. The more users we have the more we will benefit our community. We hope ETH 2.0 scaling will fix the problems you mention. Q) No one achieve anything of value on its own, please can you share about Statera present and future partnerships that will drive you to success in this highly congested crypto space? We have a unique product that no one else has (there are people who have copied us). We can't announce our current and future partnerships yet, but they will be released soon. Our future hopes of partnerships are big and will be key to our future, know we are focused on making big partnerships, some you may not even be thinking about. Q) According to the fact that your algorithm causes 1% of each transaction to be destroyed, I would like to know, then, how you plan to finance yourself as a project in the long term? The project is now in the hands of the community and we are a team of passionate people volunteering to help promote and develope the Statera ecosystem. But then, how do we afford running a promo campaign? We have lots of great community members donating funds that goes to promoting the project. In other words, the community helps financing the project. And so far, we have created a fantastic community consisting of passionate and well-educated people! Q) There are many cryptocurrency startups were established by talent teams, but they got problem in raising capital via token sales due to many factors as bear market, bankrupt etc. This leaded their potential startups fail. So how will Statera break these barriers and attract more funds from outside crypto space? We are community focused and community ran. When you look at centralized cryptocurrencies you can see the negative of them (Tron, ADA, etc.) We believe being fully decentralized is the true power position. You the owner of statera can affect our future and must affect our future. This direct ownership means people need to mobilize and organize to push us forward, and it is in their best self interest to do so. It's a bet on our community, we're excited about that bet Q) What business scenarios can STATERA support now? In which industries can we see the mass adoption of STATERA technology in the near future? Statera increases the effectiveness of your cryptocurrency investments. Specifically it makes cryptocurrency index funds function better, netting you higher returns, which we have already seen in just one month of implementation. Right now, today, you can buy our BPT token and increase the functionality of holding a crypto index fund. In the future we want every single web user to see and use our product Q) Why being a hybrid of a liquidity pool and an index fund? What are the main benefits about this? By being a liquidity pool the exchange side of the pool (balancer also functions as an exchange) gives you added liquidity for more effortless, effective, and cheaper rebalancing. You also benefit from getting paid the fee when people use the exchange AND getting paid BAL tokens that are worth $15-20 USD. These are not benefits you get with an index fund, meanwhile the liquidity pool rebalances just like an index fund would Q) Which specific about technology and strategy of #STA that make you believe it will be successful and what does #STA plan do to attract more users in the upcoming time? I think the idea behind Statera is truly ingenious. We have made an index fund, which investors are highly(!) incentivised to invest in, namely because the ROI, so far, has been huge. An increase in the pool liquidity (index fund) indirectly translates into an increase in the price of STA, why we think the STA token - combined with its deflationary nature - will increase in the long run. The mechanism behind this is somewhat complex, but to better get an understanding of it, I suggest you visit our medium page and read more about the project: https://medium.com/@stateraproject
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