Satoshi FI Blog

from cryptocloud

by Derek McCloud, M.Ed

Did you know that the US dollar has lost 96% of its purchasing power since 1913 when central banking took over? The US dollar is currently experiencing even higher inflation or purchasing debasement due to the reckless and unaccountable money printing by politicians and central bankers. The purchasing power of the dollars we work so hard to obtain with blood sweat and tears are worth less and less every day.

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The Federal Reserve has gone on the record to say that they are willing to print unlimited money. People are now searching for ways to hedge against inflation in order to protect their wealth from debasement and obtain financial freedom.

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Satoshi Nakomoto created Bitcoin in 2009 to fix this monetary problem. Bitcoin makes it possible for people to send money from one person to another without a third party such as a bank or government. There will only ever be 21 million bitcoin and never any more.

Bitcoin was not designed to make you rich. Bitcoin was designed to make you FREE from a corrupt monetary system. However, massive amounts of wealth are often a side effect of being financially free.

“Bitcoin is the first and only money to perfectly pass the Five Critical Properties to Money.” ~Robert Breedlove (Economic Guru)

Let’s consider these five principles.

1) Bitcoin is perfectly DIVISIBLE. You can divide Bitcoin as small as necessary to purchase a candy bar or something else that is cheap. While Dollars are easily divisible, Gold is NOT as easily divisible. If an item is cheap, such as a candy bar, it is unlikely a person would try to shave gold dust off of a gold bar to pay for an item.

2) Bitcoin is perfectly DURABLE. It is estimated that a dollar bill can last up to 6 years before it falls apart and a new one must be made. Bitcoin can last forever as it is based on math and digital code that cannot be destroyed. Gold coins can even break or lose value from wear and tear.

3) Bitcoin is perfectly RECOGNIZABLE. Using blockchain technology, Bitcoin cannot be counterfeited ever. It is very easy to determine if a Bitcoin is real or not. Dollar bills are sometimes counterfeited where it is hard to tell if they are real or fake. Gold can be gold plated or mixed with other metals.

4) Bitcoin is perfectly PORTABLE. With a click of a button, you can send billions and billions of dollars worth of Bitcoin around the world at the speed of lightning without the need of a bank, government, or third party. This is absolutely revolutionary! Consider this, in order to move gold or even massive amounts of dollars around the world, you need security guards, a vault to store the gold or dollars, vehicles to transport the gold or dollars, etc. This is all very expensive.

5) Bitcoin is perfectly SCARCE. Gold has perceived scarcity. Gold is scarce but not fixed. Two-thirds of the gold supply has been mined since 1950. As the price of Gold goes up, people find new ways to mine it. Bitcoin has actual scarcity. It is the hardest, soundest money we have ever known. No technological breakthrough can change the supply of Bitcoin. There will never be more than 21 million Bitcoin.

Ready to buy some Bitcoin! In my opinion, the best and easiest way to do that is through Voyager, a publicly traded crypto exchange that gives you 6.25% APY on your Bitcoin.

Voyager Promo Code: Download the app and buy $100 of BTC to get $25 free Bitcoin. Use code 1AE3C8 or this link to claim your BTC: (https://voyager.onelink.me/WNly/referral?af_sub5=1AE3C8)

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Bitcoin has the Strongest Network Effect and Is Here to Stay

Throughout history, the most tradeable thing in a place will become money.

1) In prisons, a highly bartered item is cigarettes. 2) In ancient Africa, glass beads were considered rare and valuable and traded as such. 3) People have used salt and cattle as money based on the technology of that day and age.

After considering the Five Critical Properties to Money, (Money must be Divisible, Durable, Recognizable, Portable, and Scarce) it is clear that Bitcoin is now our most tradeable money. BTC is more tradable than gold or US dollars.

Bitcoin is Gold 2.0

The market cap, all the value of Gold combined, is worth 10 Trillion Dollars. The market cap of Bitcoin is currently around 1 Trillion Dollars. When Bitcoin soon reaches the market cap of gold one Bitcoin would be worth $500,000 a coin or more!

The more you study Bitcoin, the more a person can confidently invest in it.

It is unlikely BTC will be replaced by another new cryptocurrency for the same reason Wikipedia, Google, or social networks like Facebook cannot be replaced. Once a network gets strong enough it takes deep roots into the fabric of humanity. Watch Andreas Antonopoulos’ lecture on why Bitcoin is the next Bitcoin for more information.

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The BEST strategy to financial freedom couldn't be more clear.

1) Dollar-cost average into Bitcoin. Buy a little bit of Bitcoin every day, week, or month. 2) Earn interest on your BTC (see link below) 3) HODL (Hold on For Dear Life) Think long-term with your investment.

Invest in Bitcoin!

Earn 6.25% APY on your Bitcoin with Voyager

Voyager Promo Code: Download the app and buy $100 of BTC to get $25 free Bitcoin. Use code 1AE3C8 or this link to claim your BTC: (https://voyager.onelink.me/WNly/referral?af_sub5=1AE3C8)

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About the Author

Derek McCloud, M.Ed has a master’s degree in education which helps him simplify complex ideas like crypto and explain them in ways that the masses can understand. He is passionate about Bitcoin and crypto because it can provide financial freedom to those who invest wisely. He hopes that people who make massive amounts of money from crypto will help him have fresh water wells dug around the world for those in need by the year 2025. To learn more about crypto and joy, check out his youtube channel.

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*Nothing in this document should be considered financial advice. Do your own research. Only invest what you can afford to lose.

*Using referral links in this blog will offer you incentives as it also helps this blog stay alive.

*Robert Breedlove inspired many of the thoughts in this essay.

 
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from cryptocloud

“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.” ~Albert Einstein

There are so many apps for buying cryptocurrency today, so how do you choose the right one?

Here are 20 reasons why I believe the new Voyager App is the best on the market. I have also included 4 cons about the app because I owe it to you to give you my honest feedback!

Here we go!

A) Voyager is by Far, the Most User-Friendly Crypto App

1) Voyager is easy to use! The app is sleek-looking and super intuitive. This ease of use will make buying and selling crypto so much easier and in turn, promote widespread adoption of cryptocurrencies as a daily use currency. It’s the only app thus far that I haven’t had to make tutorial videos for my friends to learn to use.

2) You can link your bank account through Plaid easily and securely. I wish other apps did this. It can often be quite challenging to get banks and crypto to connect to each other efficiently but with Plaid, it’s very fast and simple.

3) You can download the app, sign up, and start trading in under 3 minutes. (75% of people can get the app working this quickly. People who are not automatically accepted will be reviewed by a person. Do not make any typos when signing up so you don’t delay the process.)

4) You can purchase over 50+ crypto coins through the app. You don’t have to do anything fancy to buy the hard-to-get altcoins.

5) You can dollar cost average easily through the app. I like to buy $10 of Bitcoin every day (no matter what the market is doing. Click this link for an explanation). I’ve made huge profits over time using this investing strategy.

6) There are ZERO fees for buying or selling crypto. It is completely free to buy and sell crypto! (However, like most crypto apps, there is a small “spread fee”, see my notes under the “Con” section below).

B) Voyager is Led by an Elite Dream Team

7) The CEO is Steve Ehrlich, former CEO of Etrade and other super successful companies. If you ever hear Ehrlich speak, his message is quite compelling. Unlike the other Crypto CEO’s, he is very charismatic and charming. You will hear a lot from him in the future.

8) One of the co-founders was the former CTO of Uber, a technology that changed the world forever! Uber y’all...Let that sink in!

9) Voyager has grand plans to be the best at customer service. Currently, this is quite lacking in the crypto space. You can email them at support@investvoyager.com, and they will reach back in a timely manner. I’ve already done this three times to test them out.

C) Voyager’s Native Token, VGX will likely 10x or more

10) VGX is the native token of Voyager. Voyager has a new loyalty program it’s implementing. You can receive interest boosts and other great rewards simply by holding more VGX tokens.

11) Voyager is currently only offered in the US but it has plans to become a worldwide app. This means more users around the world will buy VGX.

12) Voyager has a Debit Card and Credit Card in the works. VGX will be a reward for using the cards. Think of it like the “cash back” you’ve heard of with credit cards. nameThis will likely increase the value of VGX substantially. #Winning

D) Voyagers Interest Program Is The Industries Best Hands Down

13) There is currently no single app that pays you more in interest on your Bitcoin than Voyager. (They pay you up to 7.25% if you have the VGX boost). Do you realize how awesome this is?

14) Interest accruement starts automatically once you have the minimum amount of crypto for each coin. You don’t have to lock or stake your crypto. #EasyPeasy

15) You can earn 9% interest on the Stablecoin USDC. I am saving my emergency fund for my newborn son in USDC tokens in the app. USDC is a token that is tied to the US Dollar. Most regular banks give you 0.25%. What a rip-off!

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E) Voyager Has Other Features That Are Just Wonderful!!!!

16) Voyager is one of the first crypto companies that was publicly traded on the stock market. For this reason, they have a lot of accountability from their investors to create an elite and successful app.

17) Your USD in the app is FDIC insured up to $250,000. Also, a large portion of Voyager’s crypto assets are stored in a state-of-the-art ledger that is also insured.

18) Voyager is the only app that I’ve used that easily tells you your profit and loss while investing. I absolutely love this feature and wish all crypto apps had this.

19) The app promotes crypto-financial literacy. It will send you daily updates of the crypto news. It will also give you a crypto market analysis that is very well written.

20) Voyager has plans, that if successfully executed, will likely make it the number 1 crypto app in the world! This will only further increase the value of their token VGX.

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Ready to sign up for Voyager?

Here’s A Great Voyager Promo For You Voyager Referral code, get $25 when you invest $100: 1AE3C8 https://voyager.onelink.me/WNly/referral?af_sub5=1AE3C8

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Here are the Cons of the Voyager App

1) The spread fee is an average of .5% according to the calculations I made. This means for every $10 of Bitcoin you buy, you are paying five cents to the app for the purchase. This is not a big deal in my opinion, especially if you consider how much money you will make in interest from the app. (Gemini reportedly gives you a cheaper spread fee, but their interest is nowhere near as high as Voyager’s.)

2) There is no coin to coin trading. For example, if you want to turn your Ethereum into Bitcoin. You must first sell your Ethereum and then buy Bitcoin. It is just one extra step.

3) Voyager is experiencing some growing pains. The app has grown so quickly that they sometimes need more time to scale. During high traffic times in the market, sometimes withdrawals and deposits can take longer than normal. In addition to this, their customer service might take longer than normal when they have a lot of inquiries. I have had friends get approved for the app in under 3 minutes. I have also seen friends wait a week or more to get approved. I expect these issues to be solved in the near future as Voyager hires more and more high-end talent for their app.

About the Author:

Derek McCloud has a master’s degree in education which helps him simplify complex ideas like crypto and explain them in ways that the masses can understand. He is passionate about Bitcoin and crypto because it can provide financial freedom to those who invest wisely. He hopes that people who make massive amounts of money from crypto will help him have fresh water wells dug around the world for those in need by the year 2025. To learn more about crypto and joy, check out his youtube channel.

Nothing in this document should be considered financial advice. Do your own research. Only invest what you can afford to lose.

Using referral links in this blog will offer you incentives as it also helps this blog stay alive.

Sign up for the Voyager App here:

Voyager Referral code, get $25 when you invest $100: 1AE3C8 https://voyager.onelink.me/WNly/referral?af_sub5=1AE3C8

 
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from cryptocloud

Do you want to know the number one reason people don’t invest in Bitcoin or any other crypto for that matter?

Most people do not fear that Bitcoin will be hacked. Bitcoin has proven to be very secure over the course of 12 years as it’s ledger system is both online and offline.

Most do not worry about the volatility of the price of Bitcoin. If you zoom out, it is clear to many investors that the future price of BTC will continue to raise higher and higher over time. A $100k BTC or even a 1 Million Dollar Bitcoin is a realistic price prediction when looking at stock to flow charts.

There really is no excuse to not buy Bitcoin anymore. It is beyond easy to do with great companies such as Voyager (My new favorite crypto app).

The real reason some people haven’t bought Bitcoin yet is because they fear the government will somehow ban or hurt Bitcoin as an investment.

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However, is this fear even reasonable in the United States?

Let’s consider some simple facts:

1) Many senators, congressmen, and other people in high positions of power are already pro Bitcoin.

2) Half of America will own crypto in less than a year. Coinbase is growing by over a million new users a week. It would be a political disaster for anyone who would try to ban crypto against so many voters.

3) It is realistic that many central banks will soon adopt Bitcoin. Just like central banks used to back their money by gold to provide value, it is reasonable to expect that central banks may soon back their fiat money by Bitcoin (the new gold).

If Bitcoin were to be squashed, the time to do that would have been in the very early stages. This ship has sailed away years ago. Bitcoin has become too powerful to stop.

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Andreas Antonopolous has explained Bitcoin with the easy acronym of R.I.P.C.O.R.D. Bitcoin is: Revolutionary, Public, Collaborative, Open, Resistant, and Decentralized.

A digital gold rush for Bitcoin is underway. Although some investors have feared gov’ts might try to ban Bitcoin, it is my belief that gov’ts will actually push the price higher of Bitcoin as they race to own more than other countries.

Bitcoin has become the internet 2.0. It is a technology that will benefit any country that adopts crypto. Also, consider all the money the gov’t will collect from taxes on crypto. BTW. I use Taxbit now to help me pay my crypto taxes.

If you want more info about how the US gov’t will most likely support Bitcoin and not ban it, consider watching this debate by Michael Saylor vs. Frank Giustra.

How to buy Bitcoin!

If you are ready to buy some Bitcoin, there is a Voyager Promo right now. Download the app and buy $100 of BTC to get $25 free Bitcoin. Use code 1AE3C8 or this link to claim your BTC. Voyager users are FDIC insured up to 250k USD. https://voyager.onelink.me/WNly/referral?af_sub5=1AE3C8

About the Author

Derek McCloud has a master’s degree in education which helps him simplify complex ideas like crypto and explain them in ways that the masses can understand. He is passionate about Bitcoin and crypto because it can provide financial freedom to those who invest wisely. He hopes that people who make massive amounts of money from crypto will help him have fresh water wells dug around the world for those in need by the year 2025. To learn more about crypto and joy, check out Derek's YouTube channel.

*Nothing in this document should be considered financial advice. Do your own research. Only invest what you can afford to lose.

 
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from JBM

My name is JBM. My story in cryptocurrency began around February of 2014. This was quite a busy time in my personal life. My fiancé (at the time) and I were preparing our upcoming wedding. My overall investment experience was minimal. Prior experience I had was using option trades on the SP500 in 2008 and Silver in 2011. I was first introduced to crypto by a friend of the family who had made a success of mining and investing. He retired from his finance job in 2013 to fully focus on the crypto market.

The landscape in crypto was vastly different then, than it is today. The entire market cap was around 8.5 Billion US Dollars (2014). Regulation of digital assets was slowly taking form, and with rules less clear than mud. Despite some marginal regulatory clarity, the “Wild West” feeling was present in the space. AML/KYC was something only a handful of exchanges cared about, typically fiat gateways (converting USD/EUR to Crypto for example). Once you obtained your crypto, you were free to move about from one exchange to another. The feeling of financial freedom took on new meaning to me.

Soon, I stumbled my way through setting up my first GPU mining rig. Not having spent quality time on Linux, I setup my first mining rig on Windows 8.1 (Quickly switched to Ubuntu). Dealing with exchange limitations in 2014 was one of my biggest challenges. Wait times for higher purchase limits created serious opportunity cost. My interests at that time were acquiring altcoins, and the only trading pair in town for most was against BTC.

This was my start.

Early attempt at mining Scrypt coins (Early attempt at mining Scrypt Coins – Colorized 2014)

 
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from Blog Posts by Snow

  • Why does the Crypto market have a 4 year cycle?
  • How could it be predictable?
  • Will it always be a 4 year cycle?

All markets operate in cycles, but the cause of these cycles could be greatly different. Day traders search for patters typically caused by other traders. Long and short positions in the traditional market aim to predict the business cycle, which has a lot to do with how different businesses and governments interact, changing incentive and profitability over time.

In commodities the cycles are predictable, but traders often change the predictability of the value of the commodities.

Why are commodity markets predictable?

If the wheat harvest is in September you can predict that the farmer sells it afterward. The processor then sells it after processing, and the wholesaler then sells it to the retail store. While our economy is a little more complex than this picture, it's the fundamental basis. If you know when the windfall happens in advance you can place investments to capitalize from it. As more investors recognize a very predictable pattern they invest earlier and sell earlier until the value proposition has market equilibrium or has been randomized by the investors.

Is Bitcoin a Commodity?

Yes.

Some may debate semantics here, and there are plenty of cryptos that fall under the definition of a security, Bitcoin and most major coins are commodities. They are found or made through effort, not decree. They exist individually, as in, cannot be copied. I do see a future clarification between physical and digital commodities because they are very different, but both are commodities.

United States Court rulings have also deemed Bitcoin, Litecoin and some other cryptos as commodities.

Predicting the Cycle

Bitcoin has a supply cycle that is publicly known to anyone willing to look. Bitcoin blocks are about 10 minutes apart, and every 210,000 blocks the amount of bitcoin units able to be found by a miner is halved by the network consensus rules. This means there is less new bitcoin that can be sold every 4 years. In the world of commodities, something that is in demand but has a lowering supply increases in value. Less bitcoin to be sold but equal buyers means higher prices. One could buy wheat in October, then sell it in August, like one could buy bitcoin in 2015 and sell it in 2017 then buy in 2019 and sell in 2021.

Because of existing stock each Bitcoin cycle should have less market effect than the last and because of the nature of investors the cycle could be dulled to no price effect, or greatly over invested to highs far beyond the expected effect.

What about other coins?

Coins besides Bitcoin have their own network rules and cycles. Even so, almost all follow the Bitcoin cycle because they rely on Bitcoin popularity to grow more than their own fundamentals. This may change in the future, but as of writing in 2021, it is proving true again.

So every 4 years bitcoin price will go up?

If only it were that simple. Investors will ultimately decide where to put their value. If there were only basic miners and users that always existed at the same levels it would be extremely easy to predict the exact future value of 1 satoshi. Because the market is much more complex, other factors could far overshadow the supply metric. Additionally, each Bitcoin cycle has less effect on the existing stock, so each halving should be less relevant compared to outside factors.

 
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from Blog Posts by Snow

List of popular exchanges with the good and the bad.

While we want to invest in a new financial space our typical investment accounts are not the place to start except under specific scenarios. Unfortunately it's very difficult to buy bitcoin or any crypto using a traditional retirement account, which means we are left searching for where we can buy it without these instruments.

It is possible to buy within a self directed IRA or 401k, but these accounts are more difficult to setup. We are working on an article for this topic and I will link to it here once it is done.

Before I move on to list where and how to buy, I would like to take this space to talk about where NOT to buy, and why.

Do not buy from Paypal or Robinhood

These services allow you to bet on the price, but it's important to understand that bitcoin and most other crypto's are real commodities, not securities. There is no price authority, the price is what you pay, or in these cases, whatever the service says it is. These services do not allow you to take your purchased coins, so you cannot own them yourself, and you cannot sell them where you wish. They cannot be transferred elsewhere, and there is no legal limitation to the buy or sell prices offered by these services. If you own coins on these platforms now it would be best to strategize the best way to sell them and buy coins elsewhere.

Why are you buying?

This is important. Why you are buying may change where you want to buy and which factors are important to you. If you are buying to invest purely as a financial move, then the traditional exchanges listed below will be right for you. If you want to invest, but would like to also support the overall movement towards a free market it would be best to use exchanges that do not promote regulation, or those who work to prevent more. Yes, Bitcoin, and by proxy, all crypto's promote an unregulated free market by making it as difficult as possible for regulatory agencies to physically stop these projects. This is a core function of a blockchain. Further, anonymity is considered important by many proponents of crypto. If you see value in owning crypto without anyone having direct knowledge that you do you will be looking for ways to buy that are not traditional exchanges.

Exchanges List:

Coinbase

Coinbase is very easy to use and Coinbase Pro is one of the easiest exchange interfaces to use. While Coinbase pro has some of the lowest fees, the regular Coinbase offer is one of the highest fee options with a spread on top, meaning the price they offer to sell you coins at is more than the price they will buy them off you. Comparing this pricing system to other exchanges requires placing an order on each to compare the total costs and return. The total spread on Coinbase is around 4%, which means about a total of 2% “fee” to buy or sell.

A common complaint about both platforms is that the website often crashes when there's high volatility in the bitcoin market.

Voyager

Referral Link Referral code, get $25 when you spend $100: 1AE3C8

A great mobile application that's easy to use. Unfortunately their claim to fame “100% Commission-Free” isn't very accurate. They price coins how they want to, and this is at a spread, meaning the price they offer to sell you coins at is more than the price they will buy them off you. This system hides any fees within it so it's not noticed by the user. Comparing this pricing system to other exchanges requires placing an order on each to compare the total costs and return.

This platform has a large selection of coins and is a publicly traded company out of Canada. You can earn interest on bitcoin and other coins. One of the co-founders was the CEO of E-trade. They offer a profit and loss calculator (a service I wish more apps had) and reportedly great customer service. They are also FDIC insured up to 250k USD.

Gemini

Gemini is a US regulated exchange that uses this as a point in advertising. They have promoted further regulation of the industry and are the leading platform in the state of New York, where being a bitcoin exchange is privileged by a board of private bankers and a non refundable fee that has no set amount but is typically more than $1,000,000. The exclusivity of their New York operations may be a driving factor in their promotion of further national regulation. This very pointed issue may not be a concern for every investor.

They offer an interest bearing account option and have moderate fees compared to other top rated exchanges. They also have a limited offering of different coins.

Binance US

I have less information about this platform that other. Binance has history on why they have a Binance US version. When the company began being pressured by regulators and tax authorities they moved their headquarters to Malta after a bid type negotiation with multiple small nations. When the United States made it clear that they would pursue them if they continued to offer services to US based customers they ceased operation in the country. After some time they opened Binance US, which is only for US customers and follows US regulations. I have heard that it is hard to verify on Binance US.

BlockFI

You can buy BTC on this platform at a slightly higher price and you can store your coins and earn interest on them, which does hold risk, read the risk statement from BlockFI.

Blockfi is planning to release a credit card with 1.5% cash back, which can be earned in BTC.

Kraken

Kraken has promoted the furthering of an open market within the United States and offers some of the lowest fees as well as leveraged trading. They also won a Bank Charter in Wyoming! This is not setup yet, and may change the position of this exchange once it is. Kraken takes up the bottom of the list because most customers have to wire funds in, which makes kraken the worst option listed for low volume purchases because of flat fees ranging up to nearly $100 to get funds on and off your account. On the other hand, if you're a business or looking to invest (or sell) for millions USD, then Kraken, or Kraken's OTC Desk is likely the perfect fit. Kraken has the least user friendly interface out of all that are listed here. It works, but it's not simple.

Where possible links to exchanges have been replaced with referrals. Using these referral links may offer you incentives, but it also helps this blog stay alive.

 
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from cryptocloud

By Derek McCloud, M.Ed

The Million Dollar Question, or should I say, the 16 Bitcoin Question is should you put some or all of your crypto in an interest-bearing account or store it offline on a cold wallet?

A cold wallet is when you store your crypto’s keys offline. Many traditional crypto investors will say this is the safest way to store your crypto. And they are right (technically). Your crypto is absolutely safe on your offline wallet as long as you 1) don’t lose your hardware wallet or stored keys (cold wallet), 2) protect it from being damaged by water, fire, and thieves 3) don’t lose or forget your password.”

*For more information about the benefits and usage of cold wallets check out Jake Snow's blog post.

If you are anything like me, I lose my car keys and my wallet at least twice weak. “Honey, have you seen my keys?” “Babe...where is my wallet?”

Just this fact alone makes me choose to use a hot wallet because I don’t want to store a massive amount of wealth on a ledger and lose it. Consider the man who threw away a hard drive with over 7,500 Bitcoin on it.

Or the guy who can’t remember his password to his ledger that has 7002 Bitcoin on it. At the current prices of around $60,000 each, that’s over 420 million dollars worth! DON’T be like these guys.

My friend Bryce said it this way, “Accidental self-sabotage from overcomplexity is the most common cause of losing crypto.”

A much simpler method of storing your crypto is using a hot wallet or storing your crypto with a crypto bank. A hot wallet is already online and you can buy or sell crypto immediately while using the app of your choice. When your crypto is stored with certain crypto banks, you are able to earn up to 6% interest or higher on your digital coins.

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Think about the last time you went to a “normal” bank. I know, Covid and such, but TRY to remember back in the past. You go to the bank, you see several people with nice suits and dresses on, a secure building, maybe a police guard and other things that must surely cost a TON of money. How do they afford millions in overhead costs per bank? They do that because they are making a killing off of you storing your money there. If you give the bank $1,000, they are investing $900 of it and keeping the $100 just in case I need it. This is called fractional reserve and it’s practiced by all traditional banks. Fortunately, the bank is kind enough to give you a measly .01% interest on your money. Maybe you put your money into a really good money-market savings account and get a little more than 1%.

Traditional banks invest your money and make a fortune off of you.

When you store your Crypto with Celsius, BlockFi, Crypto(dot)com, or Voyager those banks are giving you 6% interest or higher on your crypto. These online banks have low overhead costs and can afford to do that.

Basically, consider this, my wife desperately wants a NEW car. In order to buy my wife a new car, will I cash out my Bitcoin, heavens NO, you HODL that stuff till we hit the moon!!

NEVER ever sell your Bitcoin until you reach your financial goals. #HODL (Hold On For Dear Life)

Q: Do I get a loan from the bank? A: NO, the banks are going to steal from you and laugh at you while they do that.

Perhaps, the wisest thing for me to do to buy a car for my wife is to get a loan off of the crypto that I do have and pay around 1% interest on it. Honestly, I don’t need banks anymore. Now, I AM THE BANK. With crypto, I can call the shots and just use my crypto as collateral for things I want/need.

This is just one of the many ways crypto banks are making their money and why they can give you 6% interest or higher on your crypto.

(Update since I wrote this blog.) Here is the car I bought my pregnant wife using my Bitcoin as collateral. This is a dream come true for us! <3 name

What are the risks of storing your crypto in an interest-bearing account?

#1 The crypto bank goes under or gets hacked. Fortunately, the crypto banks I am recommending are “insured” (they are not FDIC insured or insured by the gov’t, but they do have insurance from private companies. These crypto banks usually have enough resources offline and online to reimburse you should a tragedy befall you or the crypto banks.)

#2 See risk number 1.

Conclusion: There are risks involved whether you choose to invest in crypto or choose not to invest. The US dollar is losing value/ purchasing power as we speak due to inflation while the price of Bitcoin is going up due to scarcity and there only ever being 21 million bitcoin.

There are also risks storing your crypto on a cold wallet (you could lose your password, the ledger, or the ledger could get damaged) and there are risks storing your crypto on a hot wallet (the bank could fail and not pay you back).

While I consider the risks and opportunity costs, I personally feel your safest and wisest investment is to buy some Bitcoin every week (rain or shine), and store your Bitcoin in three or more interest-bearing accounts. Why multiple accounts? There is safety in spreading your coins out among banks. God forbid if one bank goes under, you at least have your crypto available in the other banks. Don’t forget, these crypto banks have some massive security protocols, “insurance” if you will, and it is in their best interest to treat you, the customer, very well.

I have vetted these companies below myself and I use them weekly. I am not a sponsor, but wish I was. I just like these companies and their customer service.

If I own 1 whole Bitcoin, I would put .25 BTC in Celsius, Crypto(dot)com, Block, and Voyager. Use these referral links for these interest-bearing accounts and you will get a free $90 worth of BTC.

#1 Choice /// Voyager Super Easy App to Use. Download the app and buy $100 of BTC to get $25 free Bitcoin. Use code 1AE3C8 or this link to claim your BTC. Make up to 7.25% interest on your BTC. https://voyager.onelink.me/WNly/referral?af_sub5=1AE3C8

#2 Choice /// Celsius Automatically make 6.20% interest on your BTC. Join Celsius Network using this referral code 1866831288 when signing up and earn $40 in BTC with your first transfer of $400 or more! https://celsiusnetwork.app.link/1866831288

#3 Choice /// Crypto(dot)com Make up to 6.5% interest on your BTC (when you have the Jade Green Card) or 4% interest with the Ruby Steel Card. Get $25 when you apply for Ruby or Jade Card. https://crypto.com/app/tqg3f3uvj8

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About the Author

Derek McCloud, M.Ed has a master’s degree in education which helps him simplify complex ideas like crypto and explain them in ways that the masses can understand. He is passionate about Bitcoin and crypto because it can provide financial freedom to those who invest wisely. He hopes that people who make massive amounts of money from crypto will help him have fresh water wells dug around the world for those in need by the year 2025. To learn more about crypto and joy, check out his youtube channel.

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*Nothing in this document should be considered financial advice. Do your own research. Only invest what you can afford to lose.

*Using referral links in this blog will offer you incentives as it also helps this blog stay alive.

 
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from Blog Posts by Snow

This post is part of a larger collaboration of Satoshi FI admins and moderators where each of us discuss our own choices for investment. We have private discussions and the drastically different paths we have taken are regularly a highlight. Because of this each of us will publish an article about our own choices, and particularly focus on how those pertain to crypto. I don't typically describe myself as a Bitcoin maximalist, but that's the role I play by comparison.

A (not so) Brief Background

I am now in my 30s, I have two children under 10 and my wife is, and always has been a stay at home mom. We started dating when we were barely adults. I had a short run at a community college where I paid for classes out of my own pocket, but when I couldn't fund more I opted to leave rather than take on debt.

I had hoped to acquire the knowledge necessary to push me into the IT field, specifically system administration. I already had years under my belt as a Linux user and amateur hacker. Around 2010 I was spending the vast majority of my time compiling customized Linux operating systems and releasing installable live boot images publicly. After a couple years I stopped this, partly because I never earned a penny doing it, partly because I started playing call of duty online. I was living paycheck to paycheck and I had great priorities /s.

When I stopped taking collage courses I began working full time in the gaming industry, first as a poker dealer, then table games, and eventually made a move to another state to be a supervisor, then manager in that department. This afforded me a decent lifestyle for the first time in my life. I was putting money into a 401k with company match and buying stock from the company I worked for at discount. My daughter was born and I bought my first house. I wasn't on my way to retiring early or anything, but I was doing well.

I learned about Bitcoin right around the same time. It was December 2013 and a coworker nagged me about it, saying it was money that was “like the Linux stuff”. I looked it up more to appease him than anything else, found bitcoin.org and read the whitepaper. This moment was monumental for me and I first purchased bitcoin shortly after using coinbase. Bitcoin was monumental to me partially because my coworker was right, it was open source money, partially because I understood this had the potential to free people from government control – at this time I wouldn't have viewed myself as libertarian or anarchist. I had resigned myself to the position that there was no hope, and no way to be free. Reading the white paper changed my perspective, I saw in it that freedom could be won through peaceful transition. I'll leave my political (or rather, anti political) views at that. It focused my enthusiasm in Bitcoin, and has only continued to over time.

By the end of 2015 I solidified my desire to hold as much bitcoin as I could, but lacked the income to make a significant investment. In fact this was a period of relative struggle. I was still putting money in my 401k and receiving the maximum match offered by the company I worked for, but it was paycheck to paycheck on my take home pay. I began searching for side hustles that might be able to earn me bitcoin. I'm going to skip the how and the what here to retain some level of privacy, but the side hustle I found was in the crypto space. In the spring of 2016 it grew enough to register a company name and have lawyers involved in the setup. I began making nearly as much as I was at my regular job and my wife helped convince me that leaving my job was the right thing to do. This was hard for me, I'm extremely risk adverse and my desire to hold bitcoin was based on the technology potential, and never about getting rich. I took the leap, which included selling all my stocks, closing out my 401k, taking a loan, and putting it all towards this business, then struggling like never before for the following two years.

My Current Investments

The company I created, and struggled to grow has become extremely valuable. I can't write about my investments without making this the focus, and I couldn't make this mention without the more in depth background. It's by far the largest investment I have, and I earned it through years of struggle. While I may have started a business in the right industry at the right time, many others did as well and failed. Growing a business as an investment isn't luck as much as determination and personal skill and respectability over competition.

My other major monetary investments are property and my personal bitcoin holdings. These are not large holdings compared to my business, but they are respectable and I am doing my best to grow these positions equally as I take business profits.

I've had to take pause on property investments because of covid-19 changing the value proposition. I'm waiting for foreclosures to start being processed again before continuing to buy property.

Crypto Investment Strategy

My crypto investment strategy is that the only “crypto” that's an investment is Bitcoin, anything else is a short term bet. I (almost) never attempt short term bets on other coins. I'm still risk adverse by nature and have to will myself to take any new risks.

I view my bitcoin as my general savings. If I find an investment worth buying I don't mind selling some bitcoin to take that investment. I do not sell bitcoin to “take profits”, I take profits in other investments to buy bitcoin. In this way I take the first steps to denominate my life in bitcoin, rather than dollars.

Not all Investments are Made for Financial Gain

I found the FI community in 2017. A friend invited me to FI related facebook groups. At this stage I was still struggling financially, but I gained insight into the FI mindset and very easily fit in – except when discussing exact investment choices of course.

Throughout my life I would take inventory every couple years. I evaluate what I've done, what I want, and how to get it. For the first time in my life, in 2018, I took this inventory and found that I didn't want to focus on making more money.

The goal is to be happy, so my investments have shifted to general happiness and of course, safety. I'm still extremely risk adverse!

I have focused on spending time with my family, keeping emergency food, water, and other supplies, and I'm actively working to homestead. I spent much of my childhood living and working a farm and the lessons I learned farming helped shape much of my adult life for the better. I see this pursuit as an investment in my children and a way to focus on activities we can spend doing together.

This may sound like prepping. I've almost always lived in rural areas, storms and long term power outages are assumed. Situations arise where these precautions are used often enough to have them. Taking it farther, producing as much of what is necessary for life ourselves is the best preparedness one could have, but also enables teaching my children lessons I learned growing up that shaped my work ethic and problem solving capabilities.

I think being prepared for multiple possible futures is the essence of diversification. It can be applied generally to life as well as financial decisions. Many traditional investors are beginning to see that an investment in bitcoin is a financial prep – diversification away from nearly every other investment option today.

My Ideal Investment Strategy

If I were new to bitcoin today, but held much of the knowledge I have now, I would buy bitcoin with the intent that each purchase would be held for no less than 4 years. I think this would limit the purchase amounts to what I could handle emotionally at that time and provide a horizon to look to.

I hope that I can one day live on investments in a way that reduces or eliminates tax. This isn't a position of greed. I personally feel partly responsible for atrocities funded by tax dollars, that partly came from my pocket. This deserves mention because eliminating this would give me peace of mind. The goal is to be happy, to be fulfilled in life. I think many people achieve greater income and forget the true goal. They continue to pursue more money at the cost of years of potential happiness.

Financial Independence

I regularly define Bitcoin as financial independence. I mean this in that one is free to use bitcoin exactly as they wish. No entity can prevent or force you to spend. No country can debase the bitcoin supply. These are only true for the bitcoin held in a private wallet, and sometimes only for the bitcoin no one knows you hold. Political refugees, particularly from Venezuela, flee their country, but have everything of value stripped on the way out. Holders of bitcoin have been able to escape with their bitcoin, and no other possessions of value. Even if the likelihood that this might happen in your country is extremely low, it's still possible, and to have financial independence should mean having a respectable portion of ones value held in bitcoin, in a private wallet, and hopefully some that was obtained without any knowledge – without kyc like a name or ID.

I know this isn't exactly what is meant by the FIRE community, but I see wealth preservation as a vital part of financial independence. Bitcoin has been the only route to wealth preservation for some people, and it continues to be for others. It may not be likely for most people, but it remains a possibility.

The Future

I can only hope I can consider my future as being financially independent. I hope to achieve my goals and continue my pursuit of happiness. Continuing to support Bitcoin and helping others will likely be a part of this, regardless of any financial incentive. If Bitcoin can usher in a renewed age of hard money, enabling an honest economy and eliminate incentive for most war and similar conflicts then I could only be that much happier. USD has been used to drive value from those who create it to those do not.

This wasn't meant to be a how-to. If I were to highlight the best financial decisions I've made it would be avoiding debt and taking risks, particularly betting on myself to start and grow a business. I have surrounded myself with business owners since, many of whom are in traditional markets, owning restaurants, bars, stores, both physical and online only. Most have had a similar experience of a couple years of struggle followed by success after they refused to give up. If I gave the most honest advice, it would be to focus on happiness first, financial gain second, and when you have some wealth to protect, to do so in the best ways you know how.

In my constant study of economics I continue to learn why Bitcoin has potential to succeed. If bitcoin can be used as money it will become less expensive to simply use BTC, instead of exchanging with currencies. A free market gravitates towards the most efficient solution and because of these facts, as well as some history about nations using material other than gold as money in a global gold economy, I don't believe there will be a wide market of cryptos as monetary devices. There will likely be many crypos, but they will have little to no hope in competing with the market of money, which is the largest market there is in the world.

Disclaimers

I am not an investment advisor and this is not intended to be investment advice. The article is an incomplete account of my own experiences and personal thoughts that should not be considered perfectly accurate. I have not included investment amounts by percent or dollars, and only eluded to some values vaguely. If you find any topics interesting I highly suggest doing your own research!

Thank you for reading

 
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from Blog Posts by Snow

To own cryptocurrency you must have a wallet.

While it may be easier to leave coins with an exchange or other administrator, it's typically not recommended. Many exchanges and online wallets have suffered from security breaches in the past, using such a service is placing trust in them. If you choose to trust an administrator it would make sense you ensure a return on the balance.

A good wallet is private, open source, and well tested

A private wallet is one where only you have the private keys. This is most similar to holding cash in your hand. It does not mean it’s invulnerable to theft, it should be treated much like cash. Seeing your private keys is sometimes not an option from within the wallet software, so how can you know you have the keys? Most private wallets will prompt you write down a phrase of 12 or more words as a backup, this is known as a mnemonic “seed” and is capable of restoring your wallet even if your device is lost or destroyed. Since it is a backup of the private keys it will even restore crypto that is added to your wallet after making the backup. The seed phrase is your wallet, and it isn’t normally protected by a password and is not protected by a lock screen, it should be stored somewhere very safe and never stored on a phone or computer without expert precautions – do not screenshot or print seed words, write them by hand or use a metal storage device. Jameson Lopp periodically publishes stress tests on these devices which should be designed to survive a house fire.

There are many different kinds of wallets, including free software and hardware/offline wallets. It is extremely important to verify the wallet you intend to use. For new users this is likely only using a wallet found in the Google Play Store or Apple Store, and verifying positive reviews and a long track record of at least 6 months, beware of fake reviews and new wallets.

I highly recommend the following wallets:

Electrum

This is a widely trusted wallet and the oldest lite wallet (meaning you don't have to run a full node). It's available for desktop and android. I use this wallet on desktop and paired with cold storage devices or multisignature. It has a lot of advanced features and compete control of your coins, but also can be used in very basic setups where it's quite simple.

Bluewallet

This wallet has great features similar to Elecrum but is highly functional on a mobile device. Available for both Android and iOS this wallet is recommended by many seasoned bitcoiners. It can also be used in conjunction with Elecrum to create multisignature wallets.

Coldcard

A bitcoin only hardware wallet with advanced features, including air gapped setup and use.

Trezor

A fully open source hardware wallet supporting Bitcoin and altcoins.

 
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from Blog Posts by Snow

Derek Justin McCloud posted on Facebook a link to S&P500 priced in gold as a way to value the market for “true inflation” as apposed to using the posted rate for product price inflation.

This isn't a new idea, nor an unknown debate. Product price inflation is an index of prices and the official inflation rate is posted regularly. Many economists and investors use this product price inflation as the basis of their adjusted calculations against the dollar. The debate is around if this rate is what should be used.

The average price of products is effected by many things. Is the value of money really equal to the average price of products? According to Ludwig Von Mises, one of the more prominent economists of the 20th century, the value of all money in an economy equals the need for money by that economy. Essentially the idea is that the value of money reflects how well the economy is doing. This could be more easily seen if the number of monetary units within that economy were finite, but that's not what happens with most national currencies. As governments issue more units the value of those units fall in relation the value of the economy because each unit is a fraction of the economy and creating more units makes the fraction each unit holds less.

I don't think gold is a stable medium to use as a basis in calculating the true value of the market – call this “real” inflation adjusted. I decided to create a chart to depict the real inflation as the M2 money supply. Even the traditional economists that use the product price index as their inflation amount often use the M2 money supply as the precursor or indicator of future product price inflation.

If the money supply were finite how might the market look today? Have the printers of new money awarded the value of the growth of the public market to the first receivers of the new money?

The first chart below shows the cumulative M2SL money supply, S&P500, and S&P500 adjusted for the M2SL money supply starting in 1985. These are all shown as percent compared to the first point.

The second chart shows the nominal price of S&P500 and the M2SL adjusted nominal price of the S&P500 starting in 1985.

Made with data from, https://fred.stlouisfed.org/series/M2SL#0 and https://finance.yahoo.com/quote/%5EGSPC/history

 
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