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Inflation winds measured by specific official indexes have picked up and it’s not just Paul Tudor Jones who’s seen this. Wages is lagging industries are rising along with higher prices in commodities. While one final capitulation may be expected, the low inflation era will eventually end in time for a generation that is unprepared to handle it. With many market participants unaware of how it impacts them, expect turmoil in multiple markets.

Overview

Elsa Lignos is not wrong about inflation, though she may be a little too soon.

Long time readers will be thankful they read our original discussion about mining, as they took the smallest risk and are well-positioned from what’s coming. We expect a pullback in mining because as people see what’s coming, they may have to liquidate leveraged positions and miners will be part of this. We start out from this perspective because this is exactly what we saw when people thought the Fed’s balance sheet would eventually be unwound: how will this happen if unwinding the balance sheet causes turmoil with inflation also beginning to rise? In addition, how fast will inflation spiral if markets don’t feel the Fed will stay committed to unwinding its balance sheet?

Outside of miners, we’ll discuss analysis in the advanced version of Millionaire Guide To Hedging. We will caution readers that many market participants have never seen high official inflation and will react in ways many of us do not expect. This isn’t to say that unofficial inflation hasn’t been high (it has, as unofficial inflation measurements include asset prices), but that when official inflation measurements start picking up, we should expect some market participants to react negatively.

The Dollar Drop

The recent dollar drop, which we predicted on A.P., is only a preview of what’s to come. And this does not mean that the dollar can’t rise for a bit before resuming its drop either. With a national debt of about $22 trillion, the world may have trouble thinking of the dollar as a safe haven currency when things turn sour. Mindsets don’t shift overnight, but the preview that was clear the last few days showed us and others that people are beginning to change their financial perception. How fast and how wide will this shift spread? How high will the Fed allow interest rates to rise when we consider that this would cause too much interest to be paid on the massive debt? How can the Fed control inflation if it’s stuck from raising rates high enough to offset inflation? We’re not there yet, but one can think of these as previews.

We will witness the end of the view that the dollar is a safe haven. This end will not happen immediately.

Are Stocks Overpriced?

If stocks are drastically overpriced, this does not mean they can’t still march higher especially if people feel another round of QE is around the corner. But when the moment comes, even without a correction, stocks may not help investors at all. Never forget that it only takes a couple of bad days or missed opportunities.

Warning

The following article covers trading financial securities, such as stocks. The world of trading often comes with rises and declines of securities, and most things do not rise or fall in a straight line. By the time this article is published, circumstances involving what we mention may have changed. Often, changes in securities can be to the detriment to the traders – seldom is it beneficial. A person should only trade with money that they’re willing to lose because losses are guaranteed. By reading this post, you agree that you’ve read our disclosure. This article reflects the opinions of the author and is for entertainment purposes only. It is not intended to be investment advice and FinTekNeeks are not registered investment advisers. Please consult a professional financial adviser when investing.


Only the early bird gets the worm. From time to time, we see an opportunity and that opportunity presents a window of opportunity for someone to seize. They either get it, or they don’t. The people who get it the earliest, often have the lowest risk and biggest potential for gain. The people who come next carry more risk and less potential for gain. Finally, the remaining people may not get any gain at all, though sometimes they do well. This holds true for everything: for instance, the “opportunities” in the Nikkei have done much better than those who came later, even if those who came later did well (the early birds won the biggest).

The Window of Opportunity

When Jason first heard about bitcoin in 2010, he thought bitcoin was completely stupid. Jason knew that no one would adopt bitcoin due to its technological complexity. But Jason decided to visit a bitcoin meetup one day since it happened to be taking place near his work. At the meetup, Bob gave him a dollar worth of bitcoins, approximately 25 bitcoins at the time, while showing Jason how to store it securely through several means. Jason thanked Bob for the bitcoins and didn’t think much of them. He still felt bitcoin offered nothing of value. Seven years later, Jason overhead a discussion from co-workers about bitcoin with someone remarking that one bitcoin was $5,000 and Jason remembered his gift.

Opportunity opened briefly and closed quickly.

No Time Like the Present

One of our favorite observations has been people who’ve plagiarized or heavily used our content as their own. They read one of our posts, copied it, or wrote something almost identical as if it was their idea and marketed it. To be fair, they did a better job marketing their content than we did, but they failed to see what would happen next while we did. In their rush to steal content, they failed to see the bigger opportunity. To use a metaphor, they may have walked away gaining tens, while we walked away gaining millions, as they were unable to predict what came next. Many people can easily steal or lift content – as it takes no work, but are completely unable to predict what happens next. This hasn’t been true for this site of ours – we’ve had other sites with incredibly accurate content that was also stolen. Still, people failed to see the next event and we were careful to not share it.

Our favorite example of this was a Twitter user who copied our concern too late for his audience without understanding what he was saying (but, hey, why not copy someone and pretend to be the expert?). The opportunity switched and he missed it. He relied on theft to fake expertise, while we nailed another prediction because our expertise exceeds market analysis. His audience did as well. After all, you are a reflection of what you read and who you follow. Again, we don’t blame people for stealing – if you’re a better marketer of content than we are, why not steal it?

But what happens if we stop producing content and what happens when the next opportunity arises and you miss it: if I had read that post, I could have had [the equivalent of 25 bitcoins] without cost, you may someday realize.

Better Than Bitcoin

With all that considered, what about now? What’s the best opportunity? What’s the biggest area of concern? You don’t know. Right now, Jason could take the same risk as he did before with the possibility of a similar or larger return. Even if we’re wrong and he gets a hundred multiple return, that still trumps index funds in some cases. Opportunities do not always exist, so the “next bitcoin” (to use a mental image for an example) may only be an opportunity for a year before the risk significantly increases.

Our New Model

As we retire from producing free or low-cost content, we’re grateful for the experience, as it taught us about the marketplace of media. We’ve all criticized media, but how many of us consider the media’s audience? Perhaps there’s a well-written critique there.

We have created a new model for our content: the subscription based production model. We produce more content if more people subscribe. We don’t produce anything if no new people subscribe. In a sense, if you plagiarize or pirate our content, you guarantee we stop (and thank you for saving us time!), whereas if you stay honest, you increase the probability that more people will subscribe as well. In the case of our podcasts this could mean the difference between possibly paying several dollars per podcast, or several cents per podcast.


In this post, we examine the crypto-token FunFair(FUN). We will outline the project according to the developers and the team in charge. Some people may find value or purpose on this crypto-project based on how it develops and what problems it aims to solve. The validity of development and claims must be determined by the judgement of the reader. From here on out, I will refer to the crypto-token as FUN.

Bringing the FUN in Online Gaming

According to the project, the goal is to revolutionize “the gaming industry by harnessing the power of the blockchain in the online gaming market.” FunFair are “delivering solutions which ensure that the future of online casino gaming is fun, fast and fair.”

FunFair is an online casino gaming platform. The platform is based on Ethereum blockchain, built in HTML5, 10x cheaper per bet than other platforms (gas costs), serverless, decentralized, and operators can publish in just two clicks. Transactions are operated with FUN crypto-tokens.

Initially, FUN was to be issued in two phases. First phase issued up to 1 billion FUN by July 7, 2017. And phase two with 3X the amount issued in phase one. It seems like the plan was changed to issue up to 12.5 billion FUN. However, 40% of total supply is allocated to the founders and advisors. Based on CoinMarketCap.com 4.3 billion FUN is in circulating supply while total supply is about 11 billion.

The project offers fair gaming using fate channels instead of random number generators. It has been shown that random number generators are not so random, so they are often referred to as pseudo-random number generators. To be more fair, FunFair offers gaming through the use of fate channels. “During gaming, we create instead a “Fate Channel”; a State channel with the added ability to verify a progressive reveal scheme by both parties, advancing a deterministic (“fated”) but unpredictable sequence of random numbers.”

In our podcast, I will comment and provide some views on this crypto-project that I think are different than the current interest in crypto-currencies. I will update this article with the podcast when it has been recorded. If you are interested in subscribing to our podcast, check it out here.

Warning and Disclaimer

This article covers a token or element in the cryptosphere. FinTekNeeks are not financial advisors and this is not a recommendation to purchase or sell this crypto-token. Please seek professional investment advisors before taking any action on a crypto-token. By the time this article is published, changes may have already occurred. Most tokens in the cryptosphere are complete scams that are get-rich-quick-schemes for insiders. Often, we cannot know this beforehand and only later discover this. A person should only trade with money that they’re willing to lose because losses are guaranteed. If you choose to participate in purchasing a token in the cryptosphere, you should do so with the full expectation of a loss and you should also expect it to change in a manner that does not benefit you. Finally, by reading this post, you agree that you’ve read our disclosure.


In this post, we examine the crypto-token Diamond (DMD). We will outline the project according to the developers and the team in charge. Some people may find value or purpose on this crypto-project based on how it develops and what problems it aims to solve. The validity of development and claims must be determined by the judgement of the reader. From here on out, I will refer to the crypto-token as DMD.

Is Diamond Forever

According to the project, the goal is to “become an ultra-scarce non-government controlled storage of wealth with software facilities that can increase that wealth over time.” As a digital currency, this is to allow people to send money instantly, securely, and near-zero cost.

DMD initial blocks and tokens were initiated with proof-of-work mining. The algorithm used is stated as Quark, with block times of 135 seconds, in their GitHub page. However, it is transitioning to full proof-of-stake mining with DMD 3.0. They offer two variations of proof-of-stake, either through wallet staking or through masternodes. DMD considers masternodes as proof-of-service, but it seems to be proof-of-stake with prerequisites. The prerequisites are to have 10,000 DMD coins and a static-IP address so that the wallet can be connected continuously.

The project states that they are transitioning to proof-of-stake 3.0 because some people were able to game the system by some worrisome behaviours where majority of shareholders were “disconnecting from the network for long periods of time, gaining enough coin age to stake and connecting again to claim their rewards.”

DMD is providing scarcity by limiting the maximum number of coins to 4.38 million DMD. To ensure this limit, the project is implementing “Treasure Digging” which allows burning of “old” DMD coins, i.e. Unspent Transaction Output (UTXO) aged over 10 years. Another feature that limits the maximum number of coins in circulations is that Diamond 3.0 transaction fees will be burned as a feature, according to the white paper.

In our podcast, I will comment and provide some views on this crypto-project that I think are different than the current interest in crypto-currencies. I will update this article with the podcast when it has been recorded. If you are interested in subscribing to our podcast, check it out here.

Warning and Disclaimer

This article covers a token or element in the cryptosphere. FinTekNeeks are not financial advisors and this is not a recommendation to purchase or sell this crypto-token. Please seek professional investment advisors before taking any action on a crypto-token. By the time this article is published, changes may have already occurred. Most tokens in the cryptosphere are complete scams that are get-rich-quick-schemes for insiders. Often, we cannot know this beforehand and only later discover this. A person should only trade with money that they’re willing to lose because losses are guaranteed. If you choose to participate in purchasing a token in the cryptosphere, you should do so with the full expectation of a loss and you should also expect it to change in a manner that does not benefit you. Finally, by reading this post, you agree that you’ve read our disclosure.


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