Protecting Your Fat Stack of Sats 

The Elon Explorations, Part II

 

In Part I of our “Elon Explorations,” we looked at how controversy, distraction, hypocrisy, and *FUD affected the narrative and (mis)understanding about Bitcoin and influenced the crypto marketplace. 

*Fear, Uncertainty, and Doubt

 

“Bitcoin Mining Costs the Earth!”

Specifically, we discussed how a media influencer like Elon Musk, of Tesla and SpaceX fame, can sway the minds and thinking of (potentially uninformed) people in the marketplace while maintaining a cool position of complete two-facedness. 

Not to mention double-dealing.

Images by ejaugsburg and Gerd Altmann from Pixabay

“Bitcoin mining costs the Earth!” (Oh, and by the way, so do both my electric vehicle monopoly and my space exploration organisation…

Read the first part of our Elon Exploration blog duo, BTC-Bashing: Apples to Apples, where we discuss the environmental impact of Tesla, SpaceX, banking, wars, the Petrodollar, Bitcoin, and more.)

 

Let’s Get One Thing Clear

But let’s get one thing clear. There may be correlations between Musk’s trembling Tweet about Bitcoin and the environmental costs of crypto mining and the Bitcoin market crash of 50% just days later.

But correlation does NOT equal causation!

Elon doesn’t hold so much sway that his Tweet caused 50% of the crypto market to cash out of Bitcoin. (We sense other forces at work: exhausted bulls, over-leveraged fund managers, extremely large Bitcoin fire-sale-seekers {*cough*}, and yeah, most likely frightened noobs.)

 

It Tells Us Something Important About the Market

What all the FUD does tell us, though, is something very important about the market…

We’re getting into Silly Territory. 

We’re heading into Crypto Crazy. 

Right now! (Or soon.) 

 

There’s More Volatility Ahead

This means there’s more volatility ahead before the rollercoaster ride is over:

  • More ups
  • More downs
  • More dog-themed alts*, copycats, and scams to come

(*alternatives to frontrunners Bitcoin and Ether, aka altcoins, aka “alts”) 

Photo by Shelley Kim on Unsplash

 

There’ll be more people rushing code out and releasing it untested into the wild, and more people scrambling to gamble their hard-earned satoshis (“sats”: fractions of a Bitcoin) into a market which everybody believes can only go “to the moon!”  

 

Fat Stacks

Essentially, this “correction” reminds us to strap ourselves in tight (we’re in for a bumpy ride!) and protect those fat stacks of sats.

Feeling safe now

(Note: for those of us coming into this world from more traditional finance, “protecting your fat stack of sats” simply means taking profits and diversifying your portfolio away from high-growth, high-risk, speculative altcoins into more stable, long-term stores of value to reduce downside portfolio risk, as we near what may be the end of a crypto bull market.

In other words, if we had *YOLOd in on some ICO (Initial Coin Offering) or altcoin and were experiencing that gloating, gleeful feeling of 100X gains, we might be wise to take out 80% of those gains and put them somewhere safe, leaving in only what we felt like we could afford to lose. To be crystal clear here, we can only say what we might do; this is by no means financial advice.)

*YOLO: You Only Live Once

 

Low-Risk, Long-Term Stores of Value

We don’t need to pull our money out of crypto altogether, though, to put it back in a bank again. We can keep an eye on other low-risk, long-term stores of value.  

Smart money movers regularly transfer part of their portfolio into stablecoins like DAI or USDC to hold coins that track the US dollar.

A stablecoin is a new class of cryptocurrency that attempts to offer price stability and is backed by a reserve asset. Stablecoins have been gaining traction as they appear to offer the best of both worlds—the instant processing, security, and/or privacy of payments of cryptocurrencies, and the low-volatility, stable valuations of fiat currencies.

 

Dis-interested

Many places grant higher interest rates than retail banks currently offer. Given how fast central banks around the world are printing dollars, though, inflation will likely end up eating away at those currencies too. 

Inflation will likely end up eating away at currencies
Accredited Investors

For accredited investors, there are security tokens in which they can invest a portion of their portfolio—tokens backed by shares or precious metals, for instance. This can include equity in companies “doing good” in the world (“ESG” companies, for example, that are genuinely attempting to effect positive environmental, social, and governance changes.)

  

Securities Regulations Exclusionary

Unfortunately, securities regulations as they stand today exclude a large portion of people who are interested in investing in crypto. This is because they are not accredited investors*

Only accredited investors have access to security tokens

*In traditional investment scenarios, an accredited investor is defined as a person or entity who meets certain requirements as defined in Regulation D of the United States Securities and Exchange Commission (SEC) rules and regulations. An individual accredited investor must meet one or more of the following standards:

  •    Demonstrate an annual income of $200,000 or $300,000 over the last two years
  •    Have a net worth exceeding $1,000,000 (not including the worth of his or her primary residence)
  •    Be a general partner, executive officer, or director for the unregistered security in question
  •    Be a registered broker & investment advisor
  •    Be a person who can demonstrate sufficient education or job experience – showing professional knowledge of unregistered securities 
  •    An entity must either have assets exceeding $5,000,000 or consist of equity owners who are themselves qualified as accredited investors

 

Stand-Out Utility Tokens

So, are safe havens only permitted for “accredited investors,” then?  

Thankfully, no. 

Fortunately, a few stand-out utility tokens offer a good, reliable source of value, and they’re connected to projects simultaneously intending to do good for the world. 

One of them is MINER token.

Miner Network members have an option to redeem MINER crypto utility tokens, their digital assets, for gold mining minutes

 

Now with the caveat that none of this is investment advice, nor is it an attempt to categorise or evaluate all the thousands of projects out there, it bears repeating that MINER’s offering is unique.

MINER token is being built explicitly as both a utility token offering the service of gold mining labour, together with its declared intention to “clean up the dirtiest business in the world” (or one of the dirtiest), namely resource mining.

And it’s for everyone.

Here’s what The Miner Network Founder and CEO, Christian Goodell, recently had this to say about MINER being a utility token for everyone, not just accredited (rich) investors:

MINER’s for Everyone – Christian Goodell, Founder & CEO of The Miner Network

 

MINER Token: the Ultimate Hedge

Bringing the old and the new financial hedges together (gold and crypto), MINER token provides ultimate stability. It is currently the only utility token that, when redeemed for service, delivers real, physical gold by the ounce:

  1. real value in the form of a secure, clean, green crypto asset
  2. a port in the storm of uncertain global financial markets
  3. environmental and social responsibility, with both a committed ethos and responsible mining practices woven into the very operations of The Miner Network

Holding an asset redeemable for the service of mining ethically responsible “green” gold, measured in minutes, might just be the perfect hedge for when this massive bubble pops.

Image by Wolfgang Dietz from Pixabay

* * *

Unfortunately, MINER Launch Phase 1 (soft launch) is completely sold out!

Main launch is happening soon.

JOIN our mailing list to stay informed of the upcoming launch of MINER token.

 

~ Anouk Pinchetti & Abheeti Kathryn Pass