Difficult economic times are resonating with everyone. The markets, including the digital markets have crashed and the bear market has arrived. The crash has raised more interest in cryptocurrency and digital investment. Those who may not have understood how cryptocurrency works have a better understanding, as the media seeks to put it at the top of its agenda. However, they are likening cryptocurrency to the Great Depression, warning of people losing so much money they’ll throw themselves off buildings. There has recently been a fall out within the market but is this the end. Many people disagree. 

 

Could this be the start of a new cycle?

I talked to CEO of Baron Capital Blake Templeton on my podcast The Transition Man. He says learn the rules of the game fast if you are investing in cryptocurrency. The story behind Black Wednesday is a good example of this: In 1992 George Soros became one of the most famous currency traders in the world. The European exchange rate mechanism of the Bank of England was set up to reduce exchange rate variability and stabilize monetary policy across Europe. However, the UK at that time had not questioned their assumptions and they had variables, which left them with a hole which could be exploited. Soros found the hole where certain variables had not been taken into consideration, played the game and made a billion dollars profit as everything shifted. Ultimately the Bank of England was unable to defend itself against a 3.3 billion pound attack.

 

The cryptocurrency crash.

What’s happening now in the digital investments market is exactly what happened then. Like George Soros It seems that both BlackRock and Citadel looked for a vulnerability in someone trying to stabilize the market and exploited it. Terra Luna created a vulnerable place in the market by creating one stable coin backed by Bitcoin. BlackRock and Citadel borrowed 100,000 Bitcoin from Gemini. They then swapped 25,000 Bitcoin into USD stablecoin, anticipating an attack in the game. They then sold their large block of bitcoin to Terra Luna at a discount for them taking his USD stable coin. This left him in a vulnerable position. By giving up a chunk of his USD Stablecoin, his liquidity was lowered. BlackRock and Citadel then dumped all their Bitcoin and UST causing this massive slippage with people selling their stablecoin and bitcoin assets. The culture behind the cryptocurrency market is so fresh. Anyone investing must think of it as a game

 

Playing the cryptocurrency game:

The global economy is unstable. Those with great power very often will look to work hand in hand with disruptors and major players to disrupt and regain power in the form of holding people’s finances as they mainly do now.. When transitioning into bitcoin, it is wise to hold it in an app, cold storage or on an exchange and just ride it out. Down markets create massive profits. Volatility is not always bad for business. It highlights what is happening behind the scenes and creates a new narrative. This is not the end of the cryptocurrency market. Cryptocurrency is democratizing wealth. 6 billion people in the world don’t have a bank account, mainly in Africa although they often do have smartphones. With cryptocurrency you don’t need a bank account – just access to a smartphone. Cryptocurrency is changing the world. 

 

Is cryptocurrency the end of the money man?

It is likely that the future of banking will see money being lent from crypto blockchain technology. Technology cuts out the middleman. Cryptocurrency will ultimately make everything more accurate and efficient. It may be that we start to see big companies and corporations investing in cryptocurrency as opposed to bonds. There will be a transition from one economy to another. Many of us don’t understand how cryptocurrency works but many of us also don’t know how the money gets from our banks onto our debit cards, however we just accept it. In years to come using cryptocurrency blockchain technology will just become a way of life. 

 

To find out more about my discussion with Blake Templeton, who is CEO and founder of Boron Capital on  The Transition Guy podcast click here where he has some useful tips and masterclasses for you: 

Don’t forget if you are looking to grow your business then get in touch with me here: And always remember, failing to learn is learning to fail.

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