The carnage witnessed in the cryptocurrency market this year has left investors licking their wounds. Virtual currencies touched an all-time high in January 2018, but have plunged to wipe out more than $640B in value.
The MVIS CryptoCompare Digital Assets 10 Index is down 80% since the all-time high of January. Compared to this, the NASDAQ Composite Index had fallen 78% from its peak in 2000.
Bitcoin and Ethereum are the two biggest cryptocurrencies as per market cap. The price of Bitcoin fell nearly 70%, from close to $20k to around $6k. This was after its value accelerated 60x in the years leading to the crash.
Ethereum has not escaped the fall eitherāit shed over 40% of its value in September alone.
Investors who had pumped in money before the start of 2017 have still garnered strong returns. However, people who entered the crypto market post September 2017 have lost a significant chunk of their money.
Crypto investors had placed huge bets on what is still a revolutionary technology in its infancy. But there was way too much speculation coupled with investor hype and security concerns for cryptos to sustain the record levels reached earlier this year.
Bitcoin Was Likened To Digital Gold
The crypto mania witnessed last year was driven by the hope that Bitcoin and other currencies would revolutionize industries with their breakthrough technology. But emerging economies like China and India are still sceptical about cryptos.
Further, the slower than expected Wall Street adoption and tighter regulations have also contributed to this bear market.
Can Bitcoin And Cryptos Rise From the Ashes?
There have been ardent supporters of crypto currencies such as John McAfee who are optimistic about the Bitcoin price reaching even a million dollars sometime in the future. Ā In July 2017, McAfee tweeted this.
Bitcoub's low of $1,800+ yesterday simply could not be maintained. In the long term Bitcoin moves above $500,000 within three years. Bets?
When Bitcoin was a part of a spectacular bull run late last year, McAfee tweeted :
When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD
Crypto enthusiasts remain unconcerned about this crash and believe that bitcoin and alt-coins will be as revolutionary as top internet companies. Bitcoin though has survived many such declines in the past. Its price fell from $1163 in November 2013 to $152.4 in January 2015.
Many still believe the blockchain tech to be the start of something special but the ride to riches will be more bumpy than smooth.
Once crypto currencies find a way to integrate with traditional financial assets there will be no stopping that bull market. For now, it is time to wait and watch.
I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.
Iām interviewing a tax expert about how real estate investors avoid paying taxesin perpetuityāAND how everyday citizens can do the same thing.
(Real estateāour TEMPLE I and TEMPLE II projects includedāhas a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)
Thereās the 1031 exchange, of course, which Iāve shared with you guys before.
Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREEāas long as said property is worth the same or more.
But thereās ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.
PS: In our next update, Iām going to break down how real estate moguls get paid from their propertiesā¦tax free. š PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.
If thereās anything the pandemic taught us, itās that the paradigm of āofficeā and āworkspaceā has been shaken to its CORE.
Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run fromā¦wherever. š²
This is my office for the dayā¦
I am actually running our business from the beach, typing this from here.
Itās 4:28 pm CET, which means itās 10:28 am EST and I am CRUSHING my to-do list.
(And the team will continue to crush it while Iām asleep. Thatās the š)
Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.
This means we get 3x the productivity of a similar company. š„
Let me repeat thatā¦3x PRODUCTIVITY vs. our competitors.
Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.
There is ALWAYS someone senior awake. It could be Martin in Barcelonaā¦Nat in New Yorkā¦Vineet & Arif in New Delhi.
Well, the first step is to have an actual side hustle youāre launching. Not just an idea, a validated business.
MAJOR KEY: Do NOT spend money until youāve made your FIRST DOLLAR! šššš
(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)
One of the easiest ways to start is with Airbnbāyou can start that in 10 minutes. Literally. (Hereās a guide if you need it.)
Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.
Iām gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. šµ š
From what software to use, how to build a team, how to keep.
In the meantime, drop a comment if youāre ready to build some wealth and any questions if you want moreā¦
Letās get to work. š
PS: If you canāt be bothered with video and just wanna get to work, weāre hosting a TRIBE U workshopthat will help you get this process started on the spot. Itās $479 $49. š„
But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.
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