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BSOP
Crypto Currency Blocks
The crypto coin space is exploding and the understanding of the marketplace is not clear to most. This is all changing with the advent of simplified marketplace platforms such as Coinbase etc. While the space is unknown or new to most, Coinbase currently has more customers than the biggest banks un the US. The impending public listing of Coinbase is at $100 Billion with a customer base of 57 million. Huge! Some of us at the LVC are undertaking a venture to create portfolios with the aim to grow "blocks" and enjoy the "Bull Market" we are currently experiencing in this space.
Why Crypto I hear you ask? Well as opposed to shares and other investments it is tradable 24 hours a day. The main benefit is that crypto is decentralised and not associated with governments and financial institutional influence. Like a share investment however the tax laws are consistent (capital gains tax) and if you hold the asset for under 12 months then you will be taxed approx 50%, however if you hold for longer than that there is a 50% discount on the tax which makes it a CGT of 25%. So lets do that then...
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Crypto Currency Blocks
The Blocks
We invest individually in blocks of $500-$1000 and run that up as a release. With information I have we will aim to follow or exceed the formula.
For example if in release block 1 there is interest from 2 people of $1000 and 1 person of $500 then the shares are split into 5 ($2500/$500). 2 people would own 2 shares and the other 1 share.
New releases (blocks) will be available and we can jump on board as we see fit. No pressure, no obligation and who knows where we can take it.
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As expected some years will be great and some not so but in saying that the formula is following a $1000 investment and with more invested more can be gained. With some short term 10x gains or more this again could affect the outcome significantly.
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The disclaimer is that you will be broke and end up drinking cold coffee from someones discarded MacDonalds cup under a bridge in Footscray dreaming of days when you were able to shower.
Put in only what you you can be without.
The Formula
The formula is simple. Crypto currency has on average across all coins/tokens, grown by 230% year on year. Based on that if you invest $1000 and that average continued to compound this is what it looks like.
Based on Year on Year growth of 230%
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Initial 0 $ 1,000
Year 1 $ 2,300
Year 2 $ 5,290
Year 3 $ 12,167
Year 4 $ 27,984
Year 5 $ 64,363
Year 6 $ 148,035
Year 7 $ 340,482
Year 8 $ 731,109
Year 9 $1,801,152
Year 10 $4,142,651
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Past performance is not an indicator of future performance, it's the only yardstick however and it's a fair formula.
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I'll setup a private log in page for those invested to track the portfolio as it grows.
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As investments grow there will be reclaiming of initial investment from profits to reinvest.
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The Goal
The goal will always be to take opportunities on ALT coins (smaller coins on the up) and transfer these profits into stable coins like Bitcoin, Etherium, Polkadot, Cardano and the like.
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Bitcoin/Etherium is the new gold and will ultimately be what we will be buying with our profits while holding some back to reinvest into more upcoming ALT coins while taking of advantage of pre release coin offerings (ICO). They are quite hard to break into these offerings and the investment level is often capped quite low ($200) however the growth is amazing.
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The last one I saw was AIOZ which saw $200 grow into $23,466 in a little over 1 week. There are so many start ups happening and I am finding out the lists daily.
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At the end of the day is is a bit of fun and I firmly believe that its more enjoyable to do these things in a syndicate. I won't be buying anything from just hearsay and will do my due diligence before any purchase.
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Withdrawal process:
You: I wanna withdraw
Me: You sure?
You: Yeah
Me: Really?
You: Really
Me: Subtracts tax and deposits into your account
You: Sweet
Cool story bro...
Did you know that May 22nd is called Bitcoin pizza day?
May 22, 2010
The programmer Laszlo Hanyecz has become well known in crypto circles after trading 10,000 bitcoins for two Papa John's pizzas on May 22, 2010. The date is now celebrated in the crypto calendar as "Bitcoin Pizza Day."
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Based on the value of Bitcoin as at 13 April 2021 (approx 11 years later), the value of his Bitcoin he spent would now be worth $601,216,400. I love pizza but there is no pizza worth 600 million bucks. Ahh hindsight...
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