Never in the history of humanity has there been such an asymmetric gamble as the one we are presented with today with cryptocurrencies. Obviously, not all cryptocurrencies are the same, but there are a few that will completely replace our way of understanding money:
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” — Henry Ford
This Sunday, I closed private subscriptions. From now on, I will send a (very) profitable investment strategy or tip every week to make sure that never again the central banks can keep laughing at you and making your shopping cart worth more and more every day due to inflation caused by the biggest money printing in history.
FIRE-R
The FI RE concept was born in the USA during 2015–2016. Once the 2008 crisis had been mostly overcome by the great effort of the FED and the ECB printing bills non-stop, a new concept was born, FIRE or what is the same Financial Independence Retire Early. It was a concept that was easily applicable, rates were growing at 7% on average, and inflation was only 2%. But this concept is not valid today when we have 10% inflation, and the S&P 500 has lost 15% so far this year.
Today I want to introduce to all of you the FIRE-R concept, or Financial Independence Retire Early & Rich. It is a concept that is accessible to those who know how to adopt early a new revolution such as cryptocurrencies.
Amazon has replaced physical stores, Netflix has replaced video stores, and LinkedIn has replaced recruiting companies,…
…and there is no doubt that decentralized finance will change our banking institutions, which are slowly leading us to a world full of debt.
Why? Software native companies were faster, cheaper, and better for users. To Godfather Investor, it was only a matter of time before every industry was eaten by software.
DeFi enables software economics for financial services. This is something that traditional banks and FinTechs cannot achieve because they continue to be built on antiquated rails.
Very profitable strategy with Ethereum
Today I am going to present one of the strategies I use with ETH, which is giving me better returns. Not to mention the possible revaluation of the token that is estimated to reach $100k in 2030 once the Merge is completed.
In addition, this strategy distributes dividends daily.
There is less and less time left for the famous Merge, a step from POW to POS. From that moment, Ethereum will become the most profitable cryptocurrency in the world and one of the least energy consuming.
The brightest minds in the world are working on this project, and although it is still unknown when the go-live will be, we already have several milestones successfully completed.
A large position in my portfolio is in ETH, well, not ETH specifically but stETH.
stETH is a token that represents staked ether in Lido, combining the value of the initial deposit + staking rewards. stETH tokens are minted upon deposit and burned when redeemed. stETH token balances are pegged 1:1 to the ethers that are staked by Lido. stETH token’s balances are updated when the oracle reports change in total stake daily.
Therefore, for every existing stETH, there is one ETH behind it. However, the official conversion is not 1:1. Why? Because the market has bought into the belief that anything that has a peg to another derivative is not backed, as is the case with Luna and its algorithmic currency, UST.
Therefore, what I have done, has been to buy a lot of stETH during the fall with a discount that reached 7%.
This exchange rebate is already disappearing, and now you can only buy with a 2.5% discount.
Of course, if you have a long-term vision and your goal, like mine, is to float ETHs, it is undoubtedly one of the best alternatives you can take.
Without going any further, if the price of ETH reaches $10k five years from now (in case the Merge happens, quite affordable). We are talking that $10k invested today would become +$105k, or what amounts to a 60% annualized return.
Very few assets today are so asymmetric.
