One of our newer members “Dogtrainer” from the USA asked a very good question in the forum yesterday. He said:
“With what’s happening, is it safer to have money in your trading account than your bank? Sounds like Banks may try at some point to take advantage of your funds.”
My reply: good question. I wouldn’t put it in a brokerage account until you have more experience and even then don’t put large amounts in. Do not think of that account being safer than banks.
Banks could well be an issue in the coming months when the focus of governments shift to paying for the COVID crisis.
In 1933 to help pay their way out of debt after the great depression the US government forced citizens to sell their gold back to the Federal Reserve under Executive Order 6102. Failure to pay was a criminal offence with the threat of a $10.000 fine or up to 5 years in jail. Many people who had their gold hidden under the bed, took the risk and avoided being screwed by the government, but it was risky.
After the Federal reserve took possession at the forced sales price of $20.67 per troy ounce, they subsequently raised the price to $35 giving themselves a huge profit in the process. Banks and governments are in each other’s pockets and therefore having gold stored anywhere that they can get their hands on it is risky. There is a school of thought now amongst many experienced gold investors that it is better to have your bullion in a different country, thereby making it even harder for your government to get their hands on it.
Couldn’t happen today? In 2013 EU member Cyprus got itself into major financial difficulty after gambling and losing on Greek debt. The EU refused to bail them out unless they did the following: People in Cyprus with less than 100,000 euros in their accounts were initially told that they had to pay a one-time tax of 6.75%, which was to be deducted automatically from their bank accounts, no discussion. This was despite the fact that under EU law deposits of less than €100,000 are guaranteed! They tried to get around the law by giving shares in (a soon to be bankrupt) Cypriot bank.
Those with over €100,000 had up to 47.5% of their cash stolen!
In the UK in a previous crisis the then government seriously considered a “windfall tax” – they all have such cool names. its THEFT! or “taking over” private pension pots which had billions of GBP sat in them.
I have had similar concerns to ‘Dogtrainer’ about my own savings since the COVID-19 pandemic caused an economic crisis practically worldwide. To be honest, I have had these concerns long before COVID-19. Previously, I have invested my money into Property, Shares and Gold, however, I am now investing in cryptocurrencies.
I missed the Bitcoin boom and bust in 2017. In truth, I didn’t really understand it, but now I do and this time it will be different as the “big boys” pile in. Companies such as Microsoft and Expedia, among 100,000’s of others are now accepting crypto as a form of payment. I am convinced that it is going mainstream and it has the potential to make serious money for those who get in over the next few months.
The key to this is the number of banks, finance houses, funds, governments, health providers, insurance, energy, travel &gaming companies that are investing in blockchains. To use them you need cryptocurrencies.
Image source: www.101blockchains.com
I have been actively researching it for over a year and investing since January of this year. My personal portfolio is currently + 61% today. I created a 2nd portfolio in May for investors to follow, that is currently +35%.
I am convinced that blockchain technology (a decentralized technology that is spread across many computers and manages transactions) will revolutionise the way business functions going forwards (almost as big an impact as the internet). A lot of wealthy investors will be looking at Bitcoin and some of the other coins to get their money away from the thieves!
There are risks when investing in Crypto, so it’s important to take the correct steps to ensure that your accounts are safely set up and that you aren’t investing more than you can afford to lose. Do not rush off and pile in. You need to be very careful how, where and when you buy and even more important where to store it. Particularly now with the US elections coming up.
I am hosting a free webinar about cryptocurrencies and blockchains in a few weeks time. This will be separate to FMP as I do NOT trade it with leverage as it’s way too volatile. Ignore the hype from marketers about trading it, you have a good chance of losing your shirt if you trade it. However, I am invested in it & I have recommended family & friends to get involved.
I have over 20 crypto coins in my portfolio. I expect Bitcoin to double but some of the others could go to the moon!
One of the coins in 2017/2018, had you invested $100 went to $850,000 in a few months, I kid you not!!! Out of the 20 coins I am currently invested in, I am looking for just one of those and I feel that I have 2 or 3 that could well do so.
All will be explained in the webinar!
You can register for the webinar at my new website here:
Beware Your Governments Looking to Steal Your Money