Crypto Profits with Stock Market Risk?

Could you trust a scammer to warn you of a scam?

The notorious Jordan Belfort, portrayed by Leonardo DiCaprio in Wolf of Wall Street, has called cryptocurrency initial coin offerings (ICOs) ‘the biggest scam ever’ this week.

In an interview with The Financial Times, Belfort claimed that ‘Promoters [of ICOs] are perpetuating a massive scam of the highest order on everyone.’ He said that (excusing his typical language), ‘Probably 85 per cent of people out there don’t have bad intentions, but the problem is, if five or 10 per cent are trying to scam you, it’s a f**king disaster.

Belfort’s fear is that scammers are using typical pump and dump tactics. They generate hype, restrict supply, release some of the cryptocurrency to the market, wait for the price to spike, and then sell their own holdings and walk away. Leaving investors holding a worthless crypto.

Leave aside for a moment the irony of this warning coming from someone who pled guilty to exactly the same scam on the stock market. The fact is, the crypto world is still the Wild West. Poorly regulated, poorly understood, underexplored. Yes, there is massive potential for profits here. But there’s also massive potential danger.

That’s partly why the likes of Ryan Dinse and Sam Volkering have focused so much on cryptocurrencies this year. To act as a guide to avoiding the dangers and hunting out the potential profits in this volatile new market.

But while cryptocurrencies remain chaotic and unpredictable, one of Ryan’s most exciting discoveries this year is much less so. And it’s related to the same research into cryptocurrencies that has been consuming so much of his time this year. But it’s not about cryptocurrencies themselves.

It’s about the tech behind cryptocurrencies. The blockchain.

If Ryan is right, blockchain technology has the potential to transform how information is shared. Person to person, business to business, government to government, and every combination thereof. It could revolutionise secure information sharing. It could apply to almost every industry around the world.

He believes we could be looking at the kind of leap forward that we saw from the rise of the internet. Or computing…even the transformation the automobiles wrought.

Best of all, Ryan has found a group of stocks that he believes are in at the ground floor, to ride this revolution to the top. He argues these companies could be looking at gains on the same scale as the rise of cryptocurrencies like bitcoin. But in the relatively tamer and better-regulated world of the stock market.

The best of both worlds. Crypto gains, with stock market risks. Can it be possible? Check out Ryan’s argument here, and decide for yourself. 

This week in Money Morning

Ryan started the week with a focus on the breaking new opportunity in blockchain tech that he’s been researching for the last three months. He believes that this technology behind the rise of cryptocurrencies could ultimately be bigger than crypto itself. Blockchain tech has the potential to revolutionise far more industries than just finance. It could change how information is shared and used in every industry on Earth.

Ryan’s timing couldn’t be better. As he explained in Money Morning on Monday, this story is starting to play out right now. Early movers have a chance to get in on the ground floor. But that chance won’t last long. Read more in Monday’s article, here.

His new special report on this opportunity was released Tuesday, even as some of the stocks involved began to surge. You can read Ryan’s take on these first fast-moving companies in Tuesday’s Money Morning, here. And find out more about his research into the ‘Blockchain Collision’ here.

Australia has been rather left behind as global stock markets have boomed lately. And as Ryan wrote on Wednesday, it’s not hard to see why. Our market is heavily weighted to mining stocks and the banks. The mining sector is unlikely to make huge gains, unless a new resources boom kicks off overnight. And for the banks to drive our market to new heights, housing prices would have to repeat the already-astronomical growth of the last decade.

But Ryan argued on Wednesday that the outlook isn’t as grim as it seems. The lucky country’s luck could hold into 2018. Ryan looked at a key indicator that could tell you if that’s the case. To read about what it is and why you should keep an eye on it, check out Wednesday’s Money Morning here.

On Thursday Ryan took a look at some of the reasons why banking giant Goldman Sachs might not be so keen on banking anymore. The recovery from the 2008 financial crisis and the subsequent regulatory climate may have taken some of the spring out of their step, but Ryan suggests there might be other reasons too. Financial technology is moving at such a blistering pace, and cryptocurrencies are showing us what a world without banks might look like. So it could be that the banks are realising this is the beginning of the end. Find out more here.

Ryan closed out the week with a look at what is potentially one of the most undervalued commodities on the market right now. Apart from its applications as a steel alloy, zinc has a number of uses in what will likely be the growth industries over the coming years, from big data to artificial intelligence. Find out how you could potentially turn this to your advantage, here.

Until next week,

Tyler Jefferson,
Editor, Money Weekend

Tyler Jefferson joined Fat Tail Investment Research in 2012. With a background in publishing, he started out as part of the team working behind the scenes with your Editors to bring you Money Morning each day.

When he joined, Tyler was Fat Tail Investment Research’s 12th employee. Today that number has grown to over 50, as more and more readers turn to Money Morning as their source for independent financial analysis and ideas.

Today as Managing Editor, Tyler still edits the articles you read each day. Along with that, he occasionally contributes to Money Morning with his own irreverent take on the most interesting news and opportunities for you.

Money Morning Australia