Are Your Dollars Ever Worth Double the Next Day?
What a time to be a worker…
A request landed in the inbox of one of my social media accounts. It was an influencer looking for help writing a long thread for a particular project that had contracted him to extoll the virtues of their crypto-based product.
He dumped a bunch of info onto me and asked me to read through it all and fashion a thread—basically, a long tweet—explaining in simple language and in his writing style the bullish rationale for this cryptocurrency.
I did so.
A few hours later, I had completed the task, and he poured into my crypto wallet some of the tokens that project had paid him.
At the moment they landed, they were worth about $3,000.
I didn’t sell them immediately. I was in the midst of apartment hunting here in Lisbon, and I had a couple of real-world deadlines to manage. I simply checked that the tokens had arrived, and I moved on with life.
Two days later, I opened my wallet to find…
More than $6,700.
Those tokens had more than doubled in value in 48 hours.
I know of no other space in the world where your paycheck can double in value in the span of a few days. I mean, sure, you could take your paycheck down to the local mini-mart and load up on lottery scratchers and hope for the best. But to have the value of your paycheck surge when you did nothing but let the money sit in your wallet… well, nowhere else can that happen outside of crypto.
Now to be clear, today’s dispatch isn’t aimed at encouraging you to go find a job that pays you in crypto.
It’s about the opportunity crypto represents.
Frankly, anyone who bought the crypto I earned would have benefited from the same price move. My payment represents nothing special. I didn’t get discounted tokens or anything like that. I was simply given tokens in lieu of cash—my preferred method of payment when I’m working for crypto projects.
Sure, earning dollars is great. But crypto payments are, to me, magnitudes better because of the appreciation potential.
I have an acquaintance who I cannot mention by name who gets paid in crypto all the time. Last month, this acquaintance did a bit of work for a crypto project and was given a fractional percentage of the company’s token supply. It was worth about $12,000 at the time of payment.
Less than a month later it was worth…
Honestly, sit down for this, or grab onto something sturdy…
It was worth $600,000.
In a month.
My acquaintance cashed out about $45,000, roughly 4x his original paycheck, and let the rest continue to grow.
Writing these crypto dispatches is a challenge for me because the numbers I throw around make me feel like I’m pitching snake-oil at a backwoods carnival.
I know how those numbers look… “$12k to $600k in a month? Come on, El Jefe—you really gotta stop with the peyote!”
Alas, the data is all accurate.
Crypto is one of the most unique asset classes the world has ever known. It’s propelled by hype, eagerness, jealousy, reality, dreams, opportunity, past moon-shots… and excitement for companies working on projects that are literally changing the world around us by the day.
There’s a reason BlackRock, Fidelity, and other financial giants have launched crypto-centric investment funds. There’s a reason Norway’s Sovereign Wealth Fund has recently loaded up on five stocks that are a pure play on the growth of bitcoin and crypto. There’s a reason companies all over the world are diving into crypto.
Opportunity.
I’ll go a step further and call it one of the greatest opportunities investors have ever seen.
I know crypto can be a challenging concept to wrap your head around. I know the lingo can be perplexing and intimidating. I know the processes of using crypto wallets and moving crypto around can be confusing and frustrating.
I get it because I lived it.
I did not fly into crypto.
I baby-walked into it. And I made my mistakes along the way.
But I am grateful for those mistakes.
They mean I survived the learning curve and I’m now in a position where I can go off and write about crypto for some project and get paid in crypto… And watch my paycheck double in a couple of days through no effort—in fact, from personal laziness that meant I didn’t immediately sell the crypto I earned.
This is why I am so eager for others to learn about crypto. Particularly those in my age bracket—Gen X, and the boomers above me. I know a lot of us haven’t managed to build the nest egg we wanted because of family, kids, divorce, stock and housing market crashes, the crazy cost of this American life… and we’re looking at retirement with a certain dread.
And along comes crypto…
Yes, it’s risky…
Yes, it’s volatile…
But if you make your peace with those truths, and you understand that you are buying for the society-altering growth that crypto is ushering in… then owning the world’s leading cryptocurrencies today means a far greater chance at generating wealth than does the same dollar amount of any blue-chip stock.
As I’ve said before, more than 20% of my wealth is in crypto. That’s probably too much for most people. But 5% certainly isn’t. A well-balanced stock portfolio focused on income kicks off a dividend yield of about 5% per year.
If I’m wrong about my crypto thesis, then, at worst, you’ve lost a single year’s dividend stream.
And if I’m right…
You’ll tell your children to name your grandchildren after me.
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