BlackRock enters the tokenization sector! The Next Big thing in AI!
Earning passive income through Crypto.
🚀Dear Valued Subscribers,
Welcome to another exciting week filled with compelling topics and investment insights. In this newsletter, we're delving into key areas that have been making waves in various markets. Here's a sneak peek into the topics we'll be exploring:
BlackRock Enters The Tokenization Sector In Crypto
Blockchain Innovation Is Going Mainstream!
Earning Passive Income and Rewards From Crypto
Following The AI Trail… The Next Big Thing!
New Tax Bill That Includes 100% Tax Depreciation
So folks, enjoy and take notes as we dive into the materials for this week's newsletter!
BlackRock Enters The Tokenization Space…What This Means For The Crypto Bull Market
What Is Tokenization?
Tokenization is a sector within crypto that I have personally been VERY bullish on for some time now. Tokenization refers to the digitizing of ‘Real World Assets (RWA)’ which can range from client portfolios, real estate, or even luxury items like cars, paintings, collectables, you name it!
Physical items can now be “tokenized” and put on the blockchain. Let’s say for example that I had a luxury painting worth about $100,000. I could now digitally represent this on the blockchain. The painting's value would now be represented by its tokens, and I could sell fractional shares of this painting on the blockchain.
This is just one example, but will completely create new markets around almost everything in society today. It will allow more people to participate in markets as well. Think about it… most people can’t afford a $100,000 painting. However, if they believed it was a great investment, they could now buy fractional shares of that painting, and have partial ownership in it.
There’s untapped potential in this sector, and BlackRock seems to have taken notice of this. They have now entered the space, and here’s everything we know…
BlackRock’s Entry Into Tokenization…
In recent news it was announced that BlackRock was creating a $100 million Tokenization fund on the Ethereum Network. This sent shock waves through the crypto markets, and left many people speculating on what would come next. It’s important to note that BlackRock isn’t the first major institution to step into this space, as Citi, JPMorgan, and Franklin Templeton have been experimenting with this technology. Nonetheless it is still VERY significant, as they are probably the biggest player that could have entered this space right now. Here’s what we know about their move into tokenization…
BlackRock launched the “BlackRock USD institutional Digital Liquidity Fund” which is represented by the $BUIDL token on the blockchain. This fund is 100% backed in cash, T-Bills, and repurchase agreements. According to their press release, they will be yielding payouts via blockchain rails to all of their token holders every day.
While it’s unclear at this moment what this initial move will evolve into, here’s what we believe will happen next…
The BlackRock Effect
In the initial leg of the crypto move up, we saw gaming coins BOOM in prices, as there were a lot of bullish fundamentals for gaming coins at that time. Then in the push to all-time highs, we saw AI coins going parabolic. This in large was due to the MAJOR boom in AI that we’ve seen in the stock market, with stocks like NVDA and SMCI, to name a few.
In the next leg up of this bull market, which will take Bitcoin into price discovery, we believe that Tokenization projects will be the altcoin sector that pops. Thus, right now buying Tokenization projects could be like buying AI coins 3 months ago…
It is likely that BlackRock’s moves will cause a wave of new investor money into this sector, so it’s vitally important to act before it’s too late!
Blockchain Innovation Becoming Mainstream: What You Need To Know About Ethereum Name Service (ENS)
What Is ENS?
Ethereum Name Service (ENS) is one of my favorite cryptos that I called out months ago on my Crypto Trends Podcast. When it comes to mainstream adoption of cryptocurrency, one of the biggest hurdles has always been making it easier for your average person to use. This is especially true of sending and receiving crypto, which is ALWAYS something that newcomers are VERY confused by.
Ethereum Name Service has set out to solve this issue, and may have cracked the code on how to do so. Traditionally, when you send or receive crypto, you have to copy and paste a long hash code which represents the wallet you are transacting with. The problem is, if you send the wrong address, or mess it up in any way, all the funds you sent will be permanently lost… that is until ENS comes around.
ENS enables you to convert your wallet addresses into simple usernames, such as “RobertWallet” which will allow people to easily save your address, and locate it for future transactions. Now there is no need to stress about these super long hash codes, and this is a MAJOR breakthrough in making this technology go mainstream…
Major Development For ENS Tech
In recent news, it was found that ENS was quietly (without an announcement) added to Google search. This news not only came as a surprise to many crypto advocates, but to ENS developers as they hadn’t been informed by Google that this would happen…
The surprise is a GREAT one, as this shows the mainstream adoption that is happening for crypto right now. We already have MAJOR institutions like BlackRock, JPMorgan, and Franklin Templeton experimenting with the technology, and now we have MAJOR corporations such as Google making moves with this technology…
My Takeaway
My KEY takeaway is that this technology is finally ready to go mainstream. For years I have been in this space, and while I knew that crypto would eventually go mainstream there always seemed like major hurdles that needed to be covered before doing so. I can confidently say that MOST of these hurdles have been addressed, and the technology finally seems ready to be adopted by the masses.
This will pave the way for great investment opportunities, such as ENS which is up nearly 300% in a few months since purchasing. That’s why it’s VITALLY important to consider researching projects that solve real world issues when conducting your research into new investment opportunities in crypto!
How To Earn Passive Income + Rewards In Crypto
When it comes to earning in the cryptosphere, most people associate gains by holding coins through their volatile upswings. While it may seem extremely risky to outsiders, there are strategies we use to position ourselves in the market before the big move occurs. If you are less risk averse, but still want to benefit from what crypto has to offer without worrying about its volatility, staking and yield farming may be for you…
Staking Vs. Yield Farming
Let’s start off by looking at staking.
Staking: Simply put, staking is a mechanism for earning passive income on your crypto holdings. Many staking platforms offer 6,7, even 8% APY on your holdings. Simply put, staking is the practice of locking your cryptocurrency to its native blockchain for an extended period of time. When doing so, not only do you receive the gains that your tokens gain when the price goes up, but you are also earning additional interest on your holdings. Conversely, if the value of your tokens is going down, you are still earning passive income on your holdings. If you are planning to hold long-term, this may be something that you should consider.
Yield Farming: Yield farming involves lending or providing liquidity to decentralized finance (DeFi) protocols in exchange for rewards, which typically come in the form of additional tokens or a share of transaction fees. It’s important to note that unlike staking, Yield farming is considered to be riskier, as there are risks of impermanent losses. While this is rare, there have been many instances in which specific DeFi protocol’s have failed. As with most things that come with higher risks, the reward potential is much higher than staking.
My Thoughts:
If you are someone who believes in crypto, and is holding for the long-haul (and less concerned with taking profits in the short-term), staking is something that could be perfect for you. Think of staking the crypto you don’t plan on touching like holding your savings in a high-yield savings account.
On the other hand, if you really want to learn how to navigate the blockchain ecosystem and earn rewards for doing so, yield farming is something you should consider!
I’m always looking for new ways to make money from emerging technology, and will always share anything I find with you all in this newsletter. I will continue to study the blockchain ecosystems, so I can keep you all informed on the best opportunities in crypto!
The Next Big Thing In A.I… 3 Crypto AI Juggernauts Combine Forces
As we’ve seen in the stock market since the end of 2022, AI has been the driving force behind the top performing investments over the last year and a half or so. While many people believe that the potential for gains is topping out, there are many reasons why I don’t believe that this is true. While the stock market surge may have less potential from its current levels, a crypto bull market has just begun, and one of the top sectors within crypto has been crypto AI companies.
Three of my biggest crypto AI callouts thus far have been Fetch AI, SingularityNet, and Ocean Protocol, and are up hundreds of percent since I called them out in 2022. These three companies have done exceedingly well in the bull market thus far which can be attributed to their superior technology.
As of last week, these three companies announced that they would be merging into one, and converting into “Artificial Super Intelligence (ASI).”
Currently, the combined market cap of all three companies is $4.8 billion, which to me shows just how early we are in its market cycle. If a coin like DOGE could get to $40 billion in market cap last cycle, there’s little reason to think that three of the largest AI companies in crypto combining forces couldn’t do the same…
If you’ve been following my AI plays since 2022, you’ve been making an absolute killing… If you’d like to continue doing so, I’d highly recommend researching the merger of these three companies, and analyzing for yourself whether you think it’s going to be as big as I think it's going to be!
New Tax Bill Includes 100% Tax Depreciation… Here’s What You Need To Know!
In recent news, a new act was passed called the “Tax Relief for American Families and Workers Act of 2024.” This act covers a lot of ground, but here’s what you need to know about it…
The new act includes 100% bonus depreciation as well as research and development expensing and also expands the Child Tax Credit. Additionally, the act also expands the small-business expensing cap, which increases the amount of investment that a small business can write off to $1.29 million. Previously, this was capped at $1 million dollars.
For small to medium sized business owners, this act should be seen as big news, as it will enable them to invest more into their companies as they can write off more of their expenses.
These tax changes combined with Fed rate cuts should bode well for economic growth in 2024 and 2025. Even though there hasn’t been much chatter about this new Act, it’s important to be aware of, especially if you are a business owner…
Thank you for following along with the Money Mindset Community!!