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Dear Readers,

Have you asked yourself whether there is any substance to the hype?

Right now, the hottest market right now isn’t AI (so 2024) but crypto. Anything to do with it directly or indirectly is receiving wall to wall coverage everywhere.

I’m talking about bitcoin, stablecoins, and tokenization.

And now – we have ‘Project Crypto’. Take a look.
Source – Fortune

From the above article:

On Thursday, Securities and Exchange Commission chair Paul Atkins delivered an address signalling a new era for the top regulator. After the SEC spent years combating the blockchain industry through enforcement actions, the newly appointed Atkins announced an initiative dubbed “Project Crypto” that will turn the U.S. into the “crypto capital of the world.”

Geez, everyone has a project going on now.

I do need to point out the significance here. Former SEC chairman Gary Gensler was a noted fierce critic of the crypto industry. So, he has been replaced by Paul Atkins, a noted supporter of both the industry and crucially Trump’s vision for it.

Suffice to say, such announcements always see a torrent of money flow in.

Some of that money was to support Trump’s re-election campaign, but I’m sure that’s all just a happy coincidence.

In his Thursday address, Atkins laid out a series of priorities for SEC staff, including drafting “clear and simple rules of the road” for different crypto behaviour, including custody and trading, as well as allowing intermediaries like exchanges to become “super-apps” that offer a broad range of services.

You can almost feel the FOMO boiling up from the crowd now. Seems like everyone wants in on this now. You can’t afford to miss out.

And so, dear reader, I ask you in simple terms. As this is where the rubber is supposed to really hit the road, my question to you is this.

Is there any substance to the hype?

The madness of crowds.

What do I mean? Well, I’ve been thinking about this since AI really burst onto the scene last year, making many early investors in some of the most hyped companies very wealthy indeed.

Only to see a lot of that wealth disappear again. Why? Because the hype was quickly replaced with reality. Not only were almost all these AI companies’ years away from actually turning a profit.

But they would have to raise money from markets and invest in capital intensive rollouts of data centers. And crucially, find or secure the power to run them.
Source – Utilitydive

So, I asked myself – why would this be any different for crypto?

Turns out – it isn’t any different.
Source – globalelectricity

You may have the opinion that in order to realize such a glorious digital future we as a society must be prepared to accept the latent cost to build it.

If we all have to pay a little more for electricity, then it’s worth it.

The problem is: it isn’t a fair playing field.
Source – earthjustice
If earth justice research is right, crypto miners in the US have increased electricity rates for consumers, while at the same time been granted subsidies and discounts themselves.

So, if crypto mining simply can’t function profitably unless it is heavily subsidized, and serious doubts have now been raised about the electrical base load of the US being unable to meet the many demands placed on it, is there any substance to the hype?

And yet, FOMO means the crowd simply has never even bothered to ask.

What happens if there isn’t enough power for Project Crypto? What happens when demand disappears to the price of cryptos.

What happens when, at the same time, the US falls into a land-price-led recession?

I want you to be safe. Now is not the time to follow the crowds. The hype surrounding this…is not stacking up to reality. Instead, you need to learn about time, and how it can help you both profit and protect yourself.

Learn that timing here via membership to the Boom Bust Bulletin (BBB). Let the BBB guide you on the inherent timing of the economy only knowledge of the land market can give you.

Each month this history and knowledge will be yours via monthly written editions and video postcards that will help explain the real estate cycle like never before.

It is the wrong time to be going all-in on any asset market, not just ones exposed to crypto.

History taught me this. Because history does repeat and repeats on time.

You might be interested to know about the prior career of new SEC chair Paul Atkins.

He did indeed work for the SEC as a commissioner. From 2002 to 2008. A time when Wall Street’s megafirms and politically favoured companies were protected while investors were left to protect themselves
Don’t say that history didn’t warn you.

Sign up now.
Best wishes,
Darren J Wilson
and your Property Sharemarket Economics Team

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This content is not personal or general advice. If you are in doubt as to how to apply or even should be applying the content in this document to your own personal situation, we recommend you seek professional financial advice. Feel free to forward this email to any other person whom you think should read it.