I would like to dig into the truth about the headlines about George Soros and the Rockefellers getting into crypto and no, Rock-a-fellah is not the thing you do when your new born baby son won't go to sleep at night.
On a serious note though, who exactly are the Rockefellers and George Soros? Well, whenever we're talking about cryptocurrency and we use phrases like, "the global elite", "the one percent", "the powers that be", "the banking families" you know, those types of phrases, these are the people we're talking about. These are the people and families with vast amounts of wealth and therefor vast amounts of power.
Now George Soros actually happens to be a self-made billionaire, so he made his fortune in a single lifetime, starting from nothing. He actually survived the German Nazis who invaded Hungary and he fled to England in 1947, after which he started a couple of hedge funds and became a billionaire.
He did so by applying Karl Popper's general theory of reflexivity to financial markets. That's the general theory of reflexivity, not Einsteins theory of relativity. Different thing. Anyway, George Soros, after giving away $18 billion dollars of his wealth to various causes, his net worth today sits about $8 billion dollars and George Soros is also famous for doing a short sell on the British Pound to the tune of $10 billion dollars and he did so, just prior to the 1992 Black Wednesday currency crisis in the UK, of which he made a profit of $1 billion dollars in a single day, so he's kind of famous for that. The Rockefellers however, are what you call generational wealth, which has been passed down from originally John D. Rockefeller who established Standard Oil way back in 1870, and he built a net worth of $400 billion dollars.
That's the figure recorded by Forbes if you adjust his wealth for inflation from 1913 figures to today's money. And the Rockefeller family is also well known for having a controlling stake in Chase Manhattan Bank. So that's roughly who we're dealing with here which was mentioned in the beginning. When we refer to these people in the category of the elites, well, we use that as a general term to kind of group a bunch of people together that are dead against cryptocurrencies, that's kind of the way we talk about it. And we say this on the basis that, they've made vast amounts of wealth by playing the game and they're probably not in support of the idea of completely changing the rules which is what we're proposing to do with cryptocurrencies, that could be a scary thought to them. So how exactly are these folks getting involved in cryptocurrencies.
The way it's being reported in the headlines, because it's designed to get attention, it's almost as if George Soros gets involved in crypto, it's almost like George Soros himself opened up a CoinJolt account with his debit card, and we can guarantee you that's not what he has done and not what he will do, by the way George if you are reading this, and you do decide to setup a Coin Jolt account, we would very much appreciate it if you would use my referral link, thanks mate.
So I draw your attention to this because I want to point attention squarely at why and when these big whales chosen to get involved, do you not thinking the timing is a bit coincidental, after an 80% market crash. So though you also think that these people would have positioned themselves in the markets before making their involvement public, just asking.
They know that they are brand names and they know they're well known in the investing world, and they know that the average joe is heavily influenced by such authority figures, so if the average joe sees a big name like George Soros getting involved in cryptocurrency trading, well that gives crypto a certain amount of legitimacy in their eyes, and it gives the average person confidence to get involved as well, because they figure if George Soros is sticking his money in there, well crypto is not going anywhere right.
Now we actually think these big whales are counting on this phenomenon, there's this Bloomberg article and it says that, "Adam Fisher from Soros Fund Management, he's been given approval to trade virtual currencies in the last few months."
So this is what he means when the headlines are saying that George Soros is starting to invest in cryptocurrencies, not directly, he's just giving his fund manager folks the authorization to start trading cryptos and he says that in the last few months. So it's happened long before it's hit the headlines. Now we happen to believe that these people are not only master analysts of financial markets, we also believe they are master strategists, so that's why we're suggesting the timing of this whole thing is not an accident right. Now the article says, quote, "people familiar with the matter said that no trades have been made yet."
However the official spokesman declined to comment. The bottom line though is that the trading activities of these whales isn't going to show up on the volume charts right, because these people are not going to use the mainstream exchanges that you and I look at, these guys are going to trade on an institutional level like via the futures markets or they're going to buy and sell Bitcoin like OTC over-the-counter or rather what we call under the table.
So that's George Soros in a nutshell and his involvement, what about the Rockefellers though. Well they're taking a very different approach to this right, George Soros, he's given his investment company permission to start trading cryptos while the Rockefellers involvement so far focused on Venrock which is a venture capital company that makes investments in businesses and startups right.
Now Venrock made some early investments in like Intel and Appel which I'm sure they did very well out of and it can be argued that traders don't really add any value and traders can be destructive. They can be destructive by short selling stuff whereas venture capital and this is not absolute, but venture capitalism is more constructive because they're building stuff right, they're helping new startups get their ideas off the ground. That's why we call it constructive.
Now Verock have partnered up with a cryptocurrency research group called Coinfund based in Brooklyn, New York. Now Coinfund, they're gonna help Venrock invest their money in like promising new ideas in the cryptocurrency space in businesses that basically want to build on top of blockchain technology. What's interesting here is this guy David Pakman who's a partner in this Venrock, he broke the news to Fortune magazine, when he broke the news he said, he's not interested in investing in short-term profits like speculating for short-term gains which he's thinking more long-term which is typically when you want to do a long term venture capital play, you know it may be 3-5 years or maybe more before you look to get your return on investment, 3-5 years because technology companies generally if they're successful grow really quickly and especially crypto companies, they grow real quickly if they're successful.
Now this Coinfund organization has been around since 2015 and they've backed a number of other projects such as the Kik ICO if you remember that one which was that new kind of chat app, you know you can talk to bots and get involved in conversations and stuff like that and another project they've backed is this younow livestream service which has now expanded into crypto via the PROPS project.
And then more recently they've backed Coinlist which helps companies launch ICOs that comply with regulations so that makes that a good source for investors since anything that appears on there will have been vetted right, will already have passed regulatory scrutiny. So to sum this up, when you first hear about these stories, you think these big whales that would make power moves in the crypto space to put them in control that was the lens we began with and it's always good to challenge those lenses right. Now it's hard to see the Rockefellers move through that lens despite our conditioning.
The Coinfund organization, they seem to have their head screwed on, they seem squarely focused on building a freer world, so let's hope they can stay on course in that regards. George Soros though, his movements look more like what you would expect right, now they did, Soros Fund Management invested in Overstock.com which was one of the first online stores to accept crypto as payment but in our eyes that's not very significant.
So also bear in mind that this is only one round of news so we're still going to have to reserve judgement on the overall view of this, it does tell us that people like George Soros they know that the markets are full of people who know very little about financial markets and full of people who have very little control over their emotions when it comes to money so it's inexperience, these are professional fund managers so what that means is, all they have to do is like knock over the first domino and the rest of the process kind of takes care of itself just because human behavior is so predictable right.
If the likes of George Soros can dip the price, well the market panics, people sell, the smart money buys and people rush back in again and the process repeats itself and that's generally how wealth is transferred from the masses to the elites and also each time around that cycle, well the wealth gap just gets a little big bigger right, the wealthier get a little bit more of the pie and quite frankly this is why we decided to dedicate our time educating and helping new investors achieve their financial wealth with our managed cryptocurrency portfolio.
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November 14, 2018
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November 06, 2018