Update - October 13, 2020
Nailed It: Our First Crypto Play Surged 40% in Two Weeks
Our Modern Asset Portfolio is hardly a few weeks old and is already paying off.
The first entry – the cryptocurrency known as Monero (XMR) – is surging this week.
At its highs yesterday, the ultra-private form of digital money was up by more than 15%. That means our gain since getting in just two weeks ago was as high as 40%.
Very nice.
The situation is playing out just as I thought it would.
In this month’s issue, I wrote that “Monero is different.”
“Every transfer is encrypted,” I said. “The receiving and sending addresses are entirely private, as is the amount being sent.
“That is what makes the coin a standout in the crypto world… and will entitle it to a growing price premium as financial security and privacy become bigger and bigger areas of concern.”
Perfectly on cue, Monero surged yesterday as privacy became a very big area of concern.
DOJ vs. Privacy
That’s because the fine folks at the Department of Justice quietly issued a statement on Sunday afternoon.
It turns out they’re concerned about the notion of 100% encryption.
They don’t like it.
They’re asking for programmers to keep regulators in mind… to ensure they have a way past the secret codes and privacy barriers.
And just like that… Monero’s privacy premium surged higher.
The headlines tell the tale. CoinDesk published a piece, titled “Monero Leads Rally in Privacy Coins, Rising to Two-Year Highs.”
It wrote…
The move came after a group of countries jointly called for “back doors” into encryption software. That backdoor access potentially diminishes the privacy-safeguarding utility of such software and is driving increased interest in the privacy coins.
Officials from five countries asked for three things. They want programmers to “embed the safety of the public in system designs.”
They want law enforcement to have a way in.
And they beg programmers to consult with the government and other stakeholders.
Out With the Competition
This isn’t a slap to just the crypto world. It goes across the tech spectrum – from Apple (APPL), who just happens to be releasing details of a new highly encrypted phone this week, to the folks behind TikTok and the American firms that want to help protect its oh-so-valuable data.
But it’s the effect on cryptos we’re most interested in.
After all, like it or not, digital money is the future of money.
We get a glimpse of the scale of the perceived competitive threat when we see just who else signed this memo published by the DOJ.
It wasn’t penned just by the folks in Washington. No. Australia, Canada, New Zealand and the United Kingdom all joined in.
It’s a clear sign that these countries see the rise of private forms of digital money and now the quickly rising sovereign form as a growing threat.
This is a story to watch… a big one.
As regulators chase off more and more cryptos, they’ll go after the low-hanging fruit first.
They’ll force open the small coins with weaker encryption standards. As it happens, Monero will continue to see its privacy premium grow.
Continue to hold on to this one. It’s looking to be a huge winner.
I’d love to hear from you on this play.
How are you doing with it? What price did you get in at? Did you have any problems buying the coin? Was buying super easy?
Drop me an email at mailbag@manwardpress.com.
Congratulations on the quick gains.
Thanks to our new Modern Asset Portfolio… I have a feeling I’ll be saying that a lot.