It’s no secret… Bitcoin and cryptocurrencies were the biggest investment story of 2017…
Stories appeared daily on CNBC, and in the Wall Street Journal, and New York Times, about people becoming millionaires practically overnight…
However, since January, the price of Bitcoin has fallen 63%...
And today, if you believe what you read in the press, many people think the opportunity has passed… That the cryptocurrency bull market is over…
Remember when JP Morgan CEO Jamie Dimon called Bitcoin a fraud?
He said any JP Morgan traders caught trading Bitcoin would be fired “in a second” for their “stupidity.”
The price of Bitcoin fell as much as 24% in the few days that followed.
And in that period, JP Morgan and Morgan Stanley emerged as some of the most active buyers of...
Tomorrow the SEC will make a decision about whether Ethereum should be considered a security.
The “Howey Test” is what the SEC and courts use to determine whether something is a security. To be a security, something needs to meet involve all four parts:
1) An investment of money
2) Into an common enterprise
3) With an expectation of profits
4) Generated predominantly from the efforts of others
Did the buyers in the Ethereum ICO expect profits? Surely some ICO buyers bought for an expectation of profits. Yet, others’ primary purpose for buying ETH was to use them. ETH after all is used as “gas” to run decentralized applications on the ethereum network.
I think it will be difficult for the SEC to assert that most or all of Ethereum’s ICO investors expected profit.
If the SEC tries to take the position that any portion of investors expecting profit passes the Howey test, the entire Howey test...
The crypto markets are down about 50%. This is a free excerpt from a video I made for my private investor club. It explains why we love "bloodbath" corrections and several reasons why they are good for investors.
Also, a lot of people emailed asking about the webinar they missed, so I'm teaching it again this Thursday: