Michael Novogratz takes a hit as it emerges that Galaxy Digital Holdings is anticipating a loss of $300 million in net comprehensive income in the second quarter of 2022.

Cryptosphere resembles a battlefield littered with shell-shocked investors and a string of bombed-out crypto assets.  

The latest crypto bloodbath is generation Z’s first bear market, which has clawed and mauled over one trillion US dollars from crypto market capitalization.

With bulls in retreat most of this quarter, the current crypto-market capitalization stands at 1.3 trillion US dollars, at the time of writing this piece. 

“Cryptosphere resembles a battlefield littered with shell-shocked investors and a string of bombed-out crypto assets”

WEALTH TRAINING COMPANY

So the king of the crypto tribe Michael Novogratz takes a hit with the Terra collapse contributing to Galaxy Digital’s worst recorded loss calculated in the hundreds of millions of US dollars.

So-called stablecoins have been pulverized with many seeing billions wiped off their value, which has caused a liquidity squeeze forcing many to liquidate their more liquid coins adding to the price collapse. Many over-leveraged and young investors who have never experienced a bear market have had their savings wiped out.

So it is the collapse of these so-called stablecoins, which underscores the latest crypto selloff. 

Terra, one of the main stablecoins has gone into free fall, which broke the US dollar peg of one Terra to one US dollar. If you think this was not financially engineered we have a bridge to sell you.

“it is the collapse of these so-called stablecoins, which underscores the latest crypto selloff”

WEALTH TRAINING COMPANY

Crypto antagonists are calling the Terra, a so-called stable coin akin to a Ponzi scheme

Perhaps Bill Ackman’s tweet is an insight into the tribal wars currently being played out. 

“When I read about the ‘algorithm’ of @terra_money it sounds just like a crypto version of a pyramid scheme. Investors were promised 20% returns backed by a token whose value is driven only by demand from new investors in the token. There is no fundamental underlying business,” wrote Ackman in a tweet. 

Now imagine Fed Chair Powell symbolizing an ancient emperor monitoring threats to the rule by fiat debt central bank system at a distance. 

Dead ahead, Emperor Powell sees inflation threatening the central bank, fiat currency as a store of value. Runaway inflation is a threat because it chips away at the pillar keeping the currency stable, the multi-trillion-dollar treasury market. Negative yielding debt has no magnetic magnetism on global capital flows, which means demand for treasuries and the exchange value of the dollar depreciates, leading to currency debasement. 

Then there are the gold barbarians approaching the gates. Why hold the Empire’s currency when gold is a better store of value. Westward, the young crypto barbarians are doing their tribal dance with crypto Terra offering 20% returns. Eastward, another kingpin, Emperor, is backing its currency with commodities, gold, and nukes and offering over 10% interest.

“when investing in cryptos, ask yourself what technology application the blockchain has and if it is a rival to the Emperors fiat debt system, avoid it” – Wealth Training Company

Taking out the crypto-market that threatens the rule by fiat system is the Emperor’s path of least resistance

Cryptocurrencies offer nothing more than an alternative to central bank fiat currency, and which threaten the banking system by offering interest on capital will be targeted  by the rule by fiat tribe. Fiat debt system is modern serfdom, and the Emperor wants its serfs to have no alternative outside their system. The acronym TINA stands for there is no alternative. 

But it is cryptocurrencies with utility that facilitate business, society, and government to work more efficiently using the blockchain and enabling Web 3.0, which doesn’t threaten TINA, will be allowed to survive. So crypto investing is technology investing similar to the NASDAQ. 

So when investing in cryptos, ask yourself what technology application the blockchain has and if it is a rival to the Emperors fiat debt system, avoid it. 

As an investor, you need to ask yourself where you sit in the human food chain. Most successful investors don’t make the rules, but they play by them. 

“If Jay Powell and Janet Yellen can get our economy back to 2% inflation and have our debt come back because our growth is so high and we go from 140% of GDP to 70%, Americans will not have to buy Bitcoin” – Mike Novogratz

But back to Michael Novogratz takes a hit, so if we watch his business interview a few months ago, here, Novogratz takes a stab at the rule by debt system. 

“If Jay Powell and Janet Yellen can get our economy back to 2% inflation and have our debt come back because our growth is so high and we go from 140% of GDP to 70%, Americans will not have to buy Bitcoin,” said Mike Novogratz.

So the king of cryptos rattled the rule by the debt tribe that wants you and all future generations enslaved to debt.

Did Michael Novogratz’s comment cost his crypto merchant bank 300 million US dollars?

The 20 century was Wall Street’s century, and the 21 Century will most likely be the central bank’s century with a global government. Russia will either be defeated or submit. NATO is a wolf pack with nukes, and a lone wolf cannot win a conventional war or a nuclear war. Japan, Germany have been broken, and Russia is the final obstacle to global governance, which will occur, but the road there I don’t know.  

Perhaps the Chinese model of state capitalism will end up going global with humanity beavering away for a massive conglomerate headed by a global government with a global central bank. 

Think of communist China, how the CCP presides over business and investors and where success is about obedience to the system. 

You will obey. 

Michael Novogratz taking a hit, is a clear sign that investors should keep away from any cryptocurrency that threatens the rule by the debt system

We do not see much of a future for stable coins or cryptos that compete with traditional deposit accounts at banks. However, cryptos with utility, immutability of blockchain facilitating high value smart contracts is where we see value.