THE CASARES FORMULA: An Argentinian trick to become a bitcoin millionaire

Crypto-currencies have heralded the 21st century version of the Gold Rush as rising interest in the investment power of these new forms of payment is buoyed by the innate desire of many people to become rich beyond their wildest dreams. While some are very much wary of the newfangled money, particularly given the oft-reported lurches in the value of Bitcoin itself, a crypto-currency pioneer from Argentina claims to have worked out a simple formula to transform yourself into a bitcoin millionaire.

 

Entrepreneur Wenceslao Casares is the CEO of startup Xapo, a company that offers storage, purchase and purse services for bitcoins, and was previously founder of an Internet service provider, a video game company and a bank. Largely based in the tech heartland of Silicon Valley in the United States these days, Casares has long been a vocal defender of bitcoin and played a role in the development of the internet itself, according to online magazine Grandes Medios. His love of crypto and hobnobbing with the technorati even enabled him to convince Microsoft tech billionaire Bill Gates to adopt the currency. Casares also took on a position as an advisor for the compensation board of the PayPal council in 2016.

Being so familiar with the technology of the Net, you would have expected Casares to be quite knowledgeable about crypto-currencies, and indeed he claims to have cracked the binary code behind how to win big with cryptocoins. 

In an address to crypto advocates at the Westin Hotel in Times Square, New York, US, Casares publicly announced his formula to become a bitcoin millionaire, according to Quartz magazine. Casares advised the attendees to take just one per cent of what they owned in money, convert it into bitcoins and then stash the funds away for five years, simply forgetting about it. He said that even though you will lose one per cent of your fortune, within five years the value of bitcoin will have risen enough that you would be a millionaire in dollar terms, he told the audience.

Casares believes that while bitcoin will be on an upward value trajectory, it is still an investment with risks like any other. He warned that the success rate of his formula is fifty per cent and that there was a twenty per cent chance that bitcoin would fall and become worthless, meaning investors would lose all of their initial cash, but Casares also prophesied that within five years a single bitcoin would trade for more than a million U.S. dollars apiece. As of today’s date, one bitcoin is worth nearly USD 7,650 ($7,643.64), or GBP/£ 5,699.32.

Casares also predicted that bitcoin, as a ‘meta-currency’ would bypass central banks and become a new global monetary standard, “If bitcoin is successful, it will be the biggest leap forward in the democratisation of money we have seen, “ he said.

SOURCES:

Vijay Shah { विजय }, Twitter, Twitter Inc. https://twitter.com/VShah1984

Alexander Ochoa, Twitter, Twitter Inc. https://twitter.com/AlexanderOchoaQ

“La elemental fórmula con bitcoines que te hará millonario” – Grandes Medios/Grupo Editorial Grandes Medios (24 May 2017) https://www.grandesmedios.com/formula-ganar-millones-bitcoines/

IMAGE CREDIT:

“Cryptocurrency Concept Blockchain · Free photo on Pixabay” – WorldSpectrum, Pixabay (23 January 2018) https://pixabay.com/en/cryptocurrency-concept-blockchain-3409725/

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PENNIES DOWN THE DRAIN: Canada bids farewell to 1 cent coins

Look after the pennies, and the pennies will look after the pounds” – traditional English proverb

This month, the Royal Canadian Mint in Winnipeg, Manitoba state, will mint the last of Canada’s one-cent coins or ‘pennies’. Rapidly-rising costs of metal and production at the mint mean that it now costs 1.5 cents to produce each coin, so they are now a loss-making initiative. Inflation of the Canadian dollar has rendered the 1-cent nearly worthless and businesses and consumers do not see any point in the penny any longer. After a hundred years of history, the very last one-cent coin came off the press on the 4th of May, 2012, and was subsequently donated as a display piece for the Bank of Canada’s currency museum. Up till then, the Mint manufactured 7,000 tonnes of cents every year. The national treasury estimates it will save $11 million a year scrapping the penny.

The last of Canada’s pennies. (eBay photo)

The smallest value coin currently in circulation, the 1-cent piece is distinctive. Made from copper-plated steel for economic reasons, the money depicts a set of maple leaves on the front and the Queen’s head on the back. Designed by GE Kruger Gray, the Canadian cent is nearly the same as its cousin in the US dollar, as are the currency’s other denominations. Introduced in 1858, the penny was intended to bring order to the monetary system, which at that time consisted of British colonial coins, bank tokens, US dollars and Spanish pieces-of-eight. The first coins were much larger than they are now, and were distrusted by the public because of their relatively light weight and novelty. The penny did however spread all over Canada after the unity of its component states, or ‘Confederation’ in 1867.

Metal markets made things difficult for the humble coin. In 1920, the ‘large cents’ gave way to smaller versions as the price of copper shot through the roof. Then pure copper cents were supplanted by debased versions, simply a sandwich of zinc or steel encased in the red metal; a process also repeated in other world currencies as intrinsic prices made metal an expensive medium. They remained (and technically still are) legal tender.

By 2010, the Canadian government set up a report deciding the future of the penny, which was fast becoming useless. Only 37% of the population used pennies on a regular basis, most coins ending up stuffed in piggy banks or jars, or lost down the backs of sofas. People saw the extra pennies as deadweight in their wallets/purses. The Mint was still pressing 816 million pennies per year, equal to 25 per Canadian. The Senate subsequently recommended the penny be dropped.

PENNIES FOR YOUR THOUGHTS:

  • In the French-speaking province of Quebec, 1-cent coins are known as ‘sou’ from an old French currency. Also referred to as ‘cenne noir’ (black penny).
  • While both the Canada and U.S. cents are traditionally round, from the years 1982-1996, the Canadian version has twelve sides to enable recognition by users with partial or no sight.
  • A cent from 1936, with a distinctive dot mintmark, were actually manufactured the following year, as the RCM was waiting for new dies (coin presses) due to the abdication of King Edward VIII. One fetched $400,000 at a 2010 collector’s auction.
  • The exact metal composition of a 1-cent piece is as follows: 94% steel, 1.5% nickel and only 4.5% copper.
  • Canadian cents often are used unofficially in neighbouring America, which has similar coinage. Toll booth operators see them as a pain. Interestingly enough, both country’s coins are also the bane of British shopkeepers, as they frequently turn up in small change in the UK.
  • Coins are highly susceptible to currency inflation. Many nations had even completely done away with small change, such as Vietnam, and rely solely on banknotes.