- Will events in Russia lead to a crash?
- “Maybe I could make a living by just walking around!”
- How we’ll adapt to the rise of air taxis…
Welcome to our weekly mailbag edition of The Bleeding Edge.
All week, you submitted your questions about the biggest trends in technology… Today, I’ll do my best to answer them.
If you have a question you’d like answered next week, be sure you submit it right here.
Before we turn to our questions today, I first want to reveal a few details about a secret project of mine that’s been in the works for several years now…
As longtime readers know, I’m an active member of the Chamber of Digital Commerce. I’ve put my own money into companies like Filecoin, Abra, and Coinbase as a private investor.
And I first brought bitcoin to readers’ attention back in 2015, when it was trading for just around $240.
I saw the potential of blockchain technology very early on, invested, and never stopped.
While I’ve been a long-term investor in the space, as an emerging asset class, there has been a lot of volatility. Some investors may worry about putting money into this space as a result.
But where there is volatility, there are always great trading opportunities.
And that’s where my secret project comes into play…
My team and I have found a pattern in the crypto market… one that can give us trades within just 60-day profit windows.
And I’ve spent the last several years programming a system that can spot when these windows are about to open.
In our testing, it’s flagged wins like 373%… 606%… 1,022%… and 1,106%. And each of these took place in just around 60 days. My system told us exactly when to enter and exit each position.
In fact, it’s so powerful and predictive, I’ve even filed a patent to protect my intellectual property…
That’s why, on March 16, at 8 p.m. ET, I’ll be unveiling this secret project – which I’m calling Project Perceptron.
At this special reveal, I’ll share how this system works… and even release one of its cryptocurrency trade recommendations for free during the event. It’s my way of saying thank you for joining.
So please, if you have any interest in the crypto markets, don’t miss this event… Just go right here to RSVP.
What impact does Russia have on our markets?
Let’s begin with a question on the market and current events…
What are Jeff Brown’s thoughts on the market as of today? Some are predicting a market crash on March 10 when they come out with the next consumer price index (CPI).
What are your thoughts regarding this and what’s happening with Russia to date? Their market could collapse when many nations put tough sanctions on them and the financial sector ties up their money. What impact does that have on our market? Look forward to hearing from you.
– Bob M.
Hi, Bob – thanks for writing in and being a reader. I know many people are concerned about recent world events and economic uncertainty.
First, let me say I don’t think we’re going to see a crash in the near future. Undoubtedly, inflation and interest rates are still a concern. Many economists and investment banks have been predicting massive interest rate hikes this year, with a major hike this month.
But like I predicted, we have already seen a shift in the last few days with softer messaging from the Federal Reserve concerning interest rates.
Fed Chair Jerome Powell has already come out and said we can expect a mere quarter-point increase this month rather than the half-point or higher increase that some predicted.
Likewise, despite claiming the Fed will make a series of increases in 2022, Powell is already saying events in Ukraine may change expectations.
In other words, the crisis in Eastern Europe is giving the Fed “cover” to avoid raising rates significantly.
I’ll go even further and predict that the government will make additional asset purchases as a form of continuing stimulus. It may even temporarily suspend the gasoline tax in an effort to blunt the astounding increase in gasoline prices in the U.S.
As for Russia’s impact on the world economy, it has some influence due to its role as an exporter of energy, precious metals, wheat, and other commodities. But it’s responsible for only 1.7% of the world’s total output, making it a relatively minor player.
On a global scale, the biggest pain point will likely be Russia’s provision of 40% of Europe’s natural gas and 25% of its oil.
Undoubtedly, in that region, we will see ripple effects from higher energy prices, which will mean higher inflation and less consumer spending. And it could lead to challenges in related sectors like transportation and shipping.
Likewise, the military and financial upset in Russia and Ukraine may impact the return of normal supply chains.
The region is responsible for about 70% of global neon production, for example, which is needed to make semiconductors. That means the chip supply shortage may take longer to resolve.
For obvious reasons, this is something that my team and I are tracking closely.
For some additional perspective, I shared recently some charts on the historical impact of conflicts and how they have not stopped the stock market’s ascent… In contrast, the market has marched higher following most wars over the last century.
And since the Vietnam War, the stock markets raced higher in the months that followed the beginning of each conflict.
Below, we can see a chart that consolidates the information in each of those charts I featured previously. And it provides some much needed perspective on what we’re seeing play out right now…
Given all of these dynamics, I believe a similar pattern will unfold this time as well.
As I’ve discussed before, one of the biggest concerns I have right now is if China decides to invade Taiwan amid the present turmoil.
With the U.S. presidency in such a weakened state, and the conflict roaring in Eastern Europe, I can’t imagine better “cover” for China to do what it has been wanting to do for a very long time.
If that were to happen, then I would be much more concerned about the state of the world and our economy.
Rest assured, I’ll continue to keep readers up to date with my analysis. If anything changes in my thinking, readers will be the first to know.
A 500% return on investment…
Next, a reader wrote in to share feedback on this “move-to-earn” app…
Hello Jeff, I look forward to reading your newsletters whenever they come. Since hearing about STEPN, when you said your friend was making $200 a day, you sure got my attention. I decided to try it out.
I have been using it for a couple of weeks. Thought I would give you and your readers some feedback on what it’s really like, as an investment for your money and your health.
My investment into the game was 32 SOL. With this I invested in three sneakers. Getting three gives you two times the earning amount vs. just one sneaker.
All this is simply explained in the white paper. With this amount, it gives you 20 minutes of earning time per day. (Walking or running, depending on the sneaker.)
In my 20-minute walk, I am currently earning about 20 GST, which equals $50 per day. At current rates, that’s about a 500% return on investment (ROI) from my 32 SOL.
Right now, I am reinvesting my earnings back into the game by upgrading my sneakers for even better earning potential. If all goes well, maybe I could make a living by just walking around!!
– Eric A.
Hi, Eric, and thanks for writing in.
I’m glad you shared your feedback about how you’ve been enjoying the STEPN app. And I absolutely love the fact that you took the initiative to jump in and try out this technology.
You’re experiencing firsthand this kind of play-to-earn, or p2e, (in this case move-to-earn) technology enabled by blockchain with built-in economic incentives for participation.
As a reminder for readers, STEPN is a Solana-based project that uses our smartphone to track and confirm the distance and time we spend walking, jogging, or running.
Users simply buy or rent non-fungible token (NFT) sneakers to use the app. STEPN then awards the user with its native cryptocurrency, GST, for their healthy behavior.
This is an evolution of the “play-to-earn” model, where gamers can earn rewards for participating and achieving milestones in Web 3.0 games.
As I shared before, one of my analysts has earned roughly $200 worth of GST a day using the STEPN app. This is a great way to earn money while doing something many of us already do every day… And it has the added benefit of incentivizing healthy behavior.
And as you noted, these earnings are more than just pocket change. Importantly, this reveals why this kind of application is going to grow quickly.
Web 3.0 inverts the usual financial model – the majority of wealth created goes to participants. STEPN only receives 4% fees on transactions, 6% on sneaker minting, and 8% on sneaker rentals.
And as more people get involved with STEPN, we’ll see the value of its digital assets increase as well, incentivizing even more people to join in. It’s the network effect at work.
I expect we’ll see more and more of these apps take off this year.
And if anyone else has tried out STEPN or other apps in this space, I’d love to hear from you about your experience. Send in your thoughts to [email protected].
Where will air taxis land?
Let’s conclude with a question about electric vertical takeoff and landing (eVTOL) vehicles…
Hi Jeff. Reading your recent Bleeding Edge article about Joby got me thinking, will the Joby aircraft land on the roof like helicopters or on the ground and park like a car?
If it lands on the roof, will we need to completely redesign buildings to have a lobby and attractions on the top floor, assuming that a large number of people adopt eVTOLs? Thanks for all you do!
– Jarod R.
Hi, Jarod, and thanks for reading. Your thought process is spot-on.
For new readers, we’ve been covering eVTOL aircraft for some time now. These are small, helicopter-like vehicles that can lift right off the ground – no runway needed.
eVTOL tech was all the rage in Silicon Valley a few years ago, and many see it as the future of urban transportation. eVTOL aircraft offer even greater convenience than traveling by car. Passengers can travel as the crow flies, all while avoiding any ground traffic.
Joby Aviation is an “air taxi” company we’ve kept our eye on for several years now. It has already asked the Federal Aviation Administration (FAA) for permission to test its aircraft in the San Francisco Bay Area.
Additionally, it has partnered with the largest airline in Japan with the stated goal of launching a ride-hailing service there by 2025.
That means we’re getting close to seeing this technology in the real world. And you’re absolutely correct that we’ll have to adapt with dedicated spaces for these eVTOLs to take off and land.
Right now, an air taxi company in the U.K. is building Air-One, an eVTOL airport that aims to open this April. Likewise, several airports in France and Italy have joined together to build out eVTOL infrastructure.
And we’ve even seen another air taxi startup, Volocopter, unveil rooftop “mini airports” like you described.
Concept Art for “VoloPort”
I envision that heliports will be repurposed for eVTOLs, and even places like large parking lots, which will not be in much need in a world of self-driving cars, might also be repurposed as landing zones for eVTOLs.
These hubs can enable aircraft with minimal infrastructure footprint. We can even build them with modular designs… And I can’t wait to see this technology built out at scale.
We’re going to keep this trend on our radar as part of our “future technology” theme… and I’ll be looking for any investment opportunities for readers to take advantage of in the coming months and years.
That’s all we have time for this week. If you have a question for a future mailbag, you can send it to me right here.
Have a good weekend.
Editor, The Bleeding Edge
Like what you’re reading? Send your thoughts to [email protected].