Investing is the Pathway to Creating Wealth & Financial Freedom
Crypto Assets are the focus of this installment of our Investing Series. Investing is the pathway to creating wealth and freedom. Remember, these are asset categories for generating the wealth you need to fund your “Freedom Lifestyle.”
Stocks
Bonds
Energy
Commodities
Precious Metals
Precious Gems
Crypto Assets
Don’t miss our July 2024 post, “Would You Like to Pay Less in Taxes?” which celebrated Independence Day and is dedicated to an in-depth examination of taxes. How an investor handles taxes is more important than you may ever imagine!
Crypto assets are a broad category of digital assets. Digital assets use a wide range of technologies. Think about it by looking at your life. Look at how much of the digital world is already in your life. It was new at one time, and there was a learning curve involved.
Crypto Assets Are Definitely a Very Important Pathway
to Wealth & Financial Freedom
When it comes to finance and money, and the systems we are using, crypto assets are the future of money, our financial systems, and our pathway to wealth and financial freedom. Be rich. Be happy.
Crypto assets are a very diverse universe. This month’s newsletter is designed to serve as a foundation for crypto asset investing with clarity and focus.
This issue of this edition of the Newsletter addresses the basic framework of crypto assets. Future issues of the Newsletter will go deeper into crypto asset opportunities and investing. In the meantime, I am available for you in this area of planning and investing now.
What Are Crypto Assets?
Crypto assets are based on cryptography: the practice and study for techniques for secure communication in the presence of adversarial behavior.
Cryptography
Distributed Ledger Technology (DLT)
Blockchain
Consensus Algorithms
Smart Contracts
These are foundational technologies that are a framework of crypto assets and the future of our monetary system, banking system, and financial system. These foundational technologies are in existence today, and they are operating now.
Now is the time to learn the language, purpose, and most importantly, why crypto assets are important in your future, and all of our futures. Know what you own!
Cryptography: The practice of developing and using coded algorithms to secure and protect transmitted information. This is the “crypto” aspect of crypto asset.
Distributed Ledger Technology (DLT): A ledger (database) of any transactions or contracts that is synchronized and maintained by consensus in a decentralized form across different locations and people. Distributed Ledgers are maintained by the participants on the network, i.e. a decentralized network that is maintained by consensus of the network. Distributed ledgers are an immutable database that cannot be changed by a central authority. All information on the ledger is securely and accurately stored using cryptography. The database is immutable, private, secure, and extensively transparent.
Blockchain: A decentralized digital ledger that is a secure and decentralized record of transactions. Each “block” contains data. “Blocks” are linked in a chronological chain.
Consensus Algorithms: An algorithm is a finite sequence of mathematically rigorous instructions used in computer science. A consensus algorithm is the rigorous mathematical procedure by which all the peers of of the blockchain network (a “Node”) reach the common agreement about the present state of the distributed ledger. This provides reliability in the blockchain network. It also establishes trust between unknown peers in a distributed ledger. Agreement, collaboration, cooperation, equal rights, and participation are hallmarks of what “consensus” of the network means.
Smart Contracts: Digital contracts stored on a blockchain that automatically execute when contract terms are met. This provides accuracy, trust, security, transparency, speed, efficiency, and reduces costs.
What is a Crypto Asset?
There are 5 predominant types of crypto assets:
Cryptocurrencies
Utility Tokens
Security Tokens
Stablecoins
Non-Fungible Tokens (NFTs)
Cryptocurrencies represent money: 1) a store of value, 2) a medium of exchange, and 3) a unit of action. This is the definition of money.
Utility Tokens represent certain uses in a network of digital platforms and technologies that enable users to transact with crypto like ownership of a product, ownership rights including a right, like the right to vote.
Security Tokens are financial assets representing an investment in, or ownership of an asset. This token can provide the holder with certain privileges like voting and raising funds for a new business project, as well as Initial Coin Offerings (ICOs) or Initial Token Offerings (ITOs). In return for traders’ capital, a new business project offers security tokens that may come with benefits, such as voting rights, profit-sharing, or dividends.
Stablecoins are usually pegged to another asset like gold and silver to provide the value to a stable coin, and to maintain the stable value of the coin.
Non-Fungible Tokens, (NFTs) are crypto assets that are unique and a record of ownership. NFTs cannot be traded for another. Think of digital images, songs, videos, and clothing design as some examples of the use of NFTs to protect ownership.
Why are Crypto Assets Important for You in Creating Your “Freedom Lifestyle?”
“We, the people,” have lived in a monetary system, banking system, and financial system that is mired in corruption, secrecy, and inefficiency. Corrupt institutions have controlled global wealth for centuries that has transferred the immense wealth of the United States from “we the people” to the transnational elite, or the “1%” of the global population. This has happened to every country, globally. This corrupt system is ending. These systems are outdated and do not serve “we, the people.”
In fact, the United States of America has never had a monetary system, banking system, and financial system that was in alignment with the Declaration of Independence (1776) and the Constitution for the united States of America (1789)—not a typo in the spelling here, this is the true name of our constitution which we have not been under since 1871—is the Constitution for the united States of America. This Constitution is in the process of being restored for all of us… and yes, we must choose this to have the real opportunity to create the futures we all want.
This is the first time in the history of the United States of America that we will have a monetary system, banking system, and financial system that will align with the Declaration of Independence that we celebrate every 4th of July and the Constitution for the united States of America. It only took 235 years to get to this point! This is actually a very short period of time in the trillions of years of history of planet Earth. The history is quite fascinating!
How Our Monetary System, Banking System, and Financial System Operate is: A keystone in whether we are able to create wealth or not.
Digital assets and the technologies associated with digital assets are our future of creating money, using money, creating wealth, controlling our wealth, and enjoying our wealth.
Crypto assets: every transaction is recorded, verified, and traceable, eliminating the need for middlemen like banks and financial institutions.
“We, the people” will have freedom, wealth, security, and control of our lives and money in ways we have never known.
Our futures are here now, and it is time to recognize this and embrace it.
More news to come on embracing this and making it work for you! In the meantime, “Just Ask Mary!”
Your thoughts and questions are always welcome!
MSM Advisory, LLC. is a professional practice designed to offer you the customized financial planning advice, strategies and implementation to make your dreams come true. Money matters and this is what the money is for… your vision for your life coming to life… for you.
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