What to Buy - How To Invest
What are we investing in ?
We are essentially investing in new software to upgrade our entire global financial system to take full advantage of the internet era
Using Schwab.com to buy stocks was an improvement to picking up the phone to a stockbroker, but it was only the front-end, the initial instruction, there is a huge amount of effort, after you click to buy a stock, in the background that takes a lot of manual effort to complete the transaction
In the world of stocks it takes a whole 24 hours to complete every stock trade, what they call “settlement”. Blockchain is near instant settlement
In the world of cross-border payments, like Walmart paying a Chinese manufacturer, it takes 3 to 5 days, there are many middle-men, all taking time and a fee
Even paying in a restaurant by Debit card has 5 steps before the transaction is complete. Blockchain has 2 steps
Mortgages, as we all know, take 30 days to “settle”
Why is this different than normal investing ?
The reason Blockchain works is because it is open source, essentially free software maintained by many programmers around the world and open for all to inspect and verify - this is unlike traditional software made by Microsoft or IBM that we pay for, we buy stock in Microsoft & IBM, we don’t buy stock in free software
In the old system we had US Dollars in America, UK Pounds in England, Euros in Europe & so forth. In other words, we had different currency based on where we lived. The Internet is really a global phenomenon, the new method of finance is based on different global “coins” or “tokens” that have different “utility”, they do different things. Here are some examples:
Currency Utility…. yes, that’s Bitcoin, we can buy things with bitcoin (Tesla accepts bitcoin & so forth)
Buying Stocks Utility…. there will be a utility coin whose version of blockchain is the software required to buy & Sell stocks
Buying Real Estate Utility…there will be a different utility coin whose version of blockchain is the software required to buy & Sell Real Estate
Buying Classic Cars Utility… there will be a different utility coin whose version of blockchain is the software required to buy & Sell Classic Cars
Essentially, these utility coins are a currency, like bitcoin, but unlike bitcoin that is “just” currency, these new utility coins have more function baked into their unique blockchains.
An example of a Utility Coin
Lets look at Real Estate and getting a mortgage
Buyer has a mortgage broker
Mortgage broker requires a pay slip and bank statement to approve the mortgage
The Utility Coin blockchain not only contains payment / currency, but it also includes “Smart Contracts”, essentially software in the blockchain that requires the buyer of the real estate to produce Pay Slip & Bank Statement
This smart contract, or software, can not be modified, its immutable (just like the transactions in the bitcoin blockchain, see Education section). Every one is treated the same
In other words, the Utility Coin is essentially automating the previously manual process, and costly middle man, the mortgage broker, and combining the process with the payment coin. This new money, these utility coins, actually do things, they are not just money, they have function, they have utility and we have different money / coins now for different functions
The software, baked into the specific blockchain designed for Real Estate, has value, like traditional software. That value will be reflected in the price of the Real Estate coin.
The concept of this website is to buy 10 to 20 different utility coins at the beginning of this new model, when the price is low
It’s like the dot.com era, we have to research which utility coins have real value and which are hype - that is the purpose of this website