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Smashing The Paradox
BY KATIE JOHNSON - 23/04/2018 | VIEW MORE ARTICLES BY THE DAILY RECKONING

It’s been an eventful week here at Port Phillip Publishing. The last two days have been spent absorbing and prodding the philosophies of some of the world’s greatest economic minds, and of course, our own writers.

Some speaker’s presentations were laced with pessimism and caution. Others were joyful about the future, and the financial revolutions that it will bring.

But overall, the Paradox of Prosperity conference was an event that can only be described as timely. The predicament that we find ourselves in financially — battling rapid change, rising debt and volatile markets — is one that requires deep consideration and a pragmatic approach to investing.

Now with the weekend upon us, there are many ideas to consider. Especially when it comes to the financial future of Australia and the rest of the world.

The religion of crypto

Even if you think I’m absolutely crazy at the end of this, if you miss the opportunity of crypto, you’ll be kicking yourself for the rest of your life.

Sam Volkering kicked off Friday’s conference with a high energy, engaging talk that was imbued with idealism. He spoke of the technology revolution that cryptocurrencies are heralding, and how they have the potential to fix the flaws our current financial system is riddled with.

As Sam noted, the financial system that we know today, or the status quo, is a tightly controlled, centralised system. It’s overseen by government, regulators and ‘our mates at the bank’, as Sam so sardonically put it.

And while this system has worked very well for some, and they have been able to build momentous wealth, for others it has been a disaster.

Sam believes that this is the true ‘Paradox of Prosperity’. One in which, ‘most will be paying off a mortgage until they’re 75’, and have no free cash to invest.

As Sam noted, ‘The system doesn’t work for the many, it works for the few.

Sam Volkering at the Paradox of Prosperity Conference

Sam Volkering at the Paradox of Prosperity Conference

[Click to enlarge]

 

But with all of these people now connected through the internet, they have been able to build a more equitable, dynamic system.

The rise of crypto and blockchain has successfully ensured that everybody has the potential for prosperity.

And even though the news organisations like to report on the rise and fall of the bitcoin price, this misses the key point of cryptos. Which, Sam believes, is the infrastructure being built and their revolutionary potential — democratically, financially and in terms of data and privacy.

Sam urged the crowd to adapt their thinking about cryptos, and to avoid thinking about the coins in terms of price. As Sam says: ‘Imagine that fiat money doesn’t exist.’

As the crypto revolution takes off, we will be able to leave a broken financial system behind. The slow, inefficient and expensive system that caused the GFC and the dotcom bubble. And by staying in the right cryptos, there is a way to profit from the revolution.

A revolution or a bubble?

As always at Port Phillip Publishing, we like to publicise conflicting views. And Jason Stevenson, our in house resources expert, was a perfect opponent for Sam’s idealistic worldview.

Jason’s speech was centred on the idea that cryptocurrencies and pot stocks are merely a distraction from the real investment opportunities. In fact, it’s likely that they’re both bubbles inflated by media hype and public misunderstanding.

Jason steadfastly believes that there are sectors that will retain their iron strength in this volatile financial climate. But Sam just as firmly argues that the way to profit is by going head first into the crypto revolution.

Of course, it’s difficult to pick a side without hearing the presentations in full. Which is why we are offering a virtual seat to Paradox of Prosperity conference. It includes the full speeches of all of our editors, as well as global financial minds like Jim Walker and Dr Marc Faber. You can access your seat here.



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The Daily Reckoning's mission is to look at the investment world and the financial world in a sceptical and contrarian way. To do that day in and day out and tell you honestly what we see, even if it isn't always popular. If you'd like to subscribe to an alternative look at the mainstream interpretation of events, join for free here.



 

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