Stock market investing is a like life.
It comes with regular doses of pain.
Yesterday, January 29th, 2018 – pretty much every stock market, all over the world, tanked.
Through the curtains of gloom, good companies like HashChain (KASH.V) announced interesting deals.
But releasing news yesterday was like going to a funeral and inviting people to admire your tie.
No-one gave a shit.
If you weren’t crying, you weren’t a friend.
We’ll get back to HashChain in a minute – but first a quick lesson in market sentiment for our younger readers.
If you’re 33 years old and you started investing at 25 – this “investing era” you’ve been living through is called a “bull market”.
In bull markets everyone makes money! But when you see your portfolio growing – a little part of you – no matter how hard you fight it – feels clever.
When the markets do get grumpy you can always look to cryptocurrencies for cheery news!
That wasn’t pretty.
Fortune published a breathless article yesterday, “Why Bitcoin May Not Be Digital Gold After All.”
Thank God for precious metals!
When multiple asset classes go sour – investors always run to the yellow metal.
That wasn’t pretty either.
We’ll – let’s do what investing super-stars like Warren Buffet do.
Focus on the details.
On January 30, 2018 HashChain announced that it has entered into an agreement to acquire a blockchain technology company, NODE40 LLC for about US $8,000,000 cash and 3.1 million shares of HashChain.
“This acquisition marks HashChain’s initial move to diversify its crypto-currency mining strategy with blockchain based solutions.
NODE40’s business comprises two major segments including 1) Cryptocurrency accounting solution for cryptocurrency trading, and 2) Masternode hosting.”
NODE40 is anticipating a big shift coming in cryptocurrency markets.
In the future, NODE40 believes that the profitable selling of BitCoin and other cryptocurrencies is going to attract capital gains taxation.
Members of the blockchain community transacting in, trading, or mining digital currency, have likely triggered a taxable event and can be unaware of how to properly disclose these transactions to the government.
Bit of a downer – but if you think about it – it’s coming.
The government always wants its slice.
NODE40 Balance is a “cryptocurrency reporting software” that works with major cryptocurrency exchanges.
“With a cryptocurrency market size of $537 billion, government intervention into the cryptocurrency market is certain”, stated HashChain, “NODE40 uses a coin-holder’s transaction history and analyzes the blockchain to determine accurate valuations for every input and output comprising a transaction. Once a value has been assigned to every transaction, the service can report the current total asset value, income, and any realized gains or losses.”
Australia, Israel and South Africa have already started to regulate and tax cryptocurrency markets.
“NODE40 Balance is strategically positioned to work directly with tax authorities globally to adapt to their specific requirements.”
This is not pie-in-the-sky stuff.
Coinbase, recently received a court order from the Internal Revenue Service (IRS), to hand over information on 14,000 traders who made transactions worth $20,000 or more.
“Cryptocurrency mining remains an important focus for HashChain, as we continue to acquire more Rigs and generate revenue on a large scale,” stated Patrick Gray, CEO and Founder of HashChain, but “The acquisition of the NODE40 Business is an important next step of creating a global blockchain technology company,”
On January 4, 2018 HashChain (KASH.V) announced that it has secured a space for mining operations of up to 20 megawatts in Montana, USA, while signing a purchase order 5,000 cryptocurrency mining rigs.
Upon delivery and installation of these Rigs and the 770 Rigs previously disclosed, the Company’s total number of Rigs will increase to 5,870 and its total Mining capacity will increase to approximately 8.7 megawatts.
We’re now in the third-longest bull market in history.
The Dow Jones Industrial Average has jumped 400% since March 9, 2009, rising from 6547 to a current high at 26,076.
FAANG stocks (Facebook, Amazon, Apple, Netflix and Google) rose about 40% in 2017 – responsible collectively for 30% of the gains of the S&P 500. Raise your hand if that seems like a dangerous consolidation of power and money.
January 30, 2018 was a painful day.
But it didn’t wreck my mood.
Here’s why: I invest in things I believe in.
Because my investments reflect my beliefs, I accept that I’ll sometimes be wrong.
Full Disclosure: HashChain is an Equity Guru marketing client and we also own stock.