In this week’s newsletter, we have
- Crypto Cares: The world comes to the rescue of Ukraine in difficult times through cryptocurrencies
- Actionable: Our pick for the best tax saving ELSS Fund to invest
- Intriguing: More money is NOT always a good thing
- Psychology: Understanding expectations from the lens of Munger and Musk
- Financial Warfare: The world is badly hurting Russia without firing a bullet
- Pop Poll: How much money will buy you EVERYTHING that you will ever need?
“In crypto we trust”, says Ukraine
The fundamental use-case of Cryptocurrency is to have peer-to-peer electronic cash transfers while bypassing the Central banks. Especially during circumstances when the traditional banking systems fail you. Twelve years after the release of the white paper by Satoshi Nakamoto, this particular use case has got a strong validation in the ongoing Russia-Ukraine war.On Feb 18th, 2022, Ukraine’s parliament passed a bill legalizing cryptocurrencies making the country rank fourth on the Global Crypto Adoption index. This bill was passed so that “.. Ukrainians could protect their assets from possible abuse or fraud”
Ukraine first began accepting cryptocurrency donations on Feb 26th, just two after Russia invaded Ukraine. They invited people to donate Bitcoin, Ethereum, USDT, DOGE Coin, etc.
Stand with the people of Ukraine. Now accepting cryptocurrency donations. Bitcoin, Ethereum and USDT.
BTC – 357a3So9CbsNfBBgFYACGvxxS6tMaDoa1P
ETH and USDT (ERC-20) – 0x165CD37b4C644C2921454429E7F9358d18A45e14
— Ukraine / Україна (@Ukraine) February 26, 2022
But why Crypto?
Because it’s efficient.
Ukraine’s financial system has collapsed. They can’t rely on their currency to raise funds. They want to skip the banking system approvals. They don’t want to be at the mercy of the countries for donations & sanctions. So, they went direct to the people. Currently, crypto is the most seamless way to transfer assets (or value or currency or a bored ape jpeg) across borders without any government intervention.
“With crypto, we can do those transactions in five minutes, in 10 minutes, and you don’t have to get those approvals through banks, the bank system,” says Alex Bornyakov, Deputy minister of digital transformation, Ukraine.
Ukraine received around $60 million in crypto assets from more than 120,000 different wallet addresses. It is funding its defense and war efforts with these donations.
Has crypto started to become a reliable asset class?
It depends on who you ask.
For the civilians of Ukraine, except Gold & Crypto, they don’t value anything. Russians may use cryptocurrencies to get their money out of the country to evade sanctions.
But for others, it may continue to be a crazy asset, which is volatile, high risk, and an illegal tender. For Indians, it is heavily taxed too.
Despite the fact that the prices of Bitcoin & Ethereum have fallen 15% to 20% since the war broke out, crypto has emerged as a financial option to save the day.
(Please note: We do not recommend buying or selling any crypto asset. It is highly risky and volatile. We are also not taking any geopolitical stance in this regard)
It’s high time. Get your 80C tax break sorted ⏰
March is the last opportunity to freeze your tax management for the Financial Year. Section 80C gives an opportunity to save tax on up to 1,50,000 of your income and an ELSS fund is a good way to make most of this tax break
How should an investor pick from the several options available? And what is our pick for the Best ELSS Mutual Fund for 2022?
(If you would like us to do more videos on YoutTube, drop a comment on the YouTube video)
Perils of having a lot of money 💰
The thing with money is that you can’t have enough of it. What’s better than a million dollars? A billion dollars. What’s better than a billion dollars? A trillion. And this goes on. The more, the better. But, after a point, it starts getting in your way. More money brings in more problems.
The psychology of expectations ☘️
Elon Musk said he had lunch with Charlie Munger in 2009. Munger allegedly told the whole table all the ways Tesla would fail. Both of them have completely changed the dynamics of the industries they work in. But the way they handle their own expectations is something to ponder upon. Morgan Housel shares his wisdom.
Economic sanctions – a weapon of modern war 🚫
Russia went to war with Ukraine through land, sea, and air. Russian armies would completely dominate this war against a small nation. The world couldn’t come to the rescue of Ukraine given the might and audacity of Russia. The world couldn’t fire even a single bullet. So it opened the war on another front – attacking the economy of Russia.
Pop Poll – Money & Expectations 📩
How much money will buy you EVERYTHING that you will ever need?
- 10 crore
- 50 Crore
- 500 Crore
- 1000 Crore
- 10,000 Crore or More
Click here to answer anonymously
Last week’s poll results
Key trends:
- Older investors do not believe in the growth story of US stocks
- Diversification is the key reason to invest in US stocks
- Younger investors are more likely to invest in US stocks
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