Bitcoin despite rapidly declining from its high, remains more overvalued today than at any point since December 2017!
NIA first became bullish on Bitcoin in May 2016 at $530 while suggesting the two largest gaining Bitcoin/Blockchain stocks of 2017: BTL Group +675% and Hive Blockchain +880%. Going into 2018, NIA announced the Russian Bitcoin play QIWI Plc along with the QIWI Plc February 2018 $15 call option as its top two picks for the new year. NIA's QIWI call option gained by 280% in less than one month and QIWI became the only Bitcoin stock to achieve positive gains in 2018 during a severe bear market.
As we all know, NIA's November 18th, 2020, suggestion of Neptune Digital Assets (TSXV: NDA) at $0.09 per share became the #1 largest gaining Bitcoin/Crypto stock in recent years (out of all Bitcoin/Crypto companies still in business) achieving a gain of 3,066.67% at its January 30th all-time high of $2.85 per share!
In June 2020, NIA's President was scheduled to have a call with the CEO of Voyager Digital, but there was a power outage in Stamford, CT, where he lived so we had the CFO on the line alone. We tried to get him to explain how they earn the yield they were paying out as rewards to clients and couldn't get a straight answer with the CFO explaining he was their newly hired CFO and just joined the company. He eventually explained it had something to do with banks being closed on weekends, but the Crypto market remains open, and market makers need to borrow coins to fulfill orders, which made absolutely no sense. When we had a call with the CEO the next day we asked if they outsource the yield earning operations to outside firms, and he said yes... and we said oh we hope you don't rely on Celsius, and he said no they are one of many firms they use.
Coinbase wasn't having its IPO until 2021, and Voyager was the only publicly traded Crypto trading firm. We knew that we had one year for Voyager to run safely. We thought for sure it would gain by 1,000% but then later go bankrupt. We suggested Voyager knowing that we were the very first organization to do so, and we promised ourselves to warn people before it eventually goes bust! Voyager ended up gaining by 6,225% from NIA's suggestion price and it quickly gained a cult following called VGX Heroes. These weren't people who owned the stock, but they owned Voyager's VGX Rewards Token thinking it was much better than owning shares. It gave you the "utility" of trading fee discounts when Voyager marketed itself as offering "commission-free" trading.
In hindsight, we should have suggested the useless VGX Rewards Token. Although Voyager shares gained by 6,225% from NIA's June 10, 2020, suggestion price of $0.60 per share up to a high of $37.95 per share, the VGX Rewards Token was only $0.052 on June 10, 2020, and rose to an all-time high in August 2021 of $7.467 for a gain of 14,596%! The VGX Rewards Token still has a market cap today of $3.21 million vs. Voyager shares worth zero! This is nothing compared to the FTT Token of bankrupt FTX, which still has a market cap of $421.63 million!
People who own FTT should be grateful that FTX is bankrupt, and they can still sell at a $421.63 million market cap, but they are so greedy that they rather "HODL" under the delusional belief that: 1) SBF will receive a pardon from Trump, 2) SBF will revive the FTX exchange, and 3) SBF will once again use the same FTT token instead of printing a new token!
The same delusional thinking applies to all Crypto assets. Most people who own Crypto will continue to HODL and buy the dip all the way down to $0.
After Bitcoin hit $69,000 in late-2021, NIA became bearish on Crypto and has remained bearish ever since. We thought for sure that Americans had learned from FTX going bust and Bitcoin would never hit new highs again. We were wrong, but so was everybody else. Almost nobody who was bullish on Crypto during the past year would have predicted that Trump would pump it up to $109,000 on the promise of a government funded Bitcoin reserve, only to issue his own Trump Meme Coin on Solana (with the First Lady issuing Melania Coin on Solana) and then announce that he is including Solana in what has now become the U.S. sh*tcoin stockpile!
The market is designed to fool the most people at once. There are countless Americans who have millions of dollars invested in Crypto that they have the ability to cash out of right now, but they won't. Their whole entire identity is tied to Crypto with their favorite coins listed on their social media profile pages along with a profile pic displaying laser eyes or monkey jpegs.
In 2002 when the dot-com bubble burst, NIA's President got his driver's license, and took his first car an Infinity G35 Coupe to this Autosound store that was located near the Willowbrook Mall in NJ to get a new sound system put in. He began talking to the Autosound owner about stocks and the Autosound store owner explained how two years earlier he had $3 million worth of technology shares in his E*TRADE account up from the $100,000 he started with. Instead of taking profits he got greedy and thought for sure they would go up forever. He rode his account from $3 million all the way down to $50,000. If he had taken profits on his dot-com stocks and put the $3 million into gold mining/exploration stocks, which were the most hated in the market... he would have turned the $3 million in 2000 into $30 million by 2006/2007 based on the HUI Gold Miners Index alone. If he had invested the $3 million into the highest quality small-cap gold exploration/development companies, he would have turned the $3 million in 2000 into $90 million by 2006/2007.
If you look at Borealis Mining (TSXV: BOGO) and the Sandman Gold Project that it officially acquired today in a stock deal that valued Sandman at an insanely low US$6 million, this is a gold project that was briefly worth $50 million in mid-2020 after Gold Bull Resources (TSXV: GBRC) gained 10x in value in 4 months. GBRC never had big financial backers like Eric Sprott and Rob McEwen. GBRC never owned a fully permitted gold project like BOGO does at its Borealis Gold Mine in Nevada!
Newmont Mining back on February 23, 2011, announced a $2.3 billion deal to acquire Fronteer Gold (click here to see). Fronteer Gold came with three advanced gold projects all in Nevada, and none were fully permitted or part of a new Tier 1 Gold District: Long Canyon, Northumberland, and Sandman. Fronteer Gold's three Nevada gold projects had gold resources of: 4.2 million oz measured & indicated, and 1.7 million oz inferred. Altogether, NEM purchased 5.9 million oz of gold resources for $2.3 billion or $389.83 per oz of gold resources.
Long Canyon was the "flagship" asset of the three and considered at the time to be, "one of the highest quality development-stage gold deposits in North America." BOGO's newly acquired Sandman was considered the "nearest term production-stage project" of the three due to its "proximity to established infrastructure."
Prior to Newmont acquiring Fronteer Gold in 2011, Newmont previously entered into a three-year earn-in agreement with Fronteer Gold for Sandman under the following terms: "Under the terms of the Sandman option and joint-venture agreement, Newmont can earn an initial 51% interest in the project by making a positive production decision by June 2011, spending a minimum of US$14 million on exploration and development, making a commitment to fund and construct a mine, and completing a feasibility study. Thereafter, Newmont may earn an additional 9% interest in Sandman by spending a further US$9 million on development. Fronteer can elect to have Newmont arrange financing for its 40% of ongoing development costs in the joint venture through commencement of commercial production."
This statement hints at a possible valuation for Sandman at the time of US$100 million: "Newmont may earn an additional 9% interest in Sandman by spending a further US$9 million on development."
If Newmont was willing to spend $389.83 per oz of gold resources for Fronteer Gold in 2011 with gold at $1,300 per oz, imagine what price Augusta Gold (TSX: G) will soon be acquired for considering gold is now trading 2.23x higher than in 2011 and Augusta Gold (TSX: G) has 1.92 million oz of gold resources in the Beatty Gold District of Nevada, which is North America's #1 largest new Tier 1 gold district. None of Fronteer Gold's gold resources were in a Tier 1 gold district!
Augusta Gold (TSX: G)'s Reward Gold Project is fully permitted for immediate construction. None of Fronteer Gold's gold projects were fully permitted! There is a shortage of fully permitted gold projects, not just in Nevada, but worldwide! There is not going to be any increase in gold production anytime soon no matter how high gold prices rise! Many gold miners desperately need to acquire fully permitted gold projects! A fully permitted gold project in a Tier 1 gold district is unheard of and makes Augusta Gold (TSX: G) a 1 of 1 gold company!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA has received compensation from BOGO of US$100,000 cash for a twelve-month marketing contract. NIA previously received compensation from NDA of US$50,000 cash for a marketing contract. NIA previously received compensation from VOYG of US$60,000 cash for a marketing contract. NIA's President has purchased 224,200 shares of G and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
