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Investing , Travel

Capitulation in Costa Rica

June 26, 2024

I finally got some crypto haters to capitulate. But not for the reasons that you’d guess…

Last night, I returned from a 10 day Costa Rica trip. I hopped around the country with my family (including my two young kids) and also hosted the Explorer Summit.

A little over 30 people flew in from various part of the world to spend several days together. We had some great speakers and even better story swapping amongst howler monkeys and crocodiles.

Swen snapped this pic right before Todd almost got snapped during a round of golf.

Amongst our group, I’d estimate that half were crypto-skeptics. However, after I gave a quick 15 minute presentation, I had at least 10 different people privately mention that they changed their mind.

Here is how I got the crypto haters to capitulate…

First, I got everyone in the room to agree that the average yield on cash right now is just over 5%. This is based on US money market and savings account providers (Schwab, IB, Robinhood, and the major banks).

Then I asked if they’d like to quadruple that return. Of course, everyone agreed that a 20% return is better than a 5% return.

Next, I explained that they could use crypto based trading protocols to get a 20%+ yield… and they would never have to even touch Bitcoin. Even better, they could stay in a US dollar pegged cryptocurrency, so there would be no value fluctuations in the underlying investment.

If this sounds familiar it’s because I already mentioned this exact opportunity last month.

If you have cash in the bank and you’re not earning 5% or more, you are pissing away money!

Ok, I’m done with my crypto tirade…

Last year I published an article titled, “AI in the Jungle.” I wrote that after surfing in a remote part of the Costa Rican jungle – much more remote than the trip I just took.

The gist of the article is that many investors are ignoring super simple opportunities right now. Almost everything I wrote about is up since last year with MUCH more room to run.

Admittedly, Nvidia is also up far more than I’d ever imagine and currently has the most ominous looking chart I’ve ever seen:

With a current $3 trillion market cap, Nvidia is more valuable than most country’s GDP.

Looks like France is next on Nvidia’s hit list. Good thing they know how to wave the white flag.

If you’re looking for something a little cheaper, start investigating natural gas. It’s currently trading at historical lows and is one of the least risky investments I currently know of.

The problem is that there isn’t a simple way to invest in natural gas. Instead you have to invest via companies that produce, transport, or consume. I’ll be sharing some ideas on this soon. In the meantime, you can salivate over this chart: