Financial Freedom

When I returned from New Zealand (NZ) in 2003 I left behind a large construction project and several investments in that country and in Australia (OZ). I had left Kenya for NZ and OZ in the aftermath of the attack on my person that had left me with serious physical injuries (two bullet wounds, several fractures including of my dominant arm, and deep, deep depression arising from Post Traumatic Stress Disorder – PTSD). Years later (2011-2014), as a way to meet squarely the demons in my mind, I wrote my memoir – To The Brink and Back – and succeeded beyond my wildest dreams in that beating back of mental monsters. Before those 300 pages though I decided to put my brain to work on what I had learned while down under to invest in more financial instruments and tools and to multiply my financial holding aiming towards full financial freedom for me and my family that I had learned to build in NZ.

As my projects completed and moved into mature phases I worried about the degree of ‘leverage’ I was seeing developing in the so called ‘developed world’ countries that I had lived in. Australian banks were taking on debt levels never before seen and NZ ones were no better being like little sisters to their brethren in the big sand pit to their north as the Kiwi’s like to call the Aussies. I had learned to put my AI skills to use to predict stock, derivative and fixed income prices and had dipped my toes in the algorithmic trading world and then dived in wholeheartedly as I learned that software code could make money for me while I slept.

A few friends began to talk about what I was doing. As they say nothing breeds success like success and so it was with me. As they saw what I was doing (I tend to TALK a lot and quite unreservedly about what I do) people started to ask me to invest for them. This I began to do and in short order I found myself promoting a hedge fund that I, me, yours truly, was running!

The fund grew rapidly until the workload began to break my back. It started to eat me up!

I took on anyone that would listen to me and had at least $200 to invest. Soon I had a whole bunch of people looking to me to 10X, even 100X their 200. The pressure was intense. 10X I never managed much less even 2X. But the 25% that I did get them seemed to keep them happy and the fund grew until it was literally killing me with workload and clamouring [petty] investors wanting their money back, wanting more than their money back, calling me names and then turning right back to me when I returned their money asking me to invest again once they saw that I was completely genuine and had indeed grown their money by anywhere from 25% to 100% per annum.

I charged (and still do charge the same after all these years) 0.5% per month commission to manage client funds and a split of profits 30/70 at the end of each period or liquidation point. This is a pretty typical hedge fund practice but 0.5% of $200 is A SINGLE DOLLAR for what amounts to a ton of work opening accounts (dealing with KYC/AML requirements), opening brokerage accounts for my clients, getting the client a POA – Power of Attorney – giving me access to the funds so I can trade for them, putting into place Tenants in Common corporate bodies, Trusts and more. One day, sitting with my business partners Ami and Don, Ami came up with a solution:

“Get rid of the papaad,” she said.

“What? Papaad?”

“Yes,” she said, “the mom and pop accounts, the two hundred dollar little people that can’t afford to lose even that petty change and are disproportionately putting you under so much strain.”

A light went off in my head. Within a few months I had got rid of all accounts under a million dollars in size bringing my workload down to a few dozen accounts that were already established, needed no setup procedures (that are so, so onerous), and the owners of which did not pester me nearly as much as the papaad fellas. Life became good even as we lived under the advancing shadow of doom. If you haven’t seen the film The Big Short now it the time to stop reading and go watch that movie. As you watch keep in the back of your mind this story of mine.

In 2005, eccentric hedge fund manager Michael Burry discovers that the United States housing market, based on high-risk subprime loans, is extremely unstable.

— The Big Short

I had been pouring through EDGAR database files and like Burry had been increasingly worrying about what would happen to me and mine. I positioned my friends’ monies in such a way that when the storm did hit, though I lost ALL my real estate positions in NZ/OZ (read about them in To The Brink and Back) all of us became financially free as the word hedge in Hedge Fund played out and my hedging of our losses worked and even made us more than we had before the crash unfolded. My family of investors and friends carried me embarassingly shoulder high and out of the ashes of the 2007 crash came …

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks

— from the Genesis Block in the bitcoin source code

I first read Satoshi’s paper in mid-2009 and as I read and re-read it it had taken a hold in my mind like nothing ever has before or after that. The quote I’ve taken out of the source code talked to me. Satoshi saw that we simply can’t go on like we did back then. The day will come when even my hedging will stop working. Fiat currency can be debased out of existence. No fiat currency has lived more than 80 years. From the Dutch Guilder to the British Pound to the US Dollar they must all go out of existence at some point. That point is now upon us. The $5 trillion already printed will come home to roost …

NYTimes 09/Apr/2020 With $2.3T Injection, Fed’s Plan Far Exceeds 2008 Rescue

The final Bitcoin block with a subsidy of 12.5 BTC was mined by @f2pool_official and contained the above message in its coinbase transaction

I saw the potential, the freeing of humans, the egalitarianism automatically engendered by the technology and so much more. I studied the code marveling at what Satoshi had created, learning it’s ins and outs and scrambled to put together a simple mining rig (I used a spare desktop computer in those halcyon days), and I mined a few coins within a few days of leaving the machine running. 10,000 coins were worth virtually nothing (about $0.0025 per coin so $25 for the lot that I had mined) and I promptly forgot about them and carried on with life. In early 2011 I remembered those coins when the buzz began about the bitcoin price nearing one dollar. I had in my hands not a 10X investment, not 100X but a 400X one!

I managed to convince another techie-bent friend to take 9000 of the coins off of me paying me in kind and that kind I converted into fiat currency that I poured into the hedge fund and began to explain my discovery and new modus operandi and way forward to fund investors and to position the fund into a 30% bitcoin holding.

And so I come full circle … papaad rules are back … but this time they’re not going to kill me …

  1. Get a wallet
  2. Send me an address from that wallet
  3. I will send you one dollar
  4. You send that dollar back to me

… and you’re on your way. ONE dollar invested and a whole brave, new world opens up to you. From here you can decide to invest some money into bitcoin. I would suggest you try as hard as you can to invest at least $1,000. Why this particular figure? Because all my AI code, predictions of other investors and professional financial investors, industry leaders, politicians and thinkers point to a collapse of the dollar coming that will WIPE OUT everyones savings. What will rise out of the ashes is bitcoin. It can only be bitcoin because after these 11 years of testing it has stood the test of time, is proven, unhackable and ready for prime time. What will happen when the 36.8 TRILLION DOLLARS floating around this planet is revalued into the 17 million bitcoins currently in existence? You get $2,164,705 as the value of 1 (ONE) bitcoin. Even if one bitcoin only reaches 1,000,000 dollars … well you do the math. Your $1000 will make you a Rockefeller!

What are you waiting for? You read this far … now go up a paragraph and follow those 4 simple steps!