Currently we're in what I call the accumulation phase, if you're tuning into this financial shift then dollar cost averaging (DCA) into utility assets that have a real world use case or solving a real world problem is a suggestion.
To DCA or larger purchases I recommend the following:
Economic Energy is how you create financial relief for you and your family. By increasing your financial literacy you become actively involved in the financial decisions that create wealth.
Blockchain now gives the little guy the tools to put digital assets up as collateral against a loan.... This isn't new but it's normally only available to high net worth clients who use stock of a company as collateral.
However for the little guy banks will only except the title of your house as collateral and turn a loan into a mortgage!
However this is where digital assets can be used as collateral against a loan, an example platform for this is https://saltlending.com/
Depending on the details of your loan the numbers could look like this, 70% LTV at 8.95%.
This enables you to receive liquidity without selling your assets, paying back 8.95% interest instead of 30% tax, there is no tax on a loan and you don't lose your assets!
This scenario has been played many times by high net worth clients because they understand how this mitigates their tax responsibility. Now we the people are starting to have this open up to us because blockchain is enabling this change.
A mindset of not selling your assets is about longer term wealth building. We have been brainwashed into thinking we invest with the purpose of selling later for a profit, this isn't how investors really operate!
Selling creates a taxable event in your accounts but also means you now don't own the asset, both of these are going backwards.
If you own a utility asset powering payments that will be the infrastructure of the new monetary policy you are better to accumulate then invest the asset to create yield instead of selling....!
As you invest and building wealth it's wise to keep self-educating, don't be the fancy car driver with a tax problem!
I feel there's an argument for never sell but then taking profit is also healthy for the mind body and soul, it feels good, it's often very necessary and it means you complete your objective.
However in taking profit lets me smart about it... We need to take profit being tax efficient!
Once in profit there are many strategies:
- Take back out what you put it, this is a favourite for many and it's a good feeling to do this.
- If in need of currency for a specific purpose.
- Only skim say 5% - 10% of your profit so you have taken some back, mitigate tax, still heavily invested and have some dry powder to invest again.
- The mindset of not selling, to then invest assets to achieve yield after benefiting from asset appreciation.
Everyone is in a different position, with different financial knowledge, with a different mindset. A balanced healthy approach to this is always suggested.
The short answer is there's a multitude of decentralised financial tools on chain now and more to come. Every asset will have some form of return if you look hard enough.
Staking, Liquidity Pools, Yield Farming, Centralised Exchanges, TradFi, CEFI, Flare Network, Aarve etc...
Depending on the assets in your portfolio will depend on what you use. Some people like to use Centralised tools, if doing this you really need to be diligent with who you use.
Decentralised tools utilising web3 and wallets often dealing with liquidity pools is another way of investing...
Blockchain is opening the doors for the people to pay attention to a new world of finance and learn that currency, money and assets are tools to work for you rather than using your sweat equity to work for them!!!!
Purchasing power is how much the dollar can buy today compared to how much the dollar can buy tomorrow or in 10 years... The erosion of this purchasing power (inflation) is wholly due to the monetary policy of central bank unlimited currency printing, currency not being backed and banks not being held accountable!
The term "fiat" is latin for "it shall be done" or "let it be done" Fiat currency is government-issued without the backing of a physical commodity like gold or silver. Governments maintain the value of fiat currency therefore if you trust your Government then you trust the currency? Up to you?
Key points:
- Fiat is government-issued not backed by a commodity
- Fiat gives Central Banks control as they control how much is printed
- The scenario we the people face: Government issued, not backed, unlimited supply, power in the hands of governments and central banks, result, inflation, boom bust cycles, war!
The definition of fiat currency as described by Agustin Carstens General Manager of the BIS from December 2017 - June 2025: Quote "AN EXPRESSION OF CENTRAL BANK LIABILITY"... A liability issued by the central bank yet we're told to save it? Fiat currency isn't money you learn this from Mike Maloney in his 10 episodes 'The Hidden Secrets of Money'
When you ACCEPT what fiat currency really is, you can then see with a different mindset. Now you're exchanging fiat currency out of the central bank monetary policy of unlimited printing into a fixed supply asset solving a real world problem... Therefore you now own an asset with a fixed supply as opposed to a liability of unlimited supply!
Inflation is a FEATURE of the current monetary policy not a bug! The current system is unlimited currency printing, if something (in this case currency) has an unlimited supply the value goes down. Inflation is a hidden tax on the purchasing power of the dollar due to bankers having the exorbitant privilege of printing without being held accountable!
NZD like all fiat currencies should only be used as a medium of exchange in the country of issue. New Zealand we use NZD, Australia we use AUD etc. Fiat currency is for earning and supply chain payments within the country, it was never designed for SAVINGS!