Five bullet Friday - issue #120

Dear Partners,

     Crypto markets are going lower due to a lot of negative sentiment from bitcoin. In my earlier email, I said Carbon Offset Bond (COB) is a great substitute for your savings account from the bank. Many people asked me why I consider them as safe as a savings account at the bank. I am trying to answer this question here.

1. COB pays an annual interest rate of 18%. In contrast most high-yield savings accounts at traditional banks have a national average rate of 0.09% APY. In the current low-rate environment, it is very difficult to generate a sustainable income. Even the best out of all these is Marcus from Goldman Sachs that pays 0.5% interest. This makes COB superior to most savings account choices.

2. Your dollars in the bank are just backed by FDIC. During the 2009 financial crisis, FDIC was severely under-reserved and required a bailout from congress. In COB, your money is backed by carbon offsets. It is transparent, auditable, immutable and can be verified publicly.

3. Inflation has hit a 39-year high at 6.8% as of today. Our government tells us that inflation is high due to supply-chain issues etc. But it is established without any doubt, that inflation is the result of one and only factor, which is money printing. In fact, inflation originally was not defined based on prices going up, but it was rate of the growth of money supply. Inflation is very insidious because it is not visible to the eye. If banks offer 0.09% on average, then the purchasing power of your dollar is going down at the rate of 6.71% per year, compounding daily! That is why savings account at banks are melting ice cubes.

4. Carbon Offset market is quite large. Number of analysts expect the price to hit 100 EUR very soon. Your money is backed by an asset whose price is destined to go up. In fact, all the governments in the world want the carbon prices to go up and corporations want the price to go up. On-chain prices are still going at $5.23 per carbon ton. This will cause a massive arbitrage opportunities for nimble blockchain funds, like us. In the real-world these carbon offsets do not generate any yield like other commodities like zinc or copper.

5. In the above price chart, notice the steep rise in the price from 54 EUR to 83 EUR in just one month. That can only be attributed to KLIMA, as KLIMA token was launched on October 18th. KLIMA is the blackhole that sucks all the carbon offsets from all markets and will drive the price up. Therefore the collateral backing COB, is constantly increasing in price. There are many other factors that could have caused it, but it is no coincidence that spike happened only after October 18th.

These factors make COB, the best savings account you can ever have, while saving the planet!

Have a wonderful weekend!

Sam Ikkurty