- Coach JV says baby-boomer money moving to younger generations will shift the financial sector.
- The crypto investor says the traditional banking system will need to adapt to survive.
- He adds that the upcoming bull run may be “parabolic” as institutional investors participate.
It’s becoming increasingly evident that an economic shift is here and the post-COVID era will be different.
The World Economic Forum called these radical changes “The Great Reset” and themed its pandemic-era annual meeting last year by that name. A key component was a focus on the fourth industrial revolution, an overarching concept that considers the impact of technologies such as artificial intelligence, quantum computing, and the internet of things, just to name a few.
But what do all these macro concepts mean to the average person? For crypto entrepreneur Coach JV — a pseudonym that’s tied to a “Viking-like fitness persona” — it’s a move towards a highly digital and decentralized world, and importantly, one that likely revolves around crypto and blockchain technology.
Coach JV made it his life’s mission to educate people about wealth building through his coaching program, 3T Warrior Academy, and social media platforms. He calls his followers “warriors” and after every video, he tells them to “rise”. His TikTok alone has almost 800,000 followers.
But what most miss is that this tough guy persona is actually quite well-versed when it comes to the financial sector.
In fact, if you want to make a quick 100 bucks, you can bet with his most loyal follower that they wouldn’t recognize his LinkedIn photo. John Vasquez — his real name — was once the slick, suited-up, gel-haired guy you might expect to see on Wall Street. He’s a 12-year banking veteran, with his most recent title being vice president, district manager at Wells Fargo.
In 2017, he decided to leave the banking world. His professional career gave him a good understanding of the inner workings of the banking system — one that’s tied to a circle of continuous debt and lack of financial education, he says. Among his biggest frustrations was seeing people continually take on more debt to buy things they can’t afford.
“I help people break free from the old paradigm into a new paradigm and a monetary system that we’re moving into. That includes us being our own bank and becoming more sovereign in the system,” Vasquez said.
He added, “What’s happening is the banking system is being challenged pretty heavily in regards to people understanding that they can take control of their financial wealth,” Vasquez said.
A generational wealth transfer
He says because of that, the traditional banking system will need to adapt to transition with individuals and retail investors who are increasingly adopting crypto.
Here’s why: As baby boomers’ wealth moves down to younger generations, it likely won’t be going back into the same sectors as it did before, says Vasquez. He thinks that instead, a majority of it will move into digital assets and blockchains.
To be sure, other asset classes will benefit from this wealth transfer. But a June CNBC survey found that nearly half of millennial millionaires had at least a quarter of their wealth in crypto, while none of the older generations had more than 10% allocated.
“The biggest shift of generational wealth is the money moving from the baby boomers down,” Vasquez said. Aging households will transfer an estimated $70 trillion in wealth from record earnings by 2042, mainly to their heirs, according to the research firm Cerulli Associates.
This new paradigm we are entering will further push the idea of sharing platforms, says Vasquez. It will allow users to interact with one another directly — something we’re already seeing the early impact of in the moves from hotels to Airbnb, taxis to shared rides, and more recently, banking to DeFi and crypto.
Vasquez believes that if he can get people to understand the shift, they can better position themselves to take advantage of the greatest opportunity of our time and build long-lasting, generational wealth.
What the average investor needs to know before investing in crypto
First, everyone should focus on accumulating assets to offset inflation, says Vasquez. And part of that process is understanding the purpose bitcoin, ethereum, and altcoins serve. Most investors’ hesitancy towards crypto is based on the lack of understanding of these technologies.
Second, he notes that it’s important to understand how the market is heavily impacted by whales, or those who own large amounts of crypto. As large institutional investors start to rush in, the crypto market is going to go parabolic. Those who are new to the sector will jump in during this peak period out of FOMO, which is bad timing, Vasquez said.
Third, as average investors go into this space, they should understand that there’s hardly ever been a time when anyone can act as accredited investors until now. And that’s because of crypto, which allows all users to transact equally on a blockchain.
Fourth, everyday investors need to understand what’s happening with policy and why the government is increasingly focused on regulating crypto.
On one hand, policy makers are likely getting ready for adoption, so the regulatory framework isn’t all bad. On the other hand, investors need to be careful because the assets remain highly speculative.
“So eventually they’re going to come down hard on crypto exchanges and also come down hard on most cryptocurrencies,” Vasquez said of regulators. “And I believe that 99% of cryptos that are in the marketplace right now are no longer going to exist due to their lack of utility.”
His top crypto picks and how to navigate the coming bull run
Vasquez says this bull run may be bigger than previous ones as institutional investors begin to pile in. He has prepared an exit strategy based on the cryptos he holds.
He has about 21 different cryptos in his portfolio but his main investments are ethereum, vechain, XRP, and cardano. He’s not heavy on bitcoin because of its already-high price. Since he’s a short term trader, bitcoin has less price upside relative to altcoins. But he still recommends it for the average investor who wants to hold value long-term rather than trade.
As for the parabolic run that Vasquez believes is likely to take place in October, November, and December, the signal for the start of the run will be triggered by bitcoin’s sudden rise in price. Once a peak is reached, bitcoin’s dominance indicator will begin to decrease. This means money is moving out of it and into altcoins. Hence the start of altcoin season or what he refers to as a parabolic run.
Vasquez says that during this period, investors should have an exit plan and take profits along the way without waiting for what they may perceive to be a peak. He calls this a ladder exit strategy.
“The reason why we do that with the warriors is because you’re never going to catch the top [and] you’re never gonna catch the bottom,” Vasquez said. “So what happens is for people who are new to crypto, they’re going to experience price appreciating like they’ve never experienced before in their life. And so the greed index goes through the roof.”
He cautioned that crypto exchanges can start to falter when crypto trading is heavy.
“They start to shut down,” Vasquez said. “And I don’t know if it’s by design or it’s just the volume of people going to the exchanges and you end up getting stuck at the top and come sliding down the back end. And so your very exciting moment in crypto becomes the worst nightmare ever.”