So a number of us are very shaken, and that's to be expected. I just wanted to give my take of everything so that hopefully some of you can be reassured. As always, I am not a financial advisor, nor expert. If you don't feel comfortable investing, don't. As always, make whatever investments make sense for you personally, be it all in, small scale buys, options, w/e.
Do what makes sense for you.
Anyways, I'm going to give a brief history lesson on how I initially came into SOS, hopefully to add a bit of validity to what I'm talking about. Some of you might recognize me from some of the clarification posts and things of that nature, but I first got into SOS back when they did the $5 offering that knocked them down to 4. I initially looked at it from the naïve view that it was a good investment, because the only reason why it was at 4 and not 5 was that they just offered stock. Once that settled, it'd go back up to like 4.70, meaning a semi-quick 17.5% gain. Then I found out about the 'lawsuits'. That's when I did far more due diligence into this stock. I was here when it spiked to 6.00. I was here when HK was trying to establish coordinated buys. I was here. Watching, waiting for this setup.
The writing was on the wall all the way back then that this would happen to bitcoin, that China would go anti-bitcoin (at least publicly). It was clear due to a number of reasons. First, China has energy struggles. This is largely due to the rapid expansion that China has overall seen over the past few decades, but throw in aging infrastructure, or more aptly put, inadequate and corrupt infrastructure, then its clear that China KNOWS it will have upcoming energy issues. The second is the nature of the beast that is Chinese government. Over the past several years, they've increasingly reinforced a stance of tracking. The idea of social credit, the quickness to which they used tracking to tame coronavirus, and other events made it clear that this would be their stance. Tracking is good. What is not good is when people are taking their wealth, and throwing it into something that China CAN'T track. Chinese bitcoin had it writing on the wall. China has also motioned in the past towards this.
It has now come to pass. China is officially, fully, anti-bitcoin.
Despite the price, despite the red, despite the FUD, this is VERY good news for us.
The Setup
After I saw the setup that I'm talking about, and then later saw that SOS was looking into energy options in the US, I went all in. It was at this point that I knew that SOS saw the setup too. This setup is one that's simple to understand, once you see it.
SOS is a Chinese based company, with ample experience in the mining field. China is now anti-bitcoin. That means all of the miners (more than 50% of the miners in the world are Chinese) are now stuck with near worthless lumps of metal and components. Sure, some will continue to mine, trying to avoid the government. Sure, some will relocate, because they too saw the writing on the wall and set aside funds to facilitate these moves. However, more still will not have either of those options available to them. They will be forced into impoverished conditions due to forced closure, sitting on machines that are worthless to them. I'll say that last part again sitting on machines that are worthless to them. If only there was a company situated in China that could easily remove these machines off their hands, relocate them to another country, say one that they already have ample contracts in place for power, and start mining there.
SOS is that company. I was bullish, and still am bullish on SOS. Every spare cent I have is in SOS. Not because "but bigger than MARA", not because "But bigger than RIOT", not because "BUT MUH SQUEE...", but because out of all of the companies in bitcoin, SOS is very uniquely placed to profit off the exodus of miners as crypto transitions out of China.
Its going to be rough for a while. Bitcoin is going to get battered. Ethereum is going to get battered. You *WILL go red holding this stock, but as stated, they are setup for so much more green.
Just my take on this all this. As I said before, invest in a way that makes sense for you. I am not a financial advisor, so make your own damn decisions.
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