Author: Marko Vidrih

  • Millionaires Who Lost it All – Ex-Lottery Winners Turn to YouTube

    Millionaires Who Lost it All – Ex-Lottery Winners Turn to YouTube

    When you become millionaires from one day to the next anything can happen. That’s what happened to Petra and Hans-Joachim (known as Achim) Bubert from Schleswig-Holstein. In 1994 Achim filled out a lottery ticket and won eight million Deutsch marks (about $4.7 million).

    Nearly 25 years, later nothing is left of this profit except the memory. The former winner describes the path from being a millionaire back to everyday life with sadness. In his words:

    “If you get rich in one fell swoop, everyone suddenly gets in touch. But if you feel bad later, there is no one left.”

    This was the comment of the winner, who the media currently refers to as “Lotto Achim.” In his own opinion, he largely lost his fortune due to his generosity.

    Lotto Prize of Almost $5 million

    Achim Bubert is now 55 years old. He lives with his wife Petra in Rönnau in Schleswig-Holstein. There they lived before their unexpected wealth and remained doing so after the big win. This may have been their first mistake and the beginning of the end of their millions. As “Lotto-Achim” says, they simply gave away $3.5 million.

    Many former friends and neighbors contacted him when they found out that he won the jackpot. Everyone had their own worries and wishes. Now that he is in trouble, however, he finds there’s no one there to pay him back for his generosity.

    Before winning the lottery, Achim was working as a freelance carpenter. His wife is a trained hairdresser. They lived from hand-to-mouth. Then they became millionaires.

    And now they are back at the beginning. It’s not hard to see the mistakes they made. Family members and acquaintances received $2.2 million in the first weeks. Wife Petra speaks openly:

    “Of course, I wanted to boast a bit: Look, we are rich!”

    But now it’s all gone and giving the money away, poorly investing it, and using it up cost them almost 8 million Deutsch marks. Meanwhile, their accounts are blocked and frozen funds. The couple now lives from the income of their own fishing shop.

    These Mistakes Cost “Lotto Achim” His Fortune

    First of all, moving is sometimes not the worst idea. However, many winners cannot imagine a new beginning far from their friends and family. Staying where all know each other is sometimes difficult. Because either the news spreads fast about the lottery profit or it is very hard to hide it. Spouses Bubert told acquaintances and friends about their happiness to share the joys associated with it.

    No one could have foreseen the consequences in advance. If the Buberts were too stingy with their money, they were threatened with “visit from the Belarusians.” They were even threatened to have their children abducted or their animals tortured.

    Even their marriage was facing in problems because the parents of “Lotto Achim” wanted to turn him against his wife. Later, the couple saved their marriage only because the wife entrusted her diaries to her husband. She even described suicidal thoughts.

    Their children became targets at school. Their peers insulted them as the “lotto pigs.” Meanwhile, Achim committed more financially momentous mistakes.

    The 2008 economic crisis and unskillful dealings with real estate lead to further disappearing of the money. The specially-built fish shop did not bring the desired success, and their employees were stealing unrestrained. Already in 2009, the two published a book titled “Mit dem Geld Kamen die Tränen” (With Money Comes Tears).

    What has remained of the profit? In 2018, the lottery millionaires are left only with their house with the attached paddock and a less profitable fishing shop.

    Therefore, the two now want to become YouTube stars and so refill their accounts. They boasted about their millions and told too many people about it.

    A Bag of Cement

    The fishing shop with 7,000 square-meter property, which also includes a recording studio, is one of the “concrete gold” items that the Bubert still have. Because his passion is music, his most recent song is simply called: “A bag of cement.”

    Petra and Achim now want to become YouTube superstars. They recorded their songs in their in-house recording studio in Schleswig-Holstein. Now, the Buberts hope to be discovered on YouTube and become stars.

    Achim’s wife Petra just wants to forget the misfortune of lottery winnings. She states clearly:

    “It put a strain on our family, especially on the children. I want to forget this situation. But instead, we are repeatedly addressed to this lottery story. At some point, it has to be good! I hope people understand that!”

    A new source of income has to come from now on. Opinions are likely to diverge as to whether their vocal talents are enough for a big career. But if you want to judge for yourself what it sounds like when Petra starts rocking, you can hear in the video.

    Images via Facebook – Achim Bubert.

  • Is Tokens.net a New Potential Crypto Exchange Success Story?

    Is Tokens.net a New Potential Crypto Exchange Success Story?

    Bitcoin exchange Bitstamp founded by Slovenes Nejc Kodrič and Damian Merlak has a new owner–the Belgian investment company NXMH.

    Up until now, they had many potential buyers, but Bitstamp was acquired by Belgium-based investment company NXMH. This is how Nejc Kodrič announced the news:

    “Bitstamp has been acquired by NXMH, a Belgium-based investment company. Our team, leadership, and vision remain all the same. We believe this is the logical next step on our mission to be the most trusted digital currency exchange on the market.”

    He ensured that after the takeover, customers don’t have to worry about their accounts or the company’s performance.

    Kodrič expects that the acquisition will strengthen Bitstamp’s growth position, which will bring opportunities for better customer service. The amount Bitstamp was purchased for is unknown, as the management of both companies didn’t want to disclose this information.

    According to an Older Rumor, the Price Was Set at $400 Million

    A South Korean investor was ready to offer $400 million for Bitstamp in April this year. This information is not confirmed, but it came from the well-known technology journalist of The New York Times, Nathaniel Popper.

    Nexon Korea CEO denied rumors of acquiring Bitstamp in April.

    Nejc Kodrič remains as a 10% owner of Bitstamp after the deal with the Belgian company and will continue as CEO. Prior to that, his ownership share was 32%, which was the same as the ownership share of the other co-founder Damian Merlak.

    Is Tokens.net a New Potential Success Story?

    tokens.net
    tokens.net 

    Merlak has designed a second exchange platform without his co-founder of Bitstamp Nejc Kodrič called Tokens.net. In an interview with MoneyMakers he explained:

    “I am an innovator, I like new things, Bitstamp is licensed and therefore there’s no more room for rapid development,”

    The crypto exchange Tokens.net is live and users can exchange cryptocurrencies and crypto tokens on the platform.

    “We’re not like most ICO projects that haven’t yet delivered any product… the money collected from the ICO is used exclusively for the development of the platform. We listen to the community and stakeholders and deliver upon the requests which are in line with our vision for the platform.”

    Although Bitstamp and Tokens.net are both classified as crypto exchanges, Tokens.net’s difference is that it doesn’t enable FIAT to crypto trading.

    Tokens.net seeks to bridge the gap between ICOs and crypto exchanges by giving carefully selected ICOs a place to be traded. The company has already 11 employees. Merlak says:

    “Tokens.net has a very bright future ahead and you will hear more about it soon.”

    Featured image Twitter.

  • From a Thousand Euros to Over 100 Million – An Interview with Damian Merlak Co-Founder of Bitstamp

    From a Thousand Euros to Over 100 Million – An Interview with Damian Merlak Co-Founder of Bitstamp

    Young people often dream about how to get rich quick. But according to 31-year-old Slovenian millionaire Damian Merlak, there is no shortcut, and:

    “Sometimes you also need luck.”

    Merlak is a co-founder of Bitstamp Exchange, Tokens.net (crypto-to-crypto exchange), and Quantum Project. He’s also in the 37th place on the rankings of the most influential Slovenians and the country’s youngest millionaire.

    Seven years ago Damian Merlak bought his first bitcoins, for about two dollars each. He doesn’t have those bitcoins today anymore.

    “Practically nobody who bought bitcoins for a couple of dollars each hasn’t kept them until today. Perhaps only someone who forgot he owns them.”

    With those words, the myth of millionaires who spent a few hundred dollars for the initial purchase of bitcoins was broken down. The first stop on the road to his own fortune was mining bitcoins.

    More than seven years ago, he entered a specialized shop in Kranj, Slovenia and ordered the two newest, most powerful graphics cards, which he wanted to connect with the slowest processor and worst memory card (RAM).

    All the PC specialists were confused: “What are you going to do with such a computer?” asked Nejc Kodrič the owner of the mentioned shop, and was quickly infected by Merlak’s enthusiasm over bitcoins.

    In 2011, they were hanging out and debating about the crypto world which soon turned into business cooperation when they founded the Bitstamp exchange.

    They received $10 million in startup funding to develop their idea. At that time there was Mt. Gox, a Japanese exchange platform, which offered a poor user experience. Getting money to Mt. Gox and getting it out was very difficult, as well as completing orders for sales and purchases.

    The user platform was dull and useful only for technically trained people. According to publicly available data, they calculated that Mt. Gox was earning $10,000 a day from commissions.

    “We calculated that if we’re as bad as they are, we can earn $10,000 a day.”

    In the meantime, many exchange platforms including Mt. Gox did not integrate well and did not succeed, but Bitstamp remains one of the largest crypto exchanges in the world.

    It has its headquarters in Luxembourg and offices in New York, London, and Slovenia, where its center of development also is. More than 100 people are employed at Bitstamp, while Merlak and Kodrič, each of them with more than $100 million dollars of assets land in the group of most rich and influential Slovenians.

    From Crypto Startups to Farms

    Damian Merlak considers himself to be a serial entrepreneur. And in order to pursue all of his business ambitions, he resigned from the executive position in Bitstamp, but he remains a 32% owner and member of the Supervisory Board.

    He got into some of his projects through the issuance of crypto coins (ICOs – initial coin offerings). The Quantum Project based on this idea, which offers trading strategies, collected him $4.12 million.

    With the Tokens.net project, which is a crypto-to-crypto exchange, he raised an amount of $15 million through an ICO. In addition to crypto enterprises, Merlak also focuses on more tangible things: he owns a farm which has 1,100 living animals. He also owns a veterinary clinic and a retail store with textile products, as well as several real estate properties.

    Let’s dive deeper into the man behind Bitstamp and find out how he got to where he is today.

    Can you give us a quick introduction to your background? How did you get where you are today and what does your company do?

    A colleague with whom we worked on projects told me about bitcoin in 2011. When I checked the subject on the Internet, I first said that I was not interested. At that time the price was about two dollars. Two months later, I accidentally caught the price of it between 15 and 20 dollars. This difference aroused the interest in me.

    Then bitcoin fell again and I started buying. I was also interested in technology and the system that runs the background. I started to participate in the forums. First I was only buying bitcoins, then I saw an opportunity in mining them.

    I went to a classmate and ordered graphics cards and everything that was needed to mine bitcoins. The thing started to interest him, but his brother, Nejc Kodrič was blown away too and soon started to explore the topic, and within some time we together formed the idea of Bitstamp.

    At the moment, there is a large assortment of crypto exchanges around the world, and Bitstamp is one of the largest and it is the only licensed company in Luxembourg. On our exchange, not only individuals but also institutional clients can buy and sell crypto coins. A fund or an investment bank can’t operate in an unregulated entity or with a “Monkey Business,” as I call it.

    Bitstamp maintains the strategy of the fiat to crypto exchange and vice versa. We have a large array of new virtual currencies and projects that are funded through ICOs. I think that these supporters need to provide adequate infrastructure, so I decided to establish Tokens.net. The exchange platforms are complementary to the activity and services they offer.

    When did you make your first million? Can you remember the first thing you bought?

    It was in 2013, I was 27 years old. When I earned the first million I bought a car – a Tesla model S. I invested the rest in my business.

    Did your life change when you become a millionaire? How so? Have you gotten many new “friends”?

    Not really, I might have lost some. I do not think the money changed me. I think the information and insight into the system at first hand have changed me. Now I know a lot of things that I didn’t know before, that’s why I respond differently to things that are happening around me.

    Probably your friends, acquaintances, and colleagues ask you how to make quick earnings. What do you answer them?

    I avoid giving financial advice. You don’t gain anything from it, just a problem when the market reverses, and people only really like the green numbers. Do you know how much more a 10% loss hurts compared to the sweetness given to you from a really good 10% profit?

    Would you say that investing in crypto is like gambling?

    Of course, there are risks. I advise people who invest, to learn about the technology itself, what it offers and what its weaknesses are. Many will burn, many have already. I also suggest that people invest in the largest, credible coins and don’t seek quick benefits in various schemes that someone sells door-to-door. The most important thing is to invest when the value is low and not when it reaches its all-time high.

    It is the same as Stocks of Tesla, Twitter, Snapchat and various. The average daily volatility of bitcoin is mostly 3% (let’s leave aside the crypto-bubble, which was created in December of the previous year). That can be compared with many technological stocks on the US stock exchange market NASDAQ. Investing in tokens (ICOs) is actually investing in startups. Profits can be huge, but the successes will be rare.

    Have you been lucky entering the crypto world?

    Seven years ago, I was firmly convinced, and that is why I also invested all my thousand euros of savings in bitcoin. If only then I had more savings… [ laughter].

    Many crypto millionaires are moving their crypto-money to real estate – from virtual to physical, including yourself. Why is this a good idea?

    Simply, the fortune has to be dispersed. The majority of my properties are linked to the success of the cryptocurrencies, and it makes sense to bring some of it to a bigger range and some other fields.

    Where else do you have your money invested?

    Shares and stocks of US companies, real estate for tourism, private companies with good cash flow. I have a farm with 1,100 living animals. I plan to build a boutique hotel. Due to great growth, my shares make me apprehensive so I protect them by buying options.

    What made you decide to buy shares?

    I have been trading with traditional shares for more than 10 years. That brought me to the world of cryptocurrencies. In recent years, I have been doing this with a distance, mainly because of staying in touch with cryptocurrencies.

    I use the options because it is much easier to limit the risk with them, and they also allow earnings in the form of a premium on possible sales in short periods of time.

    Changes in the crypto world are very fast. Do you get any sleep at all?

    Otherwise, it would not be fun! We’ll deal with boring business in 20 years.

    Where do you live and what does your workday look like?

    I live and work from home, from my small house in Malta. I decided to cooperate with Maltese local financial companies and the country of Malta in new projects because it regulates and is open to the possibility of licensing and dealing with cryptocurrencies.

    Moreover, winter is not really my favorite season, and the Maltese climate was only an additional advantage in deciding.

    You have enough to retire, why don’t you do that?

    I’m already somewhere warm, and I think I’ll never really retire. I love doing the things I do and living the way I live and I can’t imagine what my retirement will look like.

    What do your parents say about your success?

    They are proud.

    Did your parents help you financially with your entrepreneurial ventures?

    No. My fortune in life is that I come from a rather modest family, so I had to create everything by myself, which made me value my work even more. People who are born with everything tend to achieve less.

    What advice do you have for people just starting out with a business or trying to make their fortunes?

    It is necessary to perceive what is happening around you. If you are passive, things will pass you by. You have to be up-to-date with international flows and understand them. Expand your view. You have to set up a big, realistic and with a little luck accessible goal. Try to work with companies from industries and activities of your own interests, connect with them when you’re educating yourself.

    If you create wealth slowly, you have a completely different perception of it. If you hit the lotto overnight, wealth can be a problem. But if you build a company and you don’t earn anything in the first year, you might start paying your salary in the second one. The third year you might reach some higher growth and start paying your salary, as you always wanted.

    This is the organic growth, personal growth, that makes you understand money. After six years, Nejc and I agreed to have reached that point. Today I have a healthy attitude towards money, which makes me have less true friends than I used to have years ago.

    Featured image from Instagram •Damian Merlak (@damianmerlak).

  • Why Did France’s Billionaires Get Rich Quicker Than Everyone Else?

    Why Did France’s Billionaires Get Rich Quicker Than Everyone Else?

    In the first half of the year, French billionaires surpassed everyone else, partly thanks to extremely strong demand from China. However, one Frenchman has lost a lot of his wealth due to fall in the stock market.

    France is not necessarily a figurehead of capitalism, in fact, it’s a country with a strong socialist tradition. And this is exactly where the fastest asset growth ever took place, at least considering the 13 richest people in the country. These have, according to Bloomberg data, increased their assets to $27.6 billion in the first five months of the year. That’s 12% more than in the same period of the previous year.

    Americans, Japanese, and Chinese could not keep up, even though they got richer as well.

    The largest contributor to France’s wealth was Bernard Arnault, the world’s fourth richest man, whose fortunes increased by $14.9 billion to a sum of $78.2 billion, since the beginning of this year. His 81-year-old fellow citizen Francois Pinault is not staying behind and has expanded his holdings from $10.1 billion to the sum of $36.4 billion.

    Both men are active in the luxury sector. Arnault owns the LVMH group, which includes brands such as Louis Vuitton, Moet, Hennessy, Dior, Givenchy, Kenzo, Bulgari, and Hublot. Pinault is the head of the Kering Group with the brands Gucci, Yves Saint Laurent, Brioni, and Puma.

    Strong Demand from China

    The fact that both were so successful with their companies is mainly due to the extremely strong demand for the corresponding goods from Chinese consumers. They also benefited from the rapid development of e-commerce. Pinault owns the auction house Christie’s in London, which has also a very successful unit in Hong Kong.

    At least $2.8 billion richer this year are Alain and Gerard Wertheimer, who call Chanel their own. Bettencourt Meyers, the richest Frenchwomen with $48.1 billion, has also grown her fortune by $3.67 billion this year. The 64-year-old holds 33% of L’Oréal.

    The French have certainly made money even outside of the luxury industry. Especially Serge Dassault, the 93-year-old chief of the military aircraft manufacturer Dassault. His fortune grew from $4.89 billion to the sum of $27 billion in the first five months of the year.

    However, not everyone won. A famous individual Xavier Niel lost $2.6 billion due to the fall in the stock market of the holding of Iliad, which owns telecom operator Free. The 50-year-old telecommunications shark has amassed his fortune through the adult content industry. Today he is co-owner of French newspaper Le Monde. He also holds the rights of the song “My Way” by Frank Sinatra.

    Featured image by Jérémy Barande, Wikimedia.

  • Powerball Jackpot Now Worth $430 Million After No Winner Announced

    Powerball Jackpot Now Worth $430 Million After No Winner Announced

    American lottery game Powerball which is played in more than 44 states announced they did not sell any winning tickets for the $378 million draw yesterday. A nonprofit organization, the Multi-State Lottery Association (MUSL) coordinates the drawings. Winnings of Powerball’s starting jackpot of $40 million can either be paid in 30 installments or in one lump-sum cash payment.

    Nobody had the luck of buying the ticket with these winning numbers: 03, 57, 64, 68, 69, Powerball: 15, PowerPlay: 3X. The next draw, which will take place on Saturday, will be one of the biggest in the country’s lottery history.

    The lottery jackpot for the following Powerball draw has risen to $430 million, with a cash option of $248 million. On just a handful of other occasions have the stakes been so high.

    In case you bought your Powerball ticket and didn’t check it yet, don’t throw it away. There were thousands of tickets sold in the New York area which won smaller prizes and three winning tickets worth $1 million that were sold nationwide. Are you the next millionaire?

    Second Place Is Not that Modest Either

    You don’t have to be disappointed if you didn’t buy the winning ticket. By matching all five numbers, you could win a second prize of $1 million in Powerball. However, no one won the second prize of $2 million in Power Play, which you can participate in for an additional $1.

    To win the Mega Millions grand prize your odds are 1 in 302,575,350. However, your odds of winning Powerball are a bit better at 1 in 292,201,338.

    What Was the Largest Jackpot in History?

    Featured image from Shutterstock.

  • Uber Could Be Worth $120 Billion at IPO

    Uber Could Be Worth $120 Billion at IPO

    Ride-hailing companies Uber and Lyft are fighting for investors in their initial public offerings and banks are rivaling it out for the most lucrative IPOs in recent years… But there could be no money left for the second one, so timing will be key.

    According to a Wall Street Journal report, the vehicle operator Uber could go public faster than expected. It could also be valued much higher than previously thought.

    Toyota invested $500 million in August which put Uber at a value of $76 billion. The company recently received proposals from investment banks, which indicates a valuation of up to $120 billion. This would be higher than the 49 largest IPOs of US companies in recent years.

    The size of the IPO also determines the fees that banks charge for their services. If they succeed in making the $120 billion valuation for the high-deficit company palatable to investors, it could pay off before the institutions can participate.

    The media also reports that Lyft has selected supervising banks to complete their IPO. This suggests that the toughest competitor could manage to pip Uber to the post.

    JPMorgan Chase will be the leading bank, followed by Credit Suisse, and several other banks. In the most recent round of financing, shareholders granted Lyft a valuation of $15 billion, compared to $7.5 billion in April 2017.

    However, Wall Street banks are also likely to deliberately set their forecasts high in order to secure their applications for the lucrative business. Financial markets have been anxiously awaiting Uber’s IPO which is planned for 2019.

    According to the report, preparations are gaining momentum and the IPO could be completed at the beginning of the year. Uber has finally found a new chief financial officer after three years of searching and that should be key for planning its IPO.

    A Constant Rivalry Between Uber and Lyft About to End

    Both companies are developing technologies such as self-driving cars, test subscription systems for frequent travelers, and expansion into alternative transport methods such as rental electric scooters and bicycles.

    Lyft, which was always left behind, strongly benefited in 2017 and 2018 from the massive turbulence at Uber that even cost its previous CEO his job and lead many customers to leave Uber for Lyft.

    However, with this latest valuation, it looks as if Uber will once again come out on top.

    Featured image from Shutterstock.

  • Why Does the Price of Oil Go Crazy?

    Why Does the Price of Oil Go Crazy?

    The price of oil is going through a veritable roller coaster ride. In July, there was a strong setback. The international oil cartel, the OPEC, decided to gradually increase production. Russia also turned on the valve. On top of that, some unscheduled delivery failures that existed in Libya had to be repaired.

    But the correction seems to be over for the time being. Only the North Sea brand Brent climbed very quickly in the direction of $80 a barrel. And now there are new events. Now it is the US sanctions against Iran that are increasingly attracting investors.

    The country, which incidentally is also a member of OPEC, will not be allowed to export any more oil from November of this year. And that could have serious consequences for the price of oil, at least that’s the fear of many investors.

    Crude Oil Price https://www.nasdaq.com/markets/crude-oil.aspx

    What has been happening since mid-August in the oil market you don’t get to see so often. The price of Brent, which is relevant in Europe, has risen by 20%, to $84.6 a barrel. Since the beginning of the year, there has been 27% growth, since the middle of last year over 85%.

    Certainly, given the fact that the price had plummeted in the previous years from $115 (mid-2014) to under $30 (January 2016), the current backlash is partly also a correction.

    On the one hand, there is the booming economy, which boosts oil consumption and thus drives up the price.

    And here comes the second reason into play. Traders fear a further decline in supply. This is limited only by the fact that oil production is falling in Venezuela due to the economic crisis.

    Now the situation around Iran, the third largest producing state within the OPEC oil cartel, is also getting worse. The US imposed new sanctions on the Mullah regime. These will not come into effect until the beginning of November, but they cast their shadows. Russian Minister of Energy Alexander Novak said:

    “The market is very nervous and very emotional.”

    The fast price dynamics are not even pleasing production countries, let alone the consumers. This can be seen from various statements. For instance, US President Donald Trump has repeatedly complained that the OPEC needs to take responsibility for regulating the price. That is only partially true.

    The cartel in alliance with Russia and some other oil states at the end of 2016 agreed on funding cuts. Due to the new market situation at the beginning of this summer, however, the taps turned up again.

    The two largest producers Russia and Saudi Arabia said they were ready to do more if needed. But at least, as far as Russia is concerned, there are doubts as to whether it can further increase its historic maximum funding.

    And so the price forecasts of $100 a barrel are increasing in the face of this mishap situation. According to Novak, the price range of $65 to $75 a barrel appears to be at a suitable level for both producers and consumers. We can already see that price is following his predictions.

    Crude Oil Price / https://www.dailyfx.com/crude-oil

    Gasoline, Heating Oil and Gas Getting More Expensive

    The average price of gasoline worldwide is $1.18 per liter. Due to the higher oil price, the consequent increase in fuel prices is already being observed. Although it’s still a bit early to think of the dark season, in terms of electricity and gas price, we can already feel it in the air.

    Price increases indicate the turn of the year. Both heating oil and gas are becoming more expensive than last year in many regions. We must prepare to live in the new era of high prices.

    Featured image from Shutterstock.

  • 25-Year-Old Is on His Way to Become a Pokémon Millionaire

    25-Year-Old Is on His Way to Become a Pokémon Millionaire

    Yannick is a 25-year-old German. He doesn’t want to reveal anything about himself except first name and age. This is due to a hobby that has already earned him a lot of money. What do old Pokémon cards and a company in California have to do with it? Here, he explains in his story.

    A summer of 1999 in the schoolyard, main break. A group of boys keeps their heads together. Then-six-year-old Yannick is also among them. What is in the hands of the first graders? Not break sandwiches, but Pokémon cards.

    Everyone tries to get the cards that are missing in their collection. But the break is too short. After school, an urgent appointment with the TV. The Pokémon adventures are waiting.

    The Giant Market in America

    Early 2014: Yannick is bored in the university lecture hall. But he and his buddy find a more interesting topic than the dry lecture: they are brought together by their Pokémon passion.

    Shortly thereafter they became two adult men with Pokémon cards. But the cards are not the same anymore. And because Yannick does not like the new cards, he searches on eBay for the one card that everyone wanted to have as a child: the “Glurak” of the 1st edition.

    For 50 euros (about $58) he buys the card. But there are also other cards out there for which he would have literally ripped off a leg as a child. He started to look for a “Turtok.”.

    Everything Yannick finds is a 1st edition card rated 10 by a company called “PSA.” At the time, Yannick did not know what that meant. Nor why the card was four times more expensive than normal cards.

    The PSA

    Through research on YouTube and Google, he finds out that PSA (Professional Sports Authenticator) is a California valuation company. It rates Pokémon cards for their condition and authenticity. A 10 is the highest rating.

    “It was a huge market in America at that time, but completely unknown in Europe”, he says.

    Yannick Brings the Trend to Europe

    Yannick starts buying German Pokémon cards in America. Comparatively cheap. The next step at the time was to market his “hobby,” as he calls it, via Facebook and Instagram, because the cheaply-bought American cards could be sold expensively in Germany.

    “As a poor student, I financed rare cards which I wanted to have by buying more of regular cards, which I wanted to resell immediately.”

    The market was growing and Pokémon cards were becoming more and more popular. Today, thousands of people are collecting them in Europe, thanks to Yannick.

    “I’d say I was the first in Europe to come up with the reviewed cards from America and bring the trend here.”

    Once, Yannick sent a perfect card to the PSA and it came back damaged. The cards are sent in closed special cases for cards to protect from damage. Because the evaluator has pulled the card out of the case, dust particles that had previously dripped into the case scratched the card.

    The card turned out to be a 9 instead of the 10 that it deserved. That had consequences because there are only three of these 10 rating cards worldwide. As a 10 rate-card, it would have been worth 5,000 euros ($5,780), as a 9, it was not even worth 100 euros (about $115).

    End of 2014: Yannick’s idea works. First, he buys cards for 25 euros and sells them for 50 euros. Then he buys them for 100 euros and sells them for 200 euros. The value continues to rise.

    “That’s when I knew I had to put as much money into my hobby as possible.”

    But he did not have much money as a student. He explained to his mother what he was doing and she trusted him. Yannick’s mother gave him 3,000 euros (almost $3,500). She said to him, “Do something with it!” And he did. He invested the money to make six-figure sums.

    According to Twizzle which put together a helpful infographic highlighting how much certain Pokémon cards are worth, one card can be worth up to $100,000.

    End of 2018: Yannick buys Pokémon cards almost exclusively for his private collection. He is now working, but if prices continue to grow and the money continues to flow, the collection will soon be complete and worth millions of dollars.

    On Instagram, under the name @psa_gem_wizard Yannick shows parts of his collection.

  • Investors Are Bowing to Italy as Yields on Italian Bonds Climb

    Investors Are Bowing to Italy as Yields on Italian Bonds Climb

    Yields of Italian Bonds Climb to Multi-Year Highs – Stocks Are Under Pressure

    Matteo Salvini is not known for his restraint. On Monday, the Italian Deputy Prime Minister called for a verbal sweep of European Union Commission President Jean-Claude Juncker and Economic Commissioner Pierre Moscovici.

    “The enemies of Europe are those sealed in the bunker of Brussels.”

    These were his words at a press conference that Salvini held together with the head of the French right-wing populist, Marine Le Pen. The governing coalition in Rome, populist five-star movement and right-wing, is currently in the midst of Brussels’ budget policy for 2019.

    The EU complains that the structural deficit, which excludes one-time effects and cyclical fluctuations, is increasing by 0.8% of annual economic output. However, the Commission has called for a 0.6% reduction in this deficit.

    Italy 10-Year Bond Yield Overview

    It is this disagreement that immediately led to negative effects on the financial markets last Monday. Yields on 10-year Italian bonds climbed to a four-and-a-half-year high.

    “We are a bit surprised by the strength of the reaction in bond markets, but it appears the market is jumping to the conclusion that the European Commission will take a hard-line stance when Italy submits its budget.”

    Said Antoine Bouvet of the investment bank Mizuho.

    Higher refinancing costs can also hit Italian banks hard. According to calculations, the core capital of the institutions has already declined in the second quarter.

    Italian banks traditionally hold the promissory notes of their country. If the prices of the securities fall, this will affect the capital calculations of the banks. On the stock market, the prices of some institutions declined. This also weighed on the lead index: It’s about to fall into a bear market.

    Italy Stock Market (FTSE MIB)

    Authorities Monitor Liquidity of Italian Banks

    Given the turbulence of the past few days on the financial markets, there was a more intense observation of the Italian banks, it was reported on Tuesday. The audits cover both customer deposits and the interbank market. There is no reason to be alarmed.

    European Banking Supervisors Taking Banks’ Liquidity Under Scrutiny

    The budget dispute between Italy and the European Commission pushed the yield on the Italian 10-year bond to 3.72%, the highest level since February 2014. Italian banks are vulnerable here as they hold €375 billion of domestic bonds worth about ten% of their assets.

    Depreciation on the value of bonds could tie up much of the banks’ equity, which is then no longer available for loans. According to CNBC, one of the Italian crisis banks, Banca Carige, met representatives of the European Central Bank on Wednesday.

    The government in Rome wants to increase new debt in the coming year to 2.4% of the gross domestic product. This is three times as much as planned by the previous government.

    The EU Commission has raised concerns and investors are also worried. Italy’s European Affairs Minister Paolo Savona said that if the pressure of the markets becomes too strong, there may be changes to the draft budget.

    Chart of Italy Stock Market (FTSE MIB) 
    Chart of Italy 10-Year Bond Yield Overview

  • Most Multimillionaires Live in These 10 Countries

    Most Multimillionaires Live in These 10 Countries

    Wealth worldwide is unevenly distributed and it’s accumulating more and more in Asia. Compared to the previous year, the number of those who own $5 million dollars or more has increased significantly in the past year. This is shown by a report for the year 2017 by the London real estate company Knight Frank. About one in three of these multimillionaires lives in the USA.

    There, the total number of multimillionaires is 853,000. In second place is China with 207,000 multimillionaires, followed by Japan with 200,000. Interestingly, the multimillionaire population grew about 26% in Brazil, Russia, and Taiwan.

    In only five out of 49 countries in the dataset, has the number of multimillionaires has fallen. All are in veritable crises, such as in Turkey under Erdogan. In Nigeria, rebel attacks reduced oil production and the country went through a recession.

    In Egypt, the value of the pound fell after the exchange rate had been liberalized under pressure from the IMF. As the only Western country, the United Kingdom lost multimillionaires under the looming shadow of Brexit uncertainty. What remains the same, however, is that most multimillionaires live these 10 countries. Check it out.

    10. Italy

    In Italy in 2017 around 53,670 multimillionaires lived. The richest among them (a billionaire in fact) with $20,8 billion dollars is Giovanni Ferrero, the son of Michele Ferrero, leader of Nutella, Tic-Tac, and Co.

    9. South Korea

    In South Korea, around 55,670 multimillionaires lived in 2017 – 23% more than in the previous year. The richest South Korean with $16.4 billion dollars is Lee Kun-hee, the former Samsung boss. Lee is considered seriously ill after a heart attack.

    8. Hong Kong

    In Hong Kong, 67,700 multimillionaires lived in 2017 – 19% more than in the previous year. The richest man with $31,4 billion dollars is the trading entrepreneur and investor Li Ka-shing.

    7. Canada

    Canada ranks seventh with 76,720 multimillionaires – 16% more than in the previous year. The richest Canadian with $27.5 billion is David Thomson, chairman of Thomson Reuters.

    6. Great Britain

    There were approximately 97,530 multimillionaires in the United Kingdom last year – 2% fewer than in the previous year. The richest are the members of the Hinduja family. They control the Hinduja Group, an Indian conglomerate with more than 70,000 employees worldwide.

    5. France

    In France, 104,090 multimillionaires lived in 2017 – 18% more than in the previous year. The richest Frenchman Bernard Arnault, head of the luxury group LVMH is worth $70 billion dollars. He is also considered the richest man in Europe.

    4. Germany

    Germany was 4th in the ranking of the countries with the most multimillionaires. 136,990 of them live in this Federal Republic – 13% more than in the previous year. The richest Germans with about $25.3 billion dollars are heirs to the Aldi retail fortune Beate Heister and Karl Albrecht Jr.

    3. Japan

    Japan ranks third in the ranking with 199,980 multimillionaires. Richest Japanese is Masayoshi Son with 23,4 billion dollars, CEO of Softbank Capital.

    2. China

    China ranks second among the countries with the most multimillionaires: 207,350 – 13% more than in the previous year. The richest Chinese with 30,6 billion dollars is Ma Huateng also known as Pony Ma. He leads the internet company Tencent.

    1. United States

    The most multimillionaires lived in the United States in 2017: 852,700. The richest among them is Amazon founder Jeff Bezos with more than $144 billion dollars.

    Americans Are the Richest

    According to Forbes, a fortune of $2 billion dollars is needed to be among the 400 richest Americans. That’s 18% more than the previous year (2016). US President Donald Trump is also a member of this elite. With an estimated 3.1 billion in assets, he is ranked 248.

    There is no woman in the top ten. According to Forbes, the richest American woman is the Walmart heiress Alice Walton, with a fortune of  $44.9 billion dollars.

    Featured image from Shutterstock.