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42% of Gamers Prefer Smartphones Over a Console or PC

Remember when Playstations were all the rage and joysticks ruled the roost? Not anymore. According to a recent survey by mobile app developers Tappable, some 42% of all gamers prefer smartphones. Mobiles are their first choice for gaming compared to the console at 32% or the 16% who prefer their PCs.

The survey conducted this month polled males and females on their gaming habits and the data speaks volumes. Not just about the direction of the industry, but about our changing lifestyles as well. Founder of Tappable Sam Furr said:

“Mobile gaming is the biggest category in the App Store, with approximately 75% of consumer spend coming in this category on iOS, and some sites suggesting the spend could reach $100 billion by 2020. We were not surprised people are reaching for their phones, over other ways to play games.”

Living on the Move

The findings are not unexpected considering that our lives have become increasingly mobile. Run the same survey across multiple areas and the same results are likely. People shop more on their mobiles, they bank on their mobiles and even watch full-length movies from their handhelds. Added to that, some 52.4% of all internet traffic now comes from mobile devices.

Gaming on a mobile is simply more convenient than setting up a gaming studio or having to play from a set location like your bedroom. Moreover, as video games increasingly reward players with prize money, gaming on the go gives them a chance to monetize their time while riding on the subway.

While some 40% of respondents said that they mostly play games to pass the time, another 38% of gamers prefer smartphones because they’re already on their mobiles such a lot; indicating that convenience wins out over sonic sound or HD graphics. Unlike a console or a PC, a mobile device can be taken anywhere.

Improving Mobile Technology

Convenience isn’t the only factor when it comes to the growth of mobile gaming. The technology has now reached a point where smartphones of the caliber of the iPhone XS, the Samsung Galaxy Note 9, or Google’s Pixel 3 can provide an immersive gaming experience and even easy-to-play AR games.

Pixel 3 in two sizes, source: Google

Nintendo’s Pokémon Go downloaded over 800 million times and Ludia Games’ Jurassic World: Alive (2018) raised the bar for mobile gaming. Unlike PC or console games, they’re easy to pick up and put down yet but still offer a unique experience.

Gamers Prefer Smartphones but They’re Not Perfect

Mobile gaming is convenient and the games are getting better, but it’s not without its flaws. Serious gamers looking to rack up major sums of money a la Fortnite will likely stick to a PC.

Although the game is available to players on iOS and Android, mobile devices still fail to offer the sophisticated controls that serious gamers demand. In fact, some 30% of respondents said that wanted better controls from their mobile devices.

Most mobile games use a simple touchscreen for commands. But as games grow more complex in nature and there’s money on the table, controls naturally become more complicated. A fact that doesn’t lend itself well to mobile devices. At least not for the time being.

At E3 2018 several big game developers announced their plans to tap into the mobile market. And with upcoming releases including EA’s Command & Conquer, and Bethesda’s The Elder Scrolls: Blades, mobile gamers may not have to wait too long before they can ditch their PC and console altogether.

Featured image from Shutterstock.

October 16, 2018
Beyond Data Breaches Facebook’s Problems Run Deep

Facebook (FB.NASDAQ) was a great idea. So was MySpace for that matter. Apparently, people love to catalog their lives online, and Facebook has given them the perfect platform to do just that. Mark Zuckerberg’s dorm room project made him one of the richest people in the world. But the juggernaut that has been Facebook stock may be on the edge of collapse.

For everything that Facebook is, it isn’t a vital technology. They don’t produce anything tangible and rely heavily on advertising revenue to power their burgeoning infrastructure. Herein lies one of their biggest problems. In order to continue to demand big payouts from advertisers, Facebook has to maintain a loyal stable of global users.

Facebook Is Losing Face

The last year has been rough for Facebook’s public image. Cambridge Analytica was a wake-up call for anyone who understands how powerful social media can be in the political sphere, and a recent data breach cost 29 million Facebook users extensive amounts of highly sensitive personal information.

Let’s call all that Facebook’s ‘real’ problem. Betrayal, manipulation and being careless with important information isn’t going to win anyone any friends. But for Facebook, their issues only start with a questionable business model.

Mark Zuckerberg by Anthony Quintano

The other problem that could seriously affect Facebook from a financial point of view is their slowing revenue growth, potentially overvalued equity, and increasing reliance on niche platforms to drive growth. Right now FB is trading at around 23 times earnings, which has led many to speculate that it’s the buy of the century.

Picking up shares in other major tech companies could cost you a lot more. Twitter is trading at almost 100 times earnings, and Amazon stock is hovering just below 140 times earning at the time of writing. With other high-growth tech names trading at such high valuations, why is Facebook selling at such relatively low levels?

A Scary Scenario

The narrative that’s banging around the financial markets is that while FB isn’t the incredible growth story it once was, it’s still worth buying on a long-term basis. Numerous articles have been run over the last few weeks suggesting that FB makes sense to buy at current levels. But this is a seriously dangerous position.

Changes in the tech world are fast, and FB has entered a period of slowing revenue growth. Some estimates suggest that over the next few years Instagram will drive revenue higher, while FB’s core earnings stagnate. That may be the case, however, FB is facing bigger problems.

When more than 29 million Facebook users recently lost their data to hackers, the level of data collection that Facebook engages in was a surprise to many. Mark Zuckerberg has built up a data collection platform that would have been a wet dream for the East German secret police. For more than a decade, people from all over the world fell over each other to offer up their most personal data.

Today people are waking up to the reality that Mark Zuckerberg isn’t some cool young guy who wants to connect people. Instead, he is sucking up any information he can get his hands on, and selling it to the highest bidder.

People have only had a few months to digest the fact that their location, communications, and basically anything else Facebook can get in its servers is being stored for future use.

The realization of Facebook’s business model by the public could be a big negative for a company that relies on user trust to generate revenue.

The Technicals Look Tempting, Like the Sirens of Circe

Facebook stock had an interesting summer. Their Q2 revenue miss caused a major sell-off (probably bot-driven), and then the stock seemed to snap higher. Now it has fallen back to the lows that it saw in March, and it is probably going to drop like a brick from here.

Facebook Daily Chart

The charts actually make FB stock look like a buy, which could sucker people into a major spanking. Both the daily and weekly RSI and MACD indicators are at oversold levels, which could mean that FB is on the edge of a major collapse.

Facebook monthly chart

Pay attention to that massive gap lower in July, and look at the volume that drove FB lower. That kind of selling is normal during a top, which is probably in for Facebook shares.

Stay Away From Zuk’s Mess

The existential crisis described above is just one of many problems that Facebook has to deal with. The tech company is also facing a massive fine within the EU and this dynamic could also punish a company that could be operating in violation of a multitude of foreign laws.

To what degree Facebook will be able to muddle through all of these issues is anyone’s guess. The company may fold, or see its operations severely curtailed over the next few years. From an investment standpoint, FB shares should be considered off-limits and could make a good short position for risk lovers.

Featured image from Shutterstock.

October 16, 2018
Big Spender Trump Plunges US into Debt Above the 40-Year Average

It’s well known that the President-elect is a man of expensive tastes. However, despite his penchant for gold trimmings and high-rise buildings, the construction billionaire was able to hit a nerve with US voters in 2016. Love him or hate him, in many ways, big spender Trump appears to be keeping his promises.

Unemployment is at a 50-year low. Business is booming. And America is on its way to indeed becoming great again. There’s just one small problem: the land of the free is saddled with a whopping $779 billion deficit after Trump’s first full fiscal year. And no, that wasn’t among the pledges bleated out on the electoral podiums.

Deficit Reaches $779 Billion After Big Spender Trump’s First Fiscal Year

According to OMB data, after hefty tax cuts and increased spending, the US deficit grew by $113 billion over the last twelve months. To be fair, plunging the country into debt is something US presidents are generally pretty adept at. The problem has been gradually getting worse since the financial crisis a decade ago.

Although, like everything else, big spender Trump is doing it bigger and better, widening the budget deficit to reach a six-year high of $779 billion after his first fiscal year in the White House. If racking up debt is nothing new, racking up debt during an economic boom is, with the gap widening by some $113 billion since the year before to reach 3.9% of GDP.

A report released by the US Treasury and Office of Management and Budget put this figure at a 40-year high, up by 3.2% from the year before. While not entirely unexpected, these figures will confirm what most people already knew and what Ron Paul repeatedly refers to as the government kicking the debt further down the road.

If Debt Goes Up in Times of Plenty What Happens in Times of Crisis?

The biggest concern is that the government is growing the country’s deficit during a time of economic boom with unemployment at its lowest since the 1960s. Tax cuts passed at the end of 2017 and higher public spending on programs such as Medicare are adding to the burden. And making people wonder: if we need to borrow money when the economy is doing well–what happens during a downturn?

The Congressional Budget Office predicted that if spending continues along this path, America will hit its highest debt levels relative to GDP in history over the next 30 years. Yet, one of Tump’s electoral promises was that he would repay all debt within eight years.

How the US president aims to tackle the rising deficit remains to be seen, but it looks unlikely that America will no longer owe its creditors in 2025.

Featured images from Shutterstock.

October 16, 2018
Bloomberg Suggests You Are Not Worthy With Wealth Below $25 Million

A recent article by Bloomberg states that many banks and fund managers will turn you away if you’re a pauper with less than $25 million. It doesn’t mean that investment advice is only available for the super-rich, but you should expect an inferior service if the “big boys” don’t want to review your portfolio.

Co-Founder & Managing Partner at TwinFocus in Boston Paul Karger expects a $250,000 minimum fee from his clients. So, turning up with half a million dollars would be slashed in half before you even left the office. Note that the figure of $25 million quoted by Bloomberg is not based on net worth, rather:

“Twenty-five million dollars in investable wealth. The kind of money you could afford to see dip into the red for a quarter or three, maybe even a year or two, without breaking a sweat. With $25 million, maybe, just maybe, you’re starting to be rich.”

Time Effect of Money

As highlighted in the article, the figure of $25 million was around $3 million 25 years ago. We all know that money erodes in value over time and you might be thinking that $25 million is just keeping up with inflation.

No, using the CPI figures available from multpl suggests $3 million would now be around $5.2 million. This perhaps highlights that bankers and fund managers are overcome with gluttony or conversely they “could” be working on lower margins, you decide.

As a child, more than four decades ago, the word millionaire conjured up great wealth, akin to the references to billionaires today. Numbers were always my forte even from a very young age, so it wasn’t that I didn’t understand the “value” of a million dollars.

As the decades passed and I achieved the million-dollar net worth status, I came to realize how insignificant it was. The intervening decades between childhood and my first million had seen the relative value dimish, but it was much more than this.

Property prices had gone through the roof over the years and even though the average US property sells for $200,000 we all know that popular locations command much higher prices.

Many cities across the globe have properties starting from a million dollars, and at the extreme, Knightsbridge in London it could cost you more than $200 million. Millionaires are as common as Trump haters these days and times have moved on.

Millionaire Pad in Knightsbridge by Rob Deutscher

Set Yourself Higher Targets

After many years plodding along in business, I set myself a target of $1.5 million net worth within the next two years and achieved it six months ahead of schedule. Maybe I should have been a little more adventurous and gone for $10 million or perhaps $25 million so bankers and fund managers, per Bloomberg, would take me seriously.

Although I have always considered myself a hard worker, like many, the idea of retiring early has always appealed to me. However, it appears that to retire early, we need to aim for a net worth of at least $5 million if we want to retire before we’re 60. So, that’s another goal you might want to set.

Billionaire status is likely to remain a constant term of reference for the super rich even for decades to come, especially if the forecast global slump comes to pass.

As a child, my mother would often say “who do you think I am, Rothschild?” when I pushed her for the latest tech device. Do parents of today refer to Zuckerberg, Bezos, and Bloomberg or do families in the West simply go out and buy whatever their offspring desires?

I doubt that Zuckerberg set himself a target of being worth more than a billion dollars as a child but for sure children of today will be dreaming of wealth in the order of tens of millions of dollars. Dreams of millionaire status are very much dated back in the 1970’s.

Featured image from Shutterstock.

October 15, 2018
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.

October 15, 2018
Meet the Top 10 Richest People in Indonesia

Most of us associate Indonesia with its sandy beaches, turquoise waters, steamy volcanoes, and dense jungle. If you dig a little deeper, you might conjure up images of lofty temples, sprawling cities, and floating markets. But home to 261 million people, some 11% of them live below the poverty line, with a further 40% teetering just above it. So, it may be surprising to learn that Indonesia also has 32 billionaires. Check out the top 10 richest people in Indonesia here and how they made their money.

1. Robert Budi & Michael Hartono

Topping the list of the richest people in Indonesia are brothers Robert Budi Hartono and Michael Hartono with a net worth of $32.3 billion combined. With a heritage of wealthy predecessors, these Chinee Indonesian brothers are well-known as tobacco crop billionaires, inheriting the cigarette making company Djarum from their father.

Today, however, Robert Budi and Michael Hartono are diversifying their assets, and the brothers make most of their money from their investments in Bank Central Asia. Some of their most notable holdings include prime real estate in the capital city Jakarta and the popular electronics brand Polytron.

Scratch the surface a little and you’ll soon start to see implications of corruption rearing their ugly head. Primarily, in the development of land owned by PT Hotel Indonesia Natour (HIN), one of Robert’s companies. You’ll also see their names top the list of the Panama Papers.

2. Eka Tjipta Widjaja

Second of the richest people in Indonesia is Eka Tjipta Widjaja with a net worth of $9.1 billion, up from $5.3 billion in 2016. Immigrating from China as a teenager, Widjaja started his entrepreneurial endeavors as a teen selling biscuits.

Today his company, the Sinar Mas group, is best known for its palm oil production and is one of the largest in the country. Although, since palm oil production is one of the most controversial commodities out there, needing swathes of rain forests the size of small countries to produce, Sinar Mas now has interests in areas as diverse as telecom and real estate.

Widjaja is also no stranger to offshore accounting, reportedly part of a group holding some 140 companies offshore back in 2013. He’s also personally named as a key culprit for destroying Indonesia’s rainforests. And, he’s on the Panama Papers list too.

3. Susilo Wonowidjojo

Wonowidjojo’s name is also embossed in the Panama Papers. It seems that the richest people in Indonesia are especially adept at concealing their wealth. Another tobacco billionaire, the Gudang Garam company that produces some 70 billion cigarettes a year is this billionaire’s main source of wealth.

Just like Widjaja, Wonowidjojo is known for his offshore companies, although unlike the palm oil tycoon, he doesn’t appear to be a main player in the climate crisis. Neither does he look to be diversifying his wealth, his entire income hailing from the tobacco business with a net worth of $8.8 billion.

4. Anthoni Salim

Panama Papers? Check. Corruption charges? Check. Anthoni Salim is another self-respecting billionaire who’s clawed his way to get to the top. Heading up the Salim Group and with a net worth of $6.9 billion, his family-run business today holds a variety of interests from food and banking to telecommunications.

However, during the 1997-1998 Asian financial crisis, the company almost went under. With father Liem Sioe Liong’s (now deceased) close ties to ex Indonesian President Suharto, the company name was stained with corruption. In fact, they lost control of the Bank Central Asia to the Hartonos, now in first place on the Indonesian rich list.

Learning not to place all your eggs in one basket, the Salim group now has a diverse portfolio and a 44% stake in First Pacific, the Hong Kong investment firm with $17.2 billion of assets in six countries.

5. Sri Prakash Lohia

Currently, in fifth place with a net worth of $6.8 billion, Lohia isn’t a native of Indonesia. As a poor Indian immigrant, Lohia is a slightly rare bird on the richest people in Indonesia list, going from rags to riches and making his fortune in plastics–specifically, making a basic component that’s used to make plastic bottles.

Originally setting up a yarn spinning business with his father (no, not telling stories, but making wool) Indorama is now a petrochemicals powerhouse. Not only is Lohia not originally from Indonesia, but he now lives in London leaving the running the business to his son Amit. With expansions planned into Nigeria and teaming up with a fertilizer company, Lohia has a pretty large carbon footprint. And, yeah, he’s on the Papers list as well.

6. Boenjamin Setiawan

With a net worth of $3.7 billion, Setiawan is unlike his counterparts on the list. He has a full formal education, studying a doctorate in pharmacology and founded his firm Kalbe Farma in a garage in the 60s. He now presides over Indonesia’s largest pharmaceutical company, as well as controlling the Mitra Keluarga, which operates 12 hospitals.

There don’t seem to be many skeletons in Setiawan’s closet. In fact, he’s regarded as a humble and intelligent man who’s learned how to grow a company from the ground up. He also values family and along with his six siblings, originally failed twice when starting the company before creating the money-maker it is today. In case you were wondering? Yeah, he’s on there as well.

7. Chairul Tanjung

Coming in seventh place with a $3.9 billion net worth, Tanjung’s CT Corp is today best known for operating hypermarkets, issuing credit cards, and managing television stations. However, not all’s what meets the eye when it comes to Tanjung. He’s got plenty of interests outside these areas and one of his main ones is palm oil.

That means that beyond his company being linked with names like AccorHotels of France, and Wendy’s franchise, he also turns a blind eye while rainforests are hacked to the ground. He’s also listed in the Panama Papers.

8. Tahir

Having a net worth of $3.8 billion pretty much allows you to do anything. And that includes not using a last name or fixing your teeth. “Tahir” founded the Mayapada Group, which has interests in real estate, banking, and also a hospital chain. He owns Singapore’s new landmark Strait Trading Building and also the Goodway Hotel in Batam.

Tahir, it seems, is a pretty decent dude, having donated several millions to promote education in his home country and also towards the global refugee crisis. But, guess what? That doesn’t make him exempt from the Central American fiscal paradise list. He’s on there as well.

9. Mochtar Riady

Not only does Riady make the richest people in Indonesia list with a net worth of $2.7 billion, but he also knows what it’s like to be slapped in the face with corruption charges–and fines. Residing in the US, Indonesian billionaire has been long accused of illegal contributions to the Clinton campaign (Bill) and was finally fined a recording-breaking $8.6 million this year, on the count of conspiracy to defraud the United States. Ouch.

Beyond paying off politicians, Riady had a successful career as a banker and holds interests in real estate, retail, healthcare, education, and even media. His two sons run Singapore company OUE, the group that owns Los Angeles’ iconic US Bank Tower. Panama Papers? You bet. He wouldn’t have become one of the richest people in Indonesia if he wasn’t astute at a little tax evasion.

10. Jogi Hendra Atmadja

Making the 10th place on the list, Atmadja is the only one of the richest people in Indonesia not to be named and shamed in the Panama Papers. That deserves a prize in itself. There also appear to be no scandals or corruption charges surrounding the 72-year-old billionaire with a net worth of $2.7 billion.

As head of the Mayora Group, Atmadja spends most of his time making everything from cereal and candy to coffee. And his company is active in more than 90 countries. In the biscuit business since 1970, Atmadja’s brothers and cousins also own a large stake.

Richest People in Indonesia

So there you go, your complete list of the top 10 richest people in Indonesia. From US court fines to shameful rainforest burning, there’s plenty of shadows hanging over most of these billionaires’ heads–as well as a fat dossier of Panama Papers.

Featured image from Shutterstock.

October 15, 2018
Bottle of 1945 Burgundy Wine Sells at Sotheby’s for $558,000

Did you ever order a bottle of Cristal in a swanky New York nightclub and nearly had a seizure when the bill came? If so, you better be sitting down. A bottle of 1945 Burgundy wine is now the most expensive wine in the world when recently sold at Sotheby’s for a grape-crushing $558,000 (£424,000).

1945 was a great year unless you were Eva Braun or Adolf Hitler or on board the USS Indianapolis sunk by a Japanese submarine. Then it was a stinker of a year. But it turns out, that for wine aficionados, 1945 takes the cake.

Record-Breaking 1945 Burgundy Wine

As Europe was trying to rebuild itself in the aftermath of WWII, one of France’s most prolific winemakers, Burgundy producer, Romanee-Conti created 600 bottles of wine, some of which have recently become the most expensive bottles of wine in history.

On October 13 at Sotheby’s in New York, two of those bottles sold separately for a combined total of just over $1 million. This was on the back of three 1937 vintage bottles that also sold for close to $930,000 at the same auction.

Before these five bottles became the most expensive wine in history, the original record was a six-liter bottle of Cheval Blanc 1947 that sold for $304,375 in Geneva in 2010.

The record-breaking sales of the two bottles of 1945 Burgandy wine also dwarfed the previous record for a standard size bottle, which sold for $233,000 in Hong Kong back in 2010.

When talking about the 1945 vintage, the head of Sotheby’s international wine department, Serena Sutcliffe, was very upbeat, saying:

“Rare and wonderful. The best bottles are so concentrated and exotic, with seemingly everlasting power – a wine at peace with itself.”

The first bottle sold for $558,000, and just a few minutes later the second bottle was sold for $496,000.

The wine wasn’t the only rare alcohol that was sold at the auction. A bottle of 60-year-old whiskey from 1926 fetched a heart-stopping $841,000. Although, this still failed to break the record for the most expensive bottle of Scotch which is currently at approximately $1.2 million.

If you ever get the chance to sample a glass of 1945 Burgundy wine at a high-society party or as your last request before the electric chair, make sure you take the chance with both hands.

Featured Image from Sotheby’s.

October 15, 2018
Number of Crypto Billionaires Grows in China Despite Crypto Ban

China, a country known for its hardline approach on cryptocurrencies, is witnessing a surge in crypto billionaires within the country. This is due to the huge success of crypto companies such as Bitmain and Binance.

The latest list of Hurun China Rich 2018 List includes Founders, CEO and Vice President of Bitmain who all has a combined total wealth of total $9 billion and Binance CEO Chanpeng Zhao.

Jihan Wu, Co-founder of Bitmain, who usually gets the most media attention for Bitmain’s success is not actually the richest crypto billionaire in the country. It’s the other co-founder and Bitmain’s technical mastermind, Ketuan Zhan, who keeps a low profile but has the biggest stake in the company at 36.85%. Jihan Wu and another co-founder Zhaofeng Zhao owns 20.25% and 6.26% respectively.

According to the Hurun Rich 2018 List, Ketuan Zhan’s net worth is RMB 29.5 Bn ($4.2 Bn), Jihan Wu’s net worth is RMB 16.5 Bn ($2.39 Bn) and Zhaofeng Zhao with other colleagues Yuesheng Ge (VP) and Yishuo Hu all come under the $1 billion mark.

Bitmain can be termed as the crypto unicorn due to its huge success amid the weak crypto market. It is in the process of going public and plans to list its shares in the Hong Kong Stock Exchange.

Bitmain recently disclosed its financial statements and affairs of the company for the first time following an audit from KPMG. In 2017, it hit a sales revenue of $2.5 billion, an impressive growth of 328% from the 2015 levels at $137.3 million.

In the first quarter of 2018, it managed to surpass Nvidia in terms of profit margin by double points, generating $1.1 billion in total net profits. It expects to close 2018 with a revenue of around $10 billion.

Bitmain, founded in 2013, has a complete monopoly over ASIC mining chips market and a market dominance of over 75%. Since 2017, it has raised nearly $800 million in funding from several venture capitalists.

Chinese Crypto Billionaires

Other personalities who have made to the Hurun China Rich List are Binance CEO Changpeng Zhao with a total net worth of RMB 15 or $2.17 billion. Binance was founded in China but due to stringent regulatory conditions imposed by the Chinese government, it shifted its operations to Malta.

Binance Head, Changpeng Zhao / Forbes

The next billionaire is Bitmain’s rival company, Ebang International Holding’s founder Nanjing Zhang with a total net worth of RMB 3.5 billion or $0.51 billion.

The explosive surge in prices of cryptocurrencies in late 2017 helped many early-stage large investors in Bitcoin or Bitcoin whales to become billionaires. Recently, Ripple co-founder Chris Larsen made it to the list of Forbes 400 rich list with a total net worth of around $2.1 billion, entirely made from cryptocurrencies.

Featured image of Ketuan Zhan from Cryptonetix.

October 15, 2018
Want to Retire Early? You’ll Need at Least $5 Million to Do It

Financial advisor, motivational speaker, and American author Suze Orman says if you want to retire early, you’ll need at least $5 million to do it. Speaking on the Afford Anything podcast last month, Orman dropped a not-very-motivational bomb on those buying into the FIRE movement (financial independence, retire early).

Is Suze Orman Completely Nuts?

The podcast spurned a fiery storm on social channels across the web, with many accusing the best-selling author of having lost her mind. And also being wealthy and completely out of touch with young millennials and their realistic goals. But after the sh**storm calmed down, it seems that Suze Orman’s gigantic sum may not be so far off after all.

Personal finance blogger the Financial Samurai set about crunching Orman’s numbers and found that, if you want to retire before 60, $5 million indeed sounds about right.

Moreover, the club of those who retire early in the United States is a pretty small one. Just 18% of all Americans retire before 61. Why? Because most of them can’t amass a $5 million dollar nest egg.

Retire Early But Not Before 40

According to the Financial Samurai writer, 40 is the absolute youngest he would recommend any person to retire since it places an exorbitant burden on your investments.

It’s all well and good saving up a $1 million for your retirement but according to his calculations, some $40,000 a year simply isn’t enough to live on in most parts of the country. Moreover, you never know what unexpected costs will arise in terms of your health or family.

Retiring at 50 with some $3 million saved up will bring you closer to a more comfortable lifestyle–although, you’ll still have to be fairly frugal. Especially if you have kids or elderly parents to look after. He says:

“At this age, you might as well keep on working until you’re 60 to eliminate the risk of financial shortfalls.”

Check out this graph used to illustrate his findings:

Not-So-Motivational After All

It seems that far from being mentally unstable, Suze Orman actually really knows what she’s talking about. FinancialSamurai concludes that $5 million in after-tax income leaves you with some $200,000 a year to live on in passive income. And that’s about right if you have a family, live in an urban area or one of the US’ more expensive places like New York or San Fransisco. It’s also not perhaps the conclusions FIRE followers wanted to hear and may keep them working longer.

“There needs to be another downturn to vigorously stress test the FIRE movement… My guess is we’ll see a lot of FIRE folks end up going back to work after a decimation of their finances.”

Featured image Susie Orman photos.

October 15, 2018
Thrifty Chinese Billionaire Has Monthly Spending Budget of $100

Are you one of those braggadocios rich people who have bags of cash and wants everyone to know it? Chinese billionaire movie star Chow Yun Fat is reported to be worth a bank-busting $715 million, which converts to HK$5.6 billion, yet he lives a thrifty lifestyle with a spending budget of just over $100 per month.

Whilst many billionaires drive Lamborghini and Bugatti super-cars while getting pedicures and lavish spa treatments, Chow Yun Fat is living on less in a month than a security guard at a gated community.

When the vast majority of the public scramble to buy the latest iPhone X for $1,000 upwards, the Chinese billionaire movie star has kept the same mobile phone for 17-years. The man has the spending restraint of an ordained Buddhist monk. Or is he just a tight so and so?

Chow Yun Fat Takes Frugal to the Next Level

Chow Yun Fat is a critically acclaimed actor who starred in the classic “Crouching Tiger, Hidden Dragon” epic that bought Kung-Fu audiences into modern times. In a recent news report from the Oriental Times, the 63-year-old renowned actor talked about how he lives a very modest lifestyle despite being a billionaire.

The Hong Kong megastar has rejected material goods and still views himself as your everyday ‘Average Joe’. Yun Fat’s wife, Jasmine Tan, detailed how her frugal hubby loves eating at inexpensive street-side food vendors in his native Hong Kong and pointed out he will only upgrade his 17-year old mobile phone when it stops working.

In a world of high-tech gadgetry, especially in Hong Kong, the actor is unfazed and unimpressed by technological advancements.

It’s a normal sight for Hong Kong inhabitants to see the aging movie star taking public transport. He’s also known for wearing very simple clothing.

He actually addressed his lack of fashion ambitions in another article where he said he preferred clothes that were comfortable. The closest he would have gotten to a crocodile on his shirt would have been in the “Hidden Dragon” movie.

The Chinese billionaire actor might be a household name across his homeland, but what can impress a man who has close to a billion dollars, rides public transport and eats at roadside stalls? Not much apparently. Unless you have some comfortable sports pants of course.

Featured image by Sliceof.

October 15, 2018