True Meaning of Diversification


We would rather give ourselves into chance rather than plan for the possibility of failure. I say this with the thought in front of my mind regarding our dependence on what we have been led to as “safety”. Are we truly safe?

My reference is to Financial Diversification of Income. We have been so ingrained to thinking we have to fully focus on the job (or career) that we are engaged in. Keep that tunnel vision and some day, you will make it (or will you)?

I was involved with a Network Marketing company that taught income diversification “their way”. They laid out their compensation plan and described the “7 ways you get paid” and they called that income diversification!!!!

If this is your plan, ask yourself this question to test the strength of your diversification:
If your product or company goes away, do you lose all 7 of those income streams?

If all of these income streams are tied to one product, service or company, then you do not have a solid plan for Income Diversification.


In the article, Income Diversification With Virtual Currency, I wrote the following:

This brings me back around to the program that I am associated with and that is Compumatrix. Recently, we have embarked on a journey that involves working with Bitcoin. Since we have been on a parallel course, it only makes sense to work together.

I mention this because the Virtual Currency associated with Compumatrix is called Compuceeds. So, why are we talking about Bitcoin? Have you heard of the Forex Market? Just as in the trade between various Governmental currencies in the Forex Market, there is also trade among the Virtual Currencies. It just so happens that currently, Bitcoin is the most recognized of this market.

Beyond this fact, we have to look beyond this. Founder of Compumatrix, Henry James Banayat has often commented his desire for the membership of Compumatrix to use this business as a stepping stone to funding and starting other business ventures.

What plans do you have to diversify your income? Maybe you have done the same thing all your working life. Remember this:
If you keep doing the same thing, you will keep getting the same results!

If the results you are getting sufficient for your needs, then this is a great plan for you. However, as the economy changes, will you even be able to hold onto this plan?

Financial Education Continued: Bitcoin


I wish I bought Bitcoin when it first came out. My second wish would have not to buy that pizza in 2010! In May, 2010, a pizza worth $25 was bought for 10,000 Bitcoin (in today’s value, that pizza would have been worth approximately $3.8 Million Dollars)

Obviously, the price of Bitcoin has been on the rise. At one point hitting over $1,000 a Bitcoin, is there any stabilization? When it comes to the value of money, is there really stability? If money was stable in value, the Forex Markets would be boring and of no fluctuation in value for investors.

If you look at the overall rise in the value of Bitcoin, ignoring the extreme peaks, there has been a steady increase. However, I have yet to read any economic commentaries relating the rise of the value of Bitcoin to the relative loss of value of Fiat Currencies.  

The Stock Market Investment Specialist might take the side of buy and hold as I eluded to above with the value of the pizza. Of course in 2010 if 10,000 Bitcoin was the value of one pizza, then you buy the pizza, eat and don’t go hungry!



Since I have touched on it, I might as well bring up the subject of investing in Bitcoin. Most people don’t think about investing in Fiat Money as a viable means of investment. However, think about all those banking products that offer you interest. Isn’t this just about the same thing?

Your argument might be: money doesn’t grow in value! To this end, you might be right! Even adding the interest, at the end of the year, your buying power of your savings account is lower than the day of your deposit! With this, your money is actually losing value by holding onto it!

So, why would someone want to invest in Bitcoin? Recently, the government has listed Bitcoin as a Commodity. If it is now in the Commodities Market, then you can guess it will be treated as an investment. Guess what? Gold is in the Commodities Market as is Silver and etc. These are investments, right?

Just as you can “spend Bitcoin”, you can spend Gold. The value of investing in Bitcoin is different because it fits into other definitions so well.



I do not believe Bitcoin was developed for the purpose of being an investment. (It just comes with the territory.) The purpose of Bitcoin was to become a means of conveyance of payment in a more efficient and timely manner.

With all the advances of the Global Economy, the World of E-Commerce needed more than a bandaid to support the needs regarding payment systems. The inefficiency was weighing down productivity of E-Commerce.

Bitcoin to the rescue! At a time when the World Economy seemed to be crashing down around us, there is an emergence of an electronic monetary system called Bitcoin. The year was 2008 and the Stock Market was taking its toll on everyone’s Financial situations. The market was in a major correction (crash) and people couldn’t get their investments out of the way.

Over the course of the last 7 ½ years, Bitcoin begins to gain Global recognition. It may be some time in the making but what some view as a volatile monetary system, I see as a Global stabilizing remedy.

Find out more as you continue your Financial Education with us here at Compumatrix.

I Keep Finding Virtual Currencies


Not too many people are aware of what virtual currencies are! You know how when you aren’t aware of something, you wouldn’t even notice it? But, when you become aware of it, you will see it everywhere! Every time we buy a car, we begin to notice the same model and color car on the road.

Until I became aware of virtual currencies, I never noticed them. Now, I am involved with a company that produces Virtual Currency. (Compumatrix, producer of Compuceeds). Now, I notice them everywhere when I am on the Internet. One that is on the news all the time is Bitcoin. 

In his post (5 Things You Should Know About Compumatrix), Henry writes:

You will still find a lot of people that may be against or just confused about this industry even if they have been using virtual currencies through their phones, credit and debit cards, loyalty cards, and gift cards. They only have misconceptions that are totally curable by their willingness to learn and proper guidance and education. One thing is certain, the Virtual Currency Industry is here to stay and continue to evolve and innovate the way we pay. Now we can build our incomes based on real productivity and not in debt.

You can learn more about Compumatrix by following our blog.


Often over the coarse of the weekend, I will try to find some time to do a little research on You Tube to study the Virtual Currency Industry. This weekend, I ran across another Virtual Currency that I was not aware of previously. Although I was more interested in learning more about the integration of Virtual Currencies into the mainstream, I decided to look into this anyway.

After a few hours had passed, I was well informed about this Virtual Currency, how it is backed and what the company’s Global plan is. The first part of my investigation found itself to be very intriguing. I was ready to move on but I felt something was missing so I pursued a little further. As I continued browsing thru videos and their website, I found their plan was very complete, EXCEPT….

Even a couple of years ago, I would have been jumping at the chance to participate with this caliber of an operation. (Global scale, solid company behind the product, well financed, company that does its due diligence,….)

Everything comes to a decision and one decision I made recently this year is to slow down on jumping into opportunities until you know what the plan is!

Soooo, my decision: My Compuceeds from Compumatrix will take care of me to the degree that I anticipate. 

Creating New Industries with Disruptive Innovation


A term coined by Clayton Christensen (Professor at Harvard Business School), disruptive innovation is a theory:

Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.See more 

Clayton Christensen, “instead of telling him what to think, I told him how to think“. 

In an interview, Clayton Christensen made the above statement when discussing a meeting he had with Andy Grove of Intel. When he had the meeting, he was given 10 minutes to tell Andy Grove what he should do with Intel. Knowing his knowledge of the technology field was limited, he told him he could explain his theory and they could apply it to Intel to draw their own conclusions.


Sometimes in the effort to move forward, companies “leave a lot on the table”.

A company starts off with a small product or concept. As acceptance grows, their image allows them to become more creative and the products become more expensive. However, this is not necessarily a “bad thing” as their followers look forward to their next product. With Clayton’s theory of disruptive innovation, newer companies move in and create new products and concepts along these lines brining in “new” customers.

What Andy Grove learned the day that Clayton Christensen came to visit is that Intel was leaving the door open for competition at the base of their industry. The “necessary” thing to do was to meet the competition by going down and competing at the bottom of their industry. If left undone, these companies will soon be able to compete at higher and higher levels.


French Megabank Société Générale Seeks Bitcoin Expert – One of France’s largest banks understands the reality of the Digital Currency World. The bank is making a giant step forward as it prepares for its future. A future working within the digital currency industry. Banks have to work hand in hand with the changing world. It is a matter of adaptation to the movement within the economy.

Although the above article addresses Bitcoin, there are more of these Digital Currencies surfacing to enter into the Global E-commerce Market. You will soon recognize one as it emerges due to the level of scrutiny it has asked to come under.

Virtual Currency versus Payment Processor Mindset

With the virtual currency mindset, you already got paid the moment you see your earnings in digital form which gets you excited attracting everyone else around you to join by either buying virtual currency or virtual currency packages from you directly or online. The payment processor mindset, on the other hand, gets you excited when you receive the cash on hand and that’s the only time everyone else around you join. So instead of earning faster, there is a very long lag time or waiting period if you employ a payment processor mindset which obviously keeps all your prospects away from you until that moment you receive cash. With virtual currencies, you can close deals faster and earn cash faster via peer to peer trading or in this example, by selling the card available to you directly to a prospective client. Whether you use #compuceeds   #bitcoin  or other virtual currency, always remember that receiving these means you are already paid. You’re definitely not in Kansas anymore.

Understanding More about Virtual Currency

A lot of people say that they are experts on virtual currencies. But when they were asked about their opinion on virtual currencies, they go around in circles without exactly hitting the nail on what virtual currency is about. The truth is, their minds are still clouded by their potential earnings in fiat currency. Most people think that virtual currency is like those amounts on their Paypal Account or Online Banking account where the final valuation is dictated by the amount of fiat they receive.

In the book of Philip Mullan, digital currency is a general term for privately issued electronic value which circulates over the Internet outside of conventional banks. It is sometimes loosely referred to as “money that circulates online but not through a bank.” No privately issued digital currency has legal tender status in any country. Digital currency systems include both value transfer and Internet accounting systems. A closed online accounting system can be easily modified to be used as a type of digital currency. Because private Internet payment systems operate outside of conventional banking networks, these new global payment products represent a huge leap forward for inexpensive personal financial services.

Fact #1: Receiving Virtual Currencies already means You’re Paid

Whether the virtual currency is derived from math, cryptography, productivity, or any specific activity done online or even offline, earning those means receiving it’s value in its entirety. It’s valuation is based on the overall consensus or general agreement of the entire community using the virtual currency. Bitcoin for example requires you to download a software which allows your computer to participate in the global problem-solving activity for which the software aims to “guess” that value which will complete or solve the block on the blockchain. To guess faster, bitcoin miners would buy rigs in hundreds or even thousands of dollars a piece just to be able to speed up the guessing game. In short, it depends on who among those participants online, within the Bitcoin network guesses the correct value that completes or solves the next block for blockchain. Once you’re PC solves that problem, you earn bitcoins and you’re paid in Bitcoins.

That is why a Federal Judge says virtual currency (like Bitcoin) is real money in the case versus TRENDON T. SHAVERS AND BITCOIN SAVINGS AND TRUST.

Fact #2: Corporate Exchanges are NOT required by Virtual Currencies

Since there’s more or less 21 Million Bitcoins that will be in circulation all throughout the planet, this then indicates its scarce nature. If it’s hard to come by, then it’s value would tend to go up. But of course, the value entirely depends on the market. The proponents of Bitcoin intended bitcoin to be a final payment in itself. The exchanges are only there since they found an opportunity to control the currency price by offering it like a commodity. The exchanges opened their business in order for those who are accustomed to fiat to have a way to earn fiat and of course focus on saying that the best way to ever acquire a virtual currency is through them. Forget about the mining process. Buy now while it’s low. Then sell when it’s high. And they surely can control the virtual currency’s value.

Exchanges will just be the cause of failure for virtual currencies. Remember, there’s peer to peer. Peer to peer trading is still better than an Exchange because you, as the person who owns the virtual currency, are able to dictate the amount you want for your virtual currency. Following the rates from exchanges will only devalue your virtual currency since they play around supply and demand. And you know for a fact that virtual currencies are scarce in nature which should indicate that its value should be increasing. Dealing with an exchange is like dealing with another form of government. Once they have you, you’re leashed.

In other words, the goal of exchanges is to monopolize the control of virtual currencies away from the original people who created it and take control of the valuation.

Fact #3: The Value of Virtual Currencies are Determined by Real People not Governments

The real virtual currency is backed by the people using it and not by the exchange, not governments and not even other types of financial institution. Once a virtual currency is controlled by these entities, it will most likely to fail. Remember Mt. Gox and its users? Someone out there gained. That’s for sure.

Take note that I am talking about “control” not “use.” Those two words are different. If they use it, then it’s not controlling it and that is the key to increasing the value of virtual currencies: its usability. The moment they “control” it, then that’s the bad side of it since they can tremendously impact its value. And most of the time, on a downward spiral.

Fact #4: Virtual Currency is Property and Private Money

And since only a few owns it, is what makes its value tick. Compumatrix Compuceeds for example is another form of virtual currency. It is a centralized virtual currency like Ripple but Compumatrix doesn’t control the virtual currency but instead focus on “using” it through the eWallet and is continuously spent on the Compumatrix Trading Portal.

When you receive the virtual currency, you are already paid. But what’s interesting is that the value of your digital asset when you started compared to the value of the same asset (after you go through its rigorous trading, selling, buying, and value added activities) is higher than that of your original capital because it allows you to conduct peer to peer trading via the Compumatrix trading platform.

For example: If you bought a Diamond Card Package of Compuceeds by spending 500 euros worth of Bitcoin via Bitpay, you will soon find yourself owning 166 euros more in just a few days rather than waiting it out on an exchange which gives you a 50:50 chance and most of the time, that chance is more likely on the losing side.

What’s next?

Next time you earn virtual currency online, be part of the proud crowd. When you earn bitcoin, always remember that it’s real value is based on you and not on any exchange. When you receive Compuceeds, the key point is not how much fiat you intend or want to receive but how much the virtual currency is worth to you and the online community you belong to.