Dear Friend and Subscriber (HODLer?)...
Have you heard of the term “Black Swan”?
It has NOTHING to do with the movie:
It’s much “worse”..
.. than Natalie Portman getting it on in a Hollywood rendition of— ähemmm...
— It’s WORSE!
It’s from my new favorite author Nassim Taleb:
“Obvious in hindsight” is the keyword here.
There are these things called “WHALES” in the bitcoin world.
Whales are known — therefore not black swans.
And that’s why I say watch out! — when you are investing in alt-coins.
There are whales out there that will “pump and dump” the coin and leave you with the bag of...!
That’s why I recommend like CRAZY this book:
Because...
This is WHY they are called SHIT coins {Part 1}:
It’s the good old “pump and dump”!
BEFORE you invest in any “alt coin” — to say it nicely — ask yourself this:
“Am I an insider? Will I be able to time the “jump-off” point accurately? — at all!?”
If the answer is “NO” — don’t touch it!
“The whale owns such a large percentage of the supply, that any liquidation could potentially prompt a massive price plunge.
“If he decided to sell these bags, SHIB would plummet -99.99% to zero,” tweeted financial analyst Jacob Oracle.”
FAZIT: It only takes ONE whale to ruin your day. — and destroy your fortune :-(
{Part 2} The Squid Game
Lots of scamming going on this week isn’t there?!
However, this was not a “pump and dump” — this was a “RUG PULL”...
A straight out criminal fraud.
I hate to say it, but BEFORE you buy any coins you gotta ask, “How can I sell these coins?”
Because if there are NO exchanges or platforms where you can sell it, and only ONE PROVIDER of said coin — you are “locked in” to their platform = definite NO GO.
The Squid Coin was a classic Rug-Pull, and it makes me mad that people are still doing this.
It gives the entire crypto space a bad name.
I sincerely hope these perp’s are caught and prosecuted!
Bitcoin
Who is Satoshi Nakamoto? Will this be “end of story”?
Craig Wright is in court — Dave Kleiman’s brother Ira Kleiman is suing him for HALF of Satoshi’s bitcoins.
HALF OF SATOSHI’S BITCOINS. THAT’S 70 BILLION $!
What is becoming abundantly clear is — no matter how you like or dislike Craig Wright — that Dave Kleiman and Craig Wright definitely “birthed” Bitcoin! — And more and more apparent is that Craig Wright invented Bitcoin and authored the Bitcoin Whitepaper, and Dave Kleiman helped him. NOT the other way around.
What does this mean for BTC? What does this mean for BSV?
If Craig Wright wins in a big way, he can sue all of the current platforms claiming “Bitcoin”...and make them change, in a court of law, their name to something else.
Because then Satoshi Nakamoto’s identity is indelibly fixed to a specific person, and that person says BSV is the real bitcoin — and that person OWNS the copyright, and the Bitcoin whitepaper..legally...in a court of law.
My Opinion:
At first I would say I am “long bsv” and “short btc”...but that would be an emotional knee-jerk response.
I believe the first-mover advantage and the sheer size and market volume of BTC just cannot be beaten.
I expect MINIMAL price fluctuations in BTC at first, and a rise in the price of BSV.
These are totally amateurish predictions and NOT FINANCIAL ADVICE.
But I do think BTC will survive...
There will be more than one, and they will thrive.
Best Graphic of the Week
Best Podcasts of the Week
There's a fantastic series going on now and it gives an enjoyable, and basic history of Bitcoin. If you like “story” podcasts, listen to this.
It’s going off!
Not one but THREE mayors vow to take their paychecks in Bitcoin!
Regulation
BOOM! Back-Up from the Sherrif!
Lawmakers Urge SEC to Permit Trading of Bitcoin Spot ETFs !
It looks like U.S. Representatives Tom Emmer and Darren Soto have grown a pair, and are deciding, finally, to fight for Bitcoin!
“The SEC’s approach to cryptocurrency regulation has been unacceptable...” — Rep. Emmer
But...what is a “Spot ETF”?
Think of “on the spot” as in immediately:
“The spot market is where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery. Delivery is the exchange of cash for the financial instrument. A futures contract, on the other hand, is based on the delivery of the underlying asset at a future date.”
It is different from the “Futures market”, which according to some experts, the spot market isn’t so great.
The argument is that the futures market has more liquidity and has been regulated longer, and the spot market is just a crux until Bitcoin ETF’s get full adoption. However, remember: Futures, and Options are just that — “future promises”:
“What investors should certainly be aware of is the fact that they are not purchasing bitcoin itself,” ... “They are purchasing the opportunity for [betting on] a future price. There is more speculation and risk involved in purchasing that kind of a product.”
Bottom Line:
THANK YOU Tom Emmer and Darren Soto!
Altcoins
Ethereum has changed to PoS — here is how to attack it and here.
PoW = Proof of Work
PoS = Proof of Stake
TLDR: Proof of Work is better for money, and Proof of Stake is better for…that’s hard to say because there is a lot of controversy out there about PoS.
Some say it is for communists who just want to take control and centralize the mining of said coin. Others say it is better for “technology-centric” blockchains that aren’t trying to be money, e.g. Ethereum.
Institutional adoption
What is El Salvadore going to do with their newfound wealth?
Reminder: Tired of paywalls?
Do your friends keep sending you links to NYT articles and such?
Just put the link in archive.is and see if it is already archived. If not—archive it—enjoy it for free and don’t give the fake news the AD REVENUE!
Best Tutorial of the Week
I've never seen a simpler explanation of the stock market and forex trading! Check out this app, they have an awesome tutorial:
And it’s not just about Forex trading: it seriously starts from the very basics. So you and grandma can come up to speed at the same time! Of course they try to get you to join their platform and trade afterwards...but their tutorial is really the best I’ve seen yet.
Price action
That’s it for this week my friend,
Have a great weekend and keep your eyes on the Kleiman vs Wright trial — it’s Hollywood ripe!
Eric
P.S. Are you sick already of all the Halloween candy? We can’t even eat it all! We were coming home from Halloween actually, then, 10 feet from our front door a nice old German Oma said pitifully, “Nobody has come to my house yet…“ — so of course we went straight to her house!
She gave us her whole darned stash!
It was like seriously THREE bag fulls! Enough for 50 kids.
My son was elated of course. He’s had 4 cavities, has no front teeth (he’s only six y.o.) and couldn’t give a rat’s behind about his teeth.
Time to exercise some parental guidance…