"Everything that irritates us about others can lead us to an understanding of ourselves."– Carl Jung
Good day crypto friends!
Did you know that in feudal Japan, lords built their houses intentionally with squeaky floorboards to warn them of sneaking ninjas?
Talking about warnings…
Warning
It’s official, the United States is moving forward with FEDCOIN!
I’m going to have to double down on my prediction:
The United States will issue a FEDCOIN in <5 years.
Your life is equated in work-hour-dollars (actually that’s true right now)
All paychecks will be issued in FEDCOIN
No more tax loopholes
No more tax evasion
No more moving your money into “unapproved” accounts or places
USD Cash will be branded “dirty money” and taken out of circulation
Anyone who uses cash will be branded “racist” - “rednecks” - “conspiracy theorists” - “nationalists” - “anti-vaxxers” etc. etc.
If you value your freedom in any way, get some cryptocurrency, ANY, cryptocurrency now.
Have you heard the #1 Broken Record in the World?
It’s called “China Bans Bitcoin Again”…
Friendly Reminder: Every time, every time, China bans bitcoin, the business just moves elsewhere…usually the USA!
Bitcoin
Do you remember those physical Bitcoins? Turns out — they are worth a whole lot more now!
Unfortunately, the U.S. government forced Caldwell to stop minting Casascius bitcoins with loaded BTC on them. By the end of Caldwell’s tenure making these coins, he managed to mint around 27,920 Casascius bitcoins
HACKS, HACKS, who has the HACKS!? The Pnetwork Protocol got hacked and lost 277 Bitcoin on the Binance Smart Chain.
VC investments
Good news in Germany: VanEck Plans to Offer Solana ($SOL) ETF in Germany
“VanEck is a giant in the ETF space and its growing interest in the crypto market is only going to drive crypto adoption further.”
Institutional adoption
[EPIC!] Twitter, unveils the Bitcoin tipping feature!
Jack Dorsey and co. have just made tipping with bitcoin possible on Twitter — right now only for Apple users, but soon to come for Android.
But the cool part was the video that Jack Mallers made showing -in real time- how he tipped his buddy 10$ in El Salvadore nearly instantly using the Twitter TIP BUTTON and the Lightning Network:
And the most EPIC insider quote of the century is going to be: “Western Union, pawn to E4, your move”!
On the Flipside: South Korea leads the way in Crypto CONFISCATION!
Interesting here is; the TAX OFFICE of a province in South Korea identified tax evaders, then “searched” the cryptocurrency trading platforms and SEIZED their holdings!
Q: How is this possible? I thought bitcoins were “perfect”?
A: If your bitcoins are on an exchange or any platform, they are not yours.
The only safe space for your bitcoins is in your own wallet.
Altcoins
The big news right now is still hanging on the results of the SEC vs RIPPLE.
If you think Ripple Labs will win, buy XRP now!
If not, well, you are holding the bag :-(
See an EXCELLENT overview of the SEC vs RIPPLE here.
Price action
Down down down! It’s all downhill from here!
GREAT! That’s a buy signal for me!
Forget this “million-dollar price prediction” for Bitcoin — it is just one of many, BUT this article from bitcoin magazine is an excellent rundown of the price action and adoption by governments in the last week:
Bitcoin is slowly starting to become the global currency. Every week another billionaire or trillion-dollar investment fund welcomes bitcoin with open arms.
Another highlight of the week was Ray Dalio admitting he has bitcoin.
Notice he kept mentioning “Intrinsic Value” i.e. “Bitcoin has no intrinsic value...”
Whenever I hear this I cringe. Basically, people say this when they mean they don’t understand something, like technology — it amounts to just a bunch of word-salad.
Q: What is the difference between value and intrinsic value?
A: Unless the person talking is a “real” investor speaking in actual technical terms, the answer is NONE!
Take this for example: Intrinsic Value Explained…
Intrinsic value is an umbrella term with useful meanings in several areas. Most often the term implies the work of a financial analyst who attempts to estimate an asset's intrinsic value through the use of fundamental and technical analysis.
There is no universal standard for calculating the intrinsic value of a company,*
*This is where the BS and astrology start; because models are nothing but reflections of the programmer’s bias.
Best Crypto Strategy into 2022?
Check out this Raoul Pal interview:
TLDR: Ethereum is the biggest-yea-HUGEST backdoor technology bet of the century! (NVIDIA is the second)
Grab Bag:
Drying strawberries with bitcoin? Wtf? This is worse than that poor guy who paid 10,000btc for a pizza!
Deep Dive
How about a ZK SNARK? What? You don’t know what a ZK SNARK is?
No, it is not a new-fangled cocktail drink from New York, actually, I am appalled at your ignorance!
“Rollups execute transactions off-chain, but in some capacity these L2s post data to the Ethereum mainnet. How they do determines whether they’re a ZK rollup or an optimistic rollup. The former rely on validity proofs, which entail posting batches of transactions via cryptographic proofs called ZK-SNARKs.”
And because Arbitrum’s technology depends on fraud proofs,(rather than ZK SNARKS) it is “optimistic” in style rather than ZK-based.
Please don’t tell me you don’t know what Arbitrum is! OK here is the link finally — just read this.
Knowledge/BTC 101
It’s wonderful to watch a new world build itself.
The cryptocurrency world is basically mirroring the finance world 1:1. For example, OPTIONS are now being traded on crypto. If you are new to all of this stuff, here is a great tutorial about options.
And here is an Awesome “101” explanation about bitcoin by Dan Held:
Sound Money (sanum pecuniam)
”I wrote this series, “Planting Bitcoin”, to paint the origin story of Bitcoin leading up to the 10 year anniversary…”
Will you help your friends cross the chasm?
What do you think happens when Artificial Intelligence and Blockchain technology collide? … and what about NFT’s?
“The Chasm” is now a well-known term when it comes to the adoption of any technology, thanks to Geoffrey Moore’s book “Crossing the Chasm.”
It’s the high resistance phase a new technology goes through when jumping the chasm from the early adopters to the mainstream. Most technologies fail at this point:
“We’re going to see blockchain technology and artificial intelligence converge...”
“Defi is hollowing out the banks — and they are scared...”
That’s it for this week my friends!
Now go out there and help your friends cross the chasm!
Sincerely yours,
Eric