- Web3 Daily
- Posts
- đ Bitcoinâs âinfinite money glitchâ
đ Bitcoinâs âinfinite money glitchâ
PLUS: ETH ETFs begin trading!
Where do you think Ethereum's price will be in 7 days time?(Click to vote / see results đ) |
Sup, nerds!
Hereâs what youâre getting in todayâs edition:
Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Market cap, staking.
đ This is cool:
In one sentence: With Biden out, the Dems have an opportunity to embrace crypto, ETH ETFs launch today, Gary Gensler is rumored to be stepping down, and Trump might be about to add BTC to the USâ balance sheet. đ€Ż
Babe, wake up! New crypto narratives just dropped!
Right now, it kinda feels like years are happening in weeks.
And when social/political events happen at an increased velocity, new narratives enter the markets â giving investors new opportunities to try and front run potential future events (aka: invest more $$$)
Hereâs the latest batch of narratives:
Now that Biden has bowed out, the Democrats have an opportunity to embrace crypto (and vacuum up some of those sweet, sweet political funding dollars that are sloshing around the crypto space right now).
More parties supporting crypto = more investment over time.
The Ethereum ETFs are set to launch today! Which means we can all start to track the traditional finance dollars entering the altcoin space each day.
(Adding to the momentum generated by the Bitcoin ETFs).
Gary Gensler (the anti-crypto SEC chair) is rumored to be stepping down as soon as February, now that Biden isnât running.
The potential for a new, pro-crypto SEC chair is enough to send markets into a frenzy at some point.
Oh, thereâs that, andâŠ
Thereâs rumors that Donald Trump will announce his intention to add Bitcoin to the US treasury, when he speaks this Saturday at the Bitcoin Conference in Nashville.
IF (and itâs still a big olâ IF) that happens, it could set forth a buying frenzy never before seen in the crypto space.
Hold on to your butts.
đ„ Want the news before anyone else?
đ This seems important:
In one sentence: A $16.5M investment in Bitcoin as a treasury asset has added $24B to Metplanetâs total market value â a strategy that will degrade as more companies adopt it, but still support BTCâs price over time.
In middle school, we discovered an infinite-passing grade glitch:
Take the required assessment work, and make a movie out of it.
E.g. Chevy and his friends passed their 8th grade sociology group project on Vikings, by filming themselves sword fighting with sticks and quoting lines from their textbooks.
It worked not because the work was good (it was comically bad), but because filming and cutting together footage took a lot more effort back in the mid 2000âs â enough that most teachers couldnât bring themselves to not give them a passing grade, just for the perceived ingenuity.
But then iPhones came along and ruined it all by making recording/editing multimedia presentations that much easier (thanks a lot Steve Jobs).
Weâre telling you this because thereâs a parallel that currently exists in the crypto world.
A temporary tactic that is pumping company valuations, but will soon become less effective as it is further adopted.
That is: companies holding Bitcoin in their treasury.
MicroStrategy ($MSTR) was the first to do it, buying up 1% of all BTC in the world between Aug 2020 and now â seeing its stock price move 14x in the same period.
(As investors bought $MSTR stock as a roundabout way of buying Bitcoin, while avoiding any regulatory issues).
And now the same thing is happening to the Japanese firm, Metaplanet, as they have adopted the same strategy.
In fact, their stock price just jumped 20% after they announced theyâd purchased even more Bitcoin.
Whatâs crazier is, their stock price is up a cool 9x since they adopted Bitcoin back in April, with a total treasury holding of (a measly) $16.5M worth of BTC.
Hereâs the math on that:
A $16.5M investment in Bitcoin has added $24B to Metplanetâs total market cap.
And while more and more companies adopting this strategy will lead to the strategyâs returns degrading over time, one factor will stay unchanged:
More adoption = more positive effects on Bitcoinâs price.
đ€ Partner:
Hereâs the current state of the industryâŠ
Thereâs so many ways to âinvestâ your money right now that itâs hard to discern whatâs actually legit or not.
Amazon FBAâŠ
Dropshipping automationâŠ
Airbnb arbitrageâŠ
And the worst part is: unless you were a trail blazer who got in at the beginning itâs really hard to make good returns with these vehicles.
Now you can go ahead and try, but youâll probably just find out the hard way.
But thatâs why Advanced Orbit Solutions is bringing a new opportunity into the marketplace.
AOS has created an AI trading system that allows their customers to receive an average return of $5-10K per month*.
A system thatâs hands off, allowing you to buy back your time while also securing you some of the highest returns you can find.
Want to see and unlock the future of AI-powered trading for yourself?
Click below to learn more!
*Past performance is not indicative of future performance.
đȘLet's dissect this:
In one sentence: ETH ETFs are starting to trade in the US today - hereâs our take on it.
We touched on it in article one this morning, but it deserves more attention.
ETH ETFs are starting to trade in the US today!
After getting their initial approval in May, multiple companies in the past few weeks have updated and updated their forms - riveting job - to finally be approved and ready for trade.
Hereâs how weâre looking at it:
Bitcoin ETFs have brought in more than $17 billion worth of total inflows since their launch so far - thatâs our baseline metric.
Anything above that within the first 6 months would be huge for crypto.
Some people believe thereâll be less demand for the ETH ETFs than the BTC ETFs, simply because ETH is an altcoin - that theory will be tested!
Finally, for better or worse, Ethereum is a very different technology to Bitcoin.
For example, an important part of Ethereum is the ability to stake your crypto and get interest (aka âstaking rewardsâ) for doing so.
Due to regulation, the ETH ETFs are not allowed to stake their ETH holdings.
So, unlike BTC, which is primarily a financial product (besides Ordinals and Runes etc., but hear us out) for the first time, weâll get to see whether people really do want to hold ETH in the form of shares (through the ETFs), or whether investors choose to get a bit more savvy on what Ethereum really is, and they start taking advantage of things like staking.
Either way, ETH ETFs becoming tradable on US stock markets brings them front of mind for investors, and will undoubtedly lead to additional buying that otherwise wouldnât have happened.
Magic eight ball says: Outlook good!
Staking, Explained
Express Employment Professionals believes in finding the right person for the job, every time. Unlike traditional talent agencies, Express offers local teams who are deeply invested in your community, offering a unique understanding of your business needs and local talent pool.
đ Other stuff you may have missed
đ WazirX Hacker Has $5 Million Left After Dumping Uniswap, Chainlink, and Other Alts
đȘ Bitcoin Price Tied to US Dollar Performance, Not Politics, Custodian Says
đȘ Bitcoin DeFi Platform Liquidium Distributes Surprise Airdrop
đ ETH Held in Exchange Reserves Drops to 8-Year Low With ETFs Set to Begin Trading
Alright, thatâs it for today!
Love to the family,
P.S. Want to learn how to research and value cryptocurrencies? We have a framework that does just that.
What did you think of today's edition?Rate us and leave a comment! |
Help us write content that's relevant to you!
Forwarded this? âJoin here!â
Want to advertise with us? Get in touch with Seb: ââ[email protected]
Uh oh! Now for the boring stuff:
This content is for informational purposes only. Such information should not be construed as legal, tax, investment, financial, or other advice.
Phew! Thanks for hearing us out. We promise to never be that mundane again.
Oh, and - whatever you do,do not click this link.