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🌐 Bitcoin’s ‘infinite money glitch’

PLUS: ETH ETFs begin trading!

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Sup, nerds!

Here’s what you’re getting in today’s edition:

  • 💅 This is cool: Hold on to your butts.

  • 🔎 This seems important: Bitcoin’s ‘infinite money glitch’

  • đŸ€ Partner: Unlock The Future of Making Passive Income with AI-Powered Trading​

  • đŸ”Ș Let's dissect this: ETH ETFs begin trading!

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Market cap, staking.

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💅 This is cool:

Hold On To Your Butts.

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 US’ balance sheet. đŸ€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 — giving investors new opportunities to try and front run potential future events (aka: invest more $$$)

Here’s the latest batch of narratives:

  1. 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.
     

  2. 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).
     

  3. Gary Gensler (the anti-crypto SEC chair) is rumored to be stepping down as soon as February, now that Biden isn’t running.

    The potential for a new, pro-crypto SEC chair is enough to send markets into a frenzy at some point.

Oh, there’s that, and


There’s 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 it’s still a big ol’ IF) that happens, it could set forth a buying frenzy never before seen in the crypto space.

Hold on to your butts.

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đŸ„‡ Want the news before anyone else?

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🔎 This seems important:

Bitcoin’s ‘Infinite Money Glitch’ is Still Working, But it Won’t Last Forever


In one sentence: A $16.5M investment in Bitcoin as a treasury asset has added $24B to Metplanet’s total market value — a strategy that will degrade as more companies adopt it, but still support BTC’s 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 2000’s — enough that most teachers couldn’t 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).

We’re telling you this because there’s 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 — 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 they’d purchased even more Bitcoin.

What’s 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.

Here’s the math on that:

A $16.5M investment in Bitcoin has added $24B to Metplanet’s total market cap.

And while more and more companies adopting this strategy will lead to the strategy’s returns degrading over time, one factor will stay unchanged:

More adoption = more positive effects on Bitcoin’s price.

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đŸ€ Partner:

Unlock The Future of Making Passive Income with AI-Powered Trading

Here’s the current state of the industry


There’s so many ways to “invest” your money right now that it’s hard to discern what’s actually legit or not.

Amazon FBA


Dropshipping automation


Airbnb arbitrage


And the worst part is: unless you were a trail blazer who got in at the beginning it’s really hard to make good returns with these vehicles.

Now you can go ahead and try, but you’ll probably just find out the hard way.

But that’s 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*.

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đŸ”ȘLet's dissect this:

ETH ETFs Begin Trading!

In one sentence: ETH ETFs are starting to trade in the US today - here’s 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.

Here’s how we’re looking at it:

Bitcoin ETFs have brought in more than $17 billion worth of total inflows since their launch so far - that’s our baseline metric.

Anything above that within the first 6 months would be huge for crypto.

Some people believe there’ll 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 ‘staking rewards’) 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, we’ll 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 wouldn’t have happened.

Magic eight ball says: Outlook good!

 

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Staking, Explained

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Alright, that’s it for today!
Love to the family,

Chevy, Seb & The Web3 Daily Team.

P.S. Want to learn how to research and value cryptocurrencies? We have a framework that does just that.

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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.

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