The Wolf Den #113 - Invest In Assets You Understand
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This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Note: I have moved the charts back to the top of the newsletter. I have had a number of complaints about them being at the bottom and gmail truncating the emails. You can always click the link gmail provides to read the entire email.A Note to Visionary Investors.It wasn't long ago that investors had to dial up a stockbroker on the phone for a stock quote and then send off mail-in buy orders, waiting weeks for ownership of shares... then repeat process over again to execute a sell order. Today, traders are instantaneous because the internet has replaced outdated systems of communication and information. Future advancement can only go so fast, and at some point, innovation can’t offer faster speeds unless they keep fractionally cutting latency. That just won’t cut it. Innovation is splitting from its past trajectory with the recent advent of Bitcoin, blockchain, cryptocurrencies, and CBDCs. Narratives for each of these 4 developments are yet to fully unfold, but one question for investors remains applicable to each of the above: if you can’t think of what something might replace or improve, what place will it hold?As a caveat, none of the aforementioned technologies will entirely replace our existing tech in the immediate future. More specifically, they will enhance our current systems.CBDCs are very clear in their intentions - they are aiming to replace physical currencies with digital ones. CBDCs role in the future seems the most inevitable of any future development. It's not if, it's when.Blockchain is best seen as an internet 2.0 and is likely to replace many of our old ways of doing things. Nobody would have guessed the internet would be used for YouTube, shoe shopping, or paying a bill, but now with blockchain we can go about our everyday lives with a heightened level of trust, security, and decentralization. Blockchain will continue to surprise us, just like the internet. We are already seeing blockchains implemented in voting, healthcare records, banking, nuclear disarmament, and more.Bitcoin looks more and more likely to replace gold as a gold 2.0 that offers its own value proposition for investors seeking safety. Unless Lightning Network finds rapid progress, it is hard for me to picture Bitcoin becoming the currency of choice for Starbucks and everyday transactions. People will continue to wear shiny things, and gold bugs will be gold bugs, but Bitcoin will drive interest as a hedge from all corners of the investment arena. Lastly, cryptocurrencies, which are the hardest of the four to categorize because there are over 4,000 and 95% will likely never see the first page of CoinMarketCap. If you can’t clearly answer what your preferred cryptocurrency will replace or stand as an improvement to in modern technology, then it probably isn't worth holding for the long term. 90% of these coins failing means 400 are left to succeed, which still seems like a wild overestimation. Perhaps they somehow become analogous to websites on the internet, each offering a unique service. But is still a stretch.Warren Buffet’s advice can help make sense of everything above. A golden rule of his was to only invest in the things he understood. For this space, following this rule does not mean reciting the white paper by memory; it means clearly envisioning a practical way in which the new technology can both fit into society and be the best at what it provides.Chart Requests stream tomorrow on YouTube: https://youtu.be/7TUPlLHcfd0In This Issue:Bitcoin Thoughts And AnalysisThe Prevalence Of Long-Term Investing In BitcoinAltcoin ChartsLegacy MarketsSafely Secure Your Crypto Before It’s Too Late"I'm Waiting To Buy Lower"Tulip ManiaYFDAI — Leading The DeFi RevolutionJP Morgan Believes Bitcoin Can Compete with GoldBillionaire Investor Turns Bullish on BitcoinAMA WIth Steve Ehrlich, CEO Of VoyagerThe Wolf Of All Streets Podcast Ft. Hotep JesusMy Recommended Platforms And Tools
The Wolf Den #113 - Invest In Assets You Understand
The Wolf Den #113 - Invest In Assets You…
The Wolf Den #113 - Invest In Assets You Understand
This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Note: I have moved the charts back to the top of the newsletter. I have had a number of complaints about them being at the bottom and gmail truncating the emails. You can always click the link gmail provides to read the entire email.A Note to Visionary Investors.It wasn't long ago that investors had to dial up a stockbroker on the phone for a stock quote and then send off mail-in buy orders, waiting weeks for ownership of shares... then repeat process over again to execute a sell order. Today, traders are instantaneous because the internet has replaced outdated systems of communication and information. Future advancement can only go so fast, and at some point, innovation can’t offer faster speeds unless they keep fractionally cutting latency. That just won’t cut it. Innovation is splitting from its past trajectory with the recent advent of Bitcoin, blockchain, cryptocurrencies, and CBDCs. Narratives for each of these 4 developments are yet to fully unfold, but one question for investors remains applicable to each of the above: if you can’t think of what something might replace or improve, what place will it hold?As a caveat, none of the aforementioned technologies will entirely replace our existing tech in the immediate future. More specifically, they will enhance our current systems.CBDCs are very clear in their intentions - they are aiming to replace physical currencies with digital ones. CBDCs role in the future seems the most inevitable of any future development. It's not if, it's when.Blockchain is best seen as an internet 2.0 and is likely to replace many of our old ways of doing things. Nobody would have guessed the internet would be used for YouTube, shoe shopping, or paying a bill, but now with blockchain we can go about our everyday lives with a heightened level of trust, security, and decentralization. Blockchain will continue to surprise us, just like the internet. We are already seeing blockchains implemented in voting, healthcare records, banking, nuclear disarmament, and more.Bitcoin looks more and more likely to replace gold as a gold 2.0 that offers its own value proposition for investors seeking safety. Unless Lightning Network finds rapid progress, it is hard for me to picture Bitcoin becoming the currency of choice for Starbucks and everyday transactions. People will continue to wear shiny things, and gold bugs will be gold bugs, but Bitcoin will drive interest as a hedge from all corners of the investment arena. Lastly, cryptocurrencies, which are the hardest of the four to categorize because there are over 4,000 and 95% will likely never see the first page of CoinMarketCap. If you can’t clearly answer what your preferred cryptocurrency will replace or stand as an improvement to in modern technology, then it probably isn't worth holding for the long term. 90% of these coins failing means 400 are left to succeed, which still seems like a wild overestimation. Perhaps they somehow become analogous to websites on the internet, each offering a unique service. But is still a stretch.Warren Buffet’s advice can help make sense of everything above. A golden rule of his was to only invest in the things he understood. For this space, following this rule does not mean reciting the white paper by memory; it means clearly envisioning a practical way in which the new technology can both fit into society and be the best at what it provides.Chart Requests stream tomorrow on YouTube: https://youtu.be/7TUPlLHcfd0In This Issue:Bitcoin Thoughts And AnalysisThe Prevalence Of Long-Term Investing In BitcoinAltcoin ChartsLegacy MarketsSafely Secure Your Crypto Before It’s Too Late"I'm Waiting To Buy Lower"Tulip ManiaYFDAI — Leading The DeFi RevolutionJP Morgan Believes Bitcoin Can Compete with GoldBillionaire Investor Turns Bullish on BitcoinAMA WIth Steve Ehrlich, CEO Of VoyagerThe Wolf Of All Streets Podcast Ft. Hotep JesusMy Recommended Platforms And Tools