digital slowmad

Digital Slowmad newsletter

22 October 2021

📊 Crypto portfolio update

Invested in: Bitcoin (BTC), Jewel (JEWEL)

Net return: 237.9%

Comments: Bitcoin continues to look bullish, especially with the recent launch of the first-ever Bitcoin ETF.

I am so bullish on bitcoin over the next few weeks that I've sold almost all my liquid Jewel holdings for more BTC. Note that this does not mean I'm bearish on Jewel. It simply means that I believe BTC is the better risk-adjusted bet at this time.

This being said, I still have a bigger allocation in DeFi Kingdoms (DFK) than in bitcoin. The majority of my DFK allocation is in the form of hero NFTs, which are less liquid and are not included in the net return calculation above.

defi kingdoms hero nft

Example of a DeFi Kingdoms hero NFT

Over the past 2 weeks I've been actively buying and selling heroes, and have made a decent amount of money doing so. This reminds me of back in the day when I used to buy and sell Magic The Gathering cards... except that with DFK, the process is faster, more convenient, more fun, and more lucrative.

Very notably, interest in DFK continues to surge as the number of people in the Discord (chatroom) server exceeded 11k this week. For context, when I first joined about 3 weeks ago, the number stood at 4k.

As a lifelong gamer, I can see why this game is catching on like wildfire. DFK pushes all the right buttons in terms of engagement, anticipation and addictiveness. There's nothing quite like logging in first thing in the morning, flipping through and admiring your hero collection, then popping over to the yield farms to see how your investments have grown while you were sleeping (current yields sit at ~5% per day, or ~158% per month). Note: About 80% of these yields are locked and cannot be accessed until July 2022 - a good move by the developers, if you ask me.

Such high yields won't last forever, but they will hopefully last long enough for the game to reach a critical point of mass adoption. At the rate things are going, I wouldn't be surprised to see DFK reach a market cap of $5 billion over the next few years.

Things in the crypto space can change quickly however, and my assessment of the game is constantly under review. If and when my view changes, my newsletter readers (you) will be the first to know.

📝 Admin update

  • If you missed the previous newsletter, you can read it here.
  • New here? You can sign up to receive future issues here.

₿ Crypto news

  • BTC and ETH reserves in exchanges continue to plummet, which is good news for holders/investors:
btc exchange reserves oct 21
eth exchange reserves oct 2021
  • On Wednesday, BTC broke though its previous all-time high of $64.9k. A new bull market is likely to be underway.

📰 In other news

  • As you know, the US Federal Reserve has printed trillions of dollars out of thin air since the Covid pandemic struck early last year.
    • When asked about inflation concerns, first they said that there was no inflation. Then, as inflation began to pick up, they said it was "transitory". Today, with home, food and energy prices starting to surge, they're calling it "frustrating".
    • The thing about inflation is that it inflates asset prices (such as stocks) while eroding the purchasing power of dollar savings.
    • This is why the cost of things today are going up, and/or the amount of of things you can buy per dollar is going down.
      • Example: The price of bacon at the supermarket might be unchanged, but you're getting fewer pounds of it per dollar.
    • The wealthiest 10% of Americans own 89% of all US stocks. Members of the Federal Reserve are, of course, among the wealthiest 10%.
      • The average man on the street doesn't invest in the stock market, and keeps most of his money in dollars at the bank.
    • Connect the dots: 
      • Higher inflation ➞ Rich get richer, everyone else gets poorer
      • The Federal Reserve is in charge of policies that make themselves (and their wealthy friends) richer, at the expense of everyone else.
      • Is it any surprise then, that the Fed wants to keep the "printing presses" running?
    • Oh, and did you know that members of the Fed are allowed to trade stocks that are directly affected by the policies they implement? In other words, they can buy or sell stocks before releasing news that would impact stock prices.
      • If you or I did this we'd be arrested for insider trading. But if the elites do it, nothing happens. It's rules for thee but none for me!
    • Oh, and did you know that the Fed chairman has invested $11.6 million in BlackRock? Yes, the same investment corporation that manages the Fed's bond buying program. This is a clear case of conflict of interest.
      • Imagine playing a game where one of the players is also the referee...
      • You'd be dumb to participate! And yet this is what most of us had to do for decades because we had no choice...
    • ...Until now.
      • With decentralized finance (DeFi), ordinary people can opt out of the rigged game and participate in a financial economy that's orders of magnitude fairer and more transparent.
    • Bottom line: If you still don't realize you're being fooled by the political/financial elites, the next decade is going to be a harsh one for you.
      • Start learning about what DeFi is, and how it works. It's not perfect, but it's the best chance we have at winning the money game.

💬 Quote of the week

It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.

- Thomas Sowell

🤯 Something cool

Look closely... this is *not* a photo:

This is a drawing by artist Keegan Hall.

Thanks for reading, and have a great weekend. 🥃


P.S. If you have any questions or feedback, let me know at: chris[at]digitalslowmad[dot]com

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