Digital Slowmad newsletter
30 July 2021
Crypto portfolio update
Invested in: -
Net return: +0.8%
Comments: I've exited my prior positions in ETH and LINK. Let me explain why.
My long term outlook for crypto remains bullish.
If I couldn't touch my crypto investments for the next 2 years, I'd just buy and hold BTC and ETH. This wouldn't be the most efficient way to invest, but it's the simplest way and requires the least effort.
From a trader's perspective however, the crypto markets are in a downtrend and prices are likely to keep moving down in the short-to-medium term.
With this in mind, my preferred approach is to:
- Wait for the downtrend to end, and
- Earn a yield on DeFi assets in the meantime
DeFi is a dense topic, but it's worth looking at because - when done right - the risk-reward profile can be quite favourable. The more I learn about DeFi, the more it makes sense to include it in my portfolio. I'll publishing some content about this soon.
- In case you missed it, here's the previous issue of the Digital Slowmad newsletter.
₿ Crypto news
- Amazon is looking to hire a digital currency and blockchain product expert.
- Apple posted a similiar job listing in May.
- Coca-Cola Co, a $250B company, is going to auction a four-piece NFT set.
- If you're still wondering whether crypto is legitimate, you're falling behind.
- US Senator Elizabeth Warren is urging the government impose regulations to “mitigate the growing risks that cryptocurrencies pose to the financial system.”
- This comes as no surprise to me. Just like how the CEO of Kodak would warn about the "dangers" of digital cameras, so too would an incumbent politician warn about the "dangers" of cryptocurrencies. The people who stand to lose the most from innovation will always fight it.
- The whole reason people are embracing crypto in the first place is because they're losing faith in government regulation. People have not forgotten the way banks caused the 2008 crisis (and profited massively from it), and getting bailed out when things went south. Ordinary people have to suffer the consequences of their actions, but not the banks! Their profits are privatized while their losses are socialized, thanks to government regulation!
- The rise of crypto is a phenonmenon driven by people's disdain for the government's rules. People want fairness, transparency, and for power to be distributed to the people, not to a small group of rich people behind closed doors.
- The government's fight against crypto is really about preventing people from adopting a monetary standard they don't control. If you keep your money in bitcoin, for example, they can't dilute your purchasing power through money printing.
- Goldman Sachs surveyed 150 uber-rich family offices and found that 60% either already own crypto or want to.
- According to the Fidelity Digital Assets 2021 Institutional Investor Digital Assets Study, 7 in 10 institutional investors expect to buy or invest in digital assets in the future, and more than 90% of thm expect to have an allocation in their institution's or clients' portfolios within the next five years.
- We're still early. But we won't be for much longer.
- Whiteboard Crypto published two new videos about Ethereum 2.0 and Sharding. These videos give a good overview about what goes on behind the scenes in the Ethereum blockchain.
Quote of the week
Patience is a competitive advantage. In a surprising number of fields, you can find success if you are simply willing to do the reasonable thing longer than most people.
- James Clear
Check out this crane with built-in stabilizers. Engineering is amazing.
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