MAJR News 058
Beware of Bitcoin ETF, Ted Cruz did his Bitcoin homework, NFTs on Bitcoin, Paradigm VC firm to raise $1.5 billion for crypto startups, Energy prices and market in crisis
@starfury
MAJR NEWS BRIEF
Important Note
As we head into what could be the final stages but most impressive part of the crypto bull market (next 3-6 months), it’s important to keep the following top of mind.
Capital flows into Bitcoin, then Ethereum, then large caps and then altcoins. Right now, we’re seeing this play out as bitcoin sucks in capital pulling the market higher and alts bleeding.
Take profits. Don’t worry about timing the market. Good traders don’t aim for the top or bottom, they sell on the way up and the way down. Don’t be left holding the bag when the market cools down because it will.
Don’t sell your entire stack. While taking profits is important, it’s important to always have a position as we’re still so early with crypto tech adoption. Think long-term.
Most NFTs will trend to 0. While NFT technology is just getting started and here to stay, it’s a much higher risk since it’s betting on a unique item vs. entire platform. Save the NFTs you love for the art, not the profits.
Don’t panic sell. This is how you lose all your money. Personally, I’m building a plan to deal with the volatility. It’s going to be intense.
Bear markets are for dollars and stables and this how you make your ultra wealth. Take profits. Don’t cling on to small cap alts. Make sure to be liquid for when the music stops.
Remember the name of the game, accumulate bitcoin. Use alpha earned from altcoin profits to flip into stables and bitcoin.
Videos
Yesterday, YouTube (Google) deleted Anthony Pompliano’s (Pomp) YouTube channel claiming that his videos, channel and most recent interview with Plan B was “encouraging illegal activities” and “violates their harm and dangerous policy.” After a crypto-twitter backlash, YouTube reinstated his YouTube channel without any explanation for why it was immediately deleted skipping its 2 strike policy. Anyway, here’s the interview with anonymous Dutch institutional asset manager and founder of the Stock-to-Flow (S2F) model for valuing bitcoin. Spoiler alert - PlanB is super bullish and thinks bitcoin will reach between $100k-$500k this cycle and $1-$5 million in 4 years.
Top Stories
BITCOIN
Bitcoin ETF Could Tank Crypto Prices: Pantera CEO
Dan Morehead of Pantera Capital, one of the first crypto hedge funds to operate in the digital asset space told investors in an October letter that the arrival of a Bitcoin ETF could hurt prices rather than help. Morehead believes we’re in a new full blown bull market post China and environmental impact FUD, but see the emergence of a Bitcoin ETF as a situation where investors should buy the rumor and sell the news. He recalled two experiences which ring familiar - when the Chicago Mercantile Exchange (CME) listed bitcoin futures for the first time in 2017 and the Coinbase IPO. Prices rallied into both events, but when they actually occurred, prices plummeted.
Ted Cruz Believes Texas’ Abundant Energy Is Opportunity for Bitcoin
Texas Republican Senator, Ted Cruz spoke at the Texas Blockchain Summit last week and said Bitcoin could make use of the state’s abundant energy resources. It appears that Ted Cruz has done his homework and connected with the rapidly growing crypto constituents in his state as his remarks illuminate 3 important facts.
Bitcoin mining can unlock stranded rich energy resources such as solar and wind in remote areas.
Bitcoin mining can capture flared or wasted energy produced from extracting energy from the earth.
Bitcoin is one of the greatest monetary incentives to drive clean and renewable energy as bitcoin mining is an economic game and in order to win, miners need the cheapest electricity possible, which is renewable energy.
Stacks Blows Up 57% After Bitcoin NFTs Take Off
Stacks (STX), the blockchain that brings smart contracts to the Bitcoin network has seen an explosion in price, up nearly 70% this week after they launched NFTs on Bitcoin, Bitcoin Birds. Stacks is also working on DeFi applications on bitcoin. Don’t sleep on bitcoin, it may be slow but’s security trumps everything else and it’s opensource architecture has some of the world’s best developers building on upper layers of the network.
More on Bitcoin
CRYPTO
NFL Star Rob Gronkowski Joins Tom Brady’s Autograph NFT Platform
Rob Gronkowksi, the NFL star joins Tom Brady’s NFT platform, Autograph. Gronkowski was actually one of the first NFL players to dabble in NFTs, launching his own back in March generating $1.6M worth of ETH. Autograph’s NFT collectibles are minted using Polygon, a layer-2 scaling solution for Ethereum. The NFTs have predominately been futuristic looking trading cards which are sold exclusively sold on Draft King’s marketplace, the sports betting app. The sale starts today with cards ranging from $12-$250.
Coinbase Co-Founder’s Venture Firm Raising $1.5B Fund, Document Shows
Fred Ehrsam’s venture capital firm Paradigm is looking to raise $1.5 billion to fund crypto startup investments. VCs have placed $17 billion in crypto in the first half of 2021, a huge increase compared to the $5.5 billion that was placed during the same period in 2020. This round would put the already crypto giant shoulder to shoulder with Andressen Horowitz (a16z) who raised their third crypto fund at $2.2 billion.
MAJR Take: Tell your friends to get their heads out of the sand. There’s so much capital and brain power flooding into crypto.
The average joe investor has the ability to front run these dollars.
FTX US Aims to Take On OpenSea—First With Solana NFTs, Ethereum Only 'Weeks Away'
FTX, one the largest crypto exchanges who’s founder Sam Bankman-Fried, has been a huge supporter of the Solana ecosystem launched a new regulated marketplace for NFTs, FTX NFTs. They’re first supporting NFTs minted on the Solana (SOL) blockchain vs. Ethereum, which has been the main blockchain for digital art. FTX is competing against the largest decentralized NFT marketplace called OpenSea and will allow users purchase NFTs with dollars.
More on Crypto
Bored Ape Yacht Club NFT Project to Launch Ethereum Token in Q1 2022
Early Facebook Investor Andreessen Horowitz Nabs Engineers From Novi Crypto Wallet
SoftBank Joins $60M Investment in Crypto Analytics Firm Elliptic
MACRO
Southwest Warns of Need for More Staff to End Disruptions
Southwest Airlines cancelled nearly 3,100 flights over four days due to staffing issues. Pilots and airline workers seem to have staged an undercover strike or “sickout” to protest mandatory vaccinations. However, Southwest executives and the Federal Aviation Administration have stated the delays had nothing to do with vaccination mandates, but only staffing shortages and severe weather.
“I can say with certainty that there are no work slowdowns or sickouts either related to the recent mandatory vaccine mandate or otherwise,” Murray said in a statement. Under federal law, “our union is forbidden from taking job action to resolve labor disputes under these circumstances. SWAPA has not authorized, and will not condone, any job action.”
MAJR Take:
Here’s the weather forecast over the last week in Jacksonville
, FL… nothing but sunny skies. The centralized coverups and lies coming out of our public corporations, institutions and government are staggering. Don’t forget the airlines received a
$15-$25 billion tax payer bailout
throughout the pandemic. They could at least be honest and not insult tax payer’s intelligence blaming airline delays on weather.
Roubini Says Fed May ‘Wimp Out’ on Hikes Despite Inflation
Nouriel Roubini, the infamous economist who called the sub-prime mortgage crisis in 2008 said that the Fed will “wimp out” tapering their bond purchase program and raising rates. While price inflation, supply chain bottlenecks and labor shortages are making headlines and are in part due to aggressive monetary policy; central bankers are stuck. Their ability to pull back on stimulus is dependent on economic growth and if grows slows than central bankers have to keep their foot on the gas. Roubini expects CPI to remain above 3% next year.
Soaring Energy Prices Raise Concerns About U.S. Inflation, Economy
Energy markets and the people that depend on energy (everyone) are in a crisis that may keep getting worse into mid 2022. The combination of price inflation, supply chain disruptions and the reopening of the economy has sent the energy market into a tailspin. Energy consumption makes up 7% of consumers’ budget. Investors demand companies to maintain higher prices to keep margins vs. increasing production. This type of inflation decreases consumer confidence which ultimately slows growth and prices are expected to get worse going into the winter months. Something’s got to give… my guess is that fiat currencies will be the release valve.
Crude oil is up 64% this year, a seven year high.
Natural gas has doubled in the past six months.
Heating oil is up 68% this year.
Gas prices are up nearly $1 dollar at the pump, national average is $3 a gallon.
Coal prices are at record highs.
MAJR Take: This is the hidden tax of inflation… stop believing monetary and fiscal authorities stating CPI inflation at 5%… it’s much worse for the things you want and need - high protein foods, college, real estate, healthcare, energy and financial assets.
More on Macro
MEDIA
The Bitcoin Interview That YouTube Tried To Delete
Bitcoin and crypto adoption is here to stay. Don’t let your friends and family miss the opportunity of a lifetime.
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THIS IS NOT FINANCIAL ADVICE. IT’S IMPORTANT TO DO YOUR OWN RESEARCH. INVESTING IN CRYPTOCURRENCY OR ANYTHING FOR THAT MATTER COMES WITH RISK. THE INFORMATION PRESENTED IN THIS NEWSLETTER IS FOR INFORMATION AND ENTERTAINMENT PURPOSES ONLY.