Weekend Rundown - October 16, 2021
Good luck filling your limit orders below $40,000
Hello! I’m pushing out this weekend rundown earlier than usual because the rest of my weekend is very busy. Bitcoin’s price dropped to $60,000 today.
Bitcoin at $60,000 felt terrible in April, waiting for the other shoe to fall, knowing the market had run out of gas.
Today, bitcoin at $60,000 feels wonderful. Very few laser eyes, no reports of businesses selling, on-chain and technical patterns completely opposite of what we saw in April.
Does that mean you should sell all of your earthly possessions and FOMO into bitcoin? Altcoins have lagged bitcoin for the past month—time to cash out and put the proceeds into bitcoin before ETFs and institutions send it to $288,000?
Premium subscribers know what I’m doing.
Check out some interesting videos and articles I saw this week.
Bottom line: cryptocurrency makes it cheap and easy for everybody to start businesses, communities, and organizations, in contrast to the past, when the cheap/easy route came from taking over something that already existed.
My take: I have a feeling once a few DAOs or blockchains get a lot of traction, networks effects, adoption, etc, you’ll find this argument hard to make. For now, it’s very applicable. With cryptocurrency, you can get the whole world to grow your business or community and accept the immutable rules you create in return for literal tokens of appreciation, for essentially zero upfront cost. As such, the sky’s the limit to what you can do. The old way rewards those who control the means of production and distribution. The new way rewards those who create value. A post-capitalist world awaits us.
Why we care: crypto and smart contracts let people build new civilizations from scratch. Over the coming years, we will see lots of people try. Some of their ideas will seem bizarre, useless, and easy to dismiss, but we can’t write them off simply because nobody has tried them before.
Heidi from Crypto Tips posted some food for thought and healthy caution as we approach the next leg of the bull run. Namely, when shit goes crazy again, you don’t need to psyche yourself into thinking it’s your last chance to get into the market.
Last chances only happen after the euphoria dies down and the market bottoms out before going back up again. Watch her 5-minute video.
I only disagree with one of her points. She says dollar-cost averaging is the best, most profitable way to invest in this market.
That’s categorically untrue.
Is it good? Yes. Effective? Absolutely. But there are two better, more profitable ways to invest in this market.
Nobody does better than a skilled trader. If you have experience and savvy about trading markets, you’ll dominate.
If, like me, you can’t or won’t do that, my plan is the second-best way to approach this market. While you spend a lot of time not buying crypto, you beat dollar-cost averaging in every scenario I could find. Tap this button to learn more.
Also, you will never have to think about taking profits, you will only buy when the time’s right and exit the market when the plan forces you to do so. Outside of those times, you get to chill and save money for the next opportunity.
Rarely do you find an intelligent, nuanced discussion of USDT, regulation, and the problem of transparency for stablecoins. This 8-minute Coindesk video hits some interesting points.
Do you run a full bitcoin node?
Sylvain Saurel explains the value of doing so. Read his article.
Basically, a full node is the only way to verify that your bitcoin is actually yours. You can trust an exchange or a wallet, but only the node guarantees you have your bitcoin in your possession.
Relax and enjoy the ride!!