Mar 20, 2022 • 5M

Weekly Rundown - March 20, 2022

Stop NFTeasing me

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Not sure what’s gotten people so excited this week that didn’t get them excited last week, but I’m feeling a little shift in sentiment among whoever’s left in this market.

Make sure you get my March 17, 2022 update so you know what I’m looking for before I get too excited about this market.

Get the March 17, 2022 Update

In last week’s poll, I asked “how high does bitcoin's price need to go before you will buy more?”

Only 65% of people said they’d buy at today’s price or lower.

Granted, 20% of people said they don’t buy bitcoin at all. So really, 15% of survey respondents prefer to buy bitcoin at a higher price. If that’s you, I hope you get what you’re waiting for!

When will bitcoin’s price go higher?

We shall see. It may have already started to do that.

Since January 22, bitcoin’s price has gone up for 57 days, bringing the rest of the market along. The total crypto market cap sits 20% higher now than on that date.

Not the 100-300% gains we’ve seen in previous bear markets, but also not the 30-50% drops we’ve seen in previous bull markets.

No matter what prices do, the steps are always the same:

  1. Crypto flows to people who want it more than they want their government’s money.

  2. Prices go up long enough for people to think prices will keep going up. Then, they buy.

Everything else takes care of itself. We’re finished with step 1. Step 2 is only a matter of time. If you’re following my plan, you know what I’m doing.

My Plan for Bitcoin's Bull Market

On a side note, the European Union voted against a proposal to ban bitcoin and other proof-of-work tokens in member countries. What a relief!

Scroll down for two articles, a note, and a meme.

Apes buy Punks

Bottom line: when Yuga Labs, creators of Bored Apes Yacht Club, bought the commercial rights to Crypto Punks and Meebits, it raised a lot of questions about what other people can do with your intellectual and financial property.

My take: as I get more familiar with NFTs and the creator economy, I’m still unclear about the legal treatment of NFTs. Can their creators change the issuance and perks without your consent? What about non-NFT revenues built around the success of your NFT? For example, if I force you to buy an NFT to read this newsletter, then decide I want to go back to a subscription model—what happens to the value of your NFT? Did I break the terms of our agreement? Or in this case, what happens if Yuga Labs decides to dump the Meebits project and all associated perks, causing the floor to collapse? Can you sue? Do they have any obligation to you? They don’t have any stake in your NFT, you don’t have any stake in their business, and they make money off of Meebits’s popularity, not the Meebits themselves. I could go on (and I will, later this year).

Why we care: NFTs will upend our modern concept of ownership and revolutionize the way people distribute rights and privileges. It’s not a bad thing to think about what that means. Your government can’t help you (yet) and I’ll bet your NFT’s creator (or lawyer) won’t, either.

Has The NFT Bubble Popped? — OpenSea Revenue Drops 97%

Bottom line: OpenSea’s revenue dropped 97% since its peak. Platform trading volume is down 70% since then.

My take: If you caught my mini update from March 11, you would know OpenSea isn’t the only NFT platform that’s down. As with all applications of crypto, from DeFi to branded tokens, you get a burst of speculative enthusiasm as people discover these ideas. While that enthusiasm always dies down, the idea does not.

Why we care: NFTs have lost a lot of steam over the past few months, but today’s volume is on par with May and June of 2021. Similarly, perhaps because of this, Ethereum gas prices are very low. In fact, fees are low across pretty much all platforms. Minting and buying NFTs is cheaper than it has been in a very long time. You might want to take advantage of that.

Frankly, it’s a great time to experiment with everything you can do with erc-20 tokens. DeFi, NFTs, staking, pretty much everything costs 80-90% less than it did just a few months ago.

Also, consider checking out the Cosmos (ATOM) and Terra (LUNA) ecosystems. I suggest you get the Keplr and Terra Station wallets to start with.

I’ve been a fan of Terra since 2020. I had known about Cosmos for a long time but only got turned onto it about a year ago when I heard about Switcheo’s integration with its technology.

Ethereum has a massive head start. Don’t sleep on its competitors.

I’ll leave you with one meme you’ll have to get from Reddit. I can’t embed it here! Tap this button.

Get the Meme From Reddit

Relax and enjoy the ride!

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