What We’ve Read Today…

The Clark Street Crew…

Bitcoin price stalls in April, but $4.2B options expiry may revive run

ANIRUDH TIWARI

As over $4 billion in BTC options contracts stand to expire, most options traders will feel “max pain,” while options writers could gain.

What is interesting about this particular options expiry is that the current max pain price for the expiry is $54,000, which is very close to the current trading price. The max pain price is the price at which most options are rendered worthless, thus leading to the loss of the option premium for the options holders. Although, in this situation, options writers stand to gain.

On April 29, over $4.2 billion worth of Bitcoin (BTC) options contracts will expire. This expiry comes after Bitcoin has seen a recovery from $48,000 to currently trade in the $54,000 range. The total open interest of Bitcoin options currently stands at $13.54 billion, with over 88% being on Deribit, the largest crypto derivatives exchange by both volume and market capitalization.

Cointelegraph discussed this with Robbie Liu, market analyst at OKEx Insights — the research team at cryptocurrency exchange OKEx. He stated that “A huge expiry alone does not indicate that the market is bullish or bearish, but it did restrain the price upswing when the previous quarterly options expired at the end of March. And after the delivery, the downward pressure was reduced.”

In fact, when looking at the max pain curve, it is evident that it’s reasonably flat at the bottom. This means that the overall economic impact of an expiry at $48,000 is relatively comparable to that of an expiry at $62,000. Shaun Fernando, head of risk and product strategy at Deribit, told Cointelegraph: “On expiry, with the removal of the max pain point, this could lead to an easier deviation from the 54k level.”

According to data from CoinOptionsTrack, the put-call ratio for the expiry is 0.69. The put-call ratio describes the trading volumes of put options in relation to those of call options. A put option buyer has the right to sell the underlying asset at a predetermined price on a specified date, while a call option holder has the right to buy an asset at a predetermined price on a specified date. The put-call ratio is often used as an indicator of the sentiment that prevails in the market. If the value is above 1, it is looked at as an indicator to sell, while a value below 1 is seen as an opportunity to buy. Regarding the implications of the max pain theory in this expiry, Liu further elaborated:

“The current max pain price of the April 30 expired options is at $54,000, but it’s skewed by the impossible to reach $80,000 calls, which have the largest open interest now. Market participants are currently more concerned about whether the large number of puts located at $52,000 and $51,000 will expire with no value.”

Options expiry impact noticeable

While monthly options expiry dates are often significant events for their underlying assets due to the large size of the expiries, an expiry in and of itself is not a rare occurrence. There are multiple options with different expiry dates offered by various exchanges. For instance, the expiry on April 23 caused 27,000 BTC in options to expire. At the current price, this expiry was worth $1.45 billion. A large portion of this was about 2,500 put options at a strike price of $50,000, while the max pain price was at $58,000.

Liu explained that the impact of the April 23 expiry was seen directly in the price of Bitcoin: “Bitcoin experienced a lot of selling pressure last Friday and the price managed to get pushed below $50,000 at the time of option settlement, at 4pm HKT [8:00 am UTC]. Then it saw a rebound after that. We can’t know yet if the same scenario is going to repeat itself.”

While this impact is often evident in the short term, some investors believe it might be an overrated angle for analysis. Scott Melker, a crypto trader and analyst, told Cointelegraph:

“There’s been much debate about the effect of BTC options expirations and their effect on the market. Options are a fraction of the total market and are rationally unlikely to affect spot price dramatically, but that has not stopped traders and investors from waxing poetic about price suppression and ‘max pain’ into the expiration week at the end of each month.”

Ki Young Ju, CEO of crypto analytics firm CryptoQuant, told Cointelegraph: “Bitcoin’s options market is still relatively small for the expiry to have a sizable impact on the spot price.”

As the debate continues over the impact of the Bitcoin options market on the price of BTC in the long term, analyzing the price trends of the underlying asset shows an interesting aspect.

April price trend is lower than usual

Even though Bitcoin hit its all-time high of $64,900 on April 21, it saw a 27% drop almost immediately as its price fell as low as the $46,000 range. The flagship cryptocurrency has been recovering from this slump ever since. Considering only the trend in April, there has been a 5% loss in BTC’s price — which was not expected, considering its April returns over the past four years. Barring any dramatic price movements on April 30, this will be the first time in six years that BTC ends the month of April in the red.

Lui opined on this, saying: “Bitcoin has averaged a 30% return in April over the past four years. But the market leader returned much more in the first quarter of this year than in previous years. It’s not bad for Bitcoin to take a pause in April after the previous parabolic run.” Fernando further elaborated, referring to BTC’s gains during quarter one:

“Historically March would see large falls. Since that was not the case this year, we can expect April to also break from convention. Also, it did not help this month with [United States President] Biden’s proposed higher capital-gains tax rates plans.”

However, the one-year gains for BTC currently stand at 604%, which is unprecedented, thus showing that 2021 has to date been an outstanding year for the asset. This mostly due to the rising attention given to Bitcoin and other top cryptocurrencies by both retail investors and institutional investors.

April has been no different in terms of continued institutional adoption of the asset. On April 21, Japanese gaming giant Nexus became the latest large corporation to invest in Bitcoin. It announced that it made a purchase of 1,717 BTC at a price of $58,226, which equates to a roughly $100 million investment.

The quarter-one earnings release for Tesla revealed that it booked a $101 million profit from the sale of BTC. While most perceived this as a positive development that showed the potential profits and liquidity of Bitcoin, some skeptics saw this as a sell-off and a broader call to sell Bitcoin. Tesla CEO Elon Musk was quick to point out that “Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet” and that he has personally not sold any of his Bitcoin.

Whales be whales?

One way to gauge institutional moves is through outflows from crypto exchange Coinbase Pro. The exchange normally integrates its custody wallets with its over-the-counter desks, which institutions usually trade through to minimize the impact on the spot markets. The outflows are seen as a representation of institutional activity in the BTC market.

According to CryptoQuant’s “BTC: Coinbase Pro Outflow” tracker, there were four significant outflows from Coinbase in April. It is possible that this BTC went to Coinbase custody wallets for OTC deals.

Ju further elaborated: “Institutions like Tesla use Coinbase Prime brokerage to buy or sell BTC. It would be bulk orders that can affect BTC price. Coinbase premium has been negative/neutral for the past 7 weeks, but it turned positive lately, hitting an all-time high a week ago.”

The Coinbase premium gap measures the difference in the price of BTC on Coinbase Pro and Binance. The larger the gap — and the higher the premium — the stronger the spot buying pressure on Coinbase.

As Bitcoin continues to recover from its April mid-month slump, it is evident that institutional interest in the asset is still on the rise despite the price volatility it has seen recently. While the upcoming $4.2 billion options expiry might not lead to much of an economic impact for options holders, it is highly likely that after the options expiry, the downward pressure on BTC will move away from the current max pain price of $54,000.

Thoughts For Today…

What We’ve Read Today…

10 Types of Investments (and How They Work)

By: Ben Geier, CEPF®

Investing intimidates a lot of people. There are numerous options, and it can be hard to figure out which investments are right for your portfolio. This guide walks you through 10 of the most common types of investment and explains why you may want to consider including them in your portfolio. If you are serious about investing, it might make sense to find a financial advisor to guide you

Stocks

Stocks may be the most well-known and simple type of investment. When you buy stock, you are buying an ownership stake in a publicly traded company. Many of the biggest companies in the country — think General Motors, Apple, and Facebook — are publicly traded, meaning you can buy stock in them.

When you buy a stock, you are hoping that the price will go up so you can then sell it for a profit. The risk, of course, is that the price of the stock could go down, in which case you would lose money.

Brokers sell stocks to investors. You can either opt for an online brokerage firm or work face-to-face with a broker.

Bonds

When you but a bond,you’re essentially lending money to an entity. Generally, this is a business or a government entity. Companies issue corporate bonds, whereas local governments issue municipal bonds. The U.S. Treasury issues Treasury bonds, notes, and bills, all of which are debt instruments that investors buy.

While the money is being lent, the lender gets interest payments. After the bond matures — that is, you have held it for the contractually determined amount of time — you get your principal back.

The rate of return for bonds is typically much lower than it is for stocks, but bonds also tend to be lower risk. There is some risk involved, of course. The company you buy a bond from could fold, or the government could default. Treasury bonds, notes, and bills, however, are considered a very safe investment.

Mutual Funds

A mutual fund is a pool of many investors’ money that is invested broadly in several companies. Mutual funds can be actively managed or passively managed. An actively managed fund has a fund manager who picks securities in which to put investors’ money. Fund managers often try to beat a designated market index by choosing investments that will outperform such an index. A passively managed fund, also known as an index fund, simply tracks a major stock market index like the Dow Jones Industrial Average or the S&P 500. Mutual funds can invest in a broad array of securities: equities, bonds, commodities, currencies and derivatives.

Mutual funds carry many of the same risks as stocks and bonds, depending on what they are invested in. The risk is often lesser, though, because the investments are inherently diversified.

Exchange-Traded Funds

Exchange-Traded Funds (ETFs) are like mutual funds in that they are a collection of investments that tracks a market index. Unlike mutual funds, which are purchased through a fund company, shares of ETFs are bought and sold on the stock markets. Their price fluctuates throughout the trading day, whereas mutual funds’ value is simply the net asset value of your investments, which is calculated at the end of each trading session.

ETFs are often recommended to new investors because they are more diversified than individual stocks. You can further minimize risk by choosing an ETF that tracks a broad index.

Certificates of Deposit

A certificate of deposit (CD) is a very low-risk investment. You give a bank a certain amount of money for a predetermined amount of time. When that time is over, you get your principal back, plus a predetermined amount of interest. The longer the loan period, the higher your interest rate.

There are no major risks to CDs. They are FDIC-insured up to $250,000, which would cover your money even if your bank were to collapse. That said, you must make sure you won’t need the money during the term of the CD, as there are major penalties for early withdrawals.

Retirement Plans

There are several types of retirement plans. Workplace retirement plans, sponsored by your employer, include 401(k) plans and 403(b) plans. If you don’t have access to a retirement plan, you could get an individual retirement plan (IRA), of either the traditional or Roth variety.

Retirement plans are not a separate category of investment, per se, but a vehicle for making investments, including purchasing stocks, bonds and funds, that exempt you from taxes in one of two ways: either letting you invest pretax dollars (as with a tradition IRA) or allowing you to withdraw money without paying taxes on that money. The risks for the investments are the same as if you were buying the investments outside of a retirement plan.

Options

An option is a somewhat more complicated way to buy a stock. When you buy an option, you are purchasing the ability to buy or sell an asset at a certain price at a given time. There are two types of options: call options, for buying assets, and put options, for selling options.

The risk of an option is that the stock will decrease in value. If the stock decreases from its initial price, you lose your money. Options are an advanced investing technique, and retail should exercise caution before using them.

Annuities

Many people use annuities as part of their retirement savings plan. When you buy an annuity, you purchase an insurance policy and, in return, you get periodic payments.

Annuities come in numerous varieties. They may last until death or only for a predetermined period. They may require periodic premium payments or just one up-front payment. They may be linked partially to the stock market or they may simply be an insurance policy with no direct link to the markets. Payments may be immediate or deferred to a specified date. They may be fixed or variable.

While annuities are fairly low risk, they aren’t high growth. They make a good supplement to retirement savings, rather than an integral source of funding.

Cryptocurrencies

Cryptocurrencies are a fairly new investment option. Bitcoin is the most famous cryptocurrency, but there are countless others, such as Litecoin and Ethereum. Cryptocurrencies are digital currencies that do not have any government backing. You can buy and sell them on cryptocurrency exchanges. Some retailers will even let you make purchases with them.

Cryptos often have wild fluctuations, making them a very risky investment.

Commodities

Commodities are physical products that you can invest in. They are common in futures markets where producers and commercial buyers – in other words, professionals – seek to hedge their financial stake in the commodities. Retail investors should make sure they thoroughly understand futures before investing in them. Partly, that’s because commodities investing runs the risk that the price of a commodity will move sharply and abruptly in either direction due to sudden events. For instance, political actions can greatly change the value of something like oil, while weather can impact the value of agricultural products.

There are four main types of commodities:

Metals – this includes precious metals like gold and industrial metals like copper

Agricultural – this includes wheat, corn, and soybeans.

Livestock and meat – this includes pork bellies and feeder cattle; and

Energy – this includes crude oil, petroleum products and natural gas

The Bottom Line

There are a lot of types of investments to choose from. Some are perfect for beginners, while others require more experience. Each type of investment offers a different level of risk and reward. Investors should consider each type of investment before determining an asset allocation that aligns with their goals.

Thoughts For Today…

It feels great when I take a break and prioritize self-care. I am committed to my overall well-being.

What’ve Read Today…

Mark Cuban Touts Dogecoin on ‘Ellen’: ‘A Whole Lot Better Than a Lottery Ticket’

“I wouldn’t say it’s the world’s best investment, but it’s a whole lot better than a lottery ticket, and it’s a great way to learn and start understanding cryptocurrencies,” the billionaire told Ellen DeGeneres on her show Tuesday.

Cameron Hood

Apr 27,

Mark Cuban Touts Dogecoin on ‘Ellen’: ‘A Whole Lot Better Than a Lottery Ticket’

Billionaire investor, “Shark Tank” personality and Dallas Mavericks owner Mark Cuban explained the dogecoin phenomenon to millions of viewers of Ellen DeGeneres’ daytime talk show on Tuesday, describing the much-hyped cryptocurrency as a “a whole lot better” of an investment “than a lottery ticket.”

Cuban and DeGeneres – who both pronounce the currency “doja-coin” – also discussed NFTs on the episode, which Cuban described as “just a digital collectible that you can buy, hold, sell like any other collectible.” Notably, DeGeneres tweeted Monday that she is auctioning an NFT to benefit World Central Kitchen. 

“Cryptocurrency is just an asset to invest in. Bitcoin is kind of like a digital version of gold. Ethereum is a digital version of a currency,” Cuban told DeGeneres. “And then you got dogecoin, which is just fun, but the weird part about it – it went from being a cryptocurrency joke to now becoming something that’s becoming a digital currency.”

Thought For Today…

What We’ve Read Today…

Is SafeMoon Overtaking Dogecoin?

By: Shivdeep Dhaliwal

Both Dogecoin (DOGE) and SafeMoon (SAFEMOON) have hit their all-time highs in the recent past but is the latter outpacing the Shiba Inu-themed cryptocurrency in terms of gains?

The Failed Moonshot: The “Doge Army” attempted to send DOGE to $0.69 or $1 levels on Doge Day, which was on Apr 20, and failed to do so. It was SAFEMOON that touched the all-time high of $0.000014 on that day.

DOGE hit its all-time high of $0.43 on Apr 16, four days before the Doge Day hoopla. 

SAFEMOON has fallen 52.78% since it reached the lofty all-time high valuation, while DOGE has declined 41.19%.

At press time, DOGE traded 5.82% lower over 24 hours at $0.26, while SAFEMOON traded 2.28% lower at $ 0.0000066.

Down To Earth: Both DOGE and SAFEMOON have taken a downwards trajectory since Doge Day, but the pain has been more severe for backers of one of the two coins.  

DOGE did manage to touch the $0.42 on that day — a number that assumes significance over relation to the date 4/20 that is also popular in Cannabis culture — but has fallen 38.09% since then.

SAFEMOON’s intraday high on Doge Day was $0.00001399 and the cryptocurrency has fallen 52.82% since then. 

Even so, DOGE has rallied 5,400.80% since the year began, while SAFECOIN is up a whopping 21,900% since its intraday high on Mar. 12.

As a comparison, Bitcoin (BTC) has risen 80.12%. The apex cryptocurrency traded 6.05% higher at $52,891.88 at press time.

What You Should Know: Dogecoin has been around since 2013 and has the backing of the likes of Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk and rapper Snoop Dogg. OKCoin COO Jason Lau said ahead of the exchange listing the coin that “It is secured by proof of work and has never had any security issues.” Lau was praised for Dogecoin’s “enthusiastic community.”

On the other hand, SAFEMOON Is a recent debutant and was only launched last month. SafeMoon charges sellers a 10% fee on the amount they choose to sell and rewards holders with 5% of the seller’s fee.

Last week, SafeMoon acquired one million users but a crypto influencer Lark Davis warned investors about the project and associated it with a Ponzi scheme.

A Ponzi scheme is a type of scam that generates returns for earlier investors with money taken from recent investors. 

“I have seen dozens of crypto schemes that are basically the same. It will not end well. Soon enough the money will stop flowing in and it will collapse,” Lark said on Twitter.

Thought For Today…

What We’ve Read Today…

Shock G of Digital Underground Dead at 57

Elyse Dupre

© Provided by E! Earl Gibson III/Getty Images

The music industry has lost a star.

According to The New York TimesGregory Edward Jacobs, otherwise known as Shock G, was found dead at a hotel in Tampa, Fla. on April 22. He was 57 years old. The Hillsborough County Sheriff’s Office confirmed the rapper’s death to the newspaper but did not reveal a cause of death. Jacobs’ father Edward Racker told TMZ, which was first to report the news, that authorities will conduct an autopsy.

Jacobs formed the hip-hop group Digital Underground with Chopmaster J and Kenny K in 1987. After dropping their single “Underwater Rimes,” the artists caught the attention of record label Tommy Boy. In 1990, Digital Underground released its first studio album Sex Packets. It contained several popular songs, including the hit single “The Humpty Dance,” which rose to the no. 11 spot on the Billboard Hot 100.

In the music video, Jacobs took on the persona of Humpty Hump. It also featured a young Tupac Shakur, who made his debut on Digital Underground’s “Same Song.” Jacobs later co-produced Shakur’s first studio album 2Pacalypse Now.

Digital Underground went on to release several more albums and EPs, including This Is An EP ReleaseSons of the PThe Body-Hat Syndrome and Future Rhythm, all of which landed on the Billboard 200 chart. They also released Who Got the Gravy? and ..Cuz a D.U. Party Don’t Stop!, the latter of which was their last studio album before the group disbanded in 2008.

After news of Jacobs’ passing broke, several stars paid tribute to the late artist on Twitter.

“34 years ago almost to the day we had a wild idea we can be a hip hop band and take on the world through it all the dream became a reality and the reality became a nightmare for some,” Chopmaster J wrote on Instagram. “And now he’s awaken from the fame long live shock G Aka Humpty Hump and Rest In Peace my Brotha Greg Jacobs!!!”

MC Hammer also tweeted, “The Underground lit up The Game. Super Talent. Beautiful Musician. Incredible Vision. Tupac. Money B. Bay Area. Town.

“R.I.P Shock G

The $1 Dogecoin Threshold May Not Be so Elusive on the Crypto’s 2021 Run…

Dogecoin has been making headlines in April. DOGE started the year at just $0.005. It is now around 31 cents. Put another way, the price of Dogecoin is up about 6,400% so far this year. The proverbial $1,000 invested in DOGE in early January would now be worth around $65,000.

The past year has seen a surge in the value of cryptocurrencies, including BitcoinEthereumLitecoinCardano among others. Bitcoin, the most popular name, is up 93% in 2021, priced just over $55,000.

The pandemic has brought record-low interest rates in many countries. Meanwhile, retail investors worldwide have been looking at alternative assets for trading and investing. Some have concentrated on cryptos as a store of wealth — a role that would typically be offered by gold, silver, or other commodities.

With a market capitalization of over $40 billion, Dogecoin is now one of the most valuable cryptocurrencies. By comparison, the current market caps of several of the highly followed stocks on Wall Street are:

  • Albertsons: $9.5 billion (current price around $20)
  • Baidu: $73.0 billion (current price around $207)
  • Boeing: $135.9 billion (current price around $234)
  • Etsy: $25.4 billion (current price around $205)
  • Palantir Technologies: $35.9 billion (current price around $21.50)

These numbers might make you wonder what might be next for cryptos, in general, and Dogecoin specifically. Despite potential short-term volatility and profit-taking, given investors’ risk appetite for cryptos, Dogecoin will likely see new highs in the coming months.

Reddit Traders and DOGE

Dogecoin was introduced by software engineers Billy Markus and Jackson Palmer in 2013. They wanted to create an instant payment system free from traditional banking fees. Unlike Bitcoin, DOGE does not limit the number of coins that can be in circulation. InvestorPlace.com contributor Mark Hake, CFA, has recently written about the inflationary nature of Dogecoin.

You might have heard that Dogecoin is referred to as a “meme cryptocurrency.” Markus and Palmer wanted to also bring in the “fun” element by adding the face of the Shiba Inu dog from the “Doge” meme as its logo and namesake. In its early days, Dogecoin was mainly used for “thanking” individuals on the internet for “positive acts,” such as an idea or a web-related service. But since 2013, the fan base has grown considerably. 

Recent research by Ian Young of the University of Colorado, Colorado Springs, highlights, “Dogecoin has found a very unique, and somewhat niche, place in society as “The Internet Currency”… [T]he community of Dogecoin users have accomplished some rather strange feats, from sponsoring a National Association for Stock Car Auto Racing (NASCAR) driver (Frum, 2014), to sending the Jamaican bobsledding team to the 2014 Winter Olympics in Sochi, Russia (Abbruzzese, 2014) as an homage to the 1993 movie Cool Runnings.”

Then, January 2021 saw the start of significant rallies in Gamestop and AMC Entertainment, mostly due to Reddit traders. As these retail investors searched for the next trend, Dogecoin piqued their interest. In fact, April 20 became Doge Day. The ultimate aim for Dogecoin investors is to get the crypto to the $1 threshold, or “to the moon.” 

There has also been celebrity support. Elon Musk, CEO of Tesla, whose job title is now “Technoking of Tesla, Imperator of Mars,” wants Dogecoin listed on the digital crypto platform Coinbase Global for increased accessibility for the masses. One half of the music duo OutKast, Big Boi, has made it a mainstay of his 1.6-million-follower Instagram feed.

In addition to Musk’s personal approval of Dogecoin, Tesla has recently announced the purchase of $1.5 billion in Bitcoin and used Coinbase to initiate the investment. There are now many trading days when prices of BTC and TSLA stock move in tandem.

The Bottom Line on Dogecoin

Every dog has its day, and DOGE has just had its on April 20. Although it has not yet topped the $1 mark, investors are still hopeful. If the fanbase persists, its market cap is likely to reach new highs.

However, calculating the fair value of a Dogecoin is difficult. Is it now undervalued or overvalued? After all, it is a speculative asset with almost no retail use within the financial system.

Given the positive momentum behind cryptos, Dogecoin will likely pass 50 cents in the coming months. However, $1 might take longer. DOGE’s price will ebb and flow for the time being. 

If you are a long-term investor, you might consider investing in Dogecoin, with the clear understanding that it is a speculative investment. Price could “go to the moon” or might simply tank, too.

Tezcan Gecgil 

What We’ve Read Today…

What should we know about short-term cryptocurrency investment in 2021?

By: Peter Vincent

Short-Term Cryptocurrency Investment

Short-term investments are remodeled in shorter time periods with the hope of creating quick profits. So, just how short maybe a short-term investment?

Short-term investments can take seconds, minutes, days, or maybe a couple of months.

How Do Short-Term Investments Work?

Just like long-term investing, you would like to possess clear goals for your investment. you would like to be asking yourself:

  • What profit are you expecting to form from this investment? this may offer you a thought of the worth at which you ought to buy/sell the cryptocurrency.
  • How much of a loss will you accept? this may assist you to control your losses if the worth of cryptocurrency suddenly drops.
  • Do you have time to review and follow the crypto market and therefore the news?
  • Can you make technical analyses of the crypto market? If not, then you ought to learn before investing.
  • Will your short-term strategy offer you higher returns than a long-term strategy?

You need to seek out which is the best cryptocurrency to take a position in 2021 for the short-term. Cryptocurrencies that have the subsequent are good options for short-term investments:

  • Low market cap.
  • High trading volume — many people are buying and selling it every minute.
  • Are currently trending on the news and on social media.
  • Have an ICO or have just finished their ICO — attempt to get them at a coffee price.

While cryptocurrencies like Bitcoin and Ethereum also can be traded within the short-term, you ought to believe in investing within the newer cryptocurrencies. Investors have made huge profits within the past with short-term investments – including several of the main, but newest cryptocurrency investments like NEO, Stellar, IOTA, and NEM.

The main advantage of short-term investments is that you simply can make tons of cash during a short amount of your time — they had made a ton of individuals rich quickly. However, they still have their disadvantages.

So, what are they?

  • They take up tons of your time and energy as you would like to observe the market prices constantly.
  • It is a riskier investment and may end in greater losses due to what proportion the worth changes during a short time.
  • It is often incredibly stressful and emotional.

It is difficult to mention which is the better option of the 2 investment strategies. It all depends on your goals and knowledge within the cryptocurrency market.

If you believe in a project, then I would like to recommend that you simply invest within the future. However, if a project is new and is generating tons of attention, then short-term trading might be the higher option.

Thought For Today;

Be the Original You! You’re not faulty!

Don’t get distracted by what someone else has. As long as you want what they have, you’ll be frustrated. If you didn’t get what somebody else has, that means you don’t need it. You are equipped for your destiny.

What We’ve Read Today…

The Old, Sensible Ways of Building Wealth Are Dead

Now you have to gamble.

By: Jessica Wildfire

One of my uncles attempted suicide after losing his savings on a bad stock tip. Another one ruined his career by trying to become an independent stockbroker, losing other people’s fortunes. I have also got an uncle who spent most of his life barely above poverty, working as a truck driver to raise three kids. He managed to beat cancer, but it bankrupted him.

My fourth uncle became a millionaire.

Here is how he did it:

  • Worked one job for 40 years.
  • Never got married.
  • Never had kids.
  • Never went out.
  • Lived with his parents his entire life.
  • Inherited their wealth.

Now my uncle lives alone on a hundred acres of family land, which they have held onto for generations. He spends his time photographing deer and collecting guns. I guess that is his dream. Lately it feels like the only one left. The alternative is staking every penny you own on dogecoin and becoming a millionaire overnight.

Such options.

Wow.

We are out of conventional paths to wealth.

Thirty or forty years ago, all you had to do was get a job and not screw it up. You invested in stocks, or you had a cushy 401K from your employer. If you were lucky, you inherited a home or some savings bonds from your parents, and that stabilized your retirement plan.

None of that works now.

Inflation is gobbling up our spending power. Housing prices are soaring, and not because of a bubble this time. Lumber costs are going up, and it is raising home prices by as much as 15 percent. That number’s going to keep surging, according to experts.

Meanwhile, people are moving out of mega cities like New York and San Francisco and scattering across the suburbs.

Returns on stock investments are shrinking, and wages remain flat. We cannot even get democrats to rally behind a simple minimum wage increase. All of this has further crippled millennials, and it is doing the same thing to Gen Z as they try to enter the work force during a pandemic.

All that leads to one inescapable conclusion: There are fewer paths to financial independence than ever. You either must get incredibly lucky, or you have to resign yourself to a decade or more living with your parents. You must delay all of life’s major milestones, like buying a home or starting a family — assuming you don’t forego them altogether.

You have to be my fourth uncle.

We are desperate to escape.

Dogecoin recently minted a fresh batch of overnight millionaires, after Elon Musk officially embraced it as “the people’s crypto.” This comes after months of speculation on meme stocks.

People are celebrating.

They should not.

More first-time investors are entering the market this year, but they are not doing it because they finally have the money. They are doing it out of mania, and fear of missing out

Basically, being richer means you have more flexibility in how you distribute your wealth. They can afford to lose more, so they invest more. It gives them a gigantic advantage over us little people.

Sure, the rise of meme stocks is great for the handful of people who lucked into fortunes. They will not have to worry so much about the future anymore. They have found their escape from the rat race. They just might be able to keep their heads above water, literally, as sea levels rise and climate change renders vast swaths of the planet uninhabitable.

The rest of us are still looking for our escape, and that is the problem. We are not trying to fix the system. Apparently, we think it is broken beyond repair. So now we are just trying to get out. We will do anything. We will pour our life savings into a joke currency and cross our fingers. (No, maybe not you personally, but this is how millions of people think.)

Meanwhile, the billionaire-influencer crowd continues promoting unrealistic formulas for generating wealth. They are usually in their mid-20s, from well-to-do families, and simply haven’t seen the curve balls life can throw at someone. They are not interested in building a fairer world through civic action. They are trying to convince everyone they can opt out. And so here we are, a society that is largely concerned with getting rich so they can defect from the economy. This trend is not helping.

It is making things worse.

Sensible investment advice does not work.

The stock market and crypto economy are both rigged games that reward aggressive, risk-taking behavior. This is why women and ethnic minorities have largely missed out. It’s not because they’re bad with money, it’s because they’re prudent. Unfortunately, our culture does not reward prudence anymore. It rewards reckless greed.

Every piece of investment advice out there tells us to be sensible. They say, “Only invest what you can afford to lose.”

Let’s face it, that’s bullshit.

For the vast majority of us, the only way to make investment in stocks and cryptocurrency remotely worthwhile is to go all in. Buying a few hundred or even a few thousand dollars’ worth of stock or crypto isn’t going to change anyone’s life. The rich dudes at the top know it. The returns are too small. They tell us to be sensible, to cover their ass, but they push success narratives that encourage wild speculation.

It’s almost planned.

But why?

They are simply after our little bit of disposable income. They want us to buy the dips, because it generates revenue for them and helps stabilize asset values. Meanwhile, they will manipulate markets and throttle prices so they can “take profits.” It is what they’ve done the entire time.

The people who talk about “diamond hands” either do not know how speculation works — or they don’t want to admit it. All they are doing is tossing a hot potato back and forth. Of course, they want you to have diamond hands. The more people who bet on an asset to drive up the price, the higher it goes, until they decide to cash out.

That is how most assets work. The only value they ever truly have is a prediction of future value.

Sensible investors are priced out of volatile assets.

So, guess how much money the average person has to invest now, if they follow sensible investing advice…

Zero.

This number does not include zoomer grads from ivy league schools currently running side hustles while living with their parents. It also does not include single, childless bros who run lifestyle vlogs. They might have money to blow on bubbles, and they are not exactly average.

Despite having a PhD and a tenure-track job, and running a successful blog for a few years now, I am still in the 60th percentile.

Here is my bitcoin story:

Back in 2017, I was tempted to invest in bitcoin or other cryptocurrencies, but I did not have any disposable income. Like millions of other millennials, I was mired in student loan debt. I climbed out of debt by working hard and saving money. By then, I had more than enough money to invest in bitcoin — except the price of bitcoin had gone to $20,000.

So, I was back to square one.

I could either invest in a fraction of bitcoin and see small and almost insignificant returns, or I could do something reckless that would change my life forever. And that is the choice every investor faces now, whether we want to be honest about it or not.

We are celebrating the wrong thing.

Occasionally, a handful of people get lucky. They make millions and wind up on the cover of Newsweek. Their success undermines sensible investment advice while perpetuating the myth of the overnight millionaire, the idea that anyone can get rich if they just recklessly sink all their cash into one hail-mary investment and wait for a miracle.

Millions of Americans see that, and then they try to replicate the success. Maybe they know it is too late to get in on Dogecoin, so they go looking for one of a hundred other wealth schemes. Maybe it’s a cryptocurrency, or maybe it’s a startup that promises huge returns on an early investment. Either way, millions of people get taken for a ride.

They lose everything.

They wind up like my one uncle, or my other uncle.

Some readers accuse me of focusing my critique on billionaires and influencers, when I should be putting the blame on the millions of naive saps out there who keep falling for the same tricks.

Here is the thing, those “saps” don’t know any better. Most of them did not get a great education in economics or math. They grew up in under-funded school districts. The most hardcore crypto enthusiast I have ever met happens to be a cousin, and he didn’t even know what a galaxy was until I explained it to him last year. That is an extreme, but it’s a good example of what happens when you don’t fund education and set people up for failure from childhood. They fail, and they become dependent on wealth schemes for salvation. Their ignorance is not pure chance, and it’s not their fault. It is the result of a calculated, long term strategy by the elites to produce a population of noncritical thinkers who do whatever they say.

It is working.

Billionaires like Elon Musk now enjoy a thriving mass of acolytes who practically worship them, plus a team of celebrity-influencer shepherds who sing their praises and keep everyone in line by constantly filling their heads with fantasies of wealth and fame. If half the world remains under the spell of overnight millionaire bedtime stories, they’ll never fight to change the system that makes such stories necessary.

So, I critique it all. I critique the rich and powerful. I critique the narratives that keep them in place, and the millions of ordinary people who keep buying into their own doom. It must stop.

Otherwise, we are screwed.

Here is your real “get rich” advice.

Unfortunately, there is not many ways left to make it into the top net worth brackets. It does not matter how hard you work, or how smart you are. It does not matter what you invest in.

You have one shot left: Move in with your parents. Work your ass off at different side hustles. Don’t get a 9–5 job. Don’t buy health insurance. Don’t get married or have kids. Take an uncomfortably large chunk of your earnings and gamble it on something Elon Musk tweets about, and hope he comes through for you. Meanwhile, pray you stay healthy.

That’s it. That’s how you get rich now.

Good luck.

Or…

We could wake up a little and stop reinforcing the myth of overnight millionaires, and start holding the archetypes of our current financial system accountable for their actions.

I know what I prefer.

By: Jessica Wildfire

What We’ve Read Today…

South African Crypto Platform Revix Raises $4.1 Million

The South African cryptocurrency investment platform, Revix, has reportedly raised about $4.1 million from its latest capital raise round. According to the firm, part of the raised capital will be used “to launch Revix’s mobile application, a variety of Fourth Industrial Revolution (4IR) investment opportunities.” Furthermore, Revix says it also plans to use part of these funds to finance the firm’s expansion into the European Union.

According to a report that shares details of the crypto platform’s future, Revix also intends to “offer a behavioral loyalty and rewards program, where customers can earn points that can be redeemed for bitcoin.” In expanding on this, Revix founder and CEO, Sean Sanders said:

We are building a behavioral loyalty model that incentivizes investors to undertake smart investment decisions, such as diversifying their investment portfolios, growing the investment community, improving their financial knowledge, and making smart long-term investment decisions, while being rewarded for doing so.

Meanwhile, a different report quotes Sanders warning South African crypto investors not to “invest beyond what they can afford to lose.” Instead, the CEO wants investors to consider allocating a small portion of their net worth towards cryptocurrencies. Sanders added:

“A small 1% to 5% allocation of your total net worth to crypto can result in significant improvement to your overall portfolio returns over the long-term.”

The CEO concludes the interview by advising crypto investors to consider “diversifying their stock portfolio to reduce the risks of exposure to a single stock or industry.”

: Terence Zimwara

Motivational Thought For Today…

Truly believe what you want is coming your way. Don’t let your fears win.

What We’ve Read Today…

Crypto Exchange Luno Says South Africa’s Crypto Trading Dominated by Young People

Bitcoin.com

Luno, one of Africa’s pioneering crypto exchanges, has revealed that South Africa’s cryptocurrency trading is largely dominated by young people with those under the age of 29 accounting for 40% of transactions. The exchange, which claims to have added nearly a million new South African customers in 2020, also reveals that “around 65% of Luno’s users are male and about 35% female.” These figures compare favorably with the industry average of 70% male to 30% female.

Rising Retail Demand

In addition to achieving a 300% year-on-year growth, Luno reports seeing the number of active users surging by 167% during the same period while “the number of app installs increased 119%.” Meanwhile, a report quotes Marcus Swanepoel, CEO, and cofounder of Luno attributing the increase in transactions volumes to rising retail demand for cryptos. Swanepoel explained:

“While a lot of the attention has been around institutional adoption, retail adoption has been growing at an arguably even more frantic pace. In 2021, we expect to continue this exponential growth, on track to reaching our goal of one billion customers by 2030”.

Between January 2019 and 2020, Luno, which was acquired in September 2020 by Digital Currency Group, says it “recorded $8.3 billion (R121 billion) in transactions worldwide.” Further, Luno says it “processed nearly $3 billion in volumes in South Africa last year and was already above this number at the end of March.

South Africans Curious About Cryptos

Meanwhile, the same report also quotes the exchange’s general manager, Marius Reitz, stating that “South Africans are definitely curious about crypto.” To support this assessment, Reitz points to Google bitcoin search trends data. According to this data, South Africa is ranked fourth globally and on the African continent, the country is placed second behind Nigeria.

In addition, to the Google Trends data, Luno also refers to the Global Web Index data which shows that “an estimated 15% of South Africans have invested in bitcoin.” With this figure, which is the second highest in the world, South Africa ranks ahead of countries like the U.S. and Japan.

Motivational Thought For Today!

Monday

April 19, 2021

Even if everything seems bleak right now, even if you feel like that there is no way out, trust that there is a better future waiting for you. Suffering is a natural part of life. It comes and goes. Things always have a way of working out. These difficult times will go away. You will be at ease again. You won’t be stuck forever. You don’t have to worry about the how. Just have faith that it will get better. You will emerge from the darkness.

From: Daily Motivation

Appreciate the path you’ve taken to where you are today.

Sunday

April 18, 2021

Sometimes we get so preoccupied with achieving the next best thing, we forget to cherish what we already have. We barely notice the things we already have that we once wished for. Make a conscious choice each day to savor good things. Savoring helps amplify the beauty of happy experiences. Appreciate the path you’ve taken to where you are today. Cherish all the opportunities, ideas, and experiences that helped you be who you are right now.