Tuesday, May 3
Crypto Fast Food 🍟
Counterintuitive Investing Lessons »
🦉 VC GOATs
😂 Twitter Memes of the Week
Thought Experiment…. 🤔 Would you rather:
Take 357 ETH today? OR…
Take a penny that *doubles* in value for 30 days w/ inflation at 8.5% ? 🤷🏻♂️👇🏾
Crypto Fast Fo🍟d
7th outage this year! 😳 🙈
Tangible’s NFT marketplace is now Live! Tangible allows you to convert physical assets like watches, sneakers, gold bars, etc.. into NFTs. The idea is, if you buy an NFT from them, you can redeem it for the physical asset whenever you so desire.
Anchor, a high yield savings account offered on the Terra Luna ecosystem, has officially lowered their outrageously high interest rate » 20% to ~18%
🤔 Critics of Terra Luna say » its Magic Internet Money making-protocol is nothing more than a House-of-Cards doomed to crash and burn 🔥
(Read more HERE)
🦍 APEcoin now Live!
After a highly anticipated launch from the Bored Ape franchise, BAYC saw its flagship coin, APEcoin, soared to $27.50 before plummeting 55% in 72 hours. 🤕
The BAYC also raised more than $320 million for their new metaverse land called Otherside, rumored to be the franchises' latest venture into gaming. 🤑
Bitcoin Fights “ESG” ⚔️
According to the Bitcoin Mining Council’s latest Q1 survey of miners, Bitcoin miners surveyed use 64.6% sustainable energy (wind, solar, hydro, or nuclear)
Sustainable Energy in U.S. = 64%
Globally using conservative assumptions regarding energy mix, Bitcoin mining is estimated to be 58.4% sustainable energy. Which » is markedly more sustainable than the default US energy mix at 21% sustainable
Sustainable Energy Globally = 58%
ETH Supply Shock 💥 🤑🥊
Ethereum coins are experiencing a major supply shock as coins are leaving exchanges for long-term storage in cold wallets. This is extremely bullish news because…
💸 The last time we saw a supply shock was Jan 2018 which »
🔥 Kicked off the ATH of $4,600 🚀 ~15x return if bought in 2018
Counterintuitive Investing Lessons » 🦉 VC GOATs
Use Ethereum as the ultimate performance benchmark.
Concentration > Spraying and Praying
Does Company X have the potential to grow 10x to 100x ?
Ethereum = ultimate performance benchmark
According to Chen, the best heuristic to use when investing in crypto is to measure everything against the returns on ETH.
Investing in Ethereum is like investing in the S&P 500. Over the long run it outperforms the “active investor” style of picking individual winners in the market.
To a first order approximation, ask: will (Company X) outperform the return on investment that one gets from simply investing in Ethereum?
ETH had a 15x growth (ROI) last year!
Concentration > Spraying and Praying
According to Peter Thiel (co-founder of PayPal) it is better to invest in a *few* companies (less than 7) that can grow 10x than it is to invest in a 100 companies with the hopes of hitting the jackpot (100x).
His advice is to look for investments that can grow at a rate of 50% a year for the next 10 years. “Successful businesses tend to have an exponential arc to them” he notes.
Thiel is famous for investing $500,000 in Facebook in 2004 and cashing it out in 2012 for over a billion dollars 🤑 .
Can Company X potentially grow 10x to 100x ?
When he invests, he looks to hold for around a decade and sell it for a 3x to 10x profit.
As he notes, “the standard Einstein line on this is that the most powerful force in universe is compound interest. We see the power of compounding when companies grow virally.”
Compound Interest x Time = Exponential growth
🏆 Winner of Thought Experiment = #2
357 ETH = $1,000,000.00💰
*A penny that *doubles* everyday eventually earns you $4.9 million after 8.5% inflation! If you asked the same question, but changed the doubling time to just 27 days vs 30 days, you only would have $671,088.64 in which case, take the 357 ETH!
THE VIEWS AND OPINIONS EXPRESSED BY THE AUTHOR ARE FOR INFORMATIONAL PURPOSES ONLY AND DO NOT CONSTITUTE FINANCIAL, INVESTMENT, OR OTHER ADVICE. BLAH, BLAH, BLAH, BLAH…