Your grandfather’s investment advice may not make sense in 2020
If you were born before the 1980s, your financial decisions are likely based on advice passed down from your Baby Boomer or Greatest Generation parents. They are probably more financially comfortable than you are, so it’s probably safe to follow in their footsteps, right? Wrong.
The conventional wisdom forged in post-WWII prosperity, which feathered many a Great Generation and Baby Boomer nest, does not reflect the forces underlying today’s economy or the massive technology-driven changes that are coming down the pike. …
Technology is evolving at a rapid pace. Twenty years ago, the internet began to play a major role in our life. Fast forward a few years and hardware devices such as iPhones began to take society by storm. Today, it is blockchain technology that is seeking to transform current business structure, communication, and internal processes and more importantly — the nature of money. Big name companies such as IBM, Walmart, Toyota and more are beginning to utilize blockchain technology. With artificial intelligence (AI), the internet of things (IoT), robotics and cryptocurrency converging, we’re seeing automation and autonomous systems playing an…
What does it mean to be decentralized?
The textbook definition of decentralization is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.In other words. Decentralization means that not a single entity or individual has full control over a network.
The benefits of decentralization
Decentralization allows for a trustless environment, more network security, a community-first approach, and removes the risk for a single point of failure. Let’s use Bitcoin as an example. Bitcoin is a peer-to-peer currency that has no middle man…
There is no fooling anybody, Bitcoin uses a lot of energy… BUT is it really as bad as the media is painting it out to be? To understand Bitcoin’s consumption of energy, we first need to dive into the basics of Bitcoin and mining.
There are only a finite number of Bitcoin that will ever be produced. 21 million in total to be exact. As of today, July 7, there are a total of 18.75 million in circulation. (You can track the total here.)
Bitcoin’s are created through the process of mining. The role of each and every miner is…
Picture what a Friday night at a bar would look like if the atmosphere was personalized to your liking. With the rising help of technology that may be possible soon. Decentralized Autonomous Organizations (DAO) are gaining popularity amongst the cryptocurrency community that may soon translate over into the tangible world we interact with. DAO’s are organizations that can operate without the need of human intervention. Soon we may be able to see how a DAO can function in an industry that takes part in our weekly life, specifically our night life.
Introducing our hypothetical business example, DrinkTopia! DrinkTopia is a…
(Originally in the Defiant Blog)
One of the most important building blocks in DeFi is the governance token. When blockchains have on-chain governance, there is no built-in central entity that controls how any given upgrade is managed. Seeing the opportunity, developers all over the world are creating programmatic systems for on-chain governance, and issuing governance tokens, which give holders the right to vote on protocols, products, new features, goals, upgrades and maintenance of a blockchain. There are as many approaches to governance tokens as there are blockchains, but one principle is true — when a blockchain increases in value, the…
The crypto market was up big for the month of November. At the end of the month, bitcoin is trading well above its 200-day moving average which is a bullish sign from a technical perspective. Market structure changed in the month of October with more of the entire crypto asset universe moving up. Global risk has come down over the past month which has risk assets, like stocks, bitcoin and other crypto assets, moving higher — with bitcoin making a new all-time high (ATH). There was a brief period where it traded over $20k. Once the next stimulus package is…
The crypto market was up for the month of August. At the end of the month, Bitcoin is trading well above its 200-day moving average which is a bullish sign from a technical perspective. Market structure continued with risk assets doing well in the current environment. The Fed’s massive liquidity and backdrop is still protecting asset prices. Other investment themes within the crypto market are gaining traction with DeFi (Decentralized Finance) in the lead. The biggest event of the month was at the end when bitcoin surpassed the $11,775 level, which had been a past level of resistance. …
The crypto market was up for the month of August. At the end of the month, Bitcoin is trading well above its 200-day moving average which is a bullish sign from a technical perspective. Market structure continued with risk assets doing well in the current environment. The Fed’s massive liquidity and backdrop is still protecting asset prices. Other investment themes within the crypto market are gaining traction with DeFi (Decentralized Finance) in the lead. The biggest event of the month was at the end when bitcoin surpassed the $11,775 level, which had been a past level of resistance. …
There are many valuation models for Bitcoin. Some are based on fundamentals like much of the work done by Chris Burniske in his book, Cryptoassets. Many models are outlined in CoinMetrics work starting, here. I think relating to Bitcoin as a network and measuring the network’s usage and utility is key. However, a savvy investor cannot overlook the data from this price regression model. It’s called the Stock to Flow Model for Bitcoin.
(My interpretation of work done by Plan B’s Stock-to-Flow Model, public use graph).
The Stock-to-Flow (S2F) Ratio is a model that models scarcity value. Now, just because…
Jake Ryan
CIO at Tradecraft Capital & Author of Crypto Asset Investing in the Age of Autonomy, published by Wiley
