#NFTs #BCH #BitcoinCash #Bitcoin #HedgingRisk #Debt #BitcoinFloat
In this weekend’s video we cover nonfungible tokens, bitcoin cash BCH, Hedging Risk, the topic of debt and crypto, the Bitcoin float and some other matters including the upcoming crypto bear market if any.
DISCLAIMER The opinions expressed in the video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry.
0:20 Jane from Patreon – “Would be cool if you would talk about “math” and some NFT projects.”
Non-fungible tokens to mee seem a little bit like the Wild west – Reminds of ICO market in 2017/2018. Fraught with fraud – digital art – how is it real? CryptoKitties, Then the Russian Rarible: A marketplace for digital collectibles, SuperRare is represented by an ERC-721 token, Eth name service on Ethereum blockchain
3:00 We Savage Few – any thoughts on what the next bear market might look like and what steps one might make to hedge against it? I see BTC remaining strong, I see Alts taking a hit
5:00 From “W Tu Vince Lanci re: Bitcoin says: “the limitation of the float will eventually work to kill price and liquidity”” As prices increase and interest also increases, won’t there come a point where the lack of float will be a negative?” That has been my thesis since day 1. Scarcity. Interesting how people are freaking out about the year 2140. But you have to consider the perfection around the model. 99% will be mined by 2140 but the value at time could be in the tens of millions so a fraction of that could be very valuable.
7:00 From “Tianming Kong What are your thoughts on BCH? BCH also has 21 million only. Is it worth buying and keeping? ” BCH is a fork of Bitcoin and sold as if it is Bitcoin. From a performance perspective, BCH has stalled – up 87% for the last year compared to BTC up 500%. What would you choose? OKCoin will suspend trading of Bitcoin Cash next month. Its CEO cites Craig Wright as the problem. Craig Wright claims to have created Bitcoin. It is a malicious info war. It is tricking people and I feel bad. Newbies do not know the difference between both. Websites are selling BCH as BTC and people are being tricked. It will die over time IMHO. Get out if you can.
8:00 From “John Swartz with the massive rise of Bitcoin and fear of rising prices, should I take on debt to buy it now like some companies do? I.e micro strategy, etc” Take on Debt to buy BTC is dangerous. Rem the golden rule – no more than 5% of your investible assets. I broke that rule and continue to break it but my cost basis is very low so technically I can take a big hit and still be better off than holding FIAT. The key rule, however, is Never to take a loan to Buy BTC or any risky investment. In fact, don’t buy BTC until you have large fiat savings account for emergencies and paid off all your high-interest debt. DCA Method is great with disposable income. Trim your exps – and DCA in when you can. You are better off doing that than keeping cash in a checking account. However, remember – the goal for 2021 is 100K to 200K. We are nearly 2/3rd the way to 100K. So gains from here are 66% to 330%.
10:00 From “JMG When and how do you decide to reduce exposure to raise cash? The VIX has been rangebound around 20-22. “sell my stocks that have run and made money. For example, i ditched all my Uber, Lyft, and JETS (some of my pandemic plays) and sold OOM call options against my longs. That raises cash also. I look at SPX PCR and negative Sentiment is bubbling over.
We still have the 1.9T FED – don’t fight the fed.
Another indicator is when the number of 52-week highs declines at a market top, it indicates that fewer stocks are working to push the market higher.
Follow the smart investors and big money.
Only 9% of millionaires surveyed by E-Trade think the market is nowhere near a bubble. The rest of the affluent investor set:
16% think we’re “fully in a bubble”
46% in “somewhat of a bubble”
29% think the market is approaching one