Mad Hedge Bitcoin Letter
October 28, 2021
Fiat Lux
Featured Trade:
(SHIBA INU COIN)
(BTC), (SHIB), (ETH), (DOGE)
This article is not a joke — this is an article about a parody token that is now a real thing.
There are meme stocks and there are meme tokens.
There is the argument out there that the flood of liquidity is giving these assets their time in the sun.
I am not saying these assets are great to buy and hold long-term, hardly not, but they do offer the volatility for traders to jump in and out of them for a nice profit.
Shiba Inu Coin (SHIB), a popular meme token based on another alternative coin Dogecoin (DOGE), is a decentralized cryptocurrency created in August 2020 by an anonymous person or persons known as "Ryoshi."
SHIB is red hot and that’s been the case literally this whole year so far.
This dog-inspired cryptocurrency is up 140% in the past 7 days and hit an all-time high of $0.00007592.
Shiba Inu Coin now ranks No. 11 among the top cryptocurrencies by market value capping a surge of over 60,000,000% over the past year.
Before investing in any altcoins, it’s important to understand that these coins are a great deal riskier than something like Bitcoin.
It sounds funny just saying that but yes, there are different degrees of risk with different coins.
There has been a lot of hype surrounding the Fear of Missing Out (FOMO) movement, but I would say, only deploy capital in altcoins if you are willing to write off the entire investment.
And I’ll say this, it’s a speculative investment in general, so at least do a little due diligence before you take the plunge.
Shiba Inu Coin is an Ethereum-based ERC-20 token, which means it was developed on the Ethereum blockchain, rather than its own blockchain.
Ryoshi decided to launch SHIB on Ethereum (ETH) because it’s “already secure and well-established,” according to the SHIB white paper, or, as its community calls it, “woof paper.”
I have gone on record saying that Ethereum will go higher than Bitcoin in the future because it’s that attractive platform that every DeFi developer wants to build on, and SHIB is just one iteration of that.
Developers also choose to roll out their projects using the ETH platform because it’s way cheaper than building a platform from scratch.
SHIB has a total supply of 1 quadrillion.
Ryoshi is on record saying he doesn’t have any SHIB, and nearly half of its supply is locked in a liquidity pool on decentralized exchange Uniswap.
The rest was sent to Ethereum co-founder Vitalik Buterin.
According to SHIB’s white paper, Ryoshi sent tokens to Buterin with hopes that he’d keep the tokens.
However, Buterin did not.
He donated a significant amount to the India Covid Relief Fund and other charities, which goes to show that now all Covid Relief Funds are created equal.
This is not a joke, and some people might be laughing when they read what this coin is based on.
That is why altcoins may require additional caution due to their differences from something like bitcoin, including their structure, supply, and utility.
SHIB supporters might point to a comprehensive ecosystem, which includes smart contract capabilities; NFTs, or nonfungible tokens; and opportunities for liquidity mining, to name a few, that offer utility beyond community.
Another juicy piece of news saw rising support for a Change.org petition urging trading platform Robinhood to list SHIB on the broker’s platform.
The petition has harvested 334,500 signatures so far.
Being able to trade SHIB on a massive platform Robinhood would be another 50% leg up for the price of SHIB.
A Robinhood spokesperson declined to comment on this request.
When asked by analysts, CEO of Robinhood Vladimir Tenev was noncommittal to accommodating SHIB on Robinhood, but the bigger it gets, the more momentum it gains for listing it.
That’s the thing about these altcoins, they can come out of nowhere, and an even “fake it till you make it,” SHIB is making people rich and all that would have taken is a few hundred-dollar investment in January.
Now the secret is out about SHIB, I would scale in slowly, but don’t bet the ranch on this speculative bet and prepare for high volatility.
“It’s money 2.0, a huge, huge, huge deal.” – Said Canadian Venture Capitalist Chamath Palihapitiya
Mad Hedge Bitcoin Letter
October 26, 2021
Fiat Lux
Featured Trade:
(GLOBAL PENSION FUNDS NEXT IN LINE)
(BTC), (KTCU)
Once it rains — it pours.
South Korea’s public pension fund, the Korean Teachers’ Credit Union (KTCU), is the second largest fund in Korea.
They are planning to get into crypto in a big way.
They are considering investing in a pure Bitcoin (BTC) ETF or Bitcoin-linked ETFs in the first half of 2022.
I’m not going to touch on whether or not there is a moral high ground in terms of investing employees’ retirement. The sad fact is, the fixed income instruments these retirement funds usually go into aren’t working for them.
The definition of insanity is to repeat the same thing that doesn’t work repeatedly.
Looking at the landscape, the plethora of pitiful options leaves them the scarce choice to thrust pension fund capital into crypto.
These pension fund managers have performance targets like all of us and will be replaced if they don’t achieve certain yields.
I can say this certainly isn’t the status quo for the retirement fund community, but this does change the zeitgeist of how to look at alternative investments from here on out.
We are talking about one of the biggest funds periods in Korea investing in several Bitcoin ETF products, including those by South Korean asset management firm Mirae Asset Global Investments. The company launched two ETFs tracking the value of Bitcoin futures via its Canadian subsidiary, Horizons ETFs, in April 2021.
KTCU presides over $40.2 billion in assets under management.
The pension fund has allocated 40% of its investments in alternative assets, 10% domestic, and 9% international stocks.
Pension funds investing in the crypto and blockchain space obviously opens up a whole new chapter in the crypto story where the most conservative of funds are now considering one of the newest asset classes.
It might seem bizarre at first, but when you look at the numbers, it’s not.
The stigmas of crypto being too volatile and exotic still don’t muddy the general notion that this asset class could be considered the most attractive one in the world now.
The rules and regulations to govern the sector have yet to be settled, so pension funds might as well get into crypto before they are banned by the government.
Traditional caretakers of employees’ retirement funds have voted with their Korean won and I suspect this will start happening in other Asian countries as well.
Korea is often a trendsetter for many new habits in Asia, so expect Vietnam, Malaysia, and others to ponder about this move too.
Family offices led the charge into crypto funds several years ago, but we’ve seen increasing interest from pensions, and we are just supercharging that adoption level.
I believe there is growing sophistication and institutionalization of the digital asset ecosystem, combined with a strong macro narrative driven by response to the pandemic.
Risk adverse now means not investing in cryptocurrency.
In the last week, pension funds around the world have announced a fresh foray into crypto assets.
Last week, the Houston Firefighters’ Relief and Retirement Fund reportedly purchased $25 million in Bitcoin and Ether (ETH).
Canada’s Ontario Teachers’ Pension Plan Board participated in a $420-million funding round for major crypto exchange FTX.
This new channel of capital gives crypto a strong floor if there is a dip with many buyers chomping at the bit to enter into the crypto world.
It’s hard not to see Bitcoin around $100,000 next year with so many buyers in the queue.
“Quantitative easing is universal basic income for rich people.” – Said Portfolio Manager Travis Kling
Mad Hedge Bitcoin Letter
October 21, 2021
Fiat Lux
Featured Trade:
(HIGH INFLATION IS A GIFT TO CRYPTO)
(BTC)
The writing is on the proverbial wall with central banks late to the party to tame the inflationary beasts.
We are receiving a torrent of data points from around the world that is indicative of the financial situation in so many countries now.
Central Banks are hellbent on slow-playing this rate rise thing simply because they don’t want to be the ones responsible for crashing the system.
It’s just easier to go lower for longer than try to raise rates too fast.
Bitcoin’s (BTC) appreciation is directly correlated with a rise in the pace of hyperinflation.
Just look at Canada today — it released some bowel-disturbing inflation data.
Consumer prices in Canada rose at their fastest rate in 18 years in September, as the country continued to get smacked around with global supply chain issues.
The annual inflation rate hit 4.4%, up from 4.1% in August, its highest level since February 2003.
The costs of transport, housing, and food all jumped, the country's official statistics agency said.
Canada's central bank, which meets next week to decide whether to raise interest rates, is watching the chaos in real-time.
Inflation will get worse before it gets betters and that’s what this 4th wave of the pandemic hitting the European continent tells us.
Don’t think that supply chains are going back to smooth management anytime soon.
A combination of surging consumer demand, global supply chain issues, product shortages, and rising oil prices are driving up the cost of living from pandemic-era lows.
It was only a few weeks ago when The British army began delivering gas to British gas stations on Monday after 100,000 Polish truck drivers decided it wasn’t worth the money to go through a bevy of draconian restrictions from PCR testing, harsh visa rules, and the uncertainty of even spending nights in their truck.
They decided to go back to their families in Poland and Europe is going through a worker shortage similar to the US.
Almost 200 military tanker personnel, 100 of which were drivers, were deployed to provide temporary support as part of the government's wider action to further relieve pressure on gas stations.
If gas deliveries fail to make it to the gas station, might as well sit home and use that fat finger to buy up some crypto.
Of course, this kind of inflation is a tax on the consumer, on the public, on businesses. And it's a regressive tax that will over time undermine the purchasing power of salaries.
If one were happy over an $8,000 per year raise, most everyday Joe would be, that money is pretty much going back to the servicers one already pays because prices are higher for the same services.
Not much bang for the buck which is why readers are connecting the dots to splurge in crypto investing.
Billionaires are starting to come out of the woodwork to tell everybody that they “underinvested” in crypto.
Hindsight is 20 — 20.
If this winter delivers nasty weather, then expect logistics to slow to a crawl.
In the U.S., meat was one of the food items most affected by inflation, becoming more than 10% more expensive over the course of a year.
Eggs’ price increase even exceeded 12%, while fruits and vegetables rose by 3%, fats by 7%, and eating out by almost 20%.
And these prices could look cheap by January if we get a perfect storm of pandemic-related logistic problems, driver shortages, more countries executing a hard lockdown like Latvia just did, panic buying, and historically bad global governance.
Can the global governance these days get worse?
Effectively, the rise in crypto prices is symptomatic of lost ironclad faith in certain bedrock institutions that have seen better times.
It’s hard not seeing bitcoin going ballistic into year-end and $100,000 in 2022.
“Bitcoin will be a great hedge.” – Said American Hedge Fund Billionaire Paul Tudor Jones
Mad Hedge Bitcoin Letter
October 19, 2021
Fiat Lux
Featured Trade:
(A MAJOR CATALYST FOR HIGHER BITCOIN PRICES)
(BITO)
