Mad Hedge Bitcoin Letter
November 9, 2021
Fiat Lux
Featured Trade:
(THE METAVERSE IS THE ULTIMATE CRYPTO CATALYST)
(BTC), (ETH)
Mad Hedge Bitcoin Letter
November 9, 2021
Fiat Lux
Featured Trade:
(THE METAVERSE IS THE ULTIMATE CRYPTO CATALYST)
(BTC), (ETH)
Lately, the chatter of the “metaverse” has run riot even some coining it as the “Internet 3.0.”
Partaking in this upgrade of the internet are ostensibly the prodigious firms of the West Coast which many of you already know.
Many of those stalwarts have nothing to do with crypto, but I must bring them up because there is an uncanny correlation between the future project of the metaverse that intersects with the fortunes of crypto.
The metaverse will deliver an augmented reality experience that is habitually billed as an experience exceeding physical reality.
In this realm, digital borders most likely won’t exist.
It will be absent of free-flowing US dollars and be replaced by a currency that doesn’t pertain to a sovereign nation.
A digital currency must embed in a way that facilitates the smooth functioning of the metaverse and it is highly likely that currency will be a cryptocurrency or various types of cryptocurrencies.
The rules of the realm aren’t written up yet, but I firmly visualize a deep intersection between cryptocurrencies and the business of the metaverse.
For example, instead of visiting the official NFL website and clicking on their official shop, I’ll be able to walk over to a 3D NFL shop in the metaverse and view the apparel myself then pay directly in crypto.
The goods will then be shipped to my physical address in the real world. No more flipping up a mobile or computer screen and entering www dot blah blah blah.
Another transformative issue, if you believed that personal data and the protection of it was a do or die issue now, then wait until the metaverse exists and we are represented in avatar form inside of it.
Virtual reality has gotten miles better in the last 10 years and it's all part and parcel of priming this technology to insert it into the metaverse.
For information to be secure and decentralized, we will need to harness the power of blockchain technology which cryptocurrencies run on.
Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
There is no protection of personal or financial data on a virtual reality platform if there is no blockchain technology.
Engaging with other people in a virtual environment is going to open a can of worms and expose people to hackers and it’s the developer’s responsibility to create a secure environment.
People will not partake if it’s the status quo of modern-day data breaches and minimal punitive fines followed up by little legislation to prevent this from occurring again.
Blockchain enables not only instantaneously confirmed information but also enables these transactions to be cryptographically secured and protected.
Compared to the future of money, our antiquated system of wire transfers, paper checks, and “know your customer” forms seem idiotic when we have the technology for so much more.
Crypto transactions are the panacea to all these questions.
Even with price volatility that has been engulfed by bitcoin and other decentralized cryptocurrencies, the rise of stable coins and central bank digital currencies (CBDCs) means that the ability to conduct transactions via crypto has never been simpler.
I can easily envision some sort of metaverse stable coin partially pegged to a basket of fiat currencies.
Clearly, technology and cryptocurrency are at a fork in the road where major Silicon Valleys are going to move mountains to make this work as they see fit.
Moving mountains means pouring gobs of capital into improving the technology of cryptocurrency and the ecosystem that integrates with it.
The investments coincide with major capital earmarked for metaverse structural development with several companies spending $5 billion per year.
As we receive each incremental upgrade from Ethereum, Bitcoin, and the other alternative coins, it’s literally a fight to the top to see who will be the fittest to first deploy itself into the metaverse and carve out a massive role in the future of the digital money.
If you believe that these headliner cryptocurrencies are part of the metaverse formula, they are highly likely to appreciate 10X by the time the metaverse is ready to rock and roll.
Mad Hedge Bitcoin Letter
November 2, 2021
Fiat Lux
Featured Trade:
(ISSUANCE CONSTRAINTS ELEVATE ETHER)
(BTC), (ETH)
We are at the point where sure Bitcoin will go higher and I fully expect it to be close to $100,000 next year, but Ether will outgain Bitcoin by percentage points.
And it’s no shocker that Ethereum (ETH) has already climbed above $4,000 for the 3rd time this year.
Talk about a 2-foot putt.
In the last five months, the supply of ETH has shrunk meaningfully from 22 million tokens to 18 million today.
Dwindling supply intersected with higher demand means higher prices no matter what asset you’re talking about.
The tape shows that retail and institutional money piling into ETH in the last few months means fewer sellers looking for short-term smash and grab type of profits.
I do believe this is a legitimate reason why we are seeing the volatility of crypto settling down the last month as nobody is willing to take profits when they know more profits are on the table for next year.
In total, the Ethereum network has seen its first consecutive week of negative supply issuance as frothy markets drive persistently high transaction fees.
The London upgrade introduced a burn mechanism into Ethereum’s fee market in early August, meaning a small quantity of Ether (ETH) has since been destroyed with every transaction executed on the network.
The Ethereum London Hard Fork upgrade is a set of five improvement proposals.
Unlike Bitcoin, there is no limit to mining Ether coins, which makes it an inflationary cryptocurrency which is why development understood installing a deflationary mechanism would do wonders for the price of ETH.
Miners are paid new coins for validating each block of information. They are compensated with transaction fees that are paid by users.
One of the biggest benefits of the London upgrade is that it has enabled the Ethereum network to handle a higher transaction load per second. It will help with scalability and tackle the high transaction fees — one of the biggest complaints of small investors or those who make frequent transactions.
Since the London upgrade, more than 724,400 ETH worth $3.1 billion has been permanently destroyed.
Truth be told, ETH has not experienced lower transaction fees, or gas price.
Yet, the upgrade has not increased gas prices but has made them more predictable and stable.
This has led to a smoother network overall during peak hours.
Transaction volumes are 400% higher since the same period last year and Ethereum needs to handle the higher workload to legitimize itself into a solid cryptocurrency.
The inability to function properly as a network could cause a massive sell-off that would spill into more mature Bitcoin.
ETH simply won’t be attractive relative to other crypto if they can’t put a lid on transaction costs.
The reason equities are so attractive is not only because they are fully insured by the federal government, but because liquidity and costs are minimal.
Thwarting this underlying issue of a bloated supply, six times larger than Bitcoin's, should act as a major catalyst in awakening the price action of ETH and that’s what we are currently seeing.
In total, there's been a 57% reduction in cumulative ETH issuance to date and it’s hard for me to envision a scenario in which ETH is not over $8,000 per unit next year.
Generally speaking, after the transition to proof of stake, the supply of ETH will decline 2% annually.
The scarcity value that will hit next year will easily cause the asset to double quickly.
I predict a rapid run-up in ETH prices leading up to the December debt ceiling triggering new all-time highs in BTC and ETH.
Jump on the bandwagon while it’s still rolling!
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.
Global Market Comments
October 20, 2021
Fiat Lux
Featured Trade:
(THE HARD TRUTH BEHIND BUYING IN NOVEMBER)
(NOTICE TO MILITARY SUBSCRIBERS)
Global Market Comments
October 19, 2021
Fiat Lux
SPECIAL BITCOIN ISSUE
Featured Trade:
(WHERE DOES BITCOIN GO FROM HERE?)
($BTCUSD), (ETH), (CRPT), (BLOK), (MSTR)
I first got involved with bitcoin in 2011, when a subscriber wanting to thank me for a spectacular investment performance GAVE me ten Bitcoin. They were then worth $1 each.
Then, I forgot about them. When they appreciated to $100 in 2013, I decided to sell them and take the family out to dinner at The French Laundry, the best restaurant in California’s Napa Valley. I thought I was a genius.
Back then, early in the life of Bitcoin, theft was rampant, and exchange regularly went bankrupt. So cashing in on my windfall wasn’t such an unreasonable thing to do.
That turned out to be the most expensive dinner of my life. If I had kept the ten Bitcoin, they would be worth today over $600,000. Maybe I’m not such a genius after all.
Unless you have been living in a cave for the past five years, you have probably heard of Bitcoin.
By now, you have decided that it is the greatest money-making opportunity of all time or the greatest scam since Carlo Ponzi amassed a fortune selling international postal coupons in 1922.
Some things are certain. Bitcoin will change the financial system beyond all recognition. It will revolutionize banking and investment. And it will vastly accelerate the digitization of the global economy to everyone’s benefit.
After reading this book, you may or may not want to invest in Bitcoin. However, a working knowledge of what it is and how it works will become essential for everyone as the 21st century unfolds.
For s start, Bitcoin, other cryptos, and future cryptos yet to be invented will save $1 trillion a year in transaction costs in the global economy. Who will be the beneficiary of this bounty? You, me, and all the companies we invest in.
It is certain that some form of current or future crypto will be a stepping stone to a global digital currency, not just for emerging nations like El Salvador, but all nations.
And here is the most interesting thing. The eventual impact of crypto on our lives hasn’t even been imagined yet.
Going back to my Defense Department days, I was one of a handful who was present at the birth of the Internet and the similarities are legion. A few clever people were aware of bits and corners of the Internet back in 1989, but nobody had a big picture.
Long term predictions might as well have been science fiction. Insiders were buying up domain names for a dollar each, such as Mcdonalds.com, whitehouse.com, and sex.com. The MacDonald’s site was later sold to the fast-food company for $10 million.
When the Internet began mass adoption in 1995, no one imagined that every taxi company in the world would be out of business in 15 years. New York City taxi medallions once worth $1 million became worthless, prompting many suicides.
Nor did prime downtown apartment owners all over the world expect they could rent their homes for astronomical daily rates through Airbnb (ABNB). They didn’t even expect that a small startup named Netflix (NFLX) would stream videos online, wiping out Blockbuster Video.
Bitcoin was created by Satoshi Nakamoto, a pseudonymous person or team who outlined the technology in a 2008 white paper. Nobody knows for sure. It might even be a US government agency that invented Bitcoin. It’s an appealingly simple concept: bitcoin is digital money that allows for secure, trustless, peer-to-peer transactions on the internet.
Unlike other payment services, like PayPal’s Venmo (PYPL), which rely on the traditional financial system for permission to transfer money and on existing debit/credit accounts, bitcoin is decentralized: any two people, anywhere in the world, can send bitcoin to each other without the involvement of a bank, government, or other institution.
Every transaction involving Bitcoin is tracked on the blockchain, which is like a bank’s ledger, or log of customers’ funds going in and out of the bank. In simple terms, it’s a record of every transaction ever made using bitcoin. Think of blockchain as a chain of blocks of code, each one of which contains millions of lines of code.
Unlike a bank’s ledger, the Bitcoin blockchain is distributed across the entire network. No company, country, or third party is in control of it; and anyone can become part of that network. The Mad Hedge Fund Trader is part of that network, otherwise known as a “node.”
There will only ever be 21 million Bitcoins. This is digital money that cannot be inflated or manipulated in any way.
It isn’t necessary to buy an entire bitcoin: you can buy just a fraction of one if that’s all you want or need. To open my own crypto wallet, I started with an initial buy of one ten thousand of a Bitcoin, or $10. Now, I’m trading in the millions.
Whatever the outcome of Bitcoin is, one thing is certain. None of our lives will be the same.
Mad Hedge Bitcoin Letter
October 5, 2021
Fiat Lux
Featured Trade:
(ARE ALTCOINS RELEVANT?)
(BTC), (ETH)
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