February 22nd
The first elephant. Niall wants to get in. This must mean that the local top is near.
Notable values
- NUPL: 0.75
- Bitcoin fear and greed: 94
It is highly likely that there will be a dip within the coming days. It will probably be around 40%, since this has been a huge leg up, and there are boatloads of enthusiastic investors getting in now. Cryptocurrency is becoming semi-mainstream.
Other things:
RAI pool on Uniswap to get airdropped flex. This is according to Chico, a more decentralised version of Maker, and he said he doesn’t think people understand just how big this is.
Charlie Noyes of Parifi is continually tweeting about it. That’s really big.
So, it looks like something to go into.
The potential downside? Limited, especially with Coinbase/Parafi links.
The potential upside? Huge.
How to enter?
Either by minting RAI (requires $200 gas fee, perhaps that will change). Here, you can either mint an equal amount of RAI, or, enter a leveraged position. Minimum mint is 800 RAI.
You then take this RAI, with an equal value of ETH, and provide liquidity to the pool.
When to enter?
We’re in a dip at the moment. It’s not a big one — this will likely come in the next couple/few days. One last leg up is on the cards.We’ll regain the euphoria of the past few days, then, at an unpleasant time, DUMP. A really brutal dump. Which will likely last a couple of weeks.
During that time, it will be nice to hold some stable coins anyway, so adding RAI to a liquidity pool is a pretty nice thing anyway.
It is best to add RAI while things are pumping, but look unsteady. That way, I keep my gains.
The Big Green Elephant
Hyperinflation is coming. This will be as a result of increased monetary velocity, once people start spending again after Covid. The Euphoria of reopening will take hold, and people will start spending the money they have saved, on coffee dates with friends, holidays and clubnights. This is when the excessive currency printing that took place during covid, and even before in the years following 2008, this is when things will take hold. Prices will accelerate, and those holding fiat currency will have their savings reduced to nothing. Pensions will be smashed, and those holding gold and other commodities will find themselves greatly enriched.
This is because wealth (as a proprietary/financial concept at least) is never created or destroyed. It is the balance of power, of purchasing power. Protecting that purchasing power means buying things where nobody is able to tamper with the supply. Where the agreed price is a function of rarity, which has a history of agreement, and not as part of some bubble which has since popped.
As such, buying gold, bitcoin and silver is absolutely necessary. The price of these assets will soar within the coming months and years. This is a solemn opportunity, because it will cause many people a lot of pain, and loss. If you do manage to stay afloat, then it is absolutely necessary to help people, in any way you can.
The way to tell how things will look based on your assets is to cover their present dollar value. How do you think your holdings will fare when that money is no longer a credible entity? What will be the thesis upon which they are valued?
While buying Bitcoin is likely to be effective as a hedge, it is also prudent to buy gold. Taking the remainder of your savings, and putting them into gold is a necessary step. Furthermore, accumulating some bitcoin, to be put on a Trezor. It is also prudent to store this Trezor in a secure location of some kind.
A good Bitcoin buying zone right now is ~40K.
Making sure mum and dad change their savings into gold and bitcoin is also key.
That is all. The other stuff can wait.
