Five bullet Friday - Issue #91

   Crypto markets have taken a beating this week, which was much worse than what we saw around March, 2020. The amount of bad news thrown at Crypto markets appears to me as a coordinated attack from some powerful players. There is a barrage of articles on 4chan forums that indicate that some powerful players are trying to make some big purchases and trying to shake out weak hands.

1. Most people who invest in crypto assets know that bitcoin and ethereum will usher in free and open finance with equal access to all. This money is much more powerful than mere paper notes printed from the Federal Reserve or any other central bank. Governments are totally powerless against their citizenry if you take away their power to print money. It is natural that authoritarian regimes like China hate this currency. This is not any real news. These same news headlines are used over and over every year.

2. There are a lot of credible reports suggesting that China is banning bitcoin mining that uses coal power. They want to reduce the carbon footprint of bitcoin mining, which is probably good for the world. China owns the majority of bitcoin's hashpower and any decisions taken in China will affect bitcoin. They are still supporting bitcoin mining that uses renewable sources like hydro-electric and windmills. In the long run it is good news for bitcoin and the world.

3. In the past few months, Synthetix growth is not catching up to the rest of the market. One of the advantages of holding an asset that gives you steady income is that we are never in a rush to sell. Even though the price has dropped substantially from $28 to $15, we are still generating close to $90,000 income per week, as can be seen from our retained earnings spreadsheet. 

4. In an interesting turn of events, there are a number of applications launching on the top of Synthetix protocol. One of them is Thales, which facilitates binary option trading. These projects are directly funded by Synthetix DAO to expand the ecosystem. When these projects launch we get to control their governance tokens and all the fees generated from these new applications built on the top. There are already 6 such projects in the pipeline, which will increase our rewards.

5. As you may have noticed, $OHM token dropped along with the rest of the crypto asset market. I came across this fantastic dashboard on OHM. We currently have $75 worth of DAI backing every OHM token. Every day that OHM remains above $1, the treasury is making money. The protocol makes money when it sells OHM above $1, and also makes money when it goes below $1. In the latter case, it is buying $OHM below its intrinsic value of $1.

I see today's market rout as the best buying opportunity of this year. Crypto market fundamentals are growing stronger every day with thousands of developers building new decentralized applications. If you have any money on the sidelines, this is the time to put it to work and dollar-cost average into your portfolio.

Have a wonderful weekend!

Sam Ikkurty