RCIF II - Five bullet Friday - Issue # 18

      There is a huge bitcoin conference happening in Miami this week. It was interesting to catch up on various perspectives from various industry leaders. They had a cool domain: https://b.tc/conference/. It is hard to beat b.tc domain name and had 13,000 attendees from every corner of the world.

  1. I always enjoy reading Twitter CEO Jack Dorsey's interviews. He is very thoughtful in his replies. He said, bitcoin is the most important thing that he will work on in his lifetime. There has been a lot of talk that Twitter is going to invest a big chunk of its cash balance on bitcoin. First it is individuals, then it is companies after that it will be central banks. 

2. Nasdaq recently reported that 75% of all Eurozone debt is yielding negative. Wallstreet touts this debt as a very safe investment. How can this be a safe investment if you are guaranteed to lose money on the first day, you make the purchase of this bond? future is always uncertain. The interest you receive compensates for the risk you are taking from lending the money. If I ask 100 people on the street, to lend me $1000 today and I will pay back $990 in 10 years, how many of them will accept my offer?

3. The current market sentiment seemed to be very negative. But from my past experience when the sentiment is this low, it is an opportunity for long-term patient investors. Negative news coming from China has become a routine for crypto investors.

4. OHM has experienced a big drop in its price. $OHM's current market cap is close to $60 million. But it is already sitting on a treasury worth $30 million.  dollars. If you value the OHM like a typical stock, it is trading at a P/E ratio of  2. There is a comprehensive document on OHM's design: https://docs.google.com/document/d/17xm8Qbwn6oy1E8ZBXNMh3IVftBxMEtiD_NJtbIoV05A/edit

5. The main beauty of OlympusDAO lies in its ability to compound our rewards. In a typical proof-of-stake operation, If we stake $10 worth of tokens we could receive 2 tokens in a year. It is set based on our staked tokens like a simple interest. In case of OHM we start earning rewards not just on $10, but on $12 after one rebase cycle. It starts slow but ramps up to extraordinarily high returns in the long-term. Image taken from the above document.

I continue to be bullish on the crypto markets. My regression models are predicting that bitcoin should be at $100,000 and ETH close to $10,000 by the end of this year. Since the market declined a lot, this is a great time to dollar-cost average into your position this month.

Have a wonderful weekend!

warm regards,

Sam