RCIF II - Five bullet Friday - Issue # 21

     Crypto market sentiment continues to be gripped in fear and uncertainty. The biggest factor driving this fear comes from China banning bitcoin mining. This has cut down bitcoin's hashrate by 40% just in a matter of 2 weeks.

1. It is fascinating to see the new developments coming from El Salvador in real time. Today the president of El Salvador has announced that they will be sending a gift of $30 worth of bitcoin to everyone's wallet. In one swoop, the country added an additional 7 million users to bitcoin's network. I have seen announcements from a number of South American countries like Paraguay, Brazil, mexico, Guatemala are planning to introduce their own legislation to bring in bitcoin as legal tender. He gave a superb powerpoint presentation showing how bitcoin helps them with animation! It is breath of fresh air in comparison to the staged state of union speeches we get here from our politicians 😀

2. Market sentiment is driven from the mainstream media. This point in time feels like deja vu for me. In 2017, bitcoin exchanges were banned in China. It pushed bitcoin price from $5000 to $2000 in a matter of 2 weeks. Mainstream media pushed the narrative that bitcoin was killed by China. Major exchanges like Binance moved out of China. How did it work out? we reached an all-time high by the end of that year. We are currently in the same exact position.

3. This week I added 10.06 tokens of YFI to our portfolio. Recently when the YFI price dropped to $25,400 I felt that it is attractively priced. YFI is a decentralized hedge fund that is run by a community of solidity programmers. These anonymous programmers managed to generate $128 million revenue at a rate of $5.86 million per employee. Came across this table in this article. 

4. Last week we added 20,000 more tokens of Rari Capital to our portfolio. I am impressed with the team's ability to execute on their promises. Very soon, OHM is planning on doing a collaboration with Rari protocol. I like the fact that its total supply is only 10 million. Similarly, We have doubled our stake in KLONX token in the last 2 months through our staking rewards, even though the market value of those tokens is down.

5. Olympus DAO recently reduced their APY for supply increases. It is still generating massive revenues. This protocol is making money every day that the price remains above $1. It shares 90% of the profits with the stakers. We purchased 9158 tokens of OHM as you can see in our retained earnings spreadsheet. Please note that this is a permanent link: https://docs.google.com/spreadsheets/d/1XNBr7MIlOZo27Wl1oHmDyFUQcMPm81EmzzdOAuB3rf0/edit#gid=604315129 Even if I don't send the link, you can bookmark it. Proof-of-stake mining increased our OHM stake to 20995 tokens, even though the market value in dollars has dropped. OHM dao treasury is worth $25 million now.

I feel the same way as I felt when China fear was spreading in 2017. Bitcoin is math. Those countries that plug into this open, fair financial network early will bring massive advantages to its citizenry. If something can be regulated by any government, then it is not really decentralized.  I see this as a fantastic buying opportunity for patient long-term investors.

Have a wonderful weekend!