The Week To Be In Crypto [12/10/2018]
Market Overview
I am naturally an optimist and don’t think I will ever take a short position on any asset. I like rooting for things and the concept of “potential unlimited losses” and margin calls trigger an automatic sphincter tightening on my part. I will buy inversely correlates assets if I think one thing is going to perform poorly and buying puts are a nice way to hedge an investment or take a bet on the downside. It feels like now that we are down 85–95% across the board each 10% move doesn’t really matter that much. It has become fairly binary, either it dies or, eventually……. at some point……. there’s a recovery and probably to many multiples from where we are now.
What I have found difficult is separating the two sides of my interest in this industry. One is a desire for better financial and governance systems that ideally lead to a more equitable distribution of opportunity. The other is an excitement of being involved in a nascent industry that I think will be valuable and hopefully improving my financial situation. I think it is very hard to take the time to understand crypto if you don’t own any but, as an individual, your buying/selling/hodling has zero effect on the success of the space. None, zilch, nada, there will be successes and failures with and without your capital. And REALLY no one will care if you lose capital trying to support something.
Try and silo the two lines of thought as much as you can. See the potential, get excited about the projects, but when it comes to your money think about the real value right now, the perspective of large investors, and for the love of god take money off the table when you have a chance. Help projects and the space with your time, effort, network, and skills, use your money to make more money.
What I’m Buying
I have always had a little side cash invested in the FAANG stocks like any good millennial but last week I sold it. I am really not liking how the next 5 years is looking for the stock market. Some of that cash has gone into lighting back up my daily bitcoin purchase. Coinbase has an option to setup automated purchases and with a volatile asset the best thing you can don is take emotion out of it and let a machine do its job. Bitcoin could keep going down more but I am more confident in the long term success of bitcoin and the crypto space in general than I was this time this year so might as well put the money in something I know. I am really only buying BTC right now and then adding REN whenever I can. Darknodes will e available to run in the beginning of January and any level of profitability will be compounded in the long run if crypto-asset prices remain depressed while the nodes are running.
Recommended Media
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From the Slack
A collection of content from The Bitcoin Podcast slack group the past week
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