Welcome to this week’s edition of the Myth of Money, a weekly newsletter on all things money, economics and technology read by 10,000+ investors, curated by Tatiana Koffman.
Disclaimer: The following is not intended as investment advice. Do your own research.
This week, traders and investors alike celebrated as the September rut in the markets seemed to have come to an end. As bulls closed out the week at above $49,000 for Bitcoin, the Crypto Twitter community took the extra time to give us all the predictions we wanted to hear.
The following are my favorite tweets of the week.
Ari Paul on the need to time on exit but not really know when… or maybe he doesn’t want to tell us.
Raoul Paul showing off his ‘oh so bullish’ charts and infallible wisdom.
Finally some reason behind the bullishness by Travis Kling.
Plan B reminded us that his Stock to Flow model is AWLAYS right (if you account for a reasonable range, deviation, momentum, and whatever else that makes it wrong).
Bitcoin podcaster, Peter McCormick with the ULTIMATE wisdom.
And of course, this summary would not be complete, without an honorable mention to our favorite Crypto Astrologer, Maren, who is starting to make more sense than the fund managers.
⚔️ MAREN ⚔️ @marenaltmantill oct 6th new moon then especially after oct 20th full moon, when mercury, jupiter, & saturn are all direct too… phewwww 🙌🪂🌙😌 https://t.co/H3WudPg4oi
Why am I sharing all this? We have no control over whether the markets will go up or down and everyone is guessing based on human psychology. So here’s my best trading/investing advice to you:
Only buy on Red days. Even when it’s oh so tempting to FOMO into something. ONLY BUY ON RED. The bloodier the better.
Taking profits. Either set a price target and take 50-75% then, OR take throughout the upwards run. For example, say you invested $100,000 into altcoins and the value jumps 20%. Take it off the top.
DO NOT TRADE YOUR BITCOIN. At least not yet. Here’s the thing - would you panic sell a house in a downturn? No. You would borrow against it. Or rent it out for cashflow. That’s because you know real estate will always go up, despite temporary dips. Same principles apply here. Buy on red, and borrow against it or earn interest on it when in need of cashflow.
Avoid Futures and Margin, unless you really know what you are doing. Futures are designed so that the house wins. They were made to make exchanges rich, not to make you rich. If you are beginner, avoid at all costs.
This Week By the Numbers 📈
Top Stories 🗞
Fed Chair Powell Says He Has ‘No Intention’ of Banning Crypto
U.S. Federal Reserve Chairman Jerome Powell said he does not intend to ban cryptocurrencies, but said stablecoins need greater regulatory oversight. Powell made the comments in a two-hour long House Financial Services Committee meeting on Thursday. The meeting, meant to serve as a forum for representatives to ask Treasury Secretary Janet Yellen and Powell about the Treasury Department’s and Federal Reserve’s pandemic response, featured several questions about cryptocurrencies. Read Full Story.
Gensler Reiterates Support for Futures-Based Bitcoin ETFs
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler reiterated his support Wednesday for a narrow class of bitcoin exchange-traded funds (ETFs) that would invest in futures contracts instead of the crypto itself. Gensler singled out bitcoin ETFs, which invest in futures contracts that trade on the Chicago Mercantile Exchange and register under the Investments Company Act of 1940. The so-called ‘40 Act “provides significant investor protections,” he said in prepared remarks for a Financial Times conference: “I look forward to staff’s review of such filings.” Read Full Story.
Visa Working on Interoperability Platform for Stablecoins, CBDCs
Payments behemoth Visa has proposed a platform to enable interoperability between central bank digital currencies (CBDCs) and other stablecoins. The “universal payments channel” (UPC) aims to allow the cryptocurrencies to be transferred between different blockchain networks. In a white paper, Visa said “the UPC technology can play an important role between private stablecoins and public CBDCs by providing permissioned access for whitelisted stablecoins to be interoperable with CBDCs.” The UPC protocol will allow payments through an entity known as the “UPC Hub,” which would be a trusted gateway to read the state of two ledgers, checking the eligibility of every payment. Read Full Story.
Chamath Palihapitiya reveals he's put hundreds of millions into bitcoin - and says cryptocurrencies are hard to kill
Chamath Palihapitiya has invested hundreds of millions into bitcoin, and believes it's tough to impose a blanket ban on cryptocurrencies, he said in an interview with CNBC's Scott Wapner on Wednesday. The billionaire investor was asked what he thinks of SEC Chair Gary Gensler saying the crypto market is "rife with fraud" and Ray Dalio saying regulators will try to "kill" bitcoin if it becomes really successful. "I think it's very hard to kill," Palihapitiya said. "So technically, it's very difficult. Just the way that it's architected, it is the most profound iteration of the internet that we've seen." Read Full Story.
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Thank you for reading this week’s edition of the Myth of Money.🚀
Until next week,
By Tatiana Koffman
Hi there and thanks for reading. If you stumble upon my newsletter, you will notice that I write about money, economics and technology. I hold a JD/MBA and spent my career in Capital Markets working across Mergers & Acquisitions, Derivatives, Venture Capital and Cryptocurrencies. I believe in empowerment through closing the financial education gap and creating equality of opportunity for the next generation. Check out my articles in Forbes here.
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