Let's get started.
First off we all need to be worried about a dead-cat-bounce. Many called this out the second Bitcoin popped up to $37k from $30k. I saw a tweet that said: "This is the dead-cat-bounce you aren't going to sell." So true, but also so false. It takes longer than that for a bounce to happen.
https://twitter.com/marenaltman/status/1397531688733917192
- marenaltman
You all know how I love market cycles.
Bitcoin price has been charted against moon cycles here, with the full moons being the bottoms and the new moons being the tops. Pretty wild stuff... look how stupidly accurate that is lol.
Surprise! After checking the dates TODAY is a full moon. Good shit. Goddess Moon has bought the dip. We're good here. I was thinking I'd wait at least a week before selling off some gains... maybe two. But now three weeks looks even better. After all, it took 2 weeks just to crash from $60k to $30k.
Next new moon is June 10th... so like I was thinking... even if it's just a dead-cat-bounce it still should take like 2 weeks for that local peak to hit. As luck would have it: there was also a local peak on June 10th 2017 during the year of the last mega bubble. BTC hit $3k that day and then crashed to $2k a month later. Interesting stuff.
I've finally figured out that I need stake in all 4 of the main pools:
Depending on the market I need to move money around but never fully exit any of these pools. Everyone got caught with their pants down in this recent crash. Felt kinda dumb having nothing in the CUB/BUSD hedge fund, and now I've paid the price: never again.
So multiple people have approached me with a crypto called Pi and I had to look into it recently. By all accounts looks like an MLM scam that farms users for data. It's not even connected to the market yet and you can "mine" the crypto on your phone by just clicking a button.
However, I think crypto will be the first tool ever to create a LEGIT MLM. I'll need to write a full post on this later but if anyone can do it crypto can. Multi-Level-Marketing doesn't need to be a scam. It has a few main components.
In MLM, the people under you are like your little minions that pay you tribute. In every MLM ever invented this creates a system of exploitation. That's because the uplines, who often act like they are rich when they are really in crippling debt via maintaining their status, don't actually have any real money. There's a TV show called On Becoming a God in Central Florida that's pretty awesome. It's about MLM (in the show it's called FAM) but it mirrors Amway and other real MLMs.
I believe a crypto MLM will be invented where the downlines and uplines have a much more symbiotic relationship. A fully functioning MLM will allow a downline to break away from their upline at any time and stop paying them tribute. Therefore, uplines must provide their downlines with real value or they will leave. There also needs to be a decentralized reputation system in play so users can't run around doing shady shit.
Lots of people think we are heading toward a cashless society. I see this as an absolute impossibility. Many occupations in the service industry depend on cash and the overhaul required to get to cashless is pretty massive.
Where supply meets demand: markets are made. It's impossible to get rid of cash because there will always be demand for cash. The best way to limit the use of cash is to limit demand, which means giving everyone a data phone and having better privacy than we do now (not worse). I believe with the advent of crypto the demand for cash can only go up (as the physical nature will be the other good thing left about fiat).
At the end of the day lets assume cash does get banned. The government instructs everyone to take their cash to a bank and deposit it. All business are now legally obligated to reject it. What happens next?
Well, they just eliminated 99% of the supply of cash. What happens when you reduce supply of an asset that has demand? The value goes up. So if the demand for cash doesn't go down 99% or more the value of cash will automatically go up. This shouldn't be surprising: black-markets always make the price of the assets involved skyrocket. When that asset is currency itself, things are bound to get very weird.
On top of all that this would make gold and silver coins much more valuable again as well. No more cash means that real hard-money can once again take over to fill the void of demand.
We've all taking quite the beating in crypto. It was very telling to see the reactions of this crash on Twitter. None of these people are ready for what's going to happen over the next year. They will be on a constant rollercoaster of ups and downs like a straight crack addict.
The word DECIMATED came from roman times. It used to mean punishing the troops by purposefully killing 10% of everyone in the unit randomly. Obviously it is not used in that way anymore. If anything it means losing 90% or more (opposite of losing 10%). We might say that Steem was decimated in 2018. Even Hive was decimated from $1 to 10 cents.
It should be obvious by now that volatility is bad. People can't handle the downswings psychologically, and the high of the spike does not make up for the devastation of the low. This is one reason why deflationary economics are inferior to inflationary ones. Deflationary economics wreck all the new users that are excited to participate in this new economy: like someone that says they'll "never drink again" we get the same over and over with crypto investing.
This is a feature of Hive that is greatly underutilized. Say what you want about blogging, but throwing the baby out with the bathwater is foolish. So many people are always constantly trying to theory-craft how Hive should make radical changes in the way it works. Stop trying to change the core of the system and build on top of what we have instead: there are infinite possibilities.
I would never trade the ability to create money on click for anything. It's simply too good. Just because we haven't fully figured out how it should work doesn't mean we should scrap such insanely valuable technology.
When things become abundant, we stop paying attention to the cost. No one cares what the difference in cost is between 3 and 4 ice cubes. No one cares what the difference in cost is between a 10 and 12 minute shower. No one cares how much it costs to leave a light on for 50 vs 70 minutes. Power, water, and plastic (yuck) are largely abundant.
Many of these costs get lumped into a flat fee. Your garbage is a flat fee. Your internet bandwidth is a flat fee. I think the days of flat fees are ending with crypto (micro-charging data streams) but that's a whole post in itself.
The point is that abundance is upon us: except this time the abundance is coming from money itself. We live in a time of the most radical changes in human history, and no one seems to realize it.
There will be many growing pains. How do we stop people from wasting resources when resources are abundant? Is this even a problem? If the abundant resource pollutes our environment (plastic/fossil-fuel) it matters quite a bit. Not so much otherwise.
And thus ends my ranting about random topics.
Back to work on Magitek.
