Crypto Beans #12 Opportunity of the Generation!

Hey there everyone! 👋 This is Shivam. I bring to you the 12th weekly edition of Crypto Beans. This is an effort through which I try to share my thoughts on the crypto space and help you stay updated. Your 0 to 1 guide in crypto.

Read time - 3 mins

In this edition, the article I explore is titled "Opportunity of the Generation!" Hope you enjoy it.

State of Crypto affairs - A quick look at the market 

The global cryptocurrency market cap today: $980 Billion

Weekly change: -8.93% | Yearly change: -46.34% 

Bitcoin (BTC) is the largest cryptocurrency with a market cap of $394 Billion.

Weekly change: -8.05% | YTD change: 24.12%

 Another important metric is Bitcoin dominance which can be used as a rough indicator of the relative strength of Bitcoin versus other cryptocurrencies. A high Bitcoin dominance means that Bitcoin has a large market share and is potentially more influential in the overall cryptocurrency market and vice-versa.

Bitcoin dominance: Current Year: 41.77% | Last year (March 2022): 42.17%

Greed and fear index 

The market sentiment has been turning, now the market seems to be getting more cautious with the news around layoffs and looming recession. 

Note: The data used is based on metrics like Volatility, Surveys, Bitcoin Dominance, Social and Google Trends. Source: Coinstats

Is ETH ultrasound money? 

Let's have a look at Ethereum supply changes post its merge to a PoS blockchain from PoW, as there is a shift in the narrative for Ethereum to become a store of value due to the expected reduction in ETH emissions.

Supply change since merge POS  -60,845 ETH

The graph highlights POS vs POW issuance since the merge. Impressive numbers, look super bullish for ETH long term given the supply of ETH is not growing as before

Spill the beans (Explain to me like a 5 year old) 

Every generation has its big opportunity

I might have missed the growth spurred post 2008 financial crisis, but there’s always some new wave of opportunity.

The challenge: To spot one on time. What could it be for this generation?

For a young person looking for a winning strategy to build wealth, it’s all terribly disheartening sometimes. As an Indian, I know we are poised for magnitudes of order of growth in the next decade and so but we need to be careful of the macro and financial headwinds we may face at a global level.  

We’ve been told to put faith in the tried-and-true wisdom of responsibly growing personal wealth: invest in stocks, trust that asset valuations will go up. We’ve been running budget deficits for a decade, and now that interest rates are rising, the interest expense on the national debt is rising with it.

The only solution is to print that money, which is done by issuing even more debt, making the whole problem that much worse. This is called a debt spiral, and there’s no way out - it’s just math. So what is the next big thing that can be the big opportunity for this generation.

The trade of a generation - Is it Gold?

It would be easy to conclude that gold is poised to have a great decade and leave it at that, but if we zoom out a bit, there’s an even bigger opportunity at hand. The reason gold did well in the 70s is because it is “hard money.” In simple terms, it’s hard to make more of. You can’t easily print it, you have to mine it.

This makes hard money desirable to hold when governments are printing a lot of money and inflation is running hot. And because of the math of our present debt spiral, we’re entering an era of inevitable money printing and high inflation.

Gold will probably do very well in the decades ahead, but let’s not forget that,

We are also living through the Digital Revolution.

What if there was something else that was poised to perform even better than gold… a new, still tiny, digitally-native hard money on the global asset scene… Something whose properties set it on a deterministic path to become gold for the Internet age. And once it becomes gold 2.0,

It doesn’t stop on its pre-programmed path to get more scarce and more valuable. If there was such an asset, it could very feasibly eat ~$200T of the world’s ~$900T in assets. Bitcoin seems to be exactly this asset, in the early stages of exactly this journey.

All that has to happen for this to play out is for Bitcoin to keep doubling in scarcity, which is programmed into the protocol to happen every 4 years. Which is to say, all that separates Bitcoin from becoming the most important asset of the 21st century is the passage of time.

Since that is a given, Bitcoin’s rise appears inevitable – pre-programmed and deterministic.

What's brewing today? Bringing fresh beans to you: 

Circle to ‘Cover Any Shortfall’ in USDC Reserves, Sparking Stablecoin Rally: Circle Internet Financial said Saturday it will “cover any shortfall” in the assets backing its stablecoin USDC in the event it does not receive the entirety of a $3.3 billion cash reserve it was holding at Silicon Valley Bank.

Coinbase's Plan to Go 'On-Chain Native' Is a Smart Play for Fees: By developing various on-chain products and services, Coinbase is hoping to get users onto its new Base roll-up and scoop up more revenue.

Banks down? That is why Bitcoin was created, crypto community says: The Silicon Valley Bank (SVB) collapse on March 10 has sparked fear, uncertainty and doubt (FUD) across the crypto community, leading many to return to crypto roots — reviving the Bitcoin white paper published just weeks after the Lehman Brothers meltdown in 2008.

Whats meme-ing? Better make sure this is fun

And now the funny part,

What did you think of today's edition?  

Reach out to me on Twitter or Linkedin for any feedback :)

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.