Digital Beans-NFTs are social games we love to play

1} I like NFTs, and I think those would be huge in the future

Let me build a case for that now that I have your attention.

Why would you spend 20k on shoes or 10k on pants? Yes, there's going to be some segment of those people that appreciate the craftsmanship

The bulk of people, I would argue, do it because of the social signaling. And NFTs, it turns out, are way more effective at accomplishing that end goal.

The Internet flex is much more important than the real life flex 1000%.

And it's not only is it more important, But from another perspective, it's more efficient.

2} Let's say you're going to buy $200,000 watch, and it's on your wrist.

How many people are going to see it on your wrist?

Like maybe 10,000 people over the life of you having that watch are going to see it and spot it and say, oh, that's a $200,000 watch. And so that's effectively $20 CPA, like, per conversion of person that sees it.

And now you get their social capital or they see you in a different light

Now it's a very particular group of people, and you might want that group's approval, but it's effectively $20 CPA.

If instead you buy and spend $200,000 on digital items. That's skins and fortnite or NFTs on your Twitter profile, PFPs or whatever else, a million people could see it on your Twitter profile, no problem.

You have one tweet that goes viral and a million people will see that tweet and they see your picture. So it's effectively $0.20 an impression. So it's literally 100x more efficient to accrue social capital using digital goods versus physical goods.

And one of the really interesting properties with digital markets tends to be that because of the friction being lowered so significantly relative to physical

The market sizes tend to be much, much larger. Larger market means larger opportunities.

3} At the end, in some sense NFT are games.

They're social games that we're playing. I'm almost collapsing down to the idea of how much of real life is actually a game.

Yeah, if you look at a lot of behavior this is the thing. Look at the world's richest man, Bernard Arnault, right? He runs LVMH what does that guy do?

That guy is basically making money by selling you a $300 leather item for $3,000 because you're playing a social game.

Like, what you're doing is converting capital, capital into social capital, and it turns out billions of humans want to play that game. And that's just a totally socially constructed game that all these people need to play.

And hence he is the richest man in the world.

The global cryptocurrency market cap today: $1.23 Trillion

Weekly change: -0.85% | Yearly change: 7.79%

Bitcoin (BTC) is the largest cryptocurrency with a market cap of $569 Billion.

Weekly change: -2.11% | YTD change: 76.26%

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: 48.13% | Last year (July 2022): 40.37%

The market sentiment has been back to high greed levels now post Bitcoin pumping as the likes of Blackrock filed for Bitcoin Spot ETF (bullish news)

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

Let's have a look at Ethereum supply changes post its merge to a PoS blockchain from PoW.

The significance of the charts - understand how the supply of Ethereum is decreasing post the merge, which means “deflationary economics” for the Blockchain

Supply change since merge POS -301,184 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

Is the Worry Over Worldcoin Warranted? No project since Facebook's Libra has generated such hue and cry from within the crypto community. Is it right to be concerned by Sam Altman's iris-scanning uber-ambitious UBI project?

CBDCs Wrongfully Break Down the Separation Between Money and State Countries that have, until now, not sought to control their citizenry through the financial system should not start down this dangerous path with central bank digital currencies, NYU law professors Richard Epstein and Max Raskin write.

And now the funny part,

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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