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Bitcoin Market Journal

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HEALTH, WEALTH, AND HAPPINESS

Jan 4, 2022

"Don’t give yourself an option to give up. I never thought about quitting. If I invest mentally, I don’t quit."


- Vijaya Srivastava, 68-year-old swimmer

Whale Reads



Whale Reads

Bitcoin at the Bank (WSJ): Mainstream banks "expected that interest in cryptocurrencies would go away." They were wrong. Now they are finally beginning to dabble in bitcoin ... outside the U.S.


Investor takeaway: Despite the hype around other cryptocurrencies, remember that bitcoin is still the one that is likely to reach mainstream banking support first. (See chart below.)

Your Money is Growing



Your Money is Growing

bitcoin-transaction-volume.png

Here's a look at bitcoin transaction volume over the last 180 days. Notice the familiar "weekday/weekend" heartbeat, indicating that most bitcoin trading is taking place during business hours.


Investor takeaway: Banks crave business customers, so expect more banks to support bitcoin in order to attract these highly profitable users. This is good news for bitcoin investors.


It's also good news for the banks that get there first. Consider investing in the early adopters: Spain's Banco Bilbao Vizcaya Argentaria and Australia's Commonwealth Bank.

Mati Greenspan



Block Market Daily

with Mati Greenspan


Hi Everyone,


Predicting the future is impossible, and anyone who tells you they know what's about to happen in the markets is probably trying to sell you something.


Thanks to our sponsors, including Media Shower, this newsletter is free.


That said, we don't know what's gonna happen next either, but we may try and sell you something from time to time. 


Still, there are many tips and tricks you can use in order to maximize your profits and minimize losses. Even though he's not the most popular in our crowd, Warren Buffett has had a huge impact on the way many investors think, and he once described "Mr. Market" as a "drunken psycho."


In his view, we should only pay attention to what the market is telling us if and when it is to our advantage to do so.


He often suggests doing a blind analysis on what we think an asset should be worth without actually knowing the price.


Once you've done that, it's very easy to take advantage of a volatile market by buying the asset when it is trading below your estimate and selling when it's higher.

Blind cryptos


Of course, when analyzing a company, it's a lot easier to perform this type of blind analysis.


You can clearly see the balance sheet and cash flow analysis to get a sense of what the shares should be worth, or what a reasonable price might be.


When it comes to digital currencies, we generally don't have any of this, but that doesn't mean they're worthless.


It does, however, mean that these assets are harder to evaluate, making them more volatile and inherently more risky.


Buffett states that he only gets involved in larger companies, since it doesn't make sense for Berkshire Hathaway Inc. to take risks on smaller caps. 


I would argue, however, that there is much larger potential for growth in these areas, but only if you do proper research to determine which ones are likely to have long-term staying power. When it comes to dog meme coins, I suppose the jury is still out.


For bitcoin, I've heard many analysts claim that the inherent value is $1 million. Lou Kerner, for example, offered a similar take, giving the digital currency a 10-year price target of $1 million. 


If this is indeed the case, Mr. Market has been doing some serious substances for a while now, and we should all be taking full advantage of the situation.

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My own


Of course, as stated above, we may be trying to sell you something. At $45,000 per coin, I'm slightly more on the side of sending than receiving bitcoin.


As many of you know, I've gone from being a debt-ridden salaried employee in November 2019 to now, thank G-d, a very wealthy man. So I'm now in the position of gradually paying that debt by dollar cost averaging out. 


At the highs of November and December, I did increase my monthly cash out amounts, but I have now drastically reduced it. Only if we go significantly lower from here will I consider buying again. At $30,000 or thereabouts, I would even consider taking a loan to buy bitcoin, as I did in July 2019.


With that, I'd like to express a huge thanks to analyst Imran Yusof, whose latest research piece inspired today's column.


Have an excellent day!

Mati Greenspan

Analysis, Advisory, Money Management

Hot Tweet



Hot Tweet

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Is this $100,000 prediction too conservative?

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Spread This Meme

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"Regulatory clarity"

Bitcoin Market Journal is a daily newsletter that makes you a better crypto investor. It is created by Evamarie Augustine, Charles Bovaird, Mati Greenspan, John Hargrave, and Steve Walters.


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