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HEALTH, WEALTH, AND HAPPINESS

April 7, 2022

"All riches have their origin in mind. Wealth is in ideas - not money."

- Robert Collier

Whale Reads

Worthy news for aspiring whales

How to Interpret the P/E Ratio in Crypto (Token Terminal): In this two-minute (!) video, you'll learn how Price to Earnings Ratios (P/E ratios), a longtime favorite of traditional investors, can be applied to crypto.

Investor takeaway: This is two minutes well-spent. You'll see how top crypto projects generate real revenue (earnings), which, when divided by the total market cap (price), can help us see which tokens are overvalued or undervalued.

Your Money is Growing

Truth, in numbers

Here are the top blockchains sorted by highest P/E, courtesy of Token Terminal:

Investor takeaway: A high Price to Earnings Ratio does not necessarily mean "buy this token." But it is a signal to investigate the token further.

In plain English, a high P/E ratio means the blockchain is earning money, but investors are valuing the project lower than other blockchains. That could be a sign of a token "on sale."

Blockchain Investing Ideas

with Alexandre Lores

Hi Everyone,

Welcome to Miami!

I am happy to type this from my hotel room, which means I have actually been part of the action on the ground and won't be missing out this time.

Miami Blockchain Week has been historic already. The largest conference by far, Bitcoin Magazine's annual event had 12,000 attendees last year, and the people behind it expect this year's conference to be much larger.

One company attending, Exodus wallet, expects 35,000 attendees. In my opinion, that seems high, but I would be shocked if there are fewer than 20,000 attendees.

Industry Day was held yesterday, and today is the first day of General Admission, so it looks like we are just getting started.

As I learned on the ground yesterday, there are many other crypto events being held at the same time. A Solana developer conference, Bitcoin Unleashed, an event put on by Stacks, and Shitcoin 2022 (which I attended and enjoyed) are just the gatherings that I found out about yesterday.

I literally heard about some of these by bumping into people on the streets. It's actually difficult to walk a block down the street and not see someone wearing some form of crypto merchandise.

Miami, the crypto hub

Miami has been well known as a party hub, a place to get real Cuban food, and a center for Latin American culture.

Since 2020, Miami Mayor Francis Suarez has taken a very modern approach to transforming the city into a hub for innovation, and more specifically, crypto innovation. He promoted the city on social media, much like a successful startup would.

Aided by Florida's lenient COVID-19 protocols, Miami was one of the only cities in the world where in-person conventions were actually taking place in early 2021.

In December 2020, when one California-based entrepreneur tweeted about moving from San Francisco to Miami, Suarez tweeted back "how can I help"?

Bitcoin 2019 took place in San Francisco, and when it relaunched as Bitcoin 2021, it was moved to Miami, where it is happening once again this year.

Suarez has made a lot of progress toward transforming Miami into a crypto hub. There have been many crypto conferences in the city over the past two years, and several companies, including eToro, have established U.S. hubs there.

Yesterday, Suarez unveiled a more permanent reminder that Miami is a crypto hub. He announced a blue-eyed Bitcoin bull statue that weighs 3,000 pounds.

An obvious take on Wall Street's Charging Bull, Suarez has made a statement that he hopes Miami will be the crypto capital of both the U.S. and the world.

Investor's take

It's a pretty common joke in crypto that prices crash around a convention. It happened during Bitcoin 2021, and it repeated this week leading up to Bitcoin 2022. While I have no plausible explanation for this, it is a situation that has happened over and over.

Bitcoin's price has dropped almost 10% over the past week, as you can see from the four-hour candle chart on TradingView above. Here is the full chart.

I can't predict what will happen tomorrow. It may go back up and keep going up, and it may continue to dip lower.

What I can say is that if you are planning to use dollar-cost averaging to accumulate bitcoin over the long-term, which I do, research has shown that making larger purchases after periods where bitcoin has fallen in value is a successful strategy. This approach is an example of enhanced dollar-cost averaging, and it was tested very thoroughly by two economists in 2011.

I condensed and simplified their report this week, and I added a twist to explore how this could be used with crypto in my latest research piece, which you can read here.

In any case, while I am not a financial advisor, I do recommend the utmost caution in attempting to time the market for crypto trading, especially right now.

As always, do your own research.

Join us!

If you're in Miami, you already know it's a great time to meet other crypto enthusiasts and make new friends. Good luck finding us, but fellow analyst Jason Deane and I are both here, and we would love to meet you!

Either way, I will speak with you soon enough!

Sincerely,

Alexandre Lores

Market Analyst

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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 Alexandre Lores.

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