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HEALTH, WEALTH, AND HAPPINESS |
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Greetings, crypto connoisseurs! Here's what's new. |
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Here's a new report on daily active users (DAU) for the bitcoin network, which continue to trend steadily upward, courtesy of CoinMetrics. |
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Investor takeaway: DAU is an excellent metric for measuring the health of a blockchain project, because it's hard to fake. Generally, the more active users, the better the long-term investment opportunity. |
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Hi Everyone,
Most people don't know this, but there was a time in my life that I felt like playing video games for a living was a reasonable aspiration.
Even though that ship has long ago sailed for me, life has a way of coming full circle, as our team digs elbow deep into GameFi and Play to Earn.
Now that creators literally have the ability to develop their own forms of money and financial assets, the game has completely flipped on its head.
Whereas traditional gaming companies have always charged good money for great experiences, the game creators of the future are now figuring out how to pay people to incentivize them for playing.
It certainly seems counterintuitive, especially given the way capitalism has always worked before.
We're certainly seeing something new, but not completely foreign. Consider this headline from 2013. ... |
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Promises promises, right? The point here isn't how Yahoo's dying brand took another, younger, more vibrant brand down the drain with them.
Instead, it's the basis of the valuation. Yahoo was willing to pay $1.1 billion for a company that had zero revenue, simply based on their active user base, or in other words, their network effect. |
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Build first model later
Perhaps that was a bad example, so here's a good one. Let's take a look at the annual bottom line of Twitter, a company that went public in November 2013. Those numbers in parentheses indicate a negative profit, also known as a loss. |
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This is how it goes with VC-funded tech companies, it's a very build first, then grow, then figure out a model for revenues type of industry.
Even the most successful of them can operate while incurring losses for quite a while before thinking about how they're gonna make money.
For investors, the model makes sense, because even though they may suffer plenty of losses, the gains produced by the companies that do succeed more than make up for it.
The same is absolutely true in crypto, where investors will happily speculate on a project's token, giving them a wide runway to grow the network.
It's a dangerous game, and many will run out of runway and crash, just as plenty of others have before.
However, some will survive and completely change the way we think about profitability, networks, governments and all the rest. |
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A busy year
2021 is nearly behind us, and now it's time to start thinking about what the new year holds for our exciting industry.
And there is absolutely no better way to do that than by reading Messari's Crypto Theses for 2022, authored by Ryan Selkis, except that the document is 165 pages long, and who has time for that?
Thankfully, analyst Lou Kerner has put together a piece that contains the top highlights of Messari's full report. So make sure to check that out here.
Have an awesome evening! |
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Mati Greenspan Analysis, Advisory, Money Management |
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Maybe we should thank them! |
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Warning: surfaces may become slippery. |
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Bitcoin Market Journal is a daily newsletter focusing on blockchain and crypto investments. It is written and edited by Evamarie Augustine, Charles Bovaird, Mati Greenspan, and John Hargrave.
Paid subscribers get full access to our top crypto picks; both free and paid subscribers get content to build them into better investors.
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