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HEALTH, WEALTH, AND HAPPINESS |
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| "We have no more right to consume happiness without producing it than to consume wealth without producing it." - George Bernard Shaw |
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| Coinbase NFT is Now in Beta (Coinbase): Coinbase just released the first version of its social marketplace for NFTs (Fast Company called it Instagram meets NFTs). Beta testers can browse, buy and sell NFTs using any self-custody wallet.
Investor takeaway: Rather than investing in NFTs, which are very risky, the easier opportunity is to simply invest in Coinbase (COIN), which is publicly traded and available wherever stocks are sold.
With this new initiative, Coinbase is going after the NFT market, which, as we've reported previously, is dominated by OpenSea. Given that Coinbase is the gold standard of U.S.-regulated crypto exchanges, we think the company is an excellent buy. |
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Much has been made of the bitcoin's correlation with the stock market, but it's unquestionable that bitcoin is correlated with Coinbase stock, as shown below. |
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| Coinbase stock price (thick blue line) compared with bitcoin price (thin blue line), courtesy Yahoo! Finance
Investor takeaway: Look at the right side of this chart. If investors are pegging Coinbase stock against the price of bitcoin, that makes COIN a clear bargain buy.
Combine this with its market-leading position as the premiere U.S. crypto exchange, its outstanding management, and its new NFT offering, and COIN stock certainly looks like one of the best deals in crypto today. |
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| Hi Everyone,
The FUD is thick lately, as bitcoin continues to test its long-term levels of support.
We did get a bit of a bounce, but it's clear that the crash in Netflix, Inc. shares is making many investors nervous, especially with the backdrop of a hawkish Federal Reserve cycle.
I do find it a bit conspicuous that it's specifically at this juncture that some institutions decide to release extremely negative reports about cryptocurrencies.
Last week, we covered a horrendous piece of research published through ScienceDirect, which we managed to debunk based on the second sentence of its abstract.
Today, we'll rip apart some research released by a much more eminent body, the Bank of Canada.
Roll the headlines. ... |
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| The above news article covers a recently released paper that is based on annual surveys conducted by the BOC. However, for some reason, the survey data included in this paper only spans 2016 to 2020.
Now, if the surveys used are annual as they say, I can understand why they might not have had the time to include data from 2022. However, if the authors want the research to be as fresh as possible, why would they omit 2021??
Here's a screenshot of the cover page with added snark from yours truly. ... |
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| Well, I'll tell you what happened in 2021: the institutional adoption wave!
Canada, in particular, should be seen as a leader in the 2021 wave, as it was the first country to approve a bitcoin-backed exchange-traded fund on Feb. 12 of the same year.
Even though they were off to a late start, cryptoassets took the Canadian ETF market by storm that year, a development that is well-documented in this paper from the National Bank of Canada.
The document sums it up nicely: |
| Could the authors of the BOC report somehow not have known about the 2021 institutional adoption wave, or were they just cherry-picking their data in order to prove some sort of point?
I'm certain that an article titled "Before the intuitional adoption wave financial literacy among bitcoiners was very low" would not be nearly as alluring. |
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Truly wonderful
If you ask me, the fact that the financially illiterate were at the forefront of the adoption curve is very comforting.
After all, bitcoin was not created for bankers and economists. It was created in spite of them.
Rather, the data included in the BOC report only serves to highlight how far we've come in such a short span of time. The day before the paper was released, WonderFi Technologies Inc. announced that it planned to buy another Toronto-based crypto exchange. ... |
| Hats off to The Globe and Mail for featuring both sides of this industry.
Of course the true motive of the BOC for releasing this report becomes painstakingly clear on page 4, when the authors start talking about the financial institution's initiative to explore a central bank digital currency.
So far, the BOC has not received permission from the central government to produce such a CBDC, yet it continues to lay the groundwork to hit the ground running if/when it gets the approval. |
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Cardano FUD/N
Before I let you go for today, I would like to set the record straight regarding a recent post of mine on Twitter that has been officially ratioed. |
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| Yes, I was kind of trolling and more than a bit sarcastic when I wrote it. The idea behind such a bridge to convert coins on the Ethereum network into ADA-based coins does seem kind of interesting.
I know that many digital currencies, including tether, are considered multi-chain currencies, meaning that their overall supply is split between different blockchains.
This is a pretty solid strategy for any digital asset that wants to exist in a multi-chain world.
For the record, I don't hate Cardano's ADA token. I hope that it succeeds. What I will say is that despite its resilience as a top market cap cryptocurrency, I've never personally had the pleasure of using it, since I've never seen a project that was built on this chain that I wanted to participate in.
Will that change in the future? Perhaps. But until then, I don't personally have any reason to own of the project's tokens. If that means I've missed out on this particular speculative movement, so be it.
Call me crazy, but even in this digital market, I do tend to gravitate toward projects that are more tangible and less theoretical.
We hope that you're enjoying this daily newsletter. Feel free to share it wherever you feel it is appropriate.
We do appreciate the attention along with your well thought out comments and questions.
Have an awesome weekend!
Best regards, |
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| Mati Greenspan Analysis, Advisory, Money Management |
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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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