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Health, Wealth, and Happiness

January 05, 2024

"Given a 10% chance of a 100x payoff, you should take that bet every time."



- Jeff Bezos

Howdy, investors!


In today's issue, we're digging into a little bit of history ... the history of cryptography, that is. We'll show how the Cypherpunk movement of the 1990s can lead us in moving the crypto industry forward today.


As you've read many times in this newsletter, there's a lot of excitement over the potential for a spot bitcoin ETF in the U.S., and if analysts are right, we could get that approval any day now.


Crypto investors also need to be aware of the change in IRS regulations requiring reporting on transactions over $10,000. The rules remain murky, however, causing consternation in the crypto community.


Both of these developments are also tied to the increased regulatory changes in the U.S. While regulations remain somewhat obscure for U.S. investors, we hope today's feature column will inspire you to do something about it.


Read on to explore more!

Why We Need Cryptopunks

by John Hargrave

This is John Gilmore, one of the greatest rebels of our time.


In the early 1990s, Gilmore started a small discussion group that met at his company's Cygnus Solutions office in the San Francisco Bay Area.


Formally, the topic was digital privacy. Informally, their mission was to defeat the government.


This clandestine gathering of minds, including the radical geniuses Eric Hughes and Timothy C. May, saw that the Internet would change the world and that there were two likely outcomes.


In the first scenario, the government would have the ability to spy on anyone, anytime: a kind of Orwellian dystopia where citizens would have zero privacy on the Internet, and free speech would gradually be extinguished.


In the second scenario, citizen privacy would be protected, allowing free speech to thrive and secure online financial transactions, which would be good for business and the economy.


Two options: dystopia or utopia. The key to it all was public cryptography.

Read the full article here >>

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Blockchain Believer Portfolios: Q4 2023 Update


Our Blockchain Believer Portfolios are a long-term investing strategy that has delivered terrific returns over the last five years.


Our approach is long-term investing in quality crypto assets (5+ years), mixed with traditional stocks and bonds.


That strategy is paying off, as we cross the 5-year mark for our premiere investing portfolio.


Investors who put just 10% into crypto on a steady-drip monthly investment outperformed traditional investors by a whopping +39.4% (see chart above).


We've just released our Q4 2023 portfolio report, which Premium Members can download here.


Not yet a Premium member? Sign up here and get in on the action -- get access to our ongoing portfolio updates, investor scorecards, VIP events, and more!

Must Read

Today's most important stories for crypto investors.

Analysts Say Spot Bitcoin ETF Approvals Still Likely For Next Week(The Defiant)

Investor takeaway: Analysts are optimistic about the SEC approving spot bitcoin ETF applications. The agency has been meeting with traditional exchanges, suggesting possible approvals any day now.


The big question for investors is whether a spot bitcoin ETF approval is already priced into the market. If so, investors may want to exercise caution. If not, could be a great time to load up on BTC.

Demystifying The $10,000 Crypto Reporting Payment Requirement(Forbes)

Investor takeaway: The IRS's new cryptocurrency tax reporting obligations, effective January 1, 2024, require businesses and individuals to report crypto payments over $10,000 using Form 8300.


Personal receipts of token airdrops and staking rewards are exempt, but there's a lot of remaining confusion for individual investors. This guide is a good starting place to learn the basics, combined with a knowledgeable tax advisor.

Crypto Crystal Ball 2024: When Will Regulatory Clarity Come to the US?(Decrypt)

Investor takeaway: The crypto industry is reaching a crossroads in 2024. Critical cases, such as Coinbase's challenge to the SEC and Ripple's lawsuit, could bring much-needed clarity to U.S. crypto regulations.


These outcomes could significantly influence the industry's direction. In the meantime, we hope today's featured article inspires you to get involved, by speaking up and speaking out.

ICYMI
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Best Stablecoin Interest Rates

The best rates for staking and lending stablecoins this week.

Click here to see our current rates, updated weekly.


Note: Nexo rates are dependent on your Nexo Loyalty Tier, which is based on the number of Nexo tokens held in your account. Your rates may vary.

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Bitcoin Market Journal is a daily newsletter that makes you a better crypto investor. It's created by John Hargrave, Steve Walters, Gerald Jackson, Anatol Antonovici, Matthew Du, Daniel Joel, and Preetam Kaushik.


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