Investing In Crypto Is Not First Prize

Follow The Trail

As banks continue to crumble, many are now sounding the bell of an impending collapse. However, as Crypto enthusiasts, we have seen this coming for years. In regard to Bitcoin, conviction usually arrives alongside an understanding of its monetary policy. Understanding Bitcoin’s monetary policy, simultaneously causes one to examine and investigate existing monetary constructs.

This is where a Bitcoiner is forever “ruined” in regard to fiat currencies. Sure, in terms of disposable income, fiat is fine. However, as a savings instrument, it’s a complete nightmare. Furthermore, understanding that its monetary policy is not founded upon “specifics”, it becomes clear that fiat currencies are a ticking time bomb. Just look at countries such as Argentina, Venezuela, and Turkey.

When fiat currencies are devaluing at an “acceptable” rate, nobody is too concerned, since the majority are spending as they are earning. However, if that process begins to accelerate, chaos erupts. This is what we have seen in regard to the abovementioned countries. This is what Satoshi was hinting at… a need to exit the current system. The adoption of Bitcoin has obviously escalated due to global crises.

Many are now turning to Bitcoin, and other alternative Cryptocurrencies. However, unless you are extremely wealthy, this has no significant benefit in regard to your future. Ask yourself the following question: Even if Bitcoin were to rise exponentially, how long would my Crypto holdings last me, were I forced to utilize them as capital for living expenses? You have only escaped if you have a large enough allocation… or if you have access to something else, something far superior.

The True Freedom

Here lies the true essence of Crypto, and the only way it truly benefits the average person on the street… ongoing Crypto income! Without it, you are just like everybody else… you have perhaps escaped for a couple of months. To truly escape calamity, you need to have Crypto income hitting your wallets on an ongoing basis. This is what I have been stressing for the last four years, or so.

It doesn’t matter if you make a killing on an altcoin unless it has the ability to provide for you, many years into the future. Crypto has become a “money maker”, which is great. However, its essence lies in escape and independence. Right now, Crypto is simply an alternative… another option. It won’t remain that way forever. It’s time to start reading between the lines. This is why I have been so outspoken in regard to residual and passive income.

It’s more important that you build an alternative source of income for the future, and not just any income, Crypto income. Monetize your activity, get into passive income investments… start creating content on Hive. Many are missing out on the formative years… years that can become life-changing in the future if utilized correctly today. Operation Choke Point 2.0 is yet another confirmation that the window is beginning to close.

Final Thoughts

Unless you have spent your time building and securing future Crypto income sources, having a Crypto bag might end up not being as effective as you believe it to be now. You cannot opt-out unless you replace, or at least, significantly enhance your current income sources. It’s kind of like the “give a man a fish, or teach him how to fish” school of thought. Feed him once, or enable him to feed himself forever.

That’s it for this one. Remember, the window doesn’t stay open forever. Build something, anything that can enhance your future. All the best, catch you next time!

TradFi – More Than The Erosion Of Trust

You Can Take That To The Bank!

A bank is an institution that will lend you money, provided you can prove that you don’t need it. I have known people with assets and investments who have been refused a loan before. It sounds like a contradiction to my opening sentence, doesn’t it? However, banks seem to live in a world of their own. What they really want to see is income.

Banks are generally unfazed by your assets. They want to see your income and your age. Provided, these two aspects are acceptable, they are happy to lend to you. Obviously, you will have to be in the clear in regard to your credit score. Otherwise known as not being blacklisted, or under debt review. What does this tell you? Well, it’s a little dark.

A bank is happy to lend to someone who has a constant flow of disposable income, even if they have zero investments or other assets. In other words, the person has the makings of a slave. They have no alternative means. Essentially, the little such a person owns, is now actually at the bank’s disposal, in the event that they should default. Essentially, a form of slavery.

Why would a bank turn away a loan applicant who has assets well in excess of the desired loan amount? Simply because banks are not in the business of lending, but rather enslavement. Such a person is not a candidate because they don’t have the makings of a slave. Debt is designed to be ongoing. Once a person is caught up in the currents of debt, they seldom escape.

This is what banks want… someone that will work their entire life, while simultaneously financing interest. Caught up in an ocean rip without the strength (financial means) to escape. Welcome to the wonderful world of banking. Even with these questionable undertones, people have placed unquestionable faith and trust in banking institutions… until now, that is.

The Emperor Has No Clothes

Could there be a more apt idiom? However, the cracks are embarrassingly beginning to show and the little boy is about to state the obvious. The little boy in the story represents a level of honesty, only a child could possess. In our story, the little boy is Bitcoin, an honest and transparent form of money. As trust begins to erode in TradFi, Bitcoin is simultaneously gaining the affection of the crowd.

Ironically, much points to an attack on Cryptocurrencies as being the straw that broke the camel’s back. the antifragility of this asset is almost unbelievable. How does an asset/money that has zero government or alternative financial backing continue to take on the financial giants and governments of the world? The erosion of trust within the TradFi realm creates another concerning issue.

Erosion reveals what lies beneath the service, and in the case of the banking sector, Its questionable practices and flaws are coming to light. If I were to mention all the fines paid by different banks over time for money laundering, price fixing, and manipulation many would be shocked. Once the ground gives way, what lies beneath comes to light.

Conclusion

There are those who are now beginning to give some thought to their capital in the bank. Everything we have seen take place is exactly why Bitcoin was created. It’s an escape from impending destruction. Operation Choke Point 2.0 is far more likely to be proven true in the not-too-distant future than it is to be proven a conspiracy theory. Until next time, keep the faith!

Envisioning Your Crypto Future & Why It’s Imperative

Aimless Endeavors

There are many who enter the Crypto space with an expectation of what they wish to achieve… and yet, simultaneously, have no idea how they are going to get there. Many of these “investors” believe it’s as simple as buying a random list of alts, and then hodling to the moon. Furthermore, their idea of hodling is almost always, yet another, unrealistic expectation.

One thing that I really appreciate about the Hive community is their focus and goal-oriented approach to Crypto. Unless you have envisioned where you want to be, and what you want to achieve, it’s going to be rather difficult to set up goals. In other words, having goals, and being a goal-oriented person requires envisioning the future. Goals are inherently relative to a desired outcome.

For instance, a Hiver who wants to acquire 2000 HIVE per month is not going to get there by acquiring 5 HIVE per day. Such a person needs to sit down and begin brainstorming different ways to “mine” HIVE. You can’t really have goals unless you have been specific in regard to what you actually want to achieve. Goals also help to keep one accountable. They place a demand upon you and your time.

As I have mentioned before, some goals are better suited to a productivity-based goal, rather than a monetary-based goal. Either way, you need goals… and the only way you are going to create and realize your goals is by envisioning your future. Simply throwing money at alts and other undisciplined ideas is not the way to go about securing a future in Crypto. It’s time to get specific.

Fine-Tuning Existing Goals

Even if you are someone who has already journeyed down this road, it’s always beneficial to revisit your existing goals. Look at how you can “tweak” them, perhaps even improve upon them. There is no growth without an extension beyond what has become comfortable. This is a rather important point to take note of. What might have been a difficult goal to achieve when you first set it could now be relatively easy to achieve.

This is a clear sign that your goals are in need of an “upgrade”. It’s time to lift the bar and begin pushing harder. If you are a distance runner and never increase the distance of your runs, you will remain a recreational runner. If you want to run marathons, you are eventually going to have to push beyond a couple of kilometers a day. The same with weight lifters… as they become stronger, they increase their weight.

It’s important to ensure that your goals remain goals, rather than activities that are now merely a part of everyday life. This is a way of ensuring that you arrive at your “ultimate goal”. Who knows what the future holds, if you are able to get ahead of your original goals, you stand a better chance of eventually reaching success. Envisioning your future is imperative in regard to connecting it to the present. Goals are the cords that form a bridge between where you are today, and where you want to be.

Final Thoughts

Envisioning where you want to be, and what you want to achieve is the measuring stick you require in the construction of your goals. You need to know where you are heading and what it’s going to take to get you there. Ignoring this aspect is somewhat similar to heading off on a long journey, and choosing to put $5 worth of gas in the tank.

Your goals, or lack thereof speak of where you are headed…

The Benefits Of Building A Business Within A Digital Economy (Part 2)

How We Got Here

In the first part of this series, we looked at how the digital world has slowly, over time been incorporated, and made part of the real world. This is especially true in regard to business and commerce. This initially took place as a form of enhancement. It was a move that proved to be beneficial for both the customer, as well as the business owner. The introduction of digital interaction and enhancement in regard to real-world businesses has proven to be a real game changer.

This is something that has taken a couple of decades to mature and become an acceptable, and even desirable, part of everyday life and business operations. However, what we have seen take place in recent years, is a lot more than an enhancement. We now have completely independent digital economies that have zero real-world expression, or manifestation. This now opens up a realm of opportunity, especially for the more adventurous.

I believe that real-world businesses will continue to adopt digital technology, as it simplifies and reduces friction in multiple areas of traditional business activity. However, I also believe that we will see completely digital economies functioning independently of real-world economies. These two worlds will overlap and amalgamate, as well as operate independently of each other.

Benefits Abound

Now, in terms of building and establishing a business exclusively within a digital economy, there are numerous benefits and perks that make this idea extremely attractive, and even superior to existing models. At the end of the day, those who are not necessarily Crypto enthusiasts are going to require some sort of “selling point”, if they are to embark on such a business venture.

Starting a business, any business, is a risky endeavor, as there are no guarantees. Accepting a job is risk-free. If something goes wrong, you simply look for another. In terms of a business, there are running costs and overheads. There are expenses that need to be paid outside and on top of your living costs. Depending on the business, these expenses can, and have often brought people to ruin.

No Physical Site Required

This is often the biggest expense for many businesses. Many traditional business models require a site of operation, in terms of an actual store, shop, or office. Depending on the location and the size, this can amount to a hefty monthly rental expense. Even if a business owner is able to secure a mortgage and so, eventually own the site, there is still a monthly installment that needs to be paid.

A digital model has no physical location. There may be fees required, in terms of monthly website subscriptions and other minimal monthly charges. However, these expenses are minuscule, especially in comparison to the cost of commercial real estate. This is an enormous saving, as well as a burden removed. Nobody really wants to have a heavy monthly expense hanging over their head, especially in times of uncertainty.

Code Eradicates The Need For Employees

Depending on how deep you dive into this idea, there are models that require zero staffing. Coding, automation, and even AI are in many instances able to remove the need for employees. One thing I will say, in terms of a negative, it’s often a lot more challenging establishing a successful digital business, as opposed to a traditional legacy-styled business. This is not always the case though.

I say this to draw attention to the fact that just because there are benefits, don’t think that there are zero challenges and even difficulties within the digital world. What we do however have in the digital realm is simplification and the eradication of unnecessary expenses and human resources. There is also the ability to operate 24/7, as well as create passive and residual income arms of the business.

One Step Further

With the introduction of staking also came the introduction of completely passive business models. There are those who are simply able to deploy a million dollars into something like HBD, and simply sit back while their investment earns a cool $200K per year. Being a stablecoin, volatility is minuscule, as well as fairly reliable, in terms of a tight range. One can always turn to traditional Crypto assets for staking income as well.

However, these assets are susceptible to market volatility. That is why, like DeFi, this idea works incredibly well during bull markets. On the other hand, as a reliable means of income, it’s not the best idea during a bear market. These ideas enable individuals with significant capital to set up businesses that require zero effort, or management.

Final Thoughts

When we stand back and observe the global political landscape, it becomes rather clear that a healthy level of independence from the status quo is becoming a necessity, rather than a luxury, or even a choice. This is where the average Joe with a digital side hustle is no longer average. Such a person is positioning themself for an eventual transition point. Depending on your industry, your job may no longer be around in the world of tomorrow… and one thing you can always count on about tomorrow, it always comes! See you next time!

The Banking Collapse Of 2023 Heats Up…

Here We Go Again

Yesterday, we experienced yet another collapse within the banking sector. A collapse many were not expecting. This is perhaps due to a statement made earlier by the CEO of JP Morgan, Jamie Dimon. According to Dimon, the domino effect of this collapse has reached a point of exhaustion. He did however warn of additional “cracks” in the system later coming to light.

There may be another smaller one, but this pretty much resolves them all.

I must admit that I am rather skeptical and even, unconvinced. Obviously, industry leaders will be doing everything within their power to instill confidence and avoid contagion. When I initially warned of a banking crisis back in 2022, I envisioned a significant collapse, one that would ultimately dismantle trust. Even though we have seen some disastrous events, I believe there is still more to come.

I mentioned this some weeks ago, and am expecting this to unwind a little longer. Yesterday’s events were very much in line with my expectations. However, I very much doubt whether that was indeed the last of it. It’s important to note that periods of calm are not necessarily indicative of finality. The market could once again maintain a significant period of stability, only to later collapse, once more.

The interest rate decision, expected later today, will obviously play a key role in establishing market sentiment, at least in the short term. The market is once again expecting another 25 bps, or possibly, even a pause. The resilience and strength of the Crypto market continue to impress, especially in terms of decoupling. Bitcoin appears to be adamant about creating some distance between itself and the stock market.

This is what we have been expecting, and the longer this behavior continues, the more we can expect to see this decoupling extend beyond an isolated event. Yesterday’s biggest losers were, of course, PacWest, Western Alliance, and Metropolitan Bank. Stocks plunged in excess of 30% on the day, and have since managed to muscle a rather modest bounce. It’s safe to say that trust and confidence are beginning to erode.

No Bigger Marketing Campaign

This continues to be a very effective marketing campaign for Bitcoin. As many of us have said numerous times, failure within the realm of TradFi promotes the advantages and selling points of Bitcoin. Even if this collapse manages to avoid further casualties, it has served to expose the fragility of a sector many had previously thought was rock solid. That alone is a “moment of truth” that is still to produce ongoing negative repercussions for the industry.

In general, I believe markets are trying to find their feet, as a new reality begins to hit home. Markets tend to “survive” negative periods, in the expectation of a shift in sentiment. However, I believe markets are entering a phase of rediscovery, as global chaos begins to be interpreted as ongoing, rather than transitory. Markets will need to adjust responses and reactions, as market participants begin to factor in ongoing chaos and disruption.

This will ultimately cause an adjustment in behavior, ultimately resulting in some rather unpredictable market movements. Of course, my own thoughts. I do however believe market dynamics will change somewhat over the coming years. Anyway, let’s see what Jerome has to say later on today. All the best!

The Benefits Of Building A Business Within A Digital Economy

Consumption & Production

Economies revolve around the consumption and production of goods and services. Since the inception of the internet, online business models have sought to combine the “real” world with the “virtual” world. In many of these instances, the online aspect merely played a role in the ordering and delivery of a real-world product or service. Over time, virtual products were introduced in the form of e-books and other digital products.

Many online business models have since moved into a realm that is entirely virtual. Essentially, many real-world businesses have an online, or digital aspect incorporated into their business model. They are not digital in nature, and yet one can interact and transact digitally. This has been in existence for decades. However, what we are now beginning to see is an economy that is entirely digital.

A world where not only are the transactions “virtual”, but also the product, as well as every other aspect of the business. The world will always require real-world businesses and applications. However, with the advancements over the past decade, especially Crypto, there is now the ability and means to create an economy that is entirely digital. This is made up of numerous ideas, opportunities, and expressions.

In other words, an economy that exists beyond typical “trade” and “barter”. An economy that can operate on alternative models, as well as in the traditional manner. This is where we begin to envision and understand an economy that can operate primarily on the principles of incentivization. Crypto plays an integral part in bringing this dynamic to life and is essentially birthed via the idea and principles of tokenization.

Objectivity Highlights Advantageousness

As we examine the intrinsic workings of these models, we begin to discover a vast array of beneficial factors. Not only beneficial, but also helpful, in that many stresses and expenses can now be avoided, as they are no longer necessary, or even part of the picture. This simultaneously paints a picture of independence. For some, this is important. On the other hand, there are those who are unconcerned, as long as they are generating revenue.

However, as our world continues upon its current trajectory, it is rather obvious that independence is a form of guarantee. A guarantee to continue operating as a business when difficult and restricting events and policies take place and are introduced. We have already seen how advantageous a predominantly online business can be during “challenging” times. This was rather evident during the covid lockdowns.

It is important to note that Amazon was launched by Jeff Bezos not long after the Internet launched. New business models that mature alongside a new technology or idea are the ones that manage to become grounded and rooted in the minds and households of society. This is another reason why Hive is such a phenomenal opportunity. Not only is it a new idea that is flourishing and developing alongside the Crypto landscape, but it is pioneering a “new way”.

Pioneering ventures that not only survive, but grow, and continue forging the way forward usually experience enormous success further down the road. In a world of constant disruption and chaos, the benefits of being removed from it, in terms of reliance and logistics become extremely attractive. This is likely to intensify, as we experience further challenges and difficulties, in regard to legacy-based businesses and operations.

The Primary Incentive

For many, location independence is one of the primary reasons and motivations behind establishing a digitally based business. This is definitely true of me. I guess reasons and motivations vary from person to person. However, this particular aspect of ownership, in regard to a digital business, is often mentioned by those who have chosen to embark on this particular journey.

Being able to operate and run a business from any remote location across the globe is extremely valuable, especially for those raising and nurturing a family. It enables interaction in both business and family, simultaneously. Depending on the requirements and demands of the business, this model can actually enable and empower a more productive life, especially in alternative areas of life, outside of business.

For many, running a legacy-styled business is extremely demanding, and is often responsible for other areas of their life to suffer, or take a backseat. In Part 2 we will take a look at other key beneficial aspects of this model that can assist in terms of profitability, as well other important benefits. See you next time!

WEB3 – A Remnant Of Satoshi’s Ideology

An Inescapable End

The introduction and adoption of blockchain is an exciting development. However, as with all things, it’s not a perfect evolution. In many ways, as more and more people, companies, and entities adopt blockchain… the true essence of this idea begins to fade. Had the development of the Crypto space over the past 14 years remained well within Satoshi’s ideals, many casualties would have been avoided.

The irony of Gensler and the SEC focusing on DeFi, while centralized entities became the ruin of many, is saddening, to say the least. Satoshi’s stance on self-custody and anonymity ultimately preserves the integrity that undergirds the “idea” and motivation behind this technology. However, there is always the desire and need for “growth”. This will inevitably produce a level of compromise.

In life and business, there are healthy and acceptable compromises, and then there are those which extend beyond the borders of conscience and common sense. These lines and borders will in many ways become somewhat blurred as time and adoption continue. Essentially, true WEB3 technology holds fast to many of Satoshi’s ideals, and very much acts as an independent expression, and power operating on the blockchain.

Maintaining The Aspect Of True Decentralization

Individuals who continue to act, operate, and engage on legacy-based platforms when there are WEB3 alternatives available with even more additional benefits on offer are missing the woods for the trees. Perhaps, in many cases, not much thought is given to the underlying protocol or expression. However, this is exactly what needs to be considered. Decentralized “movements” favor you, the user!

Where we need to see real adoption is within the WEB3 world. It is actually rather clear how many who speak out against the “brainwashing” of the MSM and other avenues, are very much themselves being “levered”. How do you continue utilizing WEB2 and legacy-based models when there are more superior alternatives? Individuals who know better should be acting better. This is a much-needed shift.

A shift that truly decentralized models and WEB3 are waiting upon. Don’t complain about restrictions and a loss of true ownership, relocate your activities. WBB3 is a remnant of Satoshi’s ideology. The advantages and benefits it offers will become even more attractive with time, which is why I battle to understand why so many are still so slow to make the move. I guess I could say the same thing about Bitcoin.

When I looked at Bitcoin eight years ago, it soon became obvious to me that this was the next step in the progression of money, as well as other areas associated with money. However, it has taken quite some time for a significant amount of realization to occur, and even still there is a way to go. A truly decentralized WEB3 protocol is probably the most advantageous expression of blockchain technology there is when it comes to the everyday man on the street.

We Create What We Envision

WEB3 enables the creation and development of ideas outside of suffocating systems and overreach. Essentially, it provides the building blocks for what we value and see as important, as a society, or a select group of individuals. It empowers creative freedom, as well as operational freedom. Perhaps, more needs to be done in terms of educating the masses. Many of the current Crypto investors are unaware of fundamental differences.

For many of them, Crypto is Crypto. Decentralization is not understood, even the idea of a public blockchain versus a private blockchain is an alien thought, and therefore not understood. Preservation, education, and the adoption of WEB3 are key areas that require our attention and effort. Over time, the light comes on, and we get to see the world we already envision.

Final Thoughts

I find the aspects of WEB3 and tokenization to be the most promising expressions of Crypto, at least in the next 5 to 10 years. There might be significant gains on offer, in relation to AI and other areas. However, these expressions are more prone to controlling agendas, whereas WEB3, ultimately promotes freedom. I guess everyone has their own view, and that’s fine. However, we need to ascertain what really aids and serves mankind the most.

This is an important question, and in my view, the answer is WEB3… at least for now, anyway. Thanks for stopping by, see you next time!

FLEX Rockets By 50X During The First Quarter Of 2023

Bucking The Trend

DeFi-based projects often tend to suffer rather significant losses during bear markets, and even during the formative stages of a new bull market. It’s a sector that appears to insist on a solid bottom formation before it considers embarking on its next bullish ascent. Markets can be fickle, and this is especially true of the DeFi sector. It’s definitely not for the faint of heart.

That being said, many believe the bear market to be behind us, and though the majority of DeFi tokens are still very much undervalued, There are some that appear to be making some early moves. Whether or not these appreciations in value are going to hold, remains to be seen. One such project is CoinFLEX. FLEX is an AMM (automated market maker) and has experienced enormous gains during the first quarter of 2023.

At the time of writing, CoinFLEX is in the process of transitioning and rebranding to OPNX. CoinFLEX is another project that was impacted by the liquidity crisis of 2022. CoinGecko began tracking FLEX during the final months of 2019. During the months of July to December, FLEX was trading in a range between $0.18 and $0.48. FLEX continued to trade predominantly sideways for much of 2020.

Image Source

However, along with the arrival of 2021 came an enormous shift in sentiment. FLEX went on to rally as high as $7.56 during the month of December. The price went on to completely collapse and hit a low of approximately $0,02 in November of 2022. This is where FLEX went on to consolidate, prior to skyrocketing in 2023. The token began the new year a little below $0.06 and surged as high as $2.84, all within the first quarter.

This is a return of approximately 50X in under 3 months, which is rather impressive, considering the environment. FLEX is currently trading above a dollar, which is still considerably higher than $0.06. All trading and DeFi activities were halted on the 28th of April as part of their evolution from CoinFLEX to OPNX. At this point in time, FLEX is more likely to be considered extremely risky.

There is no guarantee of OPNX launching successfully, or even at all. At this stage of the game, it’s a little late. However, staying up to date with announcements and developments could, once again, create another great trading opportunity. However, this is not a guarantee. I am actually surprised to see the token trading at a dollar, especially given the current uncertainty and transitionary situation.

Final Thoughts

Even if you missed this incredible trading opportunity, as I did, it’s still an encouragement to see such gains taking place so prematurely, in relation to a new bull market. The risk element has definitely increased since the end of April. However, as I mentioned, depending on how this story unfolds, it could recreate another tradeable opportunity.

It’s always important to conduct exhaustive research when trading altcoins, especially coins and tokens that are in the midst of a “transitionary” process. Do your own research… and stay safe! See you next time!

The Maturation Of DeFi – An Essential Development For Crypto & Financial Services

Love It Or Hate It

Decentralized finance (DeFi) shook the Crypto world back in 2020 and has since gone on to impress, as well as disappoint. DeFi has managed to resolve many of the issues associated with financial services, as well as transactions. These primarily being, friction and custody. As a result, the sector has managed to amass a strong community of advocates. However, there are also those who appear to be somewhat cautious, and even opposed to the idea.

This is largely due to common risks such as hacks, exploits, volatility, and impermanent loss. For some, these risks are simply too much of a sacrifice, even with all the benefits DeFi offers. However, if we look back on 2022, it is rather clear that the real casualties were actually centralized entities. Had these entities been governed by code and smart contracts, we would have witnessed a somewhat different outcome.

DeFi simplifies financial transactions and ultimately ensures self-custody. This is exactly what the world needs, especially, right now. The current collapse of the banking sector is evidence of this very fact. However, the cautious among us have a point. The industry is in desperate need of maturation. This is the “process” that is often to thank for great ideas becoming great technological breakthroughs.

The Future & DeFi

In many ways, this is likely to unfold over the next number of years. There are those who are more than happy to continue utilizing DeFi and dApps. Developers in the space are also likely to become more effective and efficient, in terms of safety and security. There are ways that DeFi can be improved upon that we perhaps have not even considered. The point is… DeFi is still very much in its formative years.

In other words, the product we know and use today might look very different in 2030. Bear markets have a way of sparking creativity, and then unleashing ideas on an unsuspecting market. Heck, that’s how DeFi was born! The 2018 bear market is where DeFi was born, and only later on coined the term, DeFi. Just like with Cryptocurrency, in general, the idea and the manifestation of the idea evolves over time.

Crypto is now a lot more than simply Bitcoin. I would argue that in years to come, DeFi is likely to be a lot more than what we understand it to be today. As with the idea of tokenization, DeFi is very much a logical progression, in terms of the financial world, and how we transact and communicate within it.

Stubborn Resistance

One has to consider that in many ways, DeFi makes much of the current infrastructure unnecessary, and ultimately, redundant. The concept of banking and the creation of certain financial products were created for the sole purpose of profiteering. There are those who have become exceedingly wealthy through the creation and maintenance of these systems and mechanisms.

At the end of the day, this is the issue pertaining to Crypto, as a whole. This group of individuals relies upon the traditional infrastructure as a means of wealth creation. It’s highly unlikely that they have even considered losing. Crypto will be resisted with everything they have in their power, and at their disposal. This is not a battle for the introduction of new technology, but rather a battle for power and money.

A horse and cart-empowered transportation business had nothing to gain with the introduction of taxis, alongside the invention of the automobile. Not only that, but it had everything to lose. It’s very much a similar dynamic. However, innovation has a strange way of eventually overcoming, despite resistance, and even attack.

Final Thoughts

Just as Crypto has evolved over the years, I believe DeFi is facing a period of maturation. A period that is likely to make it more attractive to those who are perhaps still rather unsure, and even fearful. With this in mind, one has to consider that DeFi protocols are likely to look and operate a lot differently than they do today.

In many ways, people want what DeFi offers… they are just yet to realize it. Leading minds and developers are now faced with the task of perfecting and “repackaging” the DeFi idea in such a way that it will become even more desirable, and possibly a lot safer. DeFi is definitely not done, but it’s also definitely not ready for mass adoption. Like with many things… it’s a journey of approximation. All the best, see you next time!

HBD – A Stablecoin “Trade” That Puts The Odds In Your Favor

Trading Stablecoins?

Trading stablecoins for profit is not really much of a strategy, as any fluctuation in price is usually rather minuscule. However, if you are able to find a stablecoin that fluctuates within a specific range from time to time, you just might have discovered one of the most “guaranteed” trades in the marketplace. However, these fluctuations need to move within a certain range and meet certain criteria.

When it comes to trading, volatility creates opportunities, but it’s the unpredictability that makes it difficult to discern the short to medium-term direction of the market. This becomes an issue when the asset you are trading has been stuck within a range, and then suddenly loses that range. You now have to wait until that range is regained, or you got stopped out if you chose to make use of a stop-loss.

In such a scenario, either outcome is unprofitable and can become rather frustrating, especially if you are waiting for the asset you are trading to regain a specific range. In such cases, traders will often exit a trade once the range has been regained, and they are at break even. So, not only did they miss out on alternative trades, but they made zero profit.

This is a typical response… traders are just so grateful to no longer be in the position of a floating loss, that they exit the trade as soon as it is in the black. In a perfect world, a guaranteed and predictable range would simplify matters quite substantially. It might not be perfect, but HBD tends to trade in a rather predictable range, which creates regular trades, and ultimately, long-term profitability.

One Of Two

As a trader, you ideally only have two options or approaches to achieving profitability:

  • Identify significant returns
  • Identify small and predictable returns

The latter provides consistency and is often overlooked by more greedy traders. However, consistently securing a 4% gain more frequently is actually a safer way of building your account. For example, you might secure a return of 40% on an altcoin trade. However, the next trade you open, sees the market collapse. In such a scenario, you are not really getting anywhere, especially if the market collapses further.

On the other hand… in a scenario where the fluctuations are lower, more predictable, and more frequent, there is a higher success rate. It’s simply a case of buying the floor of the range and selling the ceiling. Yes, often these floors and ceilings are broken. However, it is usually only a matter of 24 to 48 hours. In the case of HBD, the range tends to be between $0.97 and $1.01.

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However, taking a look at TradingView’s data reveals a somewhat larger zone. Regardless of the data sources, HBD offers consistent opportunities that are significant enough to provide profitable short-term trades.

Choosing to take advantage of this “market dynamic” can be extremely profitable over the longer term. Many Hivers look to sell on the massive pumps HBD experiences from time to time. However, these moves are less frequent, and also somewhat unpredictable. This trading idea is about capitalizing more frequently, and with more predictability.

Final Thoughts

If one decides to zoom in, the frequency increases, which ultimately creates additional opportunities. However, the profit margin simultaneously shrinks. Choosing to trade lower volatility levels will ultimately shrink the profit margin of each trade to approximately 1.5% to 2%, which is still extremely profitable, provided you are able to achieve two or three successful trades a day. At the end of the day, there are so many creative ways to extract gains from the market.

This is just another idea that may perhaps come in handy, or even spark some creativity, in relation to your existing strategies. Until next time, all the best!