Doc's Daily Commentary

Mind Of Mav

Welcome To The Four Comma Club, Crypto

The situation in the cryptocurrency market is currently as exciting as it has ever been. Bitcoin is charting new highs daily, altcoins are also starting to see some notable gains, resulting in massive growth for the entire market.

For the first time ever, the market did something that not a lot of people believed in back a few years ago – it reached a total capitalization of $1 trillion.

It took some time, but the cryptocurrency market capitalization has finally hit the coveted $1 trillion mark. It’s now a member of the four comma club, though we have to see if this will last.

The move is substantial for the industry which grew astronomically in the past years. Compared to the beginning of 2020, the market cap is up a whopping 420%.

Having said this, the bulk of it comes from Bitcoin, which currently accounts for about 67% of the total market. This relative share of the cryptocurrency is also commonly referred to as the Bitcoin dominance index and has fluctuated largely throughout the years.

Second in line is Ethereum’s native cryptocurrency – Ether (ETH).

Over the years, many cryptocurrencies have come and gone from the top 10 but at the time of this writing, a definitive third is the popular stablecoin USDT (Tether). It’s the most commonly used stablecoin as traders use it to hedge their positions and also to denominate their trading portfolio. This is especially true in the derivatives market where high leverage exchanges allow trading against USDT.

Bitcoin is the world’s largest cryptocurrency by means of market cap and the latest increase is largely due to the increase in its price.

The most common comparison for Bitcoin is that with gold. It’s been regarded by gold 2.0 by many and that’s somewhat expected. They share a lot of qualities, the most predominant one being their scarcity. There’s a limited amount of gold on the planet and there will only be 21 million bitcoins in existence.

This is why people refer to gold as a store of value – it doesn’t inflate because we can’t get more of it (unlike fiat currency that’s not backed by gold). The same is true for bitcoins and the narrative that it’s a store of value is growing tremendously, especially in the past year. Riddled by the global pandemic, governments around the world have started printing money to keep their economies afloat – a process that ultimately reduces the value of the existing money in a process known as inflation.

This is where the similarities kind of end, though, and Bitcoin starts to shine. This is perhaps the reason for which massive institutional investors and NASDAQ-listed companies have started to turn to it.

But what is gold’s market cap? Well, according to a BBC article from 2020, there are around 190,000 tonnes of gold already mined in total. There’s no exact estimate of how much left there is and it’s a moving target, but some predictions put it around 20% higher than this number. It’s also worth noting that this is gold that’s economically viable to be mined. New technology might make it so that other reserves that are currently not worth mining, to be worth it.

At the current prices per ounce, this puts the total market cap at around $13.5 trillion or roughly around 1,460% larger than that of BTC. In other words – there’s plenty of room to grow!

 

The ReadySetCrypto "Three Token Pillars" Community Portfolio (V3)

Add your vote to the V3 Portfolio (Phase 3) by clicking here.

View V3 Portfolio (Phase 2) by clicking here.

View V3 Portfolio (Phase 1) by clicking here.

Read the V3 Portfolio guide by clicking here.

What is the goal of this portfolio?

The “Three Token Pillars” portfolio is democratically proportioned between the Three Pillars of the Token Economy & Interchain:

CryptoCurreny – Security Tokens (STO) – Decentralized Finance (DeFi)

With this portfolio, we will identify and take advantage of the opportunities within the Three
Pillars of ReadySetCrypto. We aim to Capitalise on the collective knowledge and experience of the RSC
community & build model portfolios containing the premier companies and projects
in the industry and manage risk allocation suitable for as many people as
possible.

The Second Phase of the RSC Community Portfolio V3 was to give us a general idea of the weightings people desire in each of the three pillars and also member’s risk tolerance. The Third Phase of the RSC Community Portfolio V3 has us closing in on a finalized portfolio allocation before we consolidated onto the highest quality projects.

Our Current Allocation As Of Phase Three:

Move Your Mouse Over Charts Below For More Information

The ReadySetCrypto "Top Ten Crypto" Community Portfolio (V4)

Add your vote to the V4 Portfolio by clicking here.

Read about building Crypto Portfolio Diversity by clicking here.

What is the goal of this portfolio? 

The “Top Ten Crypto” portfolio is a democratically proportioned portfolio balanced based on votes from members of the RSC community as to what they believe are the top 10 projects by potential.
This portfolio should be much more useful given the ever-changing market dynamics. In short, you rank the projects you believe deserve a spot in the top 10. It should represent a portfolio and rank that you believe will stand the test of time. Once we have a good cross-section, we can study and make an assessment as to where we see value and perhaps where some diamonds in the rough opportunities exist. In a perfect world, we will end up with a Pareto-style distribution that describes the largest value capture in the market.
To give an update on the position, each one listed in low to high relative risk:
SoV/money == BTC, DCR
Platforms == ETH, XTZ
Private Money == XMR / ZEC / ZEN
DeFi == MKR / SNX and stablecoins
It is the most realistic way for us to distill the entirety of what we have learned (and that includes the RSC community opinion). We have an array of articles that have gradually picked off one by one different projects, some of which end up being many thousands of words to come to this conclusion. It is not capitulation because we all remain in the market. It is simply a consolidation of quality. We seek the cream of the crop as the milk turns sour on aggregate.

Current Top 10 Rankings:

 

 

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