Doc's Daily Commentary

Mind Of Mav

The Only Question To Ask On Bearish Days Like Today

And, just like that, we’re back in bear season.

The price of bitcoin slipped 10% in two days to fall below the $30,000 level for the first time since the beginning of the year. The total market value of all cryptocurrencies shed more than $100 billion in the last 72 hours.

Of course, I can bring out the “ol’ faithful” response of “just zoom out”, and very clearly this recent dip is small in comparison to the last two months of run-up, or the drop last March.   

 

Indeed, it was inevitable that we’d see something to this effect after a historic parabolic move, and what’s telling is that the FUD behind this drop (fear, uncertainty and doubt) is largely overblown, if not completely false.

As we discussed in today’s OMNIA call, the Bitcoin double-spend that was reported was incorrect, and the opinion of newly appointed US Treasury Secretary, Janet Yellen, that Bitcoin and cryptocurrencies need more oversight due to their propensity for illicit activities . . . well, let’s just say these are systemic catastrophes that should warrant a -25% move in the past 7 days.

However, instead of just giving you a hand-waving perma-bull response of, “just zoom out, bro. It’s going to be OK, bro”, let’s really think about this for just a second.

After all, this is surely not the last time we’ll see overblown or incorrect information scare the market and inflame the emotions of the investing herd. So, let’s just study the price instead.

Rather than focusing on whatever “catalyst” gets thrown our way — positive or negative — we should instead just ask a simple question: why isn’t it $0?

While the price action has been sharply negative, the fact that Bitcoin is still trading around $30,000 debunks the idea of it being hacked in some way, or that the US Federal Government is about to ban / confiscate / screw with crypto. If those were true, it would be already close to zero. 

We saw that happen back in March. The entire world market was melting down, and Bitcoin was hit hard.

But, did it go to $0?

No.

It bounced off $3,000 and less than a year later I’m sure we all wish we had bought more then.

So, don’t look at today as doomsday. Don’t buy into FUD. Don’t let your emotions get the best of you.

Zoom out, really study the price chart, and then ask why it didn’t go to $0.

Trade dispassionately and understand what the herd is doing so you can take the opposite stance. 

After all, Bitcoin will come back, and soon we’ll see $50,000. See you then.

 

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:

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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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