🧘‍♂️Major Ethereum Update

Market Meditations | March 10, 2021

Ethereum, Regulations and New Crypto Products

Dear Meditators

The show must go on ? That was our motto this morning, when many crypto accounts, including Koroush AK, were suspended ❌

We are delighted to talk: Ethereum, Regulations and New Crypto Products with you today. Because whatever comes our way, we will continue to Build Wealth. Every. Single. Day. ✅

Read, enjoy and share with your network. Let’s all grow richer together.


MARKET BRIEFING

  • Crypto. At press time, Bitcoin sits comfortably north of $56k, reflecting the continued and persistent institutional demand to buy the dips. Ethereum has surpassed the $1,800 level which, subject to daily close, confirms a bullish bias. Our $ETH strategy is explained in today’s YouTube video. In other news, a decentralized exchange has launched Dogecoin swaps. 

  • Legacy. U.S. Core Inflation (CPI) missed estimates today, by rising less than analysts expected. This suggests that inflation is at hand (at least for the time being). In equities, Tesla is slowly but surely climbing back and is up roughly 3% along with the rest of the tech sector, which is showing signs of recovery. GameStop has also climbed for a 6th day, more than doubling in a week.


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MARKET MEDITATION 

Major Ethereum Update: EIP-1559

? This section of today’s newsletter is made available to our premium community only.

We’d like to take this opportunity to ensure our premium community is completely updated with all things Ethereum. Let’s dive in ?

The price of Ethereum has increased by more than 130% in 2021 alone ? reaching a height just a touch past $2000 in early February, before crashing violently back to the $1200s ? shortly thereafter. If you’d like to see my most recent Ethereum update, check out my ?YouTube video ? here.

Many have dismissed the Ethereum network due to its ⛽expensive gas fees, ?slow transaction speeds, and ?inability to scale over the past two years. That said, blockchain developers have recently approved ? an upgrade to the Ethereum network that just may solve these problems. In this article, we’ll explain the upgrade, and take a look at how it impacts traders and investors. ?

Scheduled to go live in ? July 2021, the Ethereum EIP 1559 upgrade primarily aims to ?alter the way network transactions work. Want to see how you might personally be affected? ?

✅Let’s say you want to transact on the Ethereum network. For example, you’re trading a new altcoin on Uniswap and need to move ETH to your wallet in order to enter the trade. 

  • ?Currently, you’d pay a gas fee to a miner who works to verify your transaction and include it in a block. 

  • ?After the upgrade, however, you pay this gas fee to the network rather than the miner. The network then “burns” ?your token or removes it from circulating supply.Why do I care whether tokens are burned or paid to miners?” you may ask.

As more people ? just like you transact on the network, more gas fees are burned ❌. In other words as the Ethereum network is more widely adopted more ETH is removed from supply. For this reason, many have argued that EIP 1559 makes ETH deflationary ⬇️

But would EIP 1559 lead to more widespread adoption? We’re so glad you asked, fellow Market Meditator ??! The upgrade will also stabilize the ? frustrating inconsistency of gas fees, which has been one of the primary reasons traders have moved to other networks given that they want to know what their costs and fees are. ✅The upgrade will allow developers to give users more reliable and accurate estimates of fees they’d pay. 

❓So how would this impact Ethereum investors? It’s likely that the upgrade will encourage more people to use the network. As more people use the network, ETH will continue to be burned. Sounds like an increase in demand, but reduction in supply to me. ?Basic laws of economics suggest that an asset under such conditions should rise in price over time.?

It’s worth discussing two drawbacks ❌ of the EIP 1559 upgrade. One of the biggest groups against the upgrade are miners, who stand to lose 20-35% of their income ?. Given that mining revenue reached an astounding $1.37 billion in February, this is certainly more than pocket change.

Another downside ⬇️directly relevant for traders is that if ETH prices rise in response to the upgrade’s deflationary nature, the fiat value of the fees you pay to use the network over time also increases ?. Of course, as responsible traders these should be things that we plan ahead for when creating our trading plan.


GAME

Twitter CEO Jack Dorsey is selling his first ever tweet as an NFT. What is the current highest bid? 

  1. $1.5 million

  2. $2.5 million 

  3. $3.5 million

Scroll down for the answer ?


STOCK MARKET NEWS & ANALYSIS 

JPMorgan Filings Reveal New ‘Basket’ Crypto Product

Another day, a new means for institutional investors to gain exposure to cryptocurrencies. A bundle of regulatory filings with the SEC indicate that banking giant JPMorgan is giving investor clients a new way to gain exposure to crypto in the form of public-company stocks involved with digital assets ?

The ‘basket’ of companies include names well-known in the crypto space, such as MicroStrategy, Square and Paypal ? (a payments company that is building support for crypto into its app and earlier this week announced its acquisition of crypto security firm Curv). The news comes after JPMorgan distributed an educational deck to clients, to help them understand the basics of cryptocurrencies and its role as a ‘portfolio diversifier’. 

? This is different from your typical product because the exposure is not directly tied to any particular cryptocurrency. 

News of this product is perhaps another sign of demand among Wall Street clientele for any kind or exposure to crypto, even indirect ✅ Further, it goes to show that companies with a big stake in crypto are believed to have a high growth trajectory ? A digital asset executive for Goldman Sachs, in a recent podcast, spoke to the degree of investor interest and the increasing interest from private banks and wealth management. Not a class of investor that has been very active in the space before.


ANSWER 

2. $2.5 million

Bidding on the tweet has sat at $2.5 million since March 6. The bid is from Sina Estavi, the CEO of Tron’s oracle network, Bridge ?

Dorsey announced today that the bidding will end on March 21st and that he will accept the winning bid, convert the proceeds to Bitcoin and send to charity GiveDirectly ?

The level of demand for Dorsey’s tweet is reflective of the acceleration and adoption of NFTs. This is positive for the industry, as it continues to mature. And of course that which is positive for NFTs is indirectly positive for Ethereum (where the majority of NFTs are exchanged) ✅

It also goes to show the acceleration in the pace of crypto charity donations. GiveDirectly has received more than $20 million worth of crypto donations so far. With the amount of wealth being generated in crypto markets, crypto philanthropy could go a long way ?


CRYPTO REGULATION

Crypto: Commodity or Security?

According to this article from Coindesk, U.S. Congress is currently trying to clarify digital asset regulation. More specifically, Reps. Patrick McHenry (R-N.C.) and Stephen Lynch (D-Mass.) introduced legislation, the “Eliminate Barriers to Innovation Act of 2021” to clarify whether a particular token is a security or commodity.

It’s no mystery that crypto regulation is murky. For traders and investors alike, a lack of appropriate regulation leads to confusion across the board. A proposal to increase clarity supports the crypto community in two primary ways

✅First, clear regulation legitimizes crypto as an asset class. ?Would you have ever imagined a few years ago that the U.S. government would be willing to work with cryptocurrency industry experts to write well-informed legislation? The fact that the discussion is being had reinforces the fact that crypto has gone mainstream and will continue to be adopted overtime. This is bullish for investors in the space ?

✅Second, clear regulation encourages market participation ?. Just like Bitcoin and Ethereum futures allowed institutional investors to get involved in crypto in familiar ways, bills such as the one proposed provide more clarity ?for the average retail investor to dedicate a percentage of their wealth to the asset class as part of a well diversified portfolio. For traders and investors, this means in the context of the macroeconomic environment, we are still early ?


PODCAST

Overcoming Adversity with David De Vriesere

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CLICK HERE TO FOR EARLY ACCESS ?

David De Vriesere (@DVriesere) is a social entrepreneur currently involved in 5 charities. He also works to educate people on the power of Bitcoin and blockchain technology.

Key Takeaways

  1. Having patience is key. Set daily, achievable micro-goals ? and you will build a solid foundation for success.

  2. Practice meditation. ? Meditation allows you to be self aware and truly understand what makes you happy.

  3. Give without expectations. Add value to society and you will also benefit in the long run.

  4. Money ? and popularity won’t make you happy. It is having the right mindset and achieving your goals that will give you satisfaction.?

  5. Social media is not the only place to get involved in crypto. Give back, educate and build connections within your local community.

  6. Being authentic is crucial. Be yourself and you will build trust with others in ways not otherwise possible.


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Disclaimer: The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. 


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