March Halftime Thoughts
Crypto Thoughts - History
In 2009 when Satoshi Nakamoto invented Bitcoin, he designed a way for people to get the new Bitcoin from mining for providing to the blockchain through computational work, or mining. New Bitcoin is minted for miners verifying the blockchain. When Bitcoin started, Bitcoin was set with a 50 Bitcoin block reward for miners, and then every 210,000 blocks, or roughly every four years, the block reward halves. So 210,000 blocks after the first other 210,000 blocks, Bitcoin halved, then only 25 new Bitcoins were rewarded to miners going forward and then half less every 210,000 blocks. That brought on cycles in crypto where you would see major pumps in Bitcoin and Ethereum or just overall crypto every 3 to 4 years for a halving. What is wildly different this cycle for crypto is that it's extended into the mainstream where even it’s mocked on SNL all the way to serious Super Bowl commercials.
Crypto is in this area where it is a stable currency for a few hours and up or down but then once it hits a level; it stabilizes pretty flat. Everyone wants Bitcoin at $500k/coin but to stay there, but people will take profits. That is the whole point of Bitcoin for most, to make more money than they started with. Elizabeth Warren just thinks Bitcoin is only backed by hype, but there is more to crypto than just hype week to week.
A theory of mine is that the satoshi wallet; now in the control of a dude, is controlling the price of Bitcoin by just selling off and buying as much as needed in order to make the price whatever they want. I am not talking about whales, though they may be helping, I am talking about Craig Wright in Australia who recently won the case of the satoshi wallet, which is half of the Bitcoin supply. Just a thought, but maybe that’s part of the plan.
Ukraine War and Cryptos Involvement
It must have been crazy seeing the Russian Ruble tank so low, and people in Russia standing in lines wanting money from their accounts. There was a large pump in Bitcoin and all of crypto and it could have been Russians buying bitcoin. The United States put sanctions on Russia more than they already had. This just means the Russian economy suffers, the people, those Russian oligarchs with yachts, just throw all their money into saver storages places. This is putting pressure on the United States government to do some regulations on crypto because it’s messing with their sanctions. People are leaving everything they had in Ukraine for other countries, but many Ukrainians are staying to fight. In the Marine Corps, I learned how to fire TOW missiles and Javelin Missiles. Javelins are being used and it’s odd seeing them in the news.
I don’t get how crypto works if the electricity is out though. With Russia being cut off from the world, crypto wallets are the new bank account for people maybe. Good luck finding a place to charge your phone though in Ukraine. Before Russia invaded Ukraine this time around, Ukraine held a large amount of Bitcoin, do they now? It was probably the miners totaling the Bitcoin amount in Ukraine and when they moved so did the Bitcoin.
Bitcoin vs CBDC – Tether – Stablecoins
Tether and USDC on coinbase are some of the most popular crypto coins. They are stablecoins and don’t go up in value, or down in value. I think Tether has to print/code more Tether to keep up with the Federal Reserve or the dollar amount on Tether would go down. That is probably true for all stablecoins then because if they go down it’s not stable. USDC or USD Coin is a digital Dollar, on the Ethereum blockchain and is owned by Coinbase; which is not the Central Bank Digital Dollar that should be rolling out sometime soon. President Biden is supposed to do an executive order on crypto regulation, at least for American citizens, this week. The executive order “leaked” online, just a screenshot of what it was, and it mentions stablecoins. I think the Central Bank just doesn’t want any other coin other than theirs, which hasn’t even came out yet. And when it does it will be a conflict of privacy a lot in America will have a problem when it finally goes all CBDC. Elizabeth Warren pointed out recently that stablecoins are mainly used to just trade the currency I think rather than people using it for a currency to buy milk or gas.
The Incubator Discord Server
This server is doing an NFT workshop March 28 – April 7, 2022, three people from the Incubator Discord Server are having classes but it costs money. They offered me a discount since I’m at the Degen level a couple of times now. College sports are getting into NFTs, according to Dave Portnoy, maybe something like NBA TopShot but for college players. I see the benefit of knowing NFTs really well but for me, it’s still a reach and I also can’t even afford a discount on the course. I strongly suggest the course because the instructors are really smart people and know so much about NFTs.
The New Normal podcast is their podcast, the two admins at the server do it on Tuesdays. MacNCheeasy does a crypto review on Monday nights at 8 pm. The server then talks to each other about their goals for the week after the crypto week in review. This server has levels, for how much you participate, each message counts as a point or score and everyone gets ranked. It does seem to take keep the server active since the whole thing is gamified. There is a guy in the technical analysis channel who does TA every morning for the whole server. And recently added was a shill your pet channel from people share pet photos; they have a programming channel if you’re a programmer. There is also a beginner channel, for people just coming to the server not knowing much about NFTs or crypto.
Be a nice human.
Songs Of The Week: