Phenom Ventures Founder on Real Vision™️

Eric’s interview this week isn’t directly crypto related but he highlights some mining investment opportunities. If you are interested in this sector, check out our metals and mining publication The Gold Investment Letter

Key Takeaways from the Messari Annual Report

Messari released their all encompassing annual report this week. If you are’t familiar, this 200 page report is a forwarding looking guidance on where the industry is going over the next year. We dove into it this week and wanted to share a few of the key highlights from the Investment Trends section.

📈 Bitcoin & Digital Gold:

Long story short, BTC is still King. Messari thinks btc will continue to outperform. Below are some of the main points of their case.

• - 📅 Current Context: Similar to Jan 2015 and Dec 2018; a potential high-value investment period.

• - 🚀 Long-Term Attraction: Bitcoin's appeal over time is strong, despite short-term unpredictability.

• - 🏦 Economic Uncertainties: Federal Reserve's actions and potential recession impact are unknown.

• - 📊 MVRV Analysis: With a 1.3 MVRV, Bitcoin is not in deep value territory, but still a reasonable buy.

• - 🛡️ Bitcoin Dominance: Likely to lead recoveries; dominance has fluctuated but room for growth exists.

• - 🔄 ETF Influence: Bitcoin ETFs may distort MVRV ratios; bitcoin's dominance may increase.

• - 🧐 Skepticism on Ethereum's "ultrasound money" narrative.

• - 🏅 Bitcoin vs. Gold: Potential for bitcoin to match or exceed gold's value. At current parity that would mean $600k BTC

🔗 ETH & The World Computer:

Ryan at Messari has been catching a bunch of flak this week after tweating out this section of the report basically saying Eth is too dominate and that it will underperform vs other competitors. He is getting roasted by Eth Maxis but we think his investment thesis is correct.

• - 🌐 Ethereum's Advances: Successful "Merge" and "Shapella" upgrades.

• - 🔻 Ethereum's Position: Struggles to outperform both Bitcoin and emerging blockchain networks.

• - 🔄 Market Dynamics: Ethereum faces competition from newer, potentially more agile networks.

• - 📉 Relative Performance: Bearish on Ethereum's relative performance, despite its resilience and technical successes.

🤖 AI & Crypto: Money for the Machines

AI is everywhere right now. There have been some exciting runs in this sector already but it will continue to be a hot performing area.

• - 🌐 Digital Era: Importance of crypto for verifying digital content in the AI age.

• - 🕵️‍♂️ Deep Fakes & Verification: Crypto's role in authenticating and timestamping data.

• - 📈 AI's Boost to Crypto: AI advancements are expected to increase demand for crypto solutions.

• - 💡 Bitcoin & AI: Bitcoin viewed as an ideal currency for AI due to its energy value stability.

• - 🔄 AI and Blockchain Interaction: AI may prefer blockchains with lower costs and latency.

• - 📊 Crypto Projects & AI: Focus on crypto projects that benefit from AI integration.

🚀 Three New De's: DePIN, DeSoc, DeSci

• - 🌍 Decentralized Finance (DeFi): Cautious optimism despite regulatory challenges and market volatility.

• - 🛰️ DePIN (Physical Infrastructure Networks): Potential for significant growth in decentralized cloud services.

• - 📱 DeSoc (Social Media): Emerging potential in decentralized social media platforms.

• - 🔬 DeSci (Decentralized Science): Crypto's role in revolutionizing scientific research and funding.

• - 📈 Market Potential: Huge opportunities in decentralized solutions for cloud services, social media, and science.

BlockBuzz™️

Quick Hitters from the week

• Solana Saga Phone Users Get a Big Surprise: Access Protocol airdrops a generous 100k $ACS to lucky Solana Saga phone owners.

• BlackRock and Nasdaq's SEC Huddle: Representatives meet again for crucial talks on the necessary rule changes for launching a BTC ETF.

• China's NFT and dApp Ambitions: The country's industrial ministry drafts strategic plans to propel the growth of NFTs and decentralized applications.

• Bitcoin Options Hit Record High on CME: Open interest in Bitcoin options reaches an unprecedented peak.

• Security Alert for Okx Wallet Users: Okx patches a critical flaw in its iOS app, urging users to update immediately.

• HashKey Capital's Regulatory Milestone in Singapore: Secures a central bank license for fund-management services.

• Marathon Digital's Cost-Cutting Mining Move: Acquires two sites for $178.6M, targeting reduced mining expenses ahead of next year.

• FTX Liquidation Takes a Unified Turn: Bahamas and U.S. teams strike a deal to consolidate assets for global customer redistribution, awaiting court approvals.

• UK's Crypto Banking Dialogue: Finance Minister Jeremy Hunt commits to tackling the banking challenges faced by crypto companies.

• Iron Bank Euro Faces a Rocky Road: ibEUR's value nosedives by 60%, stirring market unrest and uncertain recovery prospects.

• Immutable's Gateway to Web3 Gaming: Launches a cross-platform Passport, bridging identities and assets across games and marketplaces for over 500,000 users.

The Twitterverse

A collection of the most interesting stuff on Crypto Twitter this week

WAGMI

For the Crypto Culture

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.