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The Wolf Den #606 - Ethereum Vs. The Internet

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October 25 · Issue #606 · View online
The Wolf Den Crypto Newsletter
Welcome to The Wolf Den! This is where I share my ideas about the market, technical analysis, education and advice regarding trader psychology and emotional control. The newsletter is released every weekday and is completely FREE.
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In This Issue:
  1. Ethereum Vs. The Internet
  2. Bitcoin Thoughts And Analysis
  3. Altcoin Charts
  4. Legacy Markets
  5. Bitcoin Outperformed In Q3
  6. Reddit NFTs Are A Success
  7. My Recommended Platforms And Tools
Ethereum Vs. The Internet
Think back to the early 1990s.
Ok, some of you may not have been born yet, but humor me.
The first iterations of the internet were going live, largely simple search engines and information sources posted online. The internet was like a digital version of a library. Visionaries understood the promise of a global open information source and peer to peer communication and grasped the full potential of the internet. But they had no idea how to build it - the tools did not yet exist.
The internet was close, yet far away. 
Does this sound familiar to crypto today?
A breakthrough was required at the base layer to unlock the full potential of the internet. The answer to achieving this is obvious now, but wasn’t obvious at first.
After 1996, the internal programming language of the internet was finally written in a way that was conducive to building for mainstream adoption.
This is almost identical to the story of Ethereum.
Let’s rewind.
Before the web became the World Wide Web, the programming language was simple HTML. User functionality was extremely limited. Older readers will likely remember the popularity of Geocities, which rose and fell in usage like a volatile shitcoin. No amount of flashy text was good enough to sustain the hype. More was needed.
HTML developers recognized that functionality was limited, so they optimized the HTML scripting language and added a “form feature.” The form feature was a positive step, but it didn’t bring in the masses. Adding forms to HTML was like building Colored Coins on Bitcoin. The vision was there, but the usability wasn’t. 
The base layer was insufficient. Developers realized that they needed a new, universal language. Java Script was the answer.
Many of you may not know, but JavaScript was invented by Brendan Eich, who also founded Brave Browser. Brendan is an avid crypto builder - we spoke at Consensus, if you missed it.
JavaScript is now used universally - we don’t think twice about the technology powering Gmail, FaceBook, AngryBirds, or even Bitcoin wallets, but it is always there. Most importantly, the developers were largely unconcerned with the platforms that would eventually be built. They were dedicated to building a sufficient base layer. They knew the world would do the rest.
Ethereum’s story is almost exactly the same. Although it is still a work in progress, Ethereum is the base layer of Web3, just like JavaScript was for Web2 in 1996. Ethereum is the most complete language we have in crypto, which is why developers continue to build on top of it. And the development is just getting started. Ethereum 2.0 is still an early stop on the roadmap, with much more to come.
Like the internet in 1996, Ethereum is just at the beginning of a massive cycle of innovation.
Bitcoin Thoughts And Analysis
Do you like my chart?
Watching the Bitcoin chart is almost as exciting and worthwhile as watching paint dry.
Still nothing to see here today.
Legacy Markets
Stock Market Today: Dow, S&P Live Updates for Oct. 25 - Bloomberg
US equity-index futures fell Tuesday as traders prepared for another busy day of earnings ahead of the Federal Reserve’s policy meeting next week. Treasury yields dipped for a second day and the dollar was steady.
Key events this week:
  • Earnings due this week include: Apple, Microsoft, Exxon Mobil, Ford Motor, Credit Suisse, Airbus, Alphabet, Amazon, Bank of China, Boeing, Caterpillar, Cnooc, Coca-Cola, Intel, McDonald’s, Mercedes-Benz, Merck, Samsung Electronics, Shell, UPS, Vale, Visa, Volkswagen
  • US Conference Board consumer confidence, Tuesday
  • Bank of Canada rate decision, Wednesday
  • ECB rate decision, Thursday
  • US GDP, durable goods orders, initial jobless claims, Thursday
  • Bank of Japan policy decision, Friday
  • US personal income, personal spending, pending home sales, University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
  • Futures on the S&P 500 fell 0.4% as of 5:51 a.m. New York time
  • Futures on the Nasdaq 100 fell 0.2%
  • Futures on the Dow Jones Industrial Average fell 0.5%
  • The Stoxx Europe 600 was little changed
  • The MSCI World index was little changed
Currencies
  • The Bloomberg Dollar Spot Index was little changed
  • The euro was little changed at $0.9870
  • The British pound rose 0.3% to $1.1314
  • The Japanese yen was little changed at 148.90 per dollar
Cryptocurrencies
  • Bitcoin fell 0.5% to $19,283.01
  • Ether fell 0.4% to $1,345.4
Bonds
  • The yield on 10-year Treasuries declined six basis points to 4.18%
  • Germany’s 10-year yield declined six basis points to 2.27%
  • Britain’s 10-year yield declined three basis points to 3.71%
Commodities
  • West Texas Intermediate crude fell 1.5% to $83.34 a barrel
  • Gold futures fell 0.5% to $1,646.20 an ounce
Bitcoin Outperformed In Q3
Bitcoin outperforms all major asset classes in Q3 2022 except US Dollar Index
Bitcoin’s lack of price action and volatility has actually turned into a positive. While the notion of Bitcoin “outperforming” by simply going sideways may seem nonsensical, the argument is valid when everything else is on fire. Equities were weak, foreign currencies entered the DXY slaughterhouse, and traditional stores of value barely budged.
The correlation between Bitcoin and equities is gone in the short term. That narrative is finally buried for the moment.
For now, I will take sideways Bitcoin and “losing less.”
Reddit NFTs Are A Success
Reddit NFT trading volume hits all-time high as wallet holders near 3 million
Reddit launched a collectible avatar marketplace in July on Polygon for users on Vault, Reddit’s cryptocurrency wallet. Recent data from Polygon and Dune Analytics shows that the project has been a huge success. In just the past 24 hours, trading volume eclipsed $1.5m from a combined 3,780 sales.
Reddit NFTs are performing well, even in a depressed and dropping NFT market. As long as developers provide value for their users, Reddit should find success. This shows the power of a strong community.
Plus, it’s a win for Polygon.
My Recommended Platforms And Tools
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to “Buy,” “Sell,” or “Hold” an investment.
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