Bitcoin is struggling...here's why.
GM, we take the latest Web3 news and translate it into plain old English - so you can stay up to date, without your eyes glazing over.
In today’s edition:
Bitcoin is struggling...here's why
Start your own investment fund in a few clicks
RESOURCE: What is Coinbase? Learn in ~9mins
The end of NFT transaction fees is a few months away (apparently)
Terms used (click for translation):
DAOs, NFTs, Gas Fees.
Bitcoin is struggling...here's why
Why is Bitcoin going down?
Let us answer your question, with another question...
Remember that time as a kid when you gorged yourself on soda and got so hyper you kicked a hole in the dry wall?
Then for years afterwards, your parents wouldn't let you within 10ft of a soda can...
(Ahhh, those were the days).
Sure, you were mad at the time, but you knew your parents weren't bad people. In fact, they were doing it for your own good.
The same thing is happening with the Federal Reserve and the money supply right now.
We've spent the last few years gorging ourselves on cheap loans and now the Federal Reserve is stepping in to say:
'RIGHT. That's it. Now more easy money! We're hiking interest rates.
If you want to borrow money, it's going to cost you a lot more than it used to.'
( that's a 100% verified quote btw*)
The idea being, that this will make cash more scarce and as a result, more valuable.
The downside is that, in the short term, investors have started tightening their purse strings and selling off their 'riskier' assets, which has dropped the price of things like tech stocks and crypto.
And that's why Bitcoin is hurting at the moment.
The good news is that BTC has held up surprisingly well against the stock market, which is a feather in the Bitcoin community's cap.
*it absolutely isn't.
Start your own investment fund in a few clicks
We love products that make tough things a whole lot easier.
Some of our favorites are:
Shopify
Lets you launch an online store in a few clicks.
Venmo
Lets you settle a 10 way group tab without pissing off your server.
Spanx
Look, we like our food and we hate the gym. Let us have this one.
And now, we might be ready to add to this list.
There's a new platform called Syndicate, that lets users easily create DAOs.
A DAO is essentially an automated investment club. The investment can be in anything, product development, NFTs, the US constitution...
You tell it where you want the money to go when you set it up, and as funds come in, it automatically disperses them.
In exchange for investment, users get tokens. If the group wants to invest in something new, it's put to a vote - the more tokens you hold, the more votes you get.
And if the investment does well, the tokens grow in value.
It's an awesome concept! But pretty hard to set up.
That's what Syndicate aims to solve. They let users create legally compliant DAOs in a few clicks of a button, which has the potential to democratize investing on a large scale.
It's a high concept, but an exciting one!
Resource of the day
What is Coinbase?
How did they become the biggest exchange?
Learn in ~9mins
The end of NFT transaction fees is a few months away (apparently)
Remember yesterday when we wrote about the crazy $3-$13K transaction (aka gas) fees on Ethereum caused by Bored Ape metaverse NFT sales?
Well, the cryptocurrency exchange 'Kraken', just came along with a solution.
Impeccable timing
Their pitch in a nutshell?
'Yeah, heard you got stung with some pretty big fees...
How about this: we'll let you trade those same Ethereum based NFTs on our platform for $0 per transaction.'
The exchange announced plans to launch their own NFT platform that lets users:
Trade without transaction fees (once the NFT is sent to their platform)
Pay for NFTs with crypto OR cash
Trade both Ethereum and Solana based NFTs
Track the rarity of your NFTs without using a marketplace like OpenSea
Sounds neat, when does it launch?
"In the next few months", according to Kraken.
(Vague, but we guess it'll have to do).
You can read up on the launch and join the waitlist here.
Your Daily Dose of Web3
Goldman Sachs partners with Coinbase for bank’s first Bitcoin-backed loan
MicroStrategy reports $170M impairment charge on Bitcoin holdings in Q1
CoinMarketCap launches The Capital Conference in the Metaverse
Charlie Munger comments on Bitcoin following Buffett’s public opinion over the weekend
Alright, that’s it for today!
Love to the family,