First, thanks to everyone who signed up for this newsletter. It's really the first time I've ever done anything like this, so I am open to straightforward feedback via email, gChat, or, if you know my phone number, text me. Thanks for the support!
Are BTC and ETH now overvalued?
Almost once a day I receive a text message from someone who thinks BTC and ETH are too “expensive”. If you're looking at these things as static assets, yeah, the price is ridiculous. Instead, it makes more sense to consider these as software-in-development. ETH is especially interesting in this way: in addition to being a tradable currency, it’s required for computation and storage on the Ethereum network. You may have heard people call BTC “internet gold” and if you agree with that, then ETH is “internet oil”. For example, imagine you have a computer that will only “do” something when you fuel it with ETH, that’s Ethereum! And as this computer gets faster and cheaper to use, more people will be using it… a LOT more people. The bottom line is: Bitcoin and Ethereum will get better, and as they improve, the value should come closer to something we can actually measure. In my opinion, we haven't even begun to reach price discovery.
Where should I buy X token?
If you're trying to minimize price for a limit order, you need to trade where you're seeing the most volume for your specific trading pair. While single-token global trade volume is usually the most prominently shown metric on price tracking sites, there's actually an easy way to find where a coin trades the most:
1. Go to coinmarketcap.com.
2. Choose a token to trade. For this example, I'll select ETH.
3. Click the Markets tab.
Here you'll be able to see which pairs trade the most volume, and where to trade that pair. In this case, Binance would check all the boxes for me: It supports trades between Ethereum and Bitcoin, and it does the most known amount of total Ethereum trade value.
Cool resources
Ivan on Tech
A refreshingly practical (and technical) channel on blockchain-related topics:
https://www.youtube.com/user/LiljeqvistIvan/videos
Great clip of Andreas Antonopoulos explaining Lightning Network, a feature that will improve BTC transaction and decrease fees, assuming any of the several implementations deliver as expected.
Just for fun
An interview with the guy who held up a “Buy Bitcoin” sign during a Janet Yellen testimony.
