Frank Schwab

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Unravel the Mystery of Crypto Investing - 8 Essential Themes.

Dive into the world of cryptocurrency investments. Uncover the secrets behind successful projects as you explore the backgrounds of the people behind, analyze code activity on platforms like GitHub, and test the functionality of crucial tools. Delve into the intricate realms of exchange support, tokenomics, and the underlying business model, all while evaluating a coin's potential and scrutinizing its sales and social media strategy. With these comprehensive guidelines, navigate the dynamic crypto landscape. 





⚠️ This is not an investment advice ⚠️ 



1️⃣ Check the Backgrounds of the Leadership & Team Members


One of the fundamental aspects of investing in cryptocurrencies is to thoroughly investigate the individuals behind the project. Examining their LinkedIn profiles, CVs, and assessing whether they are part-time or full-time contributors can provide valuable insights into their commitment and expertise. Additionally, evaluating their track record in previous projects can be instrumental in gauging their capability and reliability.





2️⃣ Code Activity Speaks For Itself


Most crypto projects are open source. Platforms like GitHub, serving as the repository for open-source code, are a treasure trove of information for cryptocurrency investors. Analyzing the project's coding activities can provide insight into the development team's breadth, dedication, and competence. Consistently active and transparent activities from numerous developers, along with progress updates, indicate a healthy and vibrant development community.





3️⃣ Test the Available Tools


The usability and functionality of the tools provided by a cryptocurrency project are crucial. Testing the website, apps, wallets, and other market-related tools can reveal the functionality, the convenience and user experience offered. A broad and deep ecosystem provides good indications of the seriousness and success prospects of a crypto project.





4️⃣ Assessing Exchange Support


To make informed investment decisions, it is crucial to assess the exchanges that support a specific cryptocurrency. Liquidity and market accessibility are directly influenced by the platforms on which a cryptocurrency is listed. Investigating the legal standing of these exchanges in relevant countries, their market approach, and any noteworthy stories associated with them offers valuable context for shaping a well-rounded investment strategy.




5️⃣ Understanding Tokenomics


In grasping the intricacies of tokenomics, one must delve into the fundamental principles governing a cryptocurrency's economic framework. This involves examining factors such as token supply, utility, governance mechanisms, and incentive structures. A comprehensive understanding of tokenomics is essential for navigating the dynamic landscape of decentralized economies and making informed investment decisions.





6️⃣ Understanding the Underlying Business Model


Investors should delve into the underlying business model of a cryptocurrency. How does the project generate value for its users and stakeholders? Understanding the utility and purpose of the coin can help assess its potential for long-term success.





7️⃣ Evaluating the Potential of the Coin


Assessing the potential of a cryptocurrency involves considering factors such as its use case, technology, and market demand. Investors should look beyond short-term fluctuations and focus on the project's long-term viability, scalability, and relevance in the ever-evolving crypto landscape.





8️⃣ Analyzing Sales and Social Media Strategy


The success of a cryptocurrency often relies on effective sales and social media strategies. From expert forums like Reddit and Bitcointalk to mainstream platforms like Facebook and Twitter, understanding how the project is perceived across different channels is crucial. Additionally, evaluating its international reach, including strategies in key regions like Asia, China, and India, can provide insights into its global potential.





💡In conclusion, navigating the complex world of cryptocurrency investments requires a diligent and multi-faceted approach. By following these eight themes, investors can make more informed decisions in the dynamic and rapidly evolving crypto market.


⚠️ This is not an investment advice ⚠️ 

Published in crypto, investing, cryptocurrency on 28.01.2024 17:19 Uhr. 0 commentsComment here

8 Views on Bitcoin & Bitcoin ETFs

Explore Bitcoin's global integration, investment accessibility, cost dynamics, ownership principles, geopolitical significance, inflation resistance, custodial practices, and the complexities influencing its performance in light of Bitcoin ETFs.




1️⃣ A New Era of Global Financial Integration Unfolds


By now, Bitcoin has established its presence in the world's most influential financial hubs, gaining recognition even from global banks and asset managers who were once critical.


2️⃣ Breaking Down Investment Barriers


The introduction of Bitcoin spot ETFs has simplified access to Bitcoin for investors previously constrained by regulatory limitations. Investors of all kinds can now participate in buying and selling, similar to traditional stocks, through regulated platforms.


3️⃣ Navigating the Price Structure of Bitcoin ETFs


While Bitcoin ETFs offer a convenient way to invest, there are additional costs involved, such as bank/brokerage custody fees, transaction costs, and spreads. This cost structure differs from holding one's own bitcoins, which incurs no management or custody fees.


4️⃣ #NotYourKeysNotYourCoins: The Vital Principle of Bitcoin Ownership and Security


The narrative #NotYourKeysNotYourCoins emphasizes the importance of maintaining control over one's Bitcoin. Bitcoin's core principles include decentralization, transparency, and resistance to censorship and manipulation.


5️⃣ Bitcoin is More than Speculation


Bitcoin is positioned as more than just a speculative investment. It can be a valuable asset for people in countries with corrupt leaders, dictators, or fragile financial systems, offering a way to escape currency devaluation and exclusion from the traditional financial system.


6️⃣ Inflation Resistance


Bitcoin's predictable nature as a form of currency without inflation sets it apart from traditional fiat systems. This characteristic gains significance when considering the substantial interest payments made by countries like the USA on their debt.


7️⃣ The Need for Custodial Diversity


Most Bitcoin ETF providers utilize Coinbase as a custodian. Fidelity stands out as the only provider operating with "self custody." Large investors seek diversification, not only in investment products but also in custodial practices.


8️⃣ Unraveling the Complex Factors Behind Bitcoin's Underperformance


Despite substantial capital influx into Bitcoin ETFs, the expected positive impact on Bitcoin's price hasn't materialized as quickly as anticipated. Factors like GBTC sales, low short-term demand for ETF-BTCs, and resistance from traditional financial players contribute to this underperformance.



Published in bitcoin, crypto on 27.01.2024 17:46 Uhr. 0 commentsComment here

6 themes members of the board of directors should know about the crypto currency & blockchain industry 

[Updated January 2024]  The cryptocurrency and blockchain industry has the potential to transform several industries. Board members are urged to proactively understand key themes, including disruptions, opportunities, legal considerations, risks, and industry dynamics, as the sector evolves.




The cryptocurrency and blockchain industry has the potential to reshape our perspectives on money, ownership, and trust. Cryptocurrencies and blockchain technology facilitate faster, cheaper, and more secure transactions, extending beyond digital currencies to include ICOs, STOs, and NFTs, among others. The current market cap of cryptocurrencies and blockchain tokens is approximately $1.76 trillion, representing nearly 2% of all global money.


As of August 2023, major cryptocurrencies such as Bitcoin, Ethereum, Ripple, Cardano, Dogecoin, and Tron are experiencing over 8 million daily transactions, a significant increase compared to August 2016.


Back in 2015, the World Economic Forum predicted that by 2027, around 10% of the global gross domestic product (GDP) would be stored on blockchain technology. Current trends indicate that this projection is on track. Notably, recent SEC approvals for cryptocurrency ETFs and new regulations like the European MiCA (Markets in Crypto-Assets) regulation are expected to further propel the crypto industry.




While the cryptocurrency and blockchain industry is still in its infancy, it is crucial for members of the board of directors to delve into key themes before these factors impact a company’s business model. It is recommended to gain insights into potential disruptions, new business opportunities, basic concepts and technologies, relevant laws and regulations, potential risks, and the dynamics of an emerging industry.


1. Potential disruption of several industries 


There are several industries that are potentially disrupted by cryptocurrencies and blockchain technologies. Members of the board of directors should observe the following industries and look for signs of disruption.


Supply chain management: Blockchain technology can enable increased transparency and security in supply chain management, allowing for more efficient tracking of goods and materials.


Real estate: Blockchain technology can be used to create a more efficient and transparent system for buying and selling property, as well as for tracking and managing property ownership.


Healthcare: Blockchain technology can be used to securely store and share medical records, as well as to facilitate more efficient and secure communication between healthcare providers.


Gaming & entertainment: Cryptocurrencies and blockchain technology can be used to enable new forms of digital ownership and monetization of in-game assets.


Retail: Cryptocurrencies and blockchain technology can be used to enable secure and transparent transactions between retailers and customers, as well as to improve supply chain management and inventory tracking.


Financial services: Cryptocurrencies and blockchain technology have the potential to disrupt traditional financial services by providing a more inclusive and accessible way for individuals and businesses to access financial services, such as banking and payments.






2. New business opportunities


Cryptocurrencies & blockchain technologies have the potential to enable a wide range of new business opportunities. Some of the most relevant examples include:


Supply Chain Management: Blockchain can be used to create transparent and tamper-proof records of transactions in supply chain management, allowing for increased trust and efficiency.


Digital Identity: Blockchain can be used to create secure and decentralized digital identities, allowing for greater privacy and control over personal information.


Gaming: Blockchain can be used to create decentralized and transparent in-game economies, allowing for true ownership of virtual assets.


Tokenization: Blockchain can be used to tokenize assets such as real estate, art, and other collectibles, making it possible to buy and sell fractions of these assets.


Payment: The use of cryptocurrency as a form of payment enables faster and cheaper transactions, especially cross-border transactions.

Crowdfunding: Blockchain can be used to create decentralized crowdfunding platforms, allowing for more transparent and efficient fundraising for projects.


Internet of Things: Blockchain technology can be used to create secure and decentralized networks for the Internet of Things (IoT), allowing for greater trust and control over the exchange of data.


Decentralized finance (DeFi): Blockchain technology can be used to create decentralized financial services, such as lending and borrowing platforms, that operate independently of traditional financial institutions.


3. Basic concepts & technologies


It is recommended to introduce the basic concepts and technologies behind cryptocurrencies and blockchain to the members of the board of directors. Decentralization, immutability, transparency, cryptography, smart contracts, distributed ledger, limited supply, anonymity, borderless and digital are the most central ones.




Decentralization: Blockchain technologies and respective cryptocurrencies are decentralized, meaning they are not controlled by any single entity or organization. Crypto currencies are not controlled by any central authority such as a government or central bank. This allows for increased autonomy and control for users over their own funds.


Immutability: Once a transaction is added to a block and the block is added to the blockchain, the information in that block cannot be altered. This ensures the integrity and immutability of the data and crypto currency transactions stored on the blockchain.


Transparency: Blockchain technology allows for increased transparency by providing a public, tamper-proof record of all crypto currency transactions.


Cryptography: Blockchain and crypto currencies use cryptography to secure and protect transactions, making it a secure technology for storing and sharing sensitive information. This also ensures the integrity and security of crypto currencies.


Smart Contracts: Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. These contracts can be stored and replicated on the blockchain network. 


Distributed Ledger: A distributed ledger is a database that is spread across a network of computers. Each copy of the database is identical and is updated simultaneously.


Limited supply: The total supply of most cryptocurrencies is limited, meaning that there is a maximum number of units that can be created. This can help to prevent inflation and ensure the value of the currency remains stable.


Anonymity: Cryptocurrencies can provide a high level of anonymity for users, as transactions are recorded using a public key rather than a name or personal information.


Borderless: Cryptocurrencies can be sent and received from anywhere in the world, and the transaction can be done almost instantaneously, regardless of geographical boundaries.


Digital: Blockchain & cryptocurrencies exist only in digital form and are stored and transferred electronically.



4. Relevant laws & regulations


Members of the board of directors should consider a number of laws and regulations related to cryptocurrencies and blockchain when developing their policies and procedures. It is important to note that the laws and regulations surrounding cryptocurrencies and blockchain technology vary by jurisdiction.


In June 2023, the European Union implemented one of the most advanced crypto regulations: 'MiCA' - The Markets in Crypto Assets Regulation. 


Some of the most relevant general laws are AML, KYC, taxation, securities, GDPR and smart contracts regulations:




Anti-money laundering (AML) laws: These laws aim to prevent the use of cryptocurrencies for illegal activities such as money laundering and terrorist financing.


Know-your-customer (KYC) regulations: These regulations require cryptocurrency exchanges and other companies to verify the identity of their customers.


Taxation laws: Different countries have different tax laws for cryptocurrencies, and it is important for individuals and businesses to comply with these laws to avoid penalties.


Securities laws: Some jurisdictions consider certain cryptocurrencies to be securities, and they are subject to securities laws and regulations.


Data privacy laws: As blockchain technology is used for storing data, it is important for companies to comply with data privacy laws such as the 

General Data Protection Regulation (GDPR) in the European Union.


Smart contracts regulations: Smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code, also fall under scrutiny and regulations.


Given that the crypto & blockchain industry is still at early stage the surrounding laws and regulations are constantly evolving and it is essential to stay informed of updates and changes in order to comply with them.



5. Potential risks


Cryptocurrencies and blockchain technology can bring several potential risks to a company.




Security risks: Cryptocurrencies and blockchain transactions are vulnerable to hacking, fraud, and other types of cyber attacks, which can lead to financial losses for the company.


Compliance risks: Cryptocurrencies and blockchain technology are still largely unregulated, and companies may not be fully aware of the legal and compliance requirements related to their use.


Volatility risks: The value of cryptocurrencies can be highly volatile, which can lead to significant financial losses for a company if they are holding a significant amount of cryptocurrency assets.




Source: CoinMarketCap.com


Operational risks: Implementing and using blockchain technology can be complex and may require significant resources and expertise, which can lead to operational challenges and disruptions for a company.


Reputational risks: Companies that are associated with cryptocurrencies and blockchain technology may be perceived as risky or untrustworthy by some customers, investors, and partners.



6. Dynamics of the early industry


The early cryptocurrency and blockchain industry sometimes feel like Wild West and has several key dynamics that members of the board of directors should be aware of.




High volatility in prices, as the market is still relatively new and uncertain. 


A high degree of speculation, as many investors buy cryptocurrencies in the hopes of making a quick profit.


A lack of regulation, which has led to a Wild West atmosphere and a lack of protection for investors.


Innovation and experimentation, as many companies and individuals are working to find new use cases for blockchain technology.


Heavy competition, as there are many different cryptocurrencies and blockchain projects vying for market share.


High growth potential, as the technology is still in its early stages and has the potential to disrupt a wide range of industries.


High speed of technological changes with new crypto currencies and different blockchain versions coming up every now and then.



Finally,  it's worth noting that while the crypto-currencies and blockchain industry is still in its early stages, regulations and institutional involvement have been increasing which may change the dynamics of the industry.



https://FrankSchwabSpeaks.com




Credits:


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Some pics are supported by Craiyon, https://www.craiyon.com 

Some pics are based on CoinMarketCap, https://CoinMarketCap.com


Published in crypto, cryptocurrency, cryptocurrencies, blockchain, technology, BoardMember,  6-themes-members-of-the-board-of-directors-should-know-about-the-crypto-currency-&-blockchain-industry  on 25.01.2023 17:48 Uhr. 0 commentsComment here

The four seasons of cryptocurrencies

Summary:  In the past few weeks, reports about the end of Bitcoin and cryptocurrencies have increased. It looks like that the history of crypto currency market capitalization can be divided into 4 seasons: spring, summer, autumn and winter. Following the last two cycles, one would now expect a fifth crypto winter lasting many months with a minimum market capitalization of USD 200 billion. But this time the upcoming crypto winter 2021 could be short-lived. 


It's that time again. In the past few days and weeks, reports about the end of Bitcoin and cryptocurrencies have increased. - Now for the fifth time - after June 2011 (cycle 1), April 2013 (cycle 2), December 2013 (cycle 3) and January 2018 (cycle 4).


The following perspectives and thoughts on the past two cycles (3 and 4) and the current fifth cycle:


Obviously, the course of the market capitalization of the fledgling cryptocurrency and blockchain industry repeats itself. Since the media repeatedly talk about the crypto winter, I ask myself several questions:


  • Are there also the crypto seasons spring, summer and autumn?
  • If so, how do they differ and how long do they last?


One try. What can be observed:





Cycle 3 - 2.5 years from May 2013 to Dec 2016
  • The six-month crypto spring May to Oct 2013 showed a stable market capitalization of USD 2.5 billion
  • In the only two-month crypto summer Oct / Nov 2013, the market capitalization quadrupled from USD 2.5 billion to more than USD 10 billion
  • In the two-month crypto fall Dec 2013 / Jan 2014, market capitalization peaked at USD 15 billion, which was six times the crypto spring.
  • The market capitalization of USD 5 billion in the following almost two-year crypto winter 2014/2015 fell to a third of the high of USD 15 billion in the crypto autumn 2013/2014
  • The market capitalization in the crypto winter 2014/2015 was at least USD 5 billion, roughly twice as high as the market capitalization in the crypto spring 2013.
  • In December 2015, market capitalization was back to just under USD 7 billion.



Cycle 4 - 2.25 years from Jan 2017 to March 2019


  • As part of the fourth cycle, a four-month spring can be observed. The 4th spring started with a market capitalization of more than USD 17 billion in Jan 2017 and in May 2017 it already had a fivefold increase in market capitalization with more than USD 90 billion.
  • The six-month summer that followed drove market capitalization as high as USD 650 billion from June 2017 to Dec 2017
  • And at the beginning of the crypto fall (Jan-May 2018) of the 4th cycle, the market capitalization reached more than USD 800 billion in Jan 2018.
  • This was followed by another, now the fourth, crypto winter, which started in June 2018 and after about eight months in Jan 2019 saw market capitalization shrink to USD 100 billion, 1/8 of the high a year earlier.
  • Despite this decline, even in the crypto winter of the fourth cycle, market capitalization remained constant above USD 100 billion and thus well above the market capitalization of spring



Cycle 5 - April 2020 to today


  • We are now in the 5th cycle, which started around April 2020 with a market capitalization of USD 180 billion.
  • In the nine-month spring (April to Dec 2020), a market capitalization of over USD 500 was already achieved in Dec 2020
  • The summer of the fifth cycle can be estimated over a four-month period from Jan to April 2021. At the end of the summer, market capitalization topped USD 2,200 billion for the first time.
  • And in May 2021, market capitalization hit its preliminary high of more than USD 2,500 billion.
  • Since May 2021 we have been in the autumn of the fifth cycle from my point of view.
  • A decline in market capitalization to USD 1,500 billion in May / June 2021 suggests that the fifth crypto winter is imminent

Outlook


Following the last two cycles, one would now expect a fifth crypto winter lasting many months with a minimum market capitalization of USD 200 billion.


But the upcoming crypto winter 2021 could be short-lived this time, because many framework conditions have developed significantly in the last few cycles and the next generation of private and commercial users is in the starting blocks. The maturity level of crypto projects, products, coins and tokens is also increasingly broader and deeper.


The global, financial framework conditions also show signs of change. Whether new FinTech attackers, large platforms or the unbelievably large amounts of new money from the central banks in recent months - traditional banks, financial service providers and FIAT currencies are in a state of upheaval, not least due to negative interest rates and expected inflation.


This opens up the opportunity for cryptocurrencies to establish themselves as digital currencies for a digitized world.


And the steadily increasing wallet and transaction numbers support this thinking.









Published in crypto, cryptocurrency, The-four-seasons-of-cryptocurrencies  on 07.06.2021 12:42 Uhr. 0 commentsComment here

2021 - The year of the "Altcoins"

Not the first cryptocurrency/bitcoin hype. Current cryptocurrency hype is mainly driven by bitcoin. 2021 may become the year of the altcoins.

Not the first cryptocurrency/bitcoin hype


The current hype about Bitcoin is not the first. As early as June 2011, April 2013, December 2013 and for the last time in January 2018, Bitcoin, together with many other crypto currencies, also known as Altcoins, reached a worldwide sensation and highs. With a market share of 40% and a price of 20,000 US dollars, the market capitalization of Bitcoin was at its last high of 330 billion US dollars and that of all cryptocurrencies together was 831 billion US dollars.



Current cryptocurrency hype is mainly driven by bitcoin


Right now it's that time again. Bitcoin has been climbing old and new highs for days and weeks. The fifth hype. But compared to the last hype, this time it is mainly Bitcoin that has greatly increased its market capitalization. With a price of more than 30,000 US dollars, Bitcoin has a market capitalization of more than 580 billion US dollars and a market share of 70%. That means the current cryptocurrency hype is mainly driven by Bitcoin.




2021 may become the year of the altcoins


The overall market for altcoins currently does not even reach half of the highs of 2018. Nevertheless, the market volume has increased more than tenfold since then. And meanwhile there are also the first useful applications based on blockchain and its altcoins. So you can assume that 2021 will be the year of the altcoins. Altcoins such as Ethereum, Polkadot, Cardano, Uniswap, Looppring and Nano have already recorded strong growth in the last few days.




Despite all the hype: the cryptocurrency market is still very young, setbacks, price collapses and even total losses of individual altcoins are to be expected, as well as high volatility of Bitcoin itself.


https://FrankSchwabSpeaks.com


Published in bitcoin, crypto,  cryptocurrency,  2021-The-year-of-the-Altcoins  on 05.01.2021 10:47 Uhr. 1 commentComment here

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