August 25th 2023

Newsletter Issue #75

GM. This is Ponder Crypto.

The newsletter that appreciates the occasional dip, and encourages you to do the same.

Featured Topics

📈 2023 in Review + Reminder

📰 Crypto Chronicles 2023: Week 34

🎥 This Week on PonderTube

😎 NEW Section! - Crypto for Beginners

🤔 Quiz Time! - Facts about the SEC

😂 Memes of the Week

📈 2023 in Review + Reminder

Before we talk about where we're headed, let's have a look at where we've come.

Here is a recap of 2023 so far.

Look, we all love seeing our portfolio rise.

It's addictive, euphoric even,

But let's not lose sight of a few things:

1 / Bitcoin and Crypto Projects are challenging the status quo.

Anytime you take on an established system, expect turbulence; especially when that established system has to do with money.

Do not focus on the short-term noise or short-term price movements.

If 10% drops are making you question your investment, you either:

• Have too much invested
• Don't believe in your investments like you think you do

There is a decent chance Bitcoin, crypto and many global markets will trend down for the next few months.

So what!

Put Twitter down, stay off crypto subreddits, go outside and exercise, or read that book you've been wanting to read.

...But don't stop reading Ponder Crypto of course.😜

2 / A single Bitcoin is worth $26 THOUSAND US dollars

Bitcoin is here to stay. It's not going anywhere.

This technology was birthed because our systems were broken and it will be adopted because people will need a life boat off this sinking ship.

Bitcoin is freedom money, and at a time where we need:

• Freedom from inflation
• Freedom from corruption
• Freedom from censorship
• Freedom from greed, and
• Freedom from manipulation

Bitcoin will prevail.

To wrap up this market analysis style:

• Short Term Outlook: Don't Care 🥱
• Long Term Outlook: Bullish 🐂

Not financial advice, just my .02 Satoshis.

📰 Crypto Chronicles 2023: Week 34

Interesting stories this week.

1 / Bitcoin Speculators are Underwater on 88% of their BTC Bags: Research (source)

Brief Summary: Recent research indicates that after Bitcoin's sudden price drop to $26,000, approximately 88% of Bitcoin speculators, specifically short-term holders (STHs) defined as those holding Bitcoin for 155 days or less, find their investments in a loss. Out of 2.56 million BTC held by STHs, only 11.7% remains profitable. This group has become increasingly reactive to market fluctuations, especially as many of them purchased Bitcoin at higher prices during the 2023 rally. In contrast, long-term holders (LTHs), often referred to as classic "hodlers," have largely remained unresponsive to the price drop, with their Bitcoin holdings even reaching a new all-time high, suggesting their resilience and consistent holding behavior during market downturns.

Ponder Crypto's Take: As a LTH (long-term holder) ourselves, we understand and expect the volatility that we have seen within the last week or so. We are not at all surprised that there was not much of a reaction from the rest of HODL nation because we are still part of the early times and know that Bitcoin has a way to go. On the other hand, STH (short-term holders) are probably fairly frustrated that they lost so much in such a short amount of time. Here's hoping that their soft, mushy hands will turn to diamonds so they can hang around for a while with the rest of us! HODL your Bitcoin and take advantage of these dips!

2 / How a Minimum-Viable Approach Could Drive Bitcoin Adoption (source)

Brief Summary: Dave Birnbaum, the product director at Coinbits, argues that for Bitcoin adoption to truly thrive, newcomers need to understand its value beyond mere convenience. While one could use Bitcoin without grasping its underlying technology, just like many don't understand the intricacies of their credit card, it's essential to avoid oversimplifying Bitcoin to the point it seems equivalent to traditional financial services. Most financial systems involve layers of entities, contracts, and IOUs, introducing counterparty risks - such as financial institutions potentially mismanaging assets or becoming compromised. While some might argue Bitcoin as "digital gold," Birnbaum suggests educators balance theoretical explanations with hands-on experiences. For sustainable Bitcoin adoption, a "minimum-viable knowledge" approach, which combines understanding with experience, is recommended. This ensures individuals see Bitcoin's potential to empower them against financial uncertainties and become genuine advocates.

Ponder Crypto's Take: This article is an important reminder for all Bitcoiners that when discussing cryptocurrencies with newbies, it is best to keep it simple at first and allow them some time to process and ask questions. There are a lot of people that don't care to understand HOW things in finance work. If they can swipe their card and pay for something they want, why should they care what happens behind the scenes? If someone has never had an issue with the banking system before, why would they want to shake things up? "Come for the curiosity, stay for the revolution" is an interesting take on how to spread the word about the benefits and financial freedoms of this new technology. So, next time you have the opportunity to share your knowledge, engage their curiosity first, then drop the hammer of how it can change our lives and allow us to take control back from financial institutions.

3 / Bitcoin Mining Startup Raises $13 Million to Turn Trash Into BTC (source)

Brief Summary: Nodal Power, a startup, has raised $13 million in funding to continue its initiative of converting methane gas from landfills into electricity. This electricity is then sold to local grids as renewable power. Methane is a potent greenhouse gas, even more so than carbon dioxide, and its release contributes significantly to global warming. By capturing and converting it into power, Nodal Power not only produces a valuable resource but also mitigates environmental harm. While a lot of the generated power is supplied to the grid, some is used for Bitcoin mining, especially when selling to the grid isn't economically favorable. Nodal Power currently runs two mining data centers in the US, with a third planned for 2024. The potential of utilizing methane for such purposes is highlighted by a report indicating that the flared methane in the U.S. and Canada could power the entire Bitcoin network.

Ponder Crypto's Take: With the price of mining one Bitcoin ranging from around $17,000 in New Mexico to over $114,000 in Hawaii, it is cool to see Nodal Power using landfills to not only feed the power grids, but to also use the leftover energy to mine Bitcoin. Nodal Power captures and repurposes methane gas from landfills using generators to produce power. They currently have two mining data centers in the US and plan to have another location in 2024. We appreciate how they reduce carbon emissions, make the atmosphere cleaner and utilize "wasted resources" to mine Bitcoin.

🎥 This Week on PonderTube

An Urgent Warning to All Investors

Why We Chose This Video: Joe Brown (Heresy Financial) does not fearmonger. When he raises the flag and says, "Houston, we've got a problem," you can rest assured he's done his due diligence and research. In this video, Joe goes over some of the cracks that are starting to appear globally that could signal some challenging times ahead. It's good to hear multiple perspectives in case something bad happens, you won't find yourself caught off guard.

Erik Voorhees Knows How to Stop Crypto's Biggest Threat

Why We Chose this Video: This video showcases the knowledge and leadership of one of the most respected names in cryptocurrencies, Erik Voorhees. It discusses that Bitcoin should not just be looked at as a way to potentially make money, but as a solution to our financial crisis and how to separate money from banks and governments.

😎 NEW Section! - Crypto for Beginners

Why Crypto for Beginners? - Feedback from our readers has inspired us to add this section to our newsletter. Each week, we will circle back to the basics and assist our novice readers in building a foundational understanding of cryptocurrencies. We will also have some common terminology defined below in case there was something you read above that was not quite clear.

This Week's Topic - Why was Bitcoin created and what is all the hype about? - Satoshi Nakamoto (an anonymous person(s) whose identity is still not known) created Bitcoin and wrote the Bitcoin white paper in 2008. The Bitcoin white paper introduced the concept of blockchain technology (informational video linked), which allows Bitcoin to work. Satoshi created Bitcoin as an alternative to fiat (government created currency, like the dollar) and was most likely inspired by the financial crisis happening at the time. 

Bitcoin is known as a decentralized currency because there is no central authority, like a bank or government, that can control it. There are also a limited amount of Bitcoin that will ever be created; 21,000,000 to be exact. This is an exciting concept because governments, or anyone for that matter, cannot create more of it, therefore it is protected from inflation. More and more of our "money" is being printed, which is causing it to be worth less and less. 

History shows that forms of money change with time and innovations in technology. Forms of money started with things like seashells, glass beads, silver and gold coins, to finally the fiat system we use today.  We have outgrown our current system and need something new and innovative, and that will put financial freedom back into the hands of the people.

Bitcoin provides a way for people to take back control of their money from governments and central banks. Anyone in the world with an internet connection can use it to purchase items or send to loved ones without the need for a 3rd party bank or entity. Bitcoin takes out the middle man and gives full authority to the user on how they want to use their money. As with all forms of new technology, there is always a period of time where adoption takes forever because of skepticism (like the internet... and we all know how that turned out). 

Bottom line... take time to learn! Read what you can, watch what you can and allow yourself to see the benefits of Bitcoin and blockchain technology. 

Key Terms from Today's Newsletter

HODL - An accidental typo in the crypto space for the word "hold" that was given the acronym "Hold on for Dear Life". If someone is a HODLer, they do not sell their crypto easily.

Diamond Hands - People with "diamond hands" hold onto their Bitcoin and other cryptocurrencies regardless of price swings.

Volatility - Bitcoin and other cryptocurrencies are seen as volatile because the price goes up and down all the time. 

Bitcoin Mining - Bitcoin mining verifies transactions and adds them to the blockchain. It is also how new Bitcoins are created, or introduced into circulation. Remember, there will only ever be 21 million Bitcoin!

Fiat - Our current, government-created money system that is not backed by anything. Our paper money used to be backed by the gold reserves in banks, but now it is just printed willy nilly and loses value every day.

🤔 Quiz Time! - Facts about the SEC

😂 Memes of the Week

Posted by @naiivememe

Posted by @WhaleChart

Posted by @TheBTCTherapist

This is not financial advice. I am merely stating my own opinion on how I am perceiving the current market structure and conditions. Consult with a legal investment advisor and all the other good legal stuff that needs to be said.

Housekeeping Stuff

Disclosure: All content shared in the Ponder Crypto website, newsletters, video channels or any other medium are for entertainment purposes only and should not be received as legal or financial advice. We are not legal experts or financial planners so please, exercise proper due diligence and do your own research.