Cardano Dan's Newsletter - Issue #56

Other People's Money

Quote of the Day

“The problem with socialism is that you eventually run out of other people's money.”

— Margaret Thatcher

We are rapidly heading towards socialist fiscal and monetary policies. The shutdowns that governments put in place to fight off COVID required stimulus to avoid a worldwide depression like we’ve never seen before. You can debate whether or not we should have shut down economies like we did, but once that decision once made, stimulus was required.

But now that the primary economic threat of the pandemic is over, the right thing to do would be to end government deficits and get more fiscally responsible. Instead, Biden’s budget proposal increases deficits even after increasing taxes in a HUGE way.

The problem with this plan is that eventually you run out of other people’s money. Deficits turn into debt with interest that needs to be paid. High taxes disincentivize economic activity. Money printing devalues fiat currency.

Smart people get it and that’s why they’re investing in cryptocurrencies. Private money with clearly established maximum supply and monetary expansion policies is the solution to the fiat inflation and fiscal irresponsibility.

Public money isn’t looking so hot. Thank goodness for private money.

In The News

1. Crypto regulation is coming. Caitlin Long has been on top of this growing story from day 1 and she shared this story from Bloomberg earlier today.

   Here’s her current analysis on the situation.

   Caitlin Long 🔑 @CaitlinLong_

   To be clear, base layer #bitcoin& other #crypto protocols can’t be regulated (DC seems to understand this). But the intermediaries that service crypto can be regulated & crypto users can be taxed. Agree w/ it or not, signals coming out of DC are clear—& coming almost daily now

   Overall, for anyone adhering to laws and interested in innovation and investing in crypto, this is a bullish sign in my opinion. Regulation is inevitable and this appears to be a very common sense approach.

2. One by one, mainstream news establishments are retracting their claims that the Wuhan lab leak theory is a “debunked conspiracy theory,” the Washington Post being the latest.

   The data and research that I’ve done have suggested from the very beginning that the most likely origin of COVID-19 was a leak from the lab in Wuhan. Here are my thoughts on this very abrupt change in messaging.

   Card₳no Dan 🇺🇸 🇯🇵 🇪🇹 🇹🇿 🌑 ADA @CardanoDan

   The narrative on the origins of the pandemic is rapidly changing. It's infuriating that people were censored not long ago for a view that's becoming rapidly accepted today. That is the opposite of free speech.

   The question you should be asking yourself is, “Why is the narrative changing now?” In my opinion it’s quite easy to answer this question, but I’ll leave you to consider it yourself. Beyond that question, you should also be asking, “What happens next?”

Cardano Updates

1. Jon O’Connor has been more and more active on Twitter lately. I love it! He shared this tweet earlier this week. That is quite a list of countries to be actively pursuing.

   John O'Connor @jjtoconnor

   @thomas_jose7 @InputOutputHK It's in addition to Ethiopia. We have Kenya, Tanzania, Nigeria, Ghana, South Africa.

   The Cardano team is so far ahead of other blockchain projects in Africa. I’m really surprised this doesn’t get more news than it does.

2. Are you a Ledger user that’s interested in voting in Project Catalyst and supporting our NFT Key Proposal? If so, check out this exciting news from AdaLiteWallet!

   AdaLiteWallet @AdaLiteWallet

   We will be releasing a new version soon that will allow Catalyst Fund 4 voting for mnemonic and Ledger wallets. Trezor will follow after next Trezor firmware release.

   Please consider testing this out in Fund 4 so that you’re ready to vote for NFT Key in Fund 5 shortly thereafter!

   We’re making great progress on NFT Key prototyping and partnerships and will be providing some updates soon.

Technical Analysis

It’s been a really great couple of days for Cardano ADA!

Here’s the chart I showed last time:

And here’s a zoomed in / updated version with progress since then:

We’ve clearly broken through the upper side of the symmetrical triangle I talked about last time and are into the ascending triangle pattern I mentioned as well.

If we push through there, I expect a process to reclaim $1.83. If we break right through on the first attempt and flip it to support, that would be insanely bullish. From there, we start filling in volume between $1.83 and all-time highs.

I’m still prepared for the possibility of another big drop and, if it happens, I’ll be looking to add to my Cardano bag between $.90 & $1.00. That being said, this scenario is becoming less likely by the day.

What do you think? Do you think we’re more likely to see $2.50 or sub $1 first?

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This newsletter is for entertainment and educational purposes. I’m not a financial advisor and you should do your own research and consult a financial advisor before investing in cryptocurrencies.