A great week as well for Polkadot

This is what my actual portfolio looks like right now on a percentage basis.

In a few weeks I will be offering an automatic copy trading service using Zignaly so you can autocopy my trades the moment I make them.

Coinstack got Reddited today. Lots of new subscribers. 👍
https://www.reddit.com/r/ethfinance/comments/misz63/ethereum_will_beat_bitcoin_by_2025_ryan_allis/

Just took out a $33k instant crypto collateralized loan on Nexo to buy 16 more ETH. Just want to let everyone know I'm still buying. I believe we're headed to $4k+ ETH prices in 2021 with EIP-1559 going live in July, which will burn transaction fees (which reduces supply). EIP-1559 + ETH 2.0 (coming in Q1 2022 likely) will make ETH the first major cryptocurrency to have a net negative annual supply increase. Smart contracts + DeFi + Layer 2 scaling + negative annual supply increases = A Big Winner.

And for anyone concerned about gas fees on Ethereum, know that every major app is moving to "layer 2 solutions" that essentially roll-up and batch transactions onto the Ethereum blockchain. So while it might cost $60 to do an Ethereum transaction now, by Summer/Fall of this year it will cost ~$0.01-$0.02 on almost every Dapp (Uniswap, OpenSea). For people who use Dapps that upgrade to layer 2 (which nearly all are doing in Q2 2021), gas fees won't be an issue anymore within 3-6 months. People don't realize this is coming, which is why ETH is so undervalued right now. Uniswap is moving to the Optimism rollup. OpenSea is moving to the ImmutableX chain. Enabling instant settlement on their chains, then batching them onto Ethereum's main chain a few times per day.

I’m sitting down to write this week’s Coinstack newsletter. What questions do you have that you’d like me to write about this week? Please post in comments below.

The % of Total Global Assets Held on Blockchains is currently 0.45%

This includes the value of all cryptocurrencies, stablecoins, and CBDCs. Currently at $1.9 trillion compared to $420 trillion total global assets. 0.45%

My thesis is simple, yet non-obvious: It's clear to me that nearly every financial transaction as well as the ownership record of almost all global assets (real estate, money, stocks, options, bonds, art, everything) will all be computed and stored on a cryptographically secured blockchain by 2035. I believe 90%+ of the world's assets will be stored on a blockchain by then. This is inevitable as every country moves to Central Bank Digital Currencies (CDBCs), as blockchain technologies scale, and as it becomes clear that conducting financial transactions and storing financial data, real estate titles, and company ownership records on a blockchain is optimal for ensuring trust among multiple parties across space and time. Today, 0.45% of the world's assets are stored on blockchains. We're at 0.45% and we're going 90%+ within 15 years. It's going to be a wild ride.

We've got another 200x to go. People generally don't understand how to model the disruptive nature of exponential technologies that are 100x better than what's come before (see book Bold by Peter Diamandis). Congratulations, you are super early my friends. We're all gonna make it. It will be volatile, but the general direction is way up. This isn't to say Bitcoin has 200x to go (I think Bitcoin will peak around $500k to $1M before being completely disrupted by Ethereum). It is simply to say that the core technologies that enable programmable blockchain-based computation (like Ethereum, Polkadot, Cosmos, Solana, and Avalanche) have a LONG way to go.

Let me know your thoughts on the above in the comments section... It's a little preview of what's coming in tomorrow's issue of Coinstack

Here is the Google sheet I used to make my calculations about blockchain assets vs. total global asset values.

https://docs.google.com/spreadsheets/d/1BHPN-BRsEWkWkgqUSjXsOZ4G1ZCIyZOC_lGdBgp9Jzo/edit#gid=0

Here is this week's issue of Coinstack as a Google Doc, hot off the presses. Delivered first to you, my fellow friends...

https://docs.google.com/document/d/1PezY78-PN9anT2aKj24KI4gND12o11Qx9ereD2jkgeM/edit#

Here's the link to this week's issue. Please pass it along to friends...

A List of active IDO launchpads where you can acquire investments in early stage newly issued projects.

TrustSwap
DuckStarter
BSCPad
KickPad
Polkastarter

Please take a moment and share this Coinstack Telegram group with 1-2 friends who are interested in crypto.

Just send them the join link: t.me/thecoinstack

Or within Telegram: @thecoinstack

Many thanks for helping us grow.

For anyone new to the group you can see our free weekly newsletters at coinstack.substack.com.

I've created a DCF valuation model for Ethereum. You can view it here. Using a Discounted Cash Flow forecast, the present value of each Ethereum token should be around $17,609.

https://docs.google.com/spreadsheets/d/1-0o-KePU8Pny4iQRw4xJ1EprHBdqOjAz2YoF5yj0DzM/edit#gid=0

A DCF gives what the valuation of an asset should be based strictly on the cash flow paid back to holders of an asset (stock, bond, or token). This is separate from any other utility the asset may have.

As of today (April 2021) all ETH fees go to Ethereum miners. However this is changing starting in 3 months.

Starting in July 2021 with EIP-1559 60% of all ETH transaction fees will be burned, reducing the token supply (like a stock buyback).

And starting in Q1 2022 with the launch of ETH 2.0, all miner fees will be paid out to the stakers of the token (essentially the long term holders), like a stock dividend.

Since profits will be used for stock buybacks (token burning) and dividends (staking rewards) going forward, one can use a DCF.