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

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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.

I'm writing this week's Coinstack issue right now. What would you like me to write about today? What questions do you have?

SPECIAL DELIVERY: Here is this week's Coinstack issue as a Google Doc. Early access for our Telegram subscribers...

https://docs.google.com/document/d/19pEfZfKl_tpwf9CnGBB11Ck_PLjjsCG6wi27l0mnbAY/edit#heading=h.5lqzu4wevev0

How's your crypto portfolio doing? What are your favorite investments so far?

This week's issue is now online. Please pass it along to friends... https://coinstack.substack.com/p/portfolio-update-up-488

In This Issue:
Portfolio Update: +488% YTD
Crypto Tools: How to Use Binance, Metamask, and Uniswap
Am I Starting a Crypto Fund?
Your Own Crypto Investing Experiment
Where To Get 20%+ Yield on Your Stablecoins
A DCF Valuation on Ethereum Predicts $17k ETH
Mrs. Bubble’s New NFTs
Who I’m Following on Twitter
A Long-Term Crypto Portfolio
How to Get Started in Crypto

On weeks like this when everything is up big, remember that volatility is common and that there will be many peaks and valleys on our way up to $150k BTC. We will likely go up to $70k then down to $58k then up to $80k and down to $68k. Just remember that so when we drop back down to $58k BTC some day soon we aren’t concerned. The key thing is to hold thru the minor ups and downs and to know when the major cycle shift is happening, which I am staying incredibly close to. I may not be able to time it perfectly, but I do know one thing, it’s not here yet and we are only about 50-60% through this current cycle. The last 10% of the cycle will likely feel like a “blow off top”, like 10% daily increases as media attention intensifies. It will come eventually, but not for a while. I will be posting the key on chain metrics weekly and interpreting them for us. And the good news is the general direction this decade is up toward a $500k+ eventual price per BTC and $50k+ eventual price per ETH. Likely in the next market cycle (2025) not this one.