July 7th 2024
What level do you play “the crypto game” at? Easy, Pleb, Hard or Nightmare Mode?
In Easy Mode, you invest with a long term thesis: “Bitcoin is a superior form of money and will siphon value from gold, index funds & real estate”.
In this version of the game, you can ignore all the FUD and the shitcoins. You buy bitcoin on the dips and use it like a savings account taking some cash off the table every four years to upgrade your lifestyle or make an impact elsewhere should you have the desire to do so.
In Pleb Mode, your thesis is something like: “Blockchain technology is set to disrupt industries like finance, social media, gaming, internet infrastructure, etc.”
In this version of the game you invest in general purpose blockchains like Ethereum, Avalanche and Solana and you keep a close eye on main stream crypto news sites like Coindesk for examples of these chains making progress within those industries.
In Hard Mode, you move a layer up the stack. You invest in decentralized applications (dApps) fighting to become the leaders in each industry. In DeFi for example, you might have some $UNI, $MKR, $COMP, $AAVE paired with some small caps like $RUNE and $FXS if you’re further down the rabbit hole.
In Nightmare Mode, today’s meme is your thesis and it moves fast. You trade narratives. You farm airdrops. You liquidity mine DeFi tokens. You’re on waitlists to mint NFTs. Your assets are spread across dozens of chains and wallets.
As the difficulty of the game increases a few things happen:
- The amount of time, energy and focus it takes to succeed increases
- The level of noise increases
- The complexity increases
- The risk increases
- The potential reward increases while the likelihood of success decreases
You can hop between modes, and even play multiple at the same time. For example, I play 70% in Easy Mode. 20% in Pleb Mode. And 10% in Hard Mode. I don’t play Nightmare Mode anymore. At least not right now.
Where I see lots of people screw up is they want to level up their difficulty when they don’t have the time, energy, technical understanding or risk tolerance to succeed. They try to copy trade people playing in Hard Mode or they try to play in Nightmare Mode on nights and weekends. That just doesn’t work.
Playing lower levels of the game when you have the ability to play harder can be boring I know… but there’s only a small window in The Cycle where it makes sense to play in Nightmare Mode. I don’t think we’re there yet.
To the moon 🚀 — @GΞR฿Z Founder & Creator @ BitLift
“The Cycle” Update
I like to keep an eye on various ways to visualize The Cycle, and this “spiral chart” by @The RationalRoot is a great one.
Each concentric circle represents an order of magnitude increase in the price of bitcoin from $0.001 in the center the $1M outer ring.
The colorful line spiraling around represents the price of bitcoin which takes a full 4 years to make a full rotation. Noticed it’s never crossed.
The green dots are all time highs and the red dots are cycle bottoms.
As you can see, we’re still a ways off from the grouping of green dots which represents the past 3 cycle highs. As you know, we had this odd all time high on the left side earlier this year driven by the ETF launches, but I don’t think that invalidates the cycle.
I love the recent addition of the cycle of emotions we experience through the cycle around the outer ring. Feeling hopeful? Here comes the calm before the storm.
Want to hear more about this chart? The Rational Root was recently on the What Bitcoin Did podcast and he released an animated version of the chart which incorporates the bitcoin hash rate.
Crypto Podcast Snips
I listen to a ton of crypto podcasts and started bookmarking important moments using Snipd to share with you guys on Instagram, TikTok and YouTube.
Tom Lee: “ Bitcoin will reach 150k”
Jack Mallers: “If you can remember 12 words, You Are the Money”
Jason Yanowitz: “What are the Stages of a Bull Market?”
Keep Up With Crypto
What I’m reading, watching, sharing and keeping an eye on in crypto recently.
From the BitLift Discord:
@GERBZ: Nice breakdown of ALL the DAO's and their treasuries
@GERBZ: Ethereum flushing out it's latest narrative to please Wall St
@GERBZ: Sounds like EU banks can issue/redeem $USDC and $EURC stablecoins directly now
@badjanitor: Very interesting
