Hi, how are you? A bit of better news to start with, because at the time of writing Bitcoin is at $31,851, which is actually a little bit up from where we were seven days ago - around a 7% jump. It’s certainly too early to get too excited, but it means there are buyers stepping in to buy at this level. There’s not quite so much movement on Ethereum which is still under $2,000. But there's some activity in the altcoin market and Cardano’s enjoying quite a significant bounce.
Currently the market is trying to establish a new bottom range. And once that happens we will most likely resume the bull market. It's just really a matter of time - but of course, no one of course knows how long we'll have to wait.
We do have a few indicators to help give us some clues. So yeah, we'll keep a track on all of those in future episodes of the Crypto Wealth Cafe.
One to touch on today is that the NASDAQ has reverted back to the trading trend line based on the 150 week moving average. We have been significantly above the trend for a long time, particularly in the last two years, with the pandemic bubble overheating the tech stocks. We could still see more downside and a spike, but overall valuations are back to average. Major recessions can cause a large deviation from the trend, for example in 2001 and 2008. So we could be due to spend a little bit of time under the trend now. I guess we'll just have to wait and see.
Crypto meets gold
Anyway we have a slightly different show today. I want to talk about precious metals - tokenized precious metals that is, which are a game changer. Tokenized precious metals are an interesting new addition to the market and the Dacxi Crypto Wealth Platform in particular. Dacxi says that current market conditions make precious metals worth considering if you're concerned about preserving your wealth, and I think that makes sense to me. Financial markets and many other asset classes are unstable. So in times like these gold, silver and platinum can be a simple, safe and effective way to diversify your portfolio and take a more conservative position.
Tokenization means you can buy and hold precious metals quickly, easily, and cost effectively. They don't don't get me wrong listeners, I'm not giving you any financial advice here. And I don't think Dacxi are either, you know, it's up to you to assess your own risk tolerance and what the right move is for you. But I think the key point here is what the Dacxi folk are saying is talk to your financial advisor, they might have a similar view.
If you're young and you've got a couple of grand to punt into the market, then obviously, you can afford a little bit more risk because you can have a super long term time horizon. On the other hand, if you're closer to retirement, and you've got an investment portfolio, you don't want to be stuck in these volatile portfolio positions where you could see your portfolio investments drop 50%. That’s when you take a more conservative position to protect the value of your portfolio.
So why are people buying precious metals now? Well, again, we've touched on this, but you know, the core reasons, of course, inflation, which is, you know, inflation is rampant around the world at the moment, plus global political instability, which can both have a significant impact on investments. So for example, yeah, I mean, they're talking about what is happening in Ukraine. And yeah, so analysts have predicted this could impact precious metals prices, because Russia is actually the world's second largest producer of platinum, third largest producer of gold, fourth largest producer of silver.
So now you can buy gold, silver, and platinum, on the Dacxi Wealth Platform - amazing. This is a better way to buy gold, silver and platinum. Because, you know, investing in Precious Metals is challenging. It’s not easy because the traditional way to buy investment quality precious metal is the one kilo bar. You know how heavy is one kilo? Well, spoiler alert, it's one kilogram. But you know, in gold, that's a lot of gold.
So it's too much for most people. And it's got to be verified and come from a reputable dealer, all that kind of stuff, which makes it heavy, bulky and expensive to store and transfer, transport and in-secure if you keep it at home.
The game changer here is that Dacxi tokenization eliminates those obstacles and puts precious metals within the reach of everyday investors. Every precious metal token is priced at the current market rate, and fully backed by the equivalent amount of the underlying precious physical metal, which is stored and insured by one of the world's leading bullion houses. And you can sell your tokens at any time, or even redeem them for the actual metal. How cool is that? So yeah, buying precious metals has never been this safe and simple.
So what is tokenization? Tokenization is the process of creating digital versions of physical assets and permanently and immutably recording of the ownership transaction on a blockchain - using the same technology that is used to issue crypto currencies. So the benefits of doing this with precious metals as Dacxi have done is that now they're accessible, easy, frictionless buying and selling. You don't have to register your ownership, worry about transport, insurance or storage. Everything is managed by the Dacxi team.
For a fuller explanation you can read the Dacxi tokenized precious metals Ebook.
Chances are, if you're reading this, you might already have a Dacxi account. So if you do, you're halfway there already. You just sign into the Dacxi Wealth Platform, and you can start buying precious metals. There’s a gold token,a silver token, and a platinum token. You can just buy whatever you want in any amount.
Tokenization is the future.
So what are the benefits of asset tokenization? Tokenization is particularly beneficial for assets that aren't currently traded electronically. And also for those that need increased transparency, to improve liquidity and tradeability. So the examples and benefits of tokenization increased liquidity, fairer prices, fair trading, reduced management, and overhead costs, shorter lockup periods, and a transparent process, because it's all verifiable on a blockchain.
As you know, Dacxi are the experts in tokenization. They're already working on the Dacxi Chain, which is tokenized crowdfunding. And other tokenization opportunities are part of the Dacxi roadmap too. So I think it's good to learn about some of this stuff now. And I think they're doing a great job of laying out that framework for what the near future might look like with the Web3 tokenization trend. It really starts to take off over a year or two ahead. It’s very exciting. In the meantime, of course, there’s precious metals tokenization.
So it was a slightly different show today - looking at precious metal and how this most traditional of all wealth assets has converged with crypto. Should you wish to explore more - check out Dacxi Tokenized Precious Metals Ebook.
We'll be here again next week. This was the Dacxi Crypto Wealth Cafe. Bye for now.