Welcome back to the Flarnchain Newsletter, brought to you each and every week like an atomic clock. This week I'll be talking about a new initiative that I'm starting, another 52 week initiative. The last one I did was called "52 weeks of wads" where I purchased digital art from the "Wadsquad" NFT collection on Stargaze for 52 weeks straight, and tracked the fluctuations of the floor price to see what might happen. That was a lot of fun, and resulted in me now owning over 200 of these goofy little drawings of "wads" which are basically multicolored alien blobs from a planet called Warf. The artist is an active NFT creator, and I've had a few interesting conversations with him about NFTs and other crypto related stuff.
Anyways, I'm going to try another "buy something for 52 weeks straight" and track the progress. This investing strategy is known as "dollar cost averaging" or DCA. The basic premise is that you spend the same amount of dollars over a specific interval of time, over and over, and eventually you will own a whole lot of something that ideally has been appreciating in value. By buying on regular intervals, you eliminate the emotional aspect of investing, which is one of the aspects that can reduce one's ability to generate wealth. The thing about DCAing that I've found for myself is that the act of simply adding a little bit every single week can be kind of addicting, so it's best used sparingly.
I've also found that I'm absolutely terrible at taking profits. Because of this simple fact, I'm not even going to set a goal for taking profits on this new initiative. I'm just going to follow the below three rules, and see what happens. Think of this as another experiment.
52 Weeks of Huahua
Okay, so this new initiative is called the "52 weeks of huahua" because I will be buying the cryptocurrency and native governance coin of the Chihuahua Blockchain, Huahua (ticker $HUAHUA). Why this particular cryptocurrency? Because it appears to have all of the features needed for a cryptocurrency to skyrocket to infinity during a crypto bull market.
High supply - Huahua currently has a circulating supply of around 100 billion coins. Put in perspective, Bitcoin has a maximum circulating supply of only 21 million coins.
Low market cap - it's important to understand market capitalization when we think about cryptoassets. A cryptoasset with a very low market cap, if it has potential, can increase by 10,000% or even 50,000% with a relatively small amount of interested gamblers buying the asset. Low market cap assets have the potential to turn $100 in to $100,000. They also have much higher likelihood of turning $100 into $1.
Easy to buy - for me at least. It's a blockchain that is connected to many other blockchains via the "Inter-blockchain communication protocol" or IBC. This means it can be easily transferred around, and can be bought and sold on various decentralized cryptocurrency exchanges, such as osmosis.zone
Memeability - it's a dog coin, like the ones that came before it, it has a cute dog as it's logo. The importance of memes with cryptocurrencies is important to not underestimate. I'm sure you have all heard of Dogecoin. It currently has a market capitalization around $13.5 billion, and at the peak of the bull market in 2021
Burn Mechanism - This particular coin has what's called a "burn mechanism" whereby a portion of every transaction fee is burned by the blockchain's protocol. Side note, burning means that some of the coins are sent to a wallet address that cannot be accessed, it's a bit more like throwing the coins in a bottomless pit than burning them, but the term "burn" is a sort of industry standard. The most famous blockchain that does this is Ethereum, which burns a portion of all transactions, resulting in negative inflation when there's lots of transactions. This reduces the supply. If you've ever taken an economics course you might have learned that all things equal if supply goes down price goes up. So price going up is sort of a feature built into the protocol of coins with burn mechanisms... at least in theory.
So due to those four reasons, and several others I haven't mentioned, I'll be buying anywhere from 10,000 to 100,000 (perhaps more, perhaps less) of the cryptoasset Huahua each and every week like an atomic clock, but only for the next 52 weeks. I'll keep the Huahua's in a separate wallet, and I'm going to do my best to keep track of purchases and hopefully even build a little application that tracks buys, sells and other activities in the wallet.
The goal of this initiative is to get back into the habit of regular DCAing into an asset with conviction, while also improving my skills as a developer by building some analysis tools around the wallet in question. Because blockchains are open ledgers, you can write software to parse the transactions from a specific wallet.
Consider following me on my journey by looking up this wallet address on a blockchain explorer like mintscan.io - chihuahua1mhdddwykuamekp43a20u3skwjct5622vrvysud
Tonight, I got the ball rolling by purchasing 11,993 Huahua for around $0.00036 per Huahua. This worked out to be about $4.36 worth of Huahua. I also seeded the wallet with another 20,000 Huahua from another wallet. I promptly
Other stuff
Almost forgot! This newsletter is also about crypto markets in general. Here's an updated weekly chart:
From the chart, we can see that Bitcoin took a breather this week, but the market cap of all crypto assets in aggregate continued to climb, up about 0.75% from last week. We an also see that ATOM, my favorite cryptocurrency, is continuing to make a comeback. ATOM, which is the native cryptocurrency of the Cosmos Hub, is the "security hub" of the Cosmos Network. The Cosmos Network is a sort of confederation of blockchains that all share one thing in common: they are connected via the Inter-blockchain Communication protocol. You can find a lot of information about this at www.mapofzones.com and I strongly encourage you to just take a look, it's a fascinating website with lots of cool visualizations of the cosmos network and various interchain activities.
market animal
I didn't forget the market animal either! this week's market animal is a bull (🐂🐂🐂), because... the crypto market continues to rise. That marks three bulls in a row.
Okay that's all for tonight. Would like to talk about the other stuff I'm excited about, but I think I've probably already spent too much time talking about 52 weeks of Huahua.
Hope you have a wonderful rest of your week!
Cheers!
-Flarn
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