Tag Archives: DeFi

Solana Is the Most Popular Crypto of 2022

In what’s begun as a tough year for cryptocurrencies, Solana has attracted more investors than any other coin. The high speed network landed $6 million in inflows so far this year.

Larger competitors like Bitcoin and Ethereum have seen outflows in the tens and hundreds of millions of dollars.

What I find particularly striking is that Solana’s market cap is only a fraction the size of its larger peers. Bitcoin has a total value around $800 billion, and Ethereum nearly $400 billion.

Meanwhile, Solana is worth just $44 billion. Nonetheless, it managed to beat these much larger protocols in attracting investors.

This is a pattern I expect to continue long term. Solana can process tens of thousands of transactions per second for virtually nothing.

Compare that to Ethereum, where completing a single transaction costs about $46!

Would merchants accept a credit card that cost them $46 in transaction fees every time someone used it? Of course not.

Ethereum’s high fees will severely limit its use cases until the fees come down.

Bitcoin looks better at about $2 a transaction. But Solana charges mere fractions of a cent.

A new technology that’s dramatically faster and cheaper will win, regardless of the market. I expect Solana to continue to gain value relative to the older protocols.

At least until a swifter competitor enters the ring!

More on tech:

How Solana Could Wipe Out Visa and MasterCard

A Day in the Life of an Angel Investor

Is Fathom the Future of Blockchain?

Photo: “Solana Beach, CA Neon Sign” by JoeInSouthernCA is licensed under CC BY-ND 2.0

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Polygon: Crypto’s Killer App?

Everyone loves Ethereum, right? It’s widely used and has a ton of code already out there for developers to slot into their projects.

But there’s one problem.

Ethereum can only process about 15 transactions per second. And the huge amount of computing power needed has gotten expensive. Some transactions can cost over $100 each.

What if there were a way to take the developer-friendly world of Ethereum and make it much, much faster?

That’s where Polygon comes in. Polygon can run at up to 65,000 transactions per second, far faster than even Visa’s huge network.

But developers can still use Ethereum-compatible blockchains and take advantage of the huge amount of code already available on Ethereum.

Similar to an API company like Plaid, the success of a smart contract platform like Polygon is all about developer adoption. The more widely it’s used, the more valuable it becomes.

Given that developers can write code on a platform they’re used to, I think Polygon will have a big advantage over most. It shows in the numbers: daily active users have gone from 750 at the beginning of the year to 192,000 in August.

Polygon is being used for a lot more than price speculation. The most popular project is QuickSwap, which lets you trade 100 cryptocurrency pairs quickly and easily.

My favorite project is Polymarket, where you can bet on real world events like elections or court cases. This could be useful for predicting the weather, a major need of agriculture businesses.

So will I be buying Polygon?

Despite its impressive technology, in a high risk investment like this, I’m looking for the possibility of a 100x return. I’d look for the same in a tech startup.

At a fully diluted market cap of $18 billion, Polygon may have already become so successful that it doesn’t make an ideal investment for me.

But I’ll be watching this awesome team to see what they come up with next!

More on tech:

How Elrond Could Take Over Payments Worldwide

How Tech Could Stop Wildfires

How Solana Could Wipe Out Visa and MasterCard

Photo: “File:Raspberry Pi Bitcoin Mining (14673305874).jpg” by Gareth Halfacree from Bradford, UK is licensed under CC BY-SA 2.0

If you found this post interesting, please share it on Twitter/Reddit/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

How Solana Could Wipe Out Visa and MasterCard

Solana is all the rage in cryptocurrency markets these days. Its price is doing this:

Looking at that chart, it would be easy to think that this new cryptocurrency is all hype and speculation. But I spent the afternoon digging into its capabilities as a platform, and they are incredible:

Let’s assume you’re a merchant with $1 million in transactions to process. You can do it on Solana for virtually nothing. Or you can do it a little more slowly with Visa or MasterCard for $15,000 to $25,000. Which do you prefer?

Granted, most merchants won’t have the slightest clue how to use Solana. But it’s not hard to imagine a new startup doing what Square or Stripe did: quickly going from unknown to ubiquitous processors of payments.

If a new company handled your transaction using a stablecoin like USDC on the Solana platform, it could offer incredible speed and dramatically lower fees than the incumbents, while still keeping a nice margin for itself.

Visa’s market cap is $496 billion. Mastercard’s is $340 billion. What happens to those companies when a competitor shows up doing what they do for a tiny fraction of what they charge?

I don’t own Solana, though perhaps I should. And if someone builds a company that makes payment processing on Solana easy for merchants, I just might have to wet my beak.

More on tech:

Robot Hands, Vertical Farms, and the Future of Food

China’s Real Goal in Tech Crackdown: A Regimented, Obedient Society

How Do You Know If a Startup Is Getting Traction?

Photo: “R.I.P. Rest In Peace” by Beauteous Babe is licensed under CC BY-NC-ND 2.0

If you found this post interesting, please share it on Twitter/Reddit/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

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Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order.