“You don't have to start from scratch to do something interesting.” – Said Co-Founder and CEO of Twitter Jack Dorsey
Global Market Comments
September 3, 2021
Fiat Lux
Featured Trade:
(LOOKING AT THE LARGE NUMBERS)
(TLT), (TBT) (BITCOIN), (MSTR), (BLOK), (HUT)
Mad Hedge Biotech & Healthcare Letter
September 2, 2021
Fiat Lux
FEATURED TRADE:
(BIOTECHS ARE OUT FOR BLOOD)
(BIIB), (LLY), (BAYRY), (NVS), (SNY)
Tracing its origins in Greek mythology to the infamous Dracula tales, stories centered on the restorative powers of blood have captivated our imagination for millennia.
In the past two decades, however, the concept of hailing blood as the elixir of youth has come a long way from ancient folklore.
These days, this idea has reached the medical world with highly renowned researchers throwing their names behind the study of the regenerative ability of young blood.
From mere storybook fantasies, this concept has become one of the serious contenders alongside the likes of Biogen (BIIB), Eli Lilly (LLY), and Bayer (BAYRY) in the fight against Alzheimer’s, Parkinson’s, and even stroke.
Here’s a quick explanation for this change.
At its core, one of the major causes of aging is when our systems go on overdrive in the performance of usual bodily functions.
That is, the body shifts away from the “regular” state or homeostasis and instead is forced to constantly be in alert mode.
This causes us to end up with a hyper pro-inflammatory immune system, which then malfunctions and results in damaged tissues and organs over time, exposing the body to diseases and conditions like neurodegeneration and heart attacks.
The solution is quite simple. Let’s just flush out those pro-inflammatory aging compounds—aka the overworked system. That way, we can delay (or probably even prevent) the aging process.
This can be done through a process called “parabiosis,” which has only been experimented on mice.
Basically, this works by connecting the circulatory system of an older mouse to a younger one. Then, the older mouse starts to get younger as well.
In 2005, researchers published a paper that studied two identical mice (one old and one young) to demonstrate the veracity of the concept.
To test the idea, they connected the circulatory systems of both mice. This means that the two lived off the same general blood pool, which comprises young and old blood.
In just 5 weeks, the older mouse’s stem cells started to divide again. Its muscles and liver cells also began to repair themselves.
Essentially, from a cellular viewpoint, the older mouse transformed into a younger version of itself.
Given the medical, moral, and ethical issues that come with the traditional “parabiosis,” biotechnology companies have searched for more efficient and effective ways to achieve these age-defying results other than the vampiric blood swap.
But, how can these results be replicated?
This is where “Total Plasma Exchange” (TPE) comes in.
TPE is done using an apheresis machine. The patient’s blood runs through this device, which then removes and discards filtered plasma via the reinfusion of red blood cells as well as other replacement fluids, including plasma or albumin.
Without going through the technical nitty-gritty, TPE involves the extraction of a large volume of blood from a patient, taking it apart into its individual components, then returning it to the same patient’s body sans the filtered-out components courtesy of the machine.
Recently, clinical trials on humans showed that TPE managed to slow disease progression among patients suffering from age-related disorders, like Alzheimer’s, by more than 66%.
While there’s no uniform cost for this treatment, the average estimate for every TPE session is roughly $101,140. Just how much this would cost in the long run heavily depends on the person’s condition and desired outcome.
At this point, the research is still in its early stages.
However, this hasn’t prevented rogue biohackers from testing out their own theories—and come up with surprisingly workable results.
In 2020, two 50-year-old self-confessed “biohackers” based in Russia hooked themselves up to blood collection machines. They then proceeded to replace practically half of the plasma coursing through their own veins with salty water.
After 3 days, their blood tests showed an improvement in their general well-being, as seen in their hormones, fats, and other indicators.
In particular, their immunity, cholesterol metabolism, and even liver function showed better performance.
So far, this concept has been explored by other researchers who are now replacing plasma with saline and adding other components like albumin.
These experiments are still being conducted on animals, but they have to date proven to be promising in terms of reducing inflammation in the brain and improving cognitive functions.
Primarily, the Russian biohackers and these experts are diluting the anti-aging factors to slow down or even eventually prevent aging.
Among the probable applications of plasma in the anti-aging movement, the dilution process seems to be the easiest and most convenient track to pursue—so much so that a company, called IMYu, was founded by top UC Berkley researchers to develop this strategy further.
Thus far, only a handful of biotechs have focused on this concept.
Some of the frontrunners are Massachusetts-based Elevian, which was founded in 2017, and Alkahest, which was acquired by Spanish pharmaceutical giant Grifols (GRF) for $146 million.
Meanwhile, a company called Nugenics Research has actually patented the name “Elixir” for its plasma-derived product under development.
There are also clinics like the Atlantis Anti-Aging Institute based in Florida and companies such as Ambrosia, which market plasma gathered from donors ages 16 to 25 and sell them for several thousand dollars for every transfusion.
Thus far, big pharma has yet to get its hands on this technology.
Only a handful of major companies, including Novartis (NVS) and Sanofi (SNY), have expressed interest in exploring these possibilities.
However, these innovations are only a glimpse of the incredible momentum driving the anti-aging industry these days.
It’s only a matter of time until we achieve a spectacularly extended lifespan with an impressively high quality of health and wellbeing.
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more
Mad Hedge Bitcoin Letter
September 2, 2021
Fiat Lux
Featured Trade:
(THE TRUTH ABOUT CRYPTOCURRENCIES AS AN ASSET CLASS)
(BLOK), (MSTR), (HUT)
It’s my responsibility to new readers of the Mad Hedge Bitcoin Letter to offer an imminent snapshot of where we are in the crypto universe at this point in time.
It would be negligent if I didn’t.
To say that Bitcoin is the only investment in the crypto sphere is also not true — sure, Bitcoin is the biggest, most trusted crypto network, and many have become grotesquely wealthy because of it — yet there are other altcoins out there.
Knowing what to digest and what to avoid like the plague is where I come in.
Don’t get me wrong — I am still highly bullish on Bitcoin as an asset, but we do not operate in a vacuum.
Many altcoins have been doing just as well as Bitcoin in the past month — Bitcoin is up 20%, and another 5% to $50,000 on Thursday.
Ethereum, for instance, had dropped below $3,200 on Monday. However, the second-largest crypto added more than $500 since then and up another 10% on Wednesday.
It hasn’t been this high since May and I can easily see it blowing by the May high of $4,200 before December.
As one might have assumed, lesser coins with cheaper pricing benefit/suffer from the law of small numbers with wider gaps in percentage change on up and down days.
It’s just the nature of the beast.
Overall, the second largest cryptocurrency by valuation performing well is a highly bullish signal for Bitcoin itself.
It also signals increasing adoption which is positive for the security and regulation of the broader asset class.
I subscribe to the “rising tide lifts all boats” theory in cryptocurrencies as it does more to legitimize the top asset than pull capital away from it.
The most poignant takeaway is that readers cannot just overlook other cryptocurrencies just because Bitcoin is the apex warrior.
Returning to the foundations, cryptocurrencies have a reputation for being difficult to understand, so don’t be embarrassed if you’re befuddled — I felt the same way the first day I tried to understand this stuff.
The Harris Poll earlier this year found that 61% of people who had heard of cryptocurrencies still had little or no understanding of how they work.
How Do I Buy Bitcoin?
Conventional wisdom has it that the most likely route is a Bitcoin online exchange.
Create an account — enter a payment method.
Reputable exchanges will require information such as bank account details or a debit or credit card.
Then proof of identity is required such as a driver’s license, ID, or passport.
After verification, purchase Bitcoin by transferring it to a personal hot wallet and buy and sell the asset!
Remember that these accounts coming directly from bitcoin brokers aren’t insured and aren’t secure.
Therefore, a better way to mitigate risk is by going through a Bitcoin ETF on the U.S. public markets with an official broker registered with the Security and Exchange Commission (SEC).
Not only do public stocks provide additional security as a bitcoin trading vehicle, but ETFs are an aggregation of crypto-asset tracking data points reducing the volatility even more.
Unregulated crypto exchanges come with a higher understanding of operational and systemic risk and not everyone wants to venture into the arid Wild West without a horse or water.
If you trade with an official brokerage registered with the SEC, you are covered by Federal Deposit and Insurance Corporation (FDIC) insurance up to $250,000 per account holder in a financial institution.
If there are joint owners, then the account is insured up to $500,000 ($250,000 for each owner).
The FDIC is a U.S. government agency so, in effect, these accounts are federally insured.
There is also another layer to this — you are covered by Securities Investor Protection Corporation (SIPC).
SIPC is a U.S. government creation but not an agency of the U.S. and insures all brokerage accounts up to $500,000, but only up to $250,000 for cash in such accounts that are intended to be used for securities transactions.
Cash in brokerage accounts only for the purpose of earning interest are not protected. While SIPC has been established by Congress, it is funded by all of its member broker/dealers.
In many cases, SIPC protects against unauthorized trading or theft in the account.
My favorite crypto ETF is Amplify Transformational Data Sharing ETF (BLOK) which has morphed into one of the best crypto ETFs on the market since its inception.
BLOK is an actively managed ETF that seeks to provide total return by investing at least 80% of its net assets in equity securities of companies actively involved in the development and utilization of blockchain technologies.
BLOK’s biggest two positions are Bitcoin proxy MicroStrategy (MSTR) and a Canadian crypto mining company called Hut 8 Mining Corp (HUT).
I have already shot out a MicroStrategy trade alert to new readers and am incredibly bullish on the company.
However, this ETF encompasses more than MSTR offering broader exposure to firms related to Bitcoin, crypto miners, and software companies that are heavily into crypto.
Hut 8 engages in industrial-scale bitcoin mining operations. It also owns and operates 38 BlockBoxes in Drumheller, Alberta, and 56 BlockBoxes in Medicine Hat, Alberta.
BlockBoxes are one of the most powerful and cost-effective bitcoin mining units available on the market.
BLOK doesn’t track bitcoin 1:1, but it does mimic the price action relatively closely albeit with less extreme swings.
Controlling excess volatility is something you should be happy about.
BLOK also has an expense ratio of 0.71% which isn’t too expensive for those who want to buy and hold the ETF and not trade the derivative.
Buying BLOK is most likely the best way to ensure safe trading under the framework of the SEC, but I understand others have a higher risk profile which is also welcome.
To understand more about the ETF BLOK, click here.
The crypto revolution is in its early stages and the possibilities are endless considering the adoption is just beginning.
However, we cannot just assume bitcoin will always lead the charge and taking note of what is happening in the rest of the industry offers us an even deeper insight into how the bellwether (bitcoin) is performing and reacting to the future challenges as top dog.
The truth is that there will be several winners from higher crypto prices and not just bitcoin. As a technology, blockchain will also be a massive winner from higher crypto prices.
Even if one does not want to profit from crypto, this will be the intellectual challenge of a lifetime.
Lastly, I’d like to reiterate my call for the price of Bitcoin at $66,000 by end of 2021 where it will test a double top.
BLOK ETF INDUSTRY ALLOCATION
“Bitcoin will do to banks what email did to the postal industry.” - Said Swedish information technology entrepreneur and founder of the Swedish Pirate Party Rick Falkvinge
Global Market Comments
September 2, 2021
Fiat Lux
Featured Trade:
(MANY THANKS FOR YOUR CONCERNS)
(WHY WATER WILL SOON BE WORTH MORE THAN OIL),
(CGW), (PHO), (FIW), (VE), (TTEK), (PNR), (BYND)
Sorry for the late letter this morning. I received a call from Cal Fires yesterday asking for a spotter pilot near the Lake Tahoe region.
So, the early AM found me flying a wide circle around the Sierra foothills with a pair of binoculars and a GPS calling in new smoke plumes to Central Command in Sacramento.
When you get near the big fires, the turbulence is incredible and you wonder if the plane can hold together. These are things better observed from a distance.
Thank you, Clyde Cessna for building such great aircraft!
Thankfully, the kids are old enough to drive themselves to school. I gave them $20 for dinner in case I didn’t come back.
Don’t worry about me. I evacuated out of Lake Tahoe weeks ago, as even back then, the smoke was so thick that the air was unbreathable. All of Lake Tahoe has now been evacuated, except for Incline Village at the northern tip.
There are now 70 bulldozers building a giant fire break at South Lake Tahoe. The 25,000 residents have been moved to emergency evacuation centers throughout northern Nevada.
The casinos are all closed but the hotels are open to house firefighting and support teams. Some teams have been lost to Covid. The water bombers are knocking the daylights out of the West Shore.
Welcome to the nightmare scenario. This is a disaster on a biblical scale.
At home, we are watching the TV, amazed at videos of 600-pound bears on fire running out of the mountains.
In the meantime, I have received dozens of emails, phone calls, and text messages from subscribers asking about my safety.
Don’t worry, all is well here out in San Francisco. But thanks for asking!
The View from Incline Village, Nevada
