Weekly Edible — Edition 44
“Psychedelic experiences and dreams are chemical cousins; they are only different in degree.” — Terence McKenna
Finance
Betting on Digital Assets
Art: Victor and Victoria by FEWOCiOUS
The Week in Numbers:
S&P 500 is up 2.5%.
NASDAQ 100 is up 2.4%.
Bitcoin-USD is up 16.4% (near $61K)
What’s a Digital Asset?
A digital asset is anything that either exists digitally or its ownership is represented in a digital format.
The Bet
Digital assets are an emerging, all-encompassing asset class. They range from cryptocurrencies with potential to disrupt traditional monetary systems, to pieces of rare art and sports cards.
Bitcoin, for instance, can be considered a digital asset. It is fully digital, and its ownership is fully represented on a blockchain. Steve Aoki’s newest art collection, Dream Catcher, is a new form of digital asset, aka digital art.
Investors around the world are piling into this emerging digital collectibles ecosystem, most of them speculating on the potential resale value of the assets. Some of them, I’m sure, just purely appreciate the items enough to pay large amounts for them.
Whether these new digital pieces will go up in price will likely depend on the supply side of things. As more and more digital assets get produced and sold to investors, those who failed to retain their original hype will likely go down in value, but those who made an impactful enough impression upon launch will likely become increasingly valuable.
One thing is certain: as digital assets become mainstream, so do Bitcoin and Ethereum.
Reopening Plays
Some top investors are warning that the tremendous returns we’ve seen over the past year won’t last. Some are referring to the next decade as a “lost decade” (i.e. when the stock market doesn’t move much over a 10 year period). Likely, inflation, higher rates, and incredibly high valuations are to blame for this pessimism.
So, in a post-pandemic world of potentially low returns, where should we look for some Alpha?
Alpha: the measure of outperformance of a certain market index, such as the S&P 500.
I’ve been covering reopening plays for a while now. Apparel companies, airlines, some cruise lines. While the entire tech sector took a huge correction, some of these stocks kept strong and steady. American Eagle Outfitters (NYSE: AEO) is up 13% this month alone, and didn’t take a hit at all while the NASDAQ fell.
Look out for reopening plays. Your portfolio needs to be everywhere — value, growth, crypto and cash. But within those categories, pick in accordance to current times.
TLDR: Tech-savvy investors are betting on digital assets. Reopening plays may give you substantial returns compared to the overall market.
This is not financial advice and you should always do your own research before investing in any securities or cryptocurrencies. I am not a public equities analyst.
Sci-Tech
Author: Keyann Al-Kheder, Computer Systems Technology & Cognitive Psychology.
- Bitcoin hits new all time high.
- Facebook & Google fight bill that would help U.S. news industry.
- Microsoft exchange server hack boils after backdoor discovered.
- U.S. investment ban on phone maker Xiaomi suspended, court rules.
- Netflix is testing a new feature to prevent password sharing. Research company Magid claims 33% of users share their password with at least one other person.
- NFT hype continues — Jack Dorsey auctions first tweet, and Beeple Crap’s artwork collection was bought for $69 million by a buyer under the name ‘Metakovan’.
Tech Edible: Psychedelic Hype — Michael Oliver
The psychedelic renaissance is here and, with it, more and more change is unfolding in the psychedelic space. One of the biggest changes in the last year or so is all the money that has been directed into this emerging field.
A year ago there were maybe only a select few companies listed publicly, but now we are seeing many emerge as the race to capitalize on psychedelic healing is underway.
Although many would feel corporatization is something to be feared, it is of course inevitable. Before you go depleting all of your kid’s college tuition (or crypto holdings) to invest in psychedelic stocks, here are a few important things to keep in mind:
1. A lot of the patent claims we are currently seeing are smokescreens. They are just words muttered to appease stakeholders so don’t think that this or that company really has exclusive rights to anything at the moment.
2. There is a lot of hype with some psychedelic companies that is not grounded in the actual drug policy that governs the use of these substances. A lot of companies are getting ahead of themselves in terms of timelines, and when they suggest they will be able to offer a certain product or service. Changing laws takes time, and this needs to happen before medical rollout.
3. The health care system itself has a lot of transforming to do. It’s not as simple as implementing psychedelics into the current paradigm. Psychedelic medicine represents a fundamental shift in how healing happens which requires a paradigm shift in how our medical system operates. This is arguably the most difficult aspect of implementing these medicines.
About Michael: Michael is a recent Cognitive Systems graduate from UBC. He currently works at the Multi Disciplinary Association for Psychedelic Studies (MAPS) Canada, where he assists in the movement to decriminalize psychedelics for research and clinical usage. Michael also runs a psychedelic clothing brand on the side called, the Flying Sage, in which 10% of proceeds go towards MDMA and Psychedelic Research.
(Head) Space
Lucky Me
By Vlad
It’s been a good week of day-trading for me. I used to think making consistent profits trading stocks was impossible, and that 85% of day-traders lost money. That stat is true, but I’m trying to be in the 5% who actually beat the market. Ambitious? Maybe.
But I really thought about this. I compete a lot in Brazilian Jiu-jitsu. It’s by far my favourite hobby, and it keeps me healthy both mentally and physically.
In a BJJ competition, 50% of athletes lose their first match and go home. This means half the people there trained hard for a few months, got on a plane, paid for a hotel, only to lose their first match and leave. It’s sad but true.
Only 25% of athletes will make it to the next round, 12.5% to the round after that, and so on. So if your division has 32 athletes, only 6.25% (or 2) will make it to the final match. But I’ve made it to the finals multiple times, and even won tournaments. Does this mean that I was extremely lucky? Does it mean I hit a 6.25% lottery?
Maybe, but I think not. I think it had to do with skill, combined with experience and preparation, executed at the right time. The key word here is skill.
Those who outperform the average have one thing in common: they all train extremely hard.
When there’s skill involved, all probabilities go out the window. Your likelihood to succeed in a certain field or discipline is irrelevant if you’re prepared and able. It is rather a function of your preparation.
Here’s a quote by Gary Player, one of the greatest golfers of all time: “The more I practice, the luckier I get.”
Company of the Week
ImagineAR is a publicly traded startup based out of Vancouver, Canada, that was founded in 2011. The company provides an “AR-as-a-Service” platform that enables businesses to create and implement their own AR campaigns with no programming or technology experience.
“Every organization, from professional sports franchises to small retailers, can develop interactive AR campaigns that blend the real and digital worlds using ImagineAR™. Customers simply point their mobile device at logos, signs, buildings, products, landmarks and more to instantly engage videos, information, advertisements, coupons, 3D holograms and any interactive content all hosted in the cloud and managed using a menu-driven portal.”
Recently, the company has been dubbed as, ‘One of the only real NFT plays’. They announced a partnership this week with blockchain and fintech firm, Liquid Avatar Technologies, to launch Oasis Digital Studios, an agency supporting the development of AR-enhanced NFTs. ImagineAR also partnered with GSI, which markets ‘digital infrastructure as monetization service’ to Esports, and leagues world wide.
Over the past 12 months, ImagineAR has grown their revenue over 100% while costs have only risen ~27%. That said, net income has decreased ~ 10%.
Habit of the Month
Spend Less.
Easier said than done. Especially if you’re comfortable.
But this is directed at all of you, regardless of your financial situation right now.
Financial minimalism is a powerful concept — it brings you freedom.
Freedom from fear, from financial concerns, from stress, from guilt and from anxiety over self-imposed excesses.
Ultimately, it means freedom of choice; because when your finances are simplified, you’re given more headspace to conquer everything else in life.
So next time you spend money on a night out, a piece of clothing you don’t need, or anything that won’t give you a return on your investment, think twice. Do you really need this right now? If the answer is anything other than an enthusiastic “Yes!”, save yourself some cash.
With this habit, you’re the ultimate judge. You know where you’re splurging and where you have to spend. But listen to your gut feeling, and save accordingly.
Music Playlist
Week #44: Psychedelic Hype
Spotify | Apple Music | Soundcloud
Psychedelic Music began in the 1960s, with artists like the Beatles, Jimi Hendrix, and Pink Floyd.
Today’s psychedelic music sounds much different though, and ranges well beyond the analogue recordings of early psychedelic rock.
There’s a lot to pick from today — wether it’s Asap Rocky’s Testing, Travis Scott’s Astroworld, or Jhene Aiko’s Trip, but this week’s playlist features songs from EDM artists like Rezz, LSDream, and others. It goes pretty hard.
That said, if you’ve never listened to the Beatles, Jimi Hendrix, or the Beatles, then go do yourself a favour and listen to them.
Disclaimer: We’re not recommending the use of psychedelic substances. We’re merely recognizing the art, business, and research, with which it’s related.
Happy listening!
Written by: @vladmoves, @jesusismyplug, @manifest_it_man
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