Friday, Feb 16, 2024
this cycle is different, BTC as a store of value, why the trust issue matters, banks and custody
“There is a theory which states that if ever anyone discovers exactly what the Universe is for and why it is here, it will instantly disappear and be replaced by something even more bizarre and inexplicable.
There is another theory which states that this has already happened.” – Douglas Adams ||
Hello everyone, and happy Friday! I hope you get to touch grass this weekend – it’s been an intense few days.
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IN THIS NEWSLETTER
This cycle is still early
Not a store of value, you say?
Legacy banks custodying crypto is getting closer
Why the global trust issue is so important
WHAT I’M WATCHING
This cycle is still early
Back in May 2021, with BTC around $50,000, the monthly Bank of America fund manager survey had “long bitcoin” as its “most crowded” trade.
(chart via Bitcoin.com)
Now, again at ~$50,000, it’s not even on the list.
(chart via Bloomberg)
This feels like it is just getting warmed up.
Not a store of value, you say?
According to @_benkaufman on X, BTC has hit all-time highs in the following currencies:
Japanese yen
South African rand
Argentinian peso
Turkish lira
Nigerian naira
Pakistani rupee
Egyptian pound
Kenya shilling
Bangladeshi taka
Congolese franc
Lebanese pound
Sri Lankan rupee
Ukrainian hryvnia
And it is really, really close to hitting all-time highs in Norwegian and Swedish kroner.
So, when someone tells you that BTC cannot possibly be a store of value, ask them about their currency base and their timeline.
Legacy banks custodying crypto is getting closer
Last week, I wrote about the bipartisan push to strike down the SEC’s Staff Accounting Bulletin (SAB) 121, which prevents listed banks from custodying crypto assets for their clients. Now, the Bank Policy Institute, the American Bankers Association, the Financial Services Forum and the Security Industry and Financial Markets Association have added their voices to the mix.
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