Bitcoins/Litecoins/Virtual Currencies
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Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
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Flobee
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I know there are some Tether truthers here. Who had "Tether becomes US backed stablecoin" on their bingo card?
$80.3B in UST holdings places them between Bermuda and Germany in regards to total T-bills owned (source)
They currently hold 66,465 Bitcoin which would place them between UK and China in regards to publicly known holdings (source)
They recently sanctioned $435M on behalf of the US Gov, looking to be a "world class partner" (source)
Tether has 11-50 employees apparently (source)
With foreign countries slowing UST buying the Treasury needs new buyers to fill the gap (otherwise we "gasp" would have to pay our debts). As such is it really surprising to see them pivoting away from foreign governments holding their debt, and toward foreign individuals in countries with collapsing currencies? There is a decent argument to be made that the rise of Bitcoin will actually help the USD as it brings increased attention to inflation especially in weaker currencies (Dollar milkshake theory) while providing a solution (Stablecoins) for accessing the 'safest' monetary asset, US Treasuries. In other words US may be intentionally collapsing foreign currency to spur UST buying as those currencies collapse faster than the USD and thus it strengthens in comparison, even though its also inflating significantly.
Pretty slick set up and honestly, if you're someone that distrusts Bitcoin's origin and purpose there is an argument here that the US Government will benefit the most from Bitcoinization of monetary assets.
$80.3B in UST holdings places them between Bermuda and Germany in regards to total T-bills owned (source)
They currently hold 66,465 Bitcoin which would place them between UK and China in regards to publicly known holdings (source)
They recently sanctioned $435M on behalf of the US Gov, looking to be a "world class partner" (source)
Tether has 11-50 employees apparently (source)
With foreign countries slowing UST buying the Treasury needs new buyers to fill the gap (otherwise we "gasp" would have to pay our debts). As such is it really surprising to see them pivoting away from foreign governments holding their debt, and toward foreign individuals in countries with collapsing currencies? There is a decent argument to be made that the rise of Bitcoin will actually help the USD as it brings increased attention to inflation especially in weaker currencies (Dollar milkshake theory) while providing a solution (Stablecoins) for accessing the 'safest' monetary asset, US Treasuries. In other words US may be intentionally collapsing foreign currency to spur UST buying as those currencies collapse faster than the USD and thus it strengthens in comparison, even though its also inflating significantly.
Pretty slick set up and honestly, if you're someone that distrusts Bitcoin's origin and purpose there is an argument here that the US Government will benefit the most from Bitcoinization of monetary assets.
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Flobee
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Fed sniffing around Bitcoin mining electricity use. Federal 'emergency' declared apparently. Will be interesting to see how this plays out as there is a ton of evidence that the program being used in Texas where miners provide usage during off-peak hours and shut down when additional load is required by consumers has been a massive success and helped stabilize the grid. Creating a use for wasted electricity generated is a net win for everyone involved as it allows a higher peak to be maintained without waste and thus allows more flexibility to load spikes to the grid.
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Flobee
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Thought this chart was great. Even buying at the WORST possible time, if you hold for at least 4 years you're going to outperform just about everything. 24% CAGR is the worst historical 4 year return on holding BTC. Every equity sits in the 20-40 P/E just for comparison. Kinda silly not to hold some isn't it?
EDIT: Honestly this whole slide deck has good charts - From podcast I watched today:
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The_Black_Log Foler
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Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
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Flobee
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Maybe to some degree. I would argue that the suits have no idea how to handle an actual hard supply capped asset though. They can't play paper games here and I don't think they're going to play it right. If ETF inflows keep up at even close to the current rate there simply isn't enough BTC for them to buy, number has to go up. Especially true when the new supply generated by mining is cut in half. We'll see
Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
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yeah people that manipulate the market and do 10:1 reverse stock splits every week will have no idea how something essentially does a 2:1 reverse stock split.
they will be totally lost!
Flobee
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There are infinite stocks, only 21 million Bitcoin. That changes everything. The move from a fiat system to a Bitcoin system is a step change, similar to moving from horse and buggy to motor vehicles. Once the infrastructure is built out its a exponential increase in efficiency. You're demonstrating the same lack of understanding that I expect Wall Street to show. We're so used to them being able to control all the variables that I don't think people are appreciating how little control they have over Bitcoin and the ramifications of that.
You don't have to agree with what I'm saying, just wait and see what happens. Stick around the thread while this all plays out, there is a massive information delta that needs to be filled and I expect this cycle will see big movements in that direction. Whole lot of people are already going through the process of accepting they were wrong when they oversimplified this and are going through the process of re-evaluating. You would be well served to be one of them.
Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
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Its been almost 15 years now. When is the infrastructure going to get finally built out?
Flobee
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You should look into it. Lightning, Liquid (specifically submarine swaps), Fediments, integration of Chaumian Mints, just to name a few. There is a lot of work being done you just haven't taken the time to look!