A TALE OF TWO CURRENCIES

A TALE OF TWO CURRENCIES

COMING SOON…

Check back for chapters as they are released, linked below.

Table of Contents

Introduction to Money

I. The Separation of Money and State

i. The Call to Capitalist Money

ii. Escaping the “Novus Ordo Seclorum”

iii. Satoshi Nakamoto

iv. A Need for Immutable Money

v. The Internet of Money and Value

II. The Great Flood of Fiat Currency

vi. Bitcoin vs. Gold vs. Fiat

vii. Taking Back Your Sovereignty

viii. The Flight of Magical Internet Money

ix. Coming Straight from the Underground

x. Taking Shelter from the Storm

III. Unification of CeFi and DeFi

xi. The Serum to Monetary Slavery & Time Theft

xii. Becoming A Master of Two Worlds

xiii. Sources & Works Cited

xiv. Glossary

xv. More Insights & Information

Systemic Bliss © MMXX

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DISCLAIMER
An investment in any asset or strategy involves a high degree of risk and there is always the possibility of loss, including the loss of principal. Nothing written above may be considered as an offer or solicitation to purchase or sell securities or other services. The trading and investing ideas and strategies discussed above are not recommendations to buy or sell any security and are not intended to provide any investment advice and/or recommendations of any kind, but are made available solely for educational and informational purposes. Before acting on information from above, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

You’re Still Not Bullish?

This post was first published on the systemic bliss newsletter December 22, 2021. (Available here)

Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.


Another crazy year in the books!

Bitcoin is beginning to go mainstream. Ethereum is seeing massive amount of interest and investment from both institutions and savvy retail players. Awareness of crypto assets is growing as inflation rises to levels not seen since the 80’s. An explosion of NFTs fueling the “creator economy” and “web 3” setting the basis of meta- or multi-verse. These trends are all still early and are showing great potential as assets, application layers, and networks for the next iteration of the World Wide Web.

It seemed as if every month, disregarding prices and only looking at headlines, the crypto market appeared to be the most bullish its ever been in last over these last twelve months. This was a huge year for bitcoin and crypto assets in general, not disregarding their price. More money is flowing into fixed assets and the DeFi system from the traditional financial systems with infinite supplies of fiat currencies.

If you’re still not bullish, read each month’s highlights below…


January

  • Elon Musk Changes Twitter Bio to #Bitcoin and Tweets “In retrospect, it was inevitable”
  • $7.8T AUM BlackRock Files to Invest in Bitcoin Futures for Two Funds
  • MicroStrategy Buys $10M Bitcoin at $31,808
  • Ray Dalio Writes Article About His Bitcoin Stance
  • Highly Crypto-Experienced Gary Gensler Named Chairman of SEC
  • ECB President Lagarde Calls for Increased Global Regulation of Bitcoin
  • Janet Yellen During Confirmation Hearing Calls for Increased Scrutiny of Crypto for Illicit Uses
  • Crypto Custodian Anchorage Given First-Ever Federal Bank Charter
  • OCC Releases Guidance Allowing US Banks to Use Public Blockchains As Settlement Infrastructure
  • Publicly-Traded Marathon Patent Group Purchases $150M of Bitcoin on Balance Sheet
  • Blockfolio Launches Zero-Fee Crypto Trading & Tokenized Stocks for US Investors
  • SkyBridge Launches Bitcoin Fund with $310M AUM
  • Bitcoin Exchange Bakkt to be Acquired by SPAC for $2.1B
  • Osprey Funds Launches Trading on GBTC Competitor Fund
  • Coinbase Proposes Direct Listing
  • OneRiver CIO Declares Bitcoin Will Be Worth More Than Gold
  • FinCEN Extends Comment Period for Crypto Regulation in Biden Term
  • Travel App “Maps.Me” Raises $50M Funding Led by Alameda Research to Implement In-App Crypto Wallet
  • Coinbase Acquires Bison Trails, Rumored at +$100M
  • Global Soccer Star David Barral Becomes First Player Traded with Bitcoin
  • Dogecoin Gets Wrapped Up in WallStreetBets, Hits 10x in One Day
  • Guggenheim CIO, After Calling for $400k Bitcoin in December, States Bitcoin Price Is Too High at $35K, Calls for Decline to $20K
  • Japan Top Securities Regulator Says XRP Is Not A Security

February

  • TSLA Buys $1.5B of Bitcoin on Balance Sheet
  • MicroStrategy Raises $1.05B Convertible Notes to Buy Bitcoin; Purchases 19,452 Bitcoin at $52,765
  • Square Buys $170M of Bitcoin on Balance Sheet
  • Tether Settles Longstanding Case with NYAG for $18.5M; Does Not Admit Wrongdoing; Agrees to Future Quarterly Audits of Reserves
  • BNY Mellon to Custody Crypto
  • MasterCard to Enable Crypto Purchases for All Merchants
  • Bitcoiner Cynthia Lummis Named to Senate Banking Committee
  • Former TD Ameritrade Head of Digital Assets Named Fed’s Chief Innovation Officer
  • BlackRock Begins Buying Bitcoin
  • MicroStrategy Buys $10M Bitcoin at $33,810
  • Bitcoin Company Casa Raises $4M Seed Round Led by Fidelity’s Avon Ventures
  • Deutsche Bank to Offer Crypto Custody and Prime Brokerage
  • BlockFi Raises Series D at $2.85B Valuation
  • Dapper Labs Raises $250M at $2B Valuation
  • Jack Dorsey and Jay-Z Allocate $23.5M in Bitcoin to Fund Development
  • Miami Mayor Activates Bitcoin Across the City Including Treasury, Employees, Taxes & Fees
  • BitPay Card Adds Support for Apple Pay
  • Bitfinex Repays $550M Outstanding Loan from Tether
  • Ruffer Sells $750M of Bitcoin After Original $740M Position Doubles in Two Months

March

  • $4T AUM Morgan Stanley Private Wealth Management to Offer NYDIG and Galaxy BTC Funds to Clients
  • NYDIG Raises $200M from Morgan Stanley, New York Life, MassMutual, Soros
  • Visa to Enable Bitcoin Purchases at 70M Merchants
  • One River Adds Former SEC Chair Jay Clayton as Advisor
  • Fireblocks Raises $133M Series C from Coatue, Ribbit, BNY Mellon
  • MicroStrategy Purchases $15M BTC at $45,710, $10M BTC at $48,888 and $15M BTC at $57,146
  • Hong Kong-listed Software Company Meitu Purchases $50M ETH and $39M BTC on Balance Sheet
  • Beeple Sells NFT for $69M, Third Highest Sale from Living Artist Ever
  • Norwegian Oil Billionaire Kjell Rokke Buys $58M BTC, Launches Bitcoin Business
  • Tether Produces Reserves Attestation from Moore Cayman
  • FTX Purchases Naming Rights to Miami Heat Stadium for $135M
  • Visa Launches Pilot with Crypto.com to Settle USDC on Visa Network
  • BlockFi Raises $350M Series D at $3B Valuation
  • Goldman Restarts Crypto Desk, To Offer New Crypto Products
  • CBOE Files to List VanEck ETF, Starts Clock for ETF to Respond
  • State Street Named Fund Administrator and Transfer Agent for VanEck ETF
  • Fidelity, Goldman, SkyBridge, NYDIG, VanEck, Valkyrie, WisdomTree and Bitwise All Have Current Bitcoin Applications Pending
  • PayPal Acquires Crypto Custodian Curve, Launches “Checkout with Crypto”
  • Crypto Tax Company TaxBit Raises $100M Series A from Paradigm and Tiger Global
  • Dapper Labs Raises $305M Led by Coatue
  • Graysclae Parent Digital Currency Group Announces $250M GBTC Buyback Program
  • Binance Adds Former US Senator and Ambassador to China Max Baucus as Advisor
  • Coinshares IPOs on Swedish Stock Exchange
  • Jerome Powell Says Bitcoin Is More Like Gold Than the Dollar
  • Howard Marks Changes Mind About Bitcoin
  • China Said to Clamp Down on Inner Mongolia Bitcoin Mining Activities
  • CFTC Fines Coinbase $6.5M for 2015-2018 False Reporting and Wash Trading
  • FATF Release Draft 2021 Crypto Guidance

April

  • Public Japanese Gaming Giant Nexon Purchases $100M of Bitcoin on Balance Sheet
  • 2nd Oldest U.S. Bank State Street with $3.2T in AUM to Start Trading Crypto
  • Former OCC Head Brian Brooks Named CEO of Binance US
  • Former CFTC Chair Chris Giancarlo Joins BlockFi’s Board of Directors
  • Venmo Launches Crypto Purchases
  • Goldman Prepares to Offer Crypto to Private Wealth Management Clients
  • Morgan Stanley Files to Add Bitcoin Exposure to a Dozen Institutional Funds
  • JPMorgan to Launch First Bitcoin Fund This Summer
  • $230B AUM CI Global Asset Management Launches CI Bitcoin Fund
  • US Bank to Launch Crypto Custody
  • Wealthfront to Enable Crypto Purchases Later This Year
  • MicroStrategy Purchases $15M BTC at $59,399, Total BTC Purchases 91,579 at $24,311 Average Price
  • Tesla Sells $272M of Bitcoin
  • FinCEN Appoints Former Chainalysis CTO Michael Mosier as Director
  • Former Acting Director of CIA Michael Morrell Publishes Independent Paper Strongly Supportive of Crypto
  • #1 NFL Draft Pick Trevor Lawrence Signs Deal with Blockfolio to Recieve Bonus in BTC, ETH and SOL
  • Paxos Receives Federal Bank Charter from OCC
  • Paxos Raises $300M at $2.4B Valuation
  • NYDIG Raises $100M (After Raising $200M Last Month) From Liberty Mutual Insurance, Starr Insurance and Others)
  • Consensys Raises $65M from JPMorgan, MasterCard, UBS, and Others
  • $445B AUM Baillie Gifford Leads $100M Investment in Blockchain.com
  • Rothschild Capital Management Takes Stake in Kraken
  • Alchemy Raises $80M Series B Led by Coatue To Be AWS for Blockchain
  • Robinhood Announces 9.5M Users Traded Crypto in Q1-21, Up From 1.7M in Q4-20
  • Revolut Expands Crypto Offering by 11 Names, Now Totaling 21 Cryptos
  • Canada Launches Three ETH ETFs
  • European Investment Bank Sells EU100M Bonds on Ethereum Network
  • Ray Dalio Says of Bitcoin, “I like the diversification of this kind of asset. It should be a part of any portfolio. It’s got merit.”
  • Goldman CEO States Bitcoin Is on Inevitable Path to a Higher Market Cap Than Gold
  • Gary Gensler Confirmed as SEC Chair
  • Brevin Howard Main Hedge Fund to Begin Buying Crypto
  • Dan Loeb’s Third Point Files as a Coinbase Custody Customer
  • Biden Administration Said to Be in the Early Stages of Developing Crypto Regulatory Framework
  • Congress Passes the “Eliminate Barriers to Innovation Act” to Establish SEC/CFTC Working Group on Digital Assets
  • Coinbase to Devote 10% of Resources to Innovation Bets
  • Gemini Now Supports Apple Pay and Google Pay
  • Tether Trading Pairs to Launch on Coinbase
  • Binance Launches Zero-Commission Tokenized Stock Trading
  • Coinbase Executes Direct Listing on NASDAQ, Trades Poorly
  • Turkey’s Central Bank Bans Citizens from Using Crypto for Purchases
  • 62 Arrested in $2B Fraud at Major Turkish Crypto Exchange Thodex

May

  • Andreessen Horowitz Plans $1B Cryptocurrency VC Fund
  • Asian Video Game Publisher Nexon Buys $100M in Bitcoin
  • Bitcoin Taproot Activation Begins, Giving Miners 3 Months to Get On Board
  • Binance Faces Probe by U.S. Money Laundering and Tax Slueths
  • Bitwise Launches Crypto Company ETF on New York Stock Exchange
  • Citibank Considering Launching Crypto Trading and Custody Services
  • CME Group Launches “Micro” Bitcoin Futures Product, Third-Best Launch in CME History
  • Coinbase Acquires Data and Analytics Platform Skew for Undisclosed Sum
  • Crypto Custodian Finoa Raises $22M in Series A Funding
  • Crypto Wallet ZenGo Raises $20M to Grow Services and Team
  • DCG Announces Plan to Increase Purchase of Shares of Grayscale Bitcoin Trust
  • Ethereum 2.0 Staking Project Lido Raises $73M in New Funding Led by Paradigm
  • Elon Musk Makes U-Turn on Statements Regarding Tesla No Longer Accepting Bitcoin Payments, Tumbling Bitcoin and Crypto Markets
  • Facebook-backed Diem Partners with Silvergate Bank to Issue US Dollar Stablecoin
  • Fidelity National Information Services Partners with NYDIG to Allow Hundreds of Banks to Begin Offering Customers Bitcoin Buying and Selling
  • Galaxy Digital Acquires Crypto Custodian BitGo for $1.2B
  • Goldman Sachs Global Investment Research Puts Out “Crypto: A New Asset Class?” Report
  • Goldman Sachs Unveils New Cryptocurrency Trading Team in Employee Memo
  • Hedge Fund Giants Millenium, Matrix and Point72 Standing Up DeFi Funds
  • Indy 500 Bitcoin-Themed Racing Team Competes in the 105th Race Sponsored by Ed Carpenter Racing and Jack Maller’s Strike App
  • ING Says DeFi More Disruptive to Banks than Bitcoin
  • JPMorgan to Let Clients Invest in Bitcoin Fund for First Time
  • MicroStrategy Acquires Additional $15M in Bitcoin at Average Price of $55,387
  • Multicoin Raises $100M for New Crypto Venture Fund
  • Newsweek Reports 46 Million Americans Now Own Bitcoin
  • Notional Raises $10M to Grow DeFi Lending Protocol
  • NYDIG Hires Bridgewater CFO in Drive to Bring Bitcoin to Banks
  • Palantir Technologies Now Accepts Bitcoin for Payments, CFO Says Company Is Considering Holding Bitcoin on Its Balance Sheet
  • Paxos Raises $300M, Joining the Unicorn Club at $2.4B Valuation
  • S&P Dow Jones Indicies Announced Plans to Launch Three New Crypto Indexes: S&P Bitcoin Index, S&P Ethereum Index, and S&P Cryptocurrency MegCap Index
  • SEC Chair Suggests Congress Regulate Crypto Exchanges
  • Square Reports $3.51B in Bitcoin Revenue via Its CashApp for Q1-21
  • Stanley Druckenmiller Says the Fed Is Endangering the Dollar’s Global Reserve Status
  • Tiger Global and Coatue Back Bitso in $250M Series C Funding Round
  • US Bank Selects Cryptocurrency Custodian, Wins Admin Role for NYDIG’s Bitcoin ETF

June

  • Andreessen Horowitz Triples Down on Blockchain Startups with Massive $2.2B in Crypto Fund III
  • Ark Invest Buys Nearly $20M Worth of Bitcoin
  • Ark Invest Files S-1 with the SEC for a Bitcoin ETF Alongside 21Shares
  • Bitcoin Officially Is A New Asset Class, Goldman Sachs Says
  • Billionaire Investor Carl Icahn Says He Wants to Get Involved in Crypto in “Relatively Big Way”
  • Bitcoin 2021 Conference Held in Miami on June 4th and 5th
  • Blockchain Capital Raises $300M to Fund V
  • Bloomberg Analyst: “Bitcoin has transitioned to a global digital-reserve asset.”
  • Cathie Wood Predicts Bitcoin Is Going Up to $500K
  • Chainalysis Raises $100M in Series E, Valuation Hits $4.2B
  • Coinbase to Raise $1.25B in Debt Securities for Institutional Investors
  • Colonial Pipeline Paid 75 BTC, or Roughly $5M to Hackers, FBI Retrieves Most of Funds
  • Daniel Loeb’s Third Point Leads $27M Investment in Crypto Compliance Startup CipherTrace
  • Elon Musk Claims He’s “Working With Doge Devs” on Potential Improvements
  • Elon Musk Clarifies “Tesla Has Not Sold Any Bitcoin”
  • EL SAVLADOR BECOMES WORLD’S FIRST COUNTRY TO ADOPT BITCOIN AS LEGAL TENDER, PASSING LEGISLATURE ON JUNE 9TH
  • Fed Buys MicroStrategy Bonds, Giving It Some In-Direct Exposure to Bitcoin
  • Fed Officials: Crypto Rout Not a Systemic Concern
  • Fidelity Bitcoin Fund Attracts $102M in 9 Months
  • First Approved Brazilian Bitcoin ETF Seeks to Raise 500M BRL ($90M USD)
  • Google Lifts 2018 Ban on Crypto Exchange, Wallet Advertisements
  • Investment Bank Cowen Launching Institutional-Grade Custody Service with Standard Custody & Trust Co.
  • IMF Statement Ahead of Meeting El Salvadoran President Bukele Saying Adoption of Bitcoin as Legal Tender Raises Number of Macroeconomic, Financial, and Legal Issues
  • Paul Tudor Jones Could Go “All In” On Inflation Trades, Wants 5% Bitcoin Allocation
  • PayPal Exec Says Company Will Let Customers Withdraw Crypto
  • MicroStrategy Buys 229 BTC for $10M at an Average Price of $43,663
  • MicroStrategy Launches “At the Market” Securities Offering for Flexibility to Sell Up to $1B Class A Common Shares Over Time, Plans to Buys BTC and Retire Debt Alongside Other Corporate Purposes
  • Morgan Stanley Buys Over 28,000 Shares of Grayscale Bitcoin Trust
  • Morgan Stanley Co-Leads $48M Series B for Blockchain Firm Securitize with Blockchain Capital
  • Novogratz-backed Cryptology Asset Group Invests $40M More in Block.One
  • NYDIG, F5 Investments File to Offer Another Bitcoin Fund Through Morgan Stanley
  • NYDIG and Q2 Announce Collaboration to Offer Integrated Bitcoin Solutions for Financial Institutions via Q2’s Digital Banking Platform
  • Ray Dalio Says He Owns Bitcoin and “Its Greatest Risk Is Its Success”
  • SEC Has No Plans to Regulate Bitcoin in 2021
  • Standard Chartered to Launch Institutional Brokerage and Exchange in Europe
  • Steve Cohen, Point72 Founder and Mets Owner, Says “I’m fully converted to crypto… I’m not going to miss this.”
  • Stronghold Digital Mining Raises $105M to Turn Waste Coal into Bitcoin
  • Taproot Upgrade Locked In, Bringing Massive Upgrades to Bitcoin including Privacy and Smart Contracts
  • Tesla Will Resume Taking Bitcoin as Payment Once Miners Go 50% Green Musk Says
  • University of Pennsylvania Receives $5M Anonymous Bitcoin Donation
  • Wells Fargo to Onboard Active Cryptocurrency Strategy for Rich Clients

July

  • Bank of America Approved the Trading of Bitcoin Futures for Some Clients
  • BNY Mellon Selected for Asset Servicing on Grayscale’s Flagship Bitcoin Trust to Prepare for Bitcoin ETF
  • Circle Enters Definitive Agreement That Will Result in It Becoming a Publicly-Traded Company, Company’s Enterprise Value ~$4.5B
  • Clipper, Decentralized Exchange, Raises $21M from Polychain, 0x Labs, DeFi Alliance, and MetaCartel DAO
  • Coincover, Cryptocurrency Insurance Platform, Raised $9.2M in Round Led by DRW, CMT, Avon Ventures, Valor Equity, Fintech Collective, Susquehanna and others
  • CoinShares Agrees to Buy Elwood Technologies ETF Index Business for $17M
  • Crypto.com Reports the Number of Crypto Users Double in First Half of 2021
  • Eco, Company Building Yield Generating Accounts on USDC, Raises $60M from L Catterton, Activant, A16Z, Lightspeed, Valor Equity Partners and others
  • Genesis Digital Assets, Bitcoin Mining Company, Raises $125M in Funding from Kingsway Capital
  • Fidelity Claims 70% of Institutional Investors Want “Digital Assets”
  • Fidelity Digital Assets Reportedly Increasing Staff by 70% to Meet Growing Demand
  • Fidelity Releases Report Suggesting 71% of Institutional Investors Plan to Buy or Invest in Digital Assets
  • Fireblocks Raises $310M in Series D Funding from Sequoia, Strikes, Spark, Coatue, and DRW
  • FTX, Antigua-Based Crypto Exchange, Raises $900M at a $18B Valuation from Star Studded Group of Investors
  • GlobalX, Asset Manager, Files for Bitcoin ETF
  • Goldman Sachs Files for DeFi and Blockchain ETF
  • Goldman Sachs Wrote a 60-Page Research Report on Bitcoin
  • Goldman Sachs Releases Survey Finding Half of Family Offices in Goldman Network Want to Add Digital Currencies to Portfolios
  • Index Cooperative, a DAO that runs the DeFi Pulse Index, raised $7.7M from Galaxy Digital and 1kx
  • Magic, Decentralized Identity Startup Formerly Known as Fortmatic, Raises $27M in Series A Funding from Tiger Global, Northzone and others
  • Meson Network, Marketplace for Bandwidth, Raises $3.5M from Libertus, Mash Network, Hash Global, CMT Holdings, and Digital Coin Group
  • Nifty’s, NFT Social Media Platform, Raises $10M from Coinbase Ventures, Dapper Labs, Samsung Next, Topps, Polaroid, Polychain, Liberty City Ventures and others
  • OpenSea, NFT Platform, Raises $100M in Round Led by A16Z with Participation from Coatue, Michael Ovitz, and others
  • Osprey Funds Files to Register Their Bitcoin Trust as an SEC Reporting Company
  • Prime Trust, Crypto Asset Custody Firm, Raises $64M in Series A Funding from Mercato Partners, Nationwide, Samsung Next, Kraken and Seven Peaks Ventures
  • Saber Labs, Stablecoin Exchange on Solana, Raises $7.7M from Race Capital, Social Capital, Jump Capital, Multicoin and the Solana Foundation
  • Solrise Financial, Fund Management and Investment Protocol, Raises $3.4M from Alameda Research, CMS Holdings, Delphi Digital, Jump Capital, Parafi, DeFi Alliance, Reciprocal and Skyvision Capital
  • Sorare, Blockchain-Based Fantasy Soccer Platform, Reportedly in Talks to Raise $532M in Round Led by SoftBank
  • Stronghold Digital Mining, Bitcoin Mining Company, Files for $100M IPO
  • Square CEO Jack Dorsey Confirms Company Is Building a Bitcoin Hardware Wallet
  • Thesis, Crypto Venture Studio, Raises $21M in Series A Funding from ParaFi, Nascent, Fenbushi, Polychain, and others
  • Titan, Investment Management Platform that Intends to Offer Crypto Products in the Future, Raises $58M in Series B funding from A16Z, General Catalyst, Box Group and others
  • UFC Signs $175M Sponsorship Deal with Crypto.com
  • Virtual Human Studio, Company behind Zed Run, Raises $20M in Series A Funding from The Chernin Group, A16Z, and Red Beard Ventures
  • Zerion, an Interface for DeFi, Raises $8.2M from Mosaic Ventures with Participation from Placeholder VC, Digital Coin Group, Lightspeed Ventures, and Blockchain.com

August

  • Avanti Bank Files Application to Become a Federal Reserve Member Bank
  • Binance Enforces Mandatory KYC on All Users Amid Mounting Regulatory Pressure
  • BitMEX, Crypto Derivatives Exchange, Reaches Settlement with CFTC and FinCEN Involving Fine As Much As $100M
  • BitWave, Crypto Tax and Accounting Company, Raises $7.25M from Blockchain Captial, Nascent and Area
  • Brian Brooks, Former Head of OCC and Chief Legal Officer at Coinbase, Resigns as CEO from Binance US after Four Months on the Job
  • Certik, Blockchain Security Company, Raises $24M in Series B Extension Round Led by Tiger Global and GL Ventures
  • Chainflip, Decentralized Automated Market Maker Protocol, Raises $6M in Funding from ParaFi, Distributed Global, Delphi Digital, Coinbase Ventures and others
  • Chase Shuts Down Compass Mining Bank Accounts
  • Cryptocurrency Provisions Buried in Biden’s Infrastructure Bill
  • Cryptoquant, Crypto Asset Data Company, Raises $3M from Hashed, Galaxy Digital and others
  • Cuba’s Government Says It Will Recognize and Regulate Cryptocurrencies for Payments on the Island
  • Dune Analytics, Crypto Data Company, Raises $8M from USV, Redpoint, Multicoin and Dragonfly Capital
  • Ethereum Price Starts Being Shown on CNBC’s Live Ticker
  • FalconX, Crypto Asset Brokerage, Raised $210M from Altimeter Capital, Sapphire Ventures, B Capital and Tiger Management
  • Fed’s Jerome Powell Says Digital Money Becoming More and More Important
  • Figment, Staking Infrastructure Company, Raises $50M in Series B in Funding from Senator Investment Group, Liberty City Ventures, 10T Ventures, Galaxy Digital and Anchorage Digital
  • Fintech Collective Raises $250M Fund to Focus on Decentralized Finance
  • Former U.S. SEC Chair Jay Clayton Joins Fireblocks’ Advisory Board
  • FTX Acquires LedgerX, U.S.-based Derivatives Exchange, for Undisclosed Sum
  • Galaxy Digital Files for Bitcoin Fututes-Based ETF
  • Gary Gensler Indicates Crypto’s ‘DeFi’ Projects Are Not Immune to Regulation
  • Gemini Acquires Guesser, Decentralized Predictions Platform
  • Grayscale Hires ETF Head in Push to Convert Biggest Bitcoin Fund
  • Helium, Decentralized Wireless Network, Raises $111M in Token Sale Led by A16Z with Participation from 10T, Ribbit Capital, Alameda Research and Multicoin Capital
  • Horizen Labs, Blockchain Privacy Firm, Raises $7M in Seed Funding from Kinetic, DCG and Liberty City Ventures
  • Hyype, Social Network for NFT Collectors, Raises $1.5M from Electric Capital
  • JPMorgan and Wells Fargo File for Private Bitcoin Funds
  • Liquality, Multi-Chain Wallet Company, Raises $7M from Hashed, Galaxy Digital, Accomplice, Coinbase Ventures and others
  • Mango Markets, Decentralized Exchange on the Solana Blockchain, Raises $70M in a Token Sale
  • MicroStrategy Purchases Another 3,907 Bitcoins for $177M in Cash at Average Price of $45,294
  • Nakji Network, Indexing Protocol for Blockchain Data, Raises $8.8M from Animoca Brands, CMS Holdings, Primitive Ventures and others
  • Parallel Finance, Decentralized Lending Platform Raises $22M from Polychain, Lightspeed, Slow Ventures, Blockchain Capital and Alameda Research
  • PNC Bank, USA’s 5th Largest Bank, Reportedly Working with Coinbase on Cryptocurrency Offering
  • NYDIG Partners with MassMutual
  • Offchain Labs, Company Building the Arbitrum Layer 2 Scaling Solution on Ethereum, Raises $120M from Lightspeed, Mark Cuban and others
  • Ondo Finance, Decentralized Finance Protocol, Raises $4M from Pantera, Genesis, DCG, CMS Holdings, CoinFund and others
  • SEC Chair Speaks Crypto & National Security, Agrees with Predecessor Saying ICO’s and Tokens Largely Are Viewed as Unregistered Securities
  • SEC Charges and Settles with DeFi Team, Blockchain Credit Partners, Over $30M Sale of Tokens in Unregistered Securities Offering for Governance Token / Money Market Fund
  • SEC Unlikely to Take Much Interest in NFTs or Deeming Them as Securities
  • Sotheby’s Auction House Auctioning Off Lot of 107 Bored Ape Yacht Club NFTs, Current Top Bid is $4.5M
  • State Street, 2nd Oldest Bank in the U.S., Says Bitcoin is a Breed by Itself
  • Square Reportedly in Process of Building Decentralized Bitcoin Exchange
  • Substack Adds Bitcoin Lightning Payments for 500,000 Users
  • Survey Says 17% of Americans Own Bitcoin and Roughly 50% Own Stocks
  • Syndicate, Decentralized Organization Focused on Investing, Raises $20M from A16Z, Coinbase Ventures and others
  • Tally, Platform Building Governance Infrastructure for Decentralized Organizations, Raises $6M from Blockchain Capital, Placeholder, Notation, 1kx, Castle Island Ventures and others
  • TaxBit, Crypto Asset Tax Company, Raises $130M from IVP and Insight
  • Three Arrows Capital Launching $100M Fund to Invest in NFTs
  • ThirdPoint Hedge Fund Founded by Dan Loeb with $17B in AUM to Continue Investing in Crypto, Says It Is Unconcerned by Volatility
  • UXD Protocol, Stablecoin on Solana Blockchain, Raises $3M from Multicoin, Alameda Research, CMS Holdings, Defiance Capital and others
  • XMTP, Crypto Communications Protocol, Raises $20M in Round Led by A16Z
  • Zabo, Cryptocurrency API Company, Acquired by Coinbase

September

  • Twitter Releases “Tip Jar” Feature to Allow In-App Tipping of Bitcoin with Lightning Network
  • Interactive Brokers Introduces Crypto Trading Through Paxos
  • MicroStrategy Purchases $243M Bitcoin at $48K Average Price
  • Chinese Government Declares All Crypto-Related Transactions Illegal, Takes Incremental Steps to Discourage Crypto Usage in China
  • Huobi and Binance Suspend Registration of All New Users in China
  • Multiple ETH Mining Pools Cease Services in Mainland China
  • Gensler Hosts Discussion with Financial Times and Reiterates Prior Hawkish Comments on Crypto Unregistered Securities, While Favoring Bitcoin
  • AngleList Enables USDC Funding
  • Kraken Pays $1.25M Fine in Settlement with CFTC
  • Ripple Announces $250M Fund for NFTs on XRP
  • Paul Tudor Jones to Launch Digital Disruption Hedge Fund
  • Algorand Launches $330M Ecosystem Fund
  • Polychain and Three Arrows Lead $230M Token Sale in Avalanche
  • Jump Capital Launches $350M Crypto-Focused Fund
  • Sorare Receives $680M Investment Led by Softbank
  • Dapper Labs Raises Another $250M
  • Crypto Growth Equity Fund 10T Holdings Announces $750M Raise
  • MasterCard Acquires Crypto Analytics Firm CipherTrace
  • Amberdata Raises $15M Series A Led by Citi
  • Crypto Fintech Company Zero Hash Raises $35M Series C Led by Point72 Ventures
  • Coinbase Launches $1.5B Debt Deal, Upsizes to $2B at ~3.5% Rate
  • Coinbase Files with the NFA to register as Futures Commission Merchant
  • Audius Receives Investment from Katy Perry, Nas, Steve Aoki, Chainsmokers and Others
  • FTX Signs Ambassador Partnership with Steph Curry
  • FTX Signs Partnership with F1 Team Mercedes-AMG Petronas and Driver Lewis Hamilton
  • FTX Moves Headquarters to Bahamas
  • Texas Files Cease and Desist Against Celsius
  • SEC Probing Uniswap and Crypto Lending Platforms
  • US Treasury Sanctions Russia OTC Desk for Money Laundering
  • Binance US Hires Former Ant and Uber China Exec as President
  • Robinhood Begins Early Testing on Crypto Wallets
  • Dutch Football Team PSV to Hold Bitcoin on Balance Sheet

October

  • BTC CME Futures ETF “BITO” Launches, Reaches $1B AUKM in Two Days, Fastest ETF to Reach $1B Ever
  • Pimco Announces It Is Investing in Crypto
  • Facebook Changes Name to Meta
  • FTX Raises $420,690,000 From 69 Investors at $25B Valuation
  • Axie Infinity Developer Sky Mavis Raises $150M at $3B Valuation Led by A16Z
  • “Crypto AWS” Company Alchemy Raises $250M at $3.5B Valuation Led by A16Z
  • ConsenSys Plans Raise at $3B Valuation
  • MoonPay Raises $400M at $3.4B Valuation from Tiger Global, Coatue
  • Celsius Raises $400M at $3B Valuation from WestCap, CDPQ
  • CoinList Announces $100M Series A at $1.5B Valuation
  • Elliptic Raises $60M from Softbank, Wells Fargo
  • Animoca Brands Raises $65M at $2.2B Valuation
  • Publicly-traded Crypto Trading Platform Voyager Receives $75M Strategic Investment from Alameda Research
  • NYDIG Acquires Bottlepay for $300M
  • Venture Fund NFX Raises $450M Venture with Crypto Focus
  • China-based Crypto VC Fund Sino Global Launches $200M Fund with Backing from FTX
  • Variant Fund Raises $100M Early-Stage Venture Fund
  • Arca Raises $30M Early-Stage Venture Fund
  • CBOE Acquires ErisX
  • Republican Leader Patrick McHenry Introduces the Clarity for Digital Tokens Act
  • US Senator Lummis Buys More Bitcoin, Sees BTC as “Excellent Store of Value”’
  • Houston Firefighter’s Pension Makes $25M Direct Investment in Bitcoin, Ether
  • Binance Launches $1B Growth Fund for Binance Smartchain
  • NEAR Protocol Launches $350M Grants DAO to Fund Ecosystem Growth
  • DCG Authorizes Additional $750M Share Buyback
  • Huobi Ceases Offering Services in China, Delists CNY Trading
  • Binance Ceases Offering Services in China, Delists CNY Trading
  • Mesh 5G WiFi Provider Helium Announces Partnership with Dish Network
  • FTX.US Launches Collectibles Arm on Solana
  • Bank of America Releases 141-page Research Report: “Digital Assets Primer: Only the First Inning”
  • Stripe Creates New Crypto-Focused Team
  • A16Z Launches Major Crypto Policy Campaign
  • Tether and Bitfinex Settle with CFTC for $42.5M
  • NYAG Orders Celsius and Nexo to Cease Services
  • Facebook Chooses Coinbase as Custodian for Novi Project Pilot
  • Coinbase Becomes Exclusive Crypto Partner of NBA
  • Bloomberg Releases FUD Article “Anyone Seen Tether’s Billions?”
  • FATF Releases Relatively Benign Guidance on “Virtual Assets”
  • Biden Administration Continues to “Weight Wide-Ranging Push for Crypto Oversight”
  • DeFi Fund Manager MNGR Experiences Hack

November

  • Paradigm Raises $2.5B Venture Fund
  • Pantera Raises $600M Venture Fund
  • Crypto.com Signs 20-Year $700M Deal to Rename Staples Center
  • ConsenSys Raises on $3.2B Valuation
  • Commonwealth Bank Leads $400M Fundraise in Gemini at +$7B Valuation
  • Blockchain Gaming Company Forte Raises $725M Series B
  • FTX, Lightspeed Ventures & Solana Ventures Partner on $100M Web3 Gaming Fund
  • Reddit Co-Founder to Invest $100M in Social Media on Solana
  • A16Z Leads $150M Fundraise for NFT Game Platform Mythical Games at $1.25B Valuation
  • FTX Leads $150M Fundraise in African Payments Chipper Cash at $2B Valuation
  • Kucoin Labs Launches $100M Metaverse/Play-to-Earn/Gaming Fund
  • StarkWare Raises $50M at +$2B Valuation
  • Hxro Raises $34M from SIG and Jump to Build Derivatives Infrastructure on Solana
  • Pokemon GO Developer Niantic Raises $300M at $9B Valuation to Build Metaverse
  • Alan Howard, Chris Dixon and Winklevoss Twins Back $100M Metaverse Fund
  • Music Rights NFT Platform Royal Raises $55M Led by A16Z
  • Neon Labs, Developer of EVM on Solana, Raises $40M
  • Arca Launches $30M NFT Fund
  • Bitcoin ETF Provider Valkyrie Launching $100M on On-chain DeFi Hedge Fund
  • MicroStrategy Purchases 7,002 BTC for $414M at Average Price of $59,187
  • Marathon Digital Raises $650M Convertible Debt at 1% Interest to Buy Bitcoin and Mining Equipment
  • Bitcoin Activates Taproot Upgrade
  • DCG Raises $600M Credit Facility
  • Citigroup Alum Matt Zhang Launching $1.5B Crypto Fund
  • Microsoft to Debut Metaverse Apps and Games Next Year
  • Coinbase Users Can Borrow Up to $1M Using Coinbase as Collateral
  • New York Mayor Will Take First Three Checks in Bitcoin
  • FTX, Lightspeed Lead $21M Fundraise in Gaming Studio Faraway
  • Paradigm Co-Founder Matt Huang Joins Board of Stripe
  • Former Ikigai Researcher Phil Bonello to Launch Crypto Hedge Fund
  • Brave Partners with Solana to Integrate Browser and Make Default for DApp Support
  • Tim Cook Personally Owns Crypto But Apple Has No Plans to Accept Crypto Payments
  • Decentralized Identity Platform Spruce Raises $7.5M from Electric
  • UAE-Based Phoenix Technology Consultants Places Order for $650M of Mining Rigs
  • ConstitutionDAO Raises +$40M to Buy Physical Copy of US Constitution, Gets Outbid by Ken Griffin, Refunds and Returns Part of the Money (Gas Not Included)
  • El Salvador Plans Bitcoin City, Funded by Bitcoin Bonds
  • Comprehensive Bipartisan Bill Is Introduced in House to Fix Current Infrastructure Bill’s Crypto Tax Provision
  • Senate Banking Committee Sends Letters to Stablecoin Issuers Coinbase, Gemini, Circle, Paxos, TrustToken, Centre, and Binance US About General Business Practices and Safeguards
  • US Treasury Releases Stablecoin Risk Report
  • “NFT” Named Collins Dictionary’s Word of the Year

December

  • Adidas Announces It Is Entering the Metaverse with Bored Ape Yacht Club Ethereum NFT in Partnership with Yuga Labs, collector Gmoney, and NFT project Punks Comic
  • Purpose Investments Introduces Two ETFs on Toronto Stock Exchange, the Purpose Bitcoin Yield ETF and Purpose Ether Yield ETF
  • Fidelity, American Financial Services Corporation, Launches Its First Spot Bitcoin ETF in Canada
  • Crypto.com Enters Agreement with IG Group Holdings to Purchase North American Derivatives Exchange (Nadex) and the Small Exchange for $216M
  • SEC’s Gensler Repeating Calls for Exchange Platforms to Register with SEC, Targeting Cryptos and DeFi Products Trying to Avoid Regulation
  • Square, Payments Company, Changes Name to “Block” Referring to Blockchain Technology
  • DeFi Project 1inch Network Raises $175M in Series B Funding from VanEck, Fenbushi Capital, Alameda Research, Celsius, Nexo Gemini Frontier Fund and others
  • IOHK CEO Charles Hoskinson Touts Plutus Cardano Smart Contract Platform
  • Nayib Bukele, President of El Salvador, Announces “Buying the Dip” Adding 150 BTC at Average Price of $48,670 to National Reserves
  • CME Group Launches Cash-Settled Micro-Ether Futures Trading
  • Exchanges Support Ethereum Network Upgrade and Glacier Hard Fork
  • Ritholtz Wealth Management and WisdomTree Launch Crypto Index; 36% BTC, 20% ETH, and 4% Across 11 Other Cryptos
  • Vitalik Buterin Publishes Plausible Roadmap Called “Endgame” for Ethereum
  • Gemini Crypto Exchange Partners with Bancocolombia, Colombia’s Largest Bank
  • Justice Department Utilizing Newly Established Task Force, the National Cryptocurrency Enforcement Team, Focusing on Crimes Committed by Virtual Currency Exchanges, Mixing and Tumbling Services, and Money Laundering Infrastructure Actors
  • Bitcoin Hash Rate Makes New All-Time Highs, Full Recovering from China Ban
  • Visa Launches Visa’s Global Crypto Advisory Practice to Help Clients and Partners Navigate the Crypto Space
  • Google Trends Releases Top 2021 Search Terms, “Dogecoin” and “Ethereum Price” Rank Fourth and Tenth Respectively
  • WhatsApp Integrates Novi’s Digital Wallet as Part of Pilot Test in Pax Dollar
  • MicroStrategy Acquires Additional 1,434 BTC at an Average Price of $57,477, Holding 122,478 Total BTC Acquired for $3.66B at an Average Price of $29,861
  • Budweiser and Pepsi Start Minting NFTs on Ethereum
  • Opera Browser Announces Integration with Solana in 1st Half of 2022
  • Miami Mayor to Receive Part of 401k in Bitcoin
  • Bitcoin Exchange Balance Hits 3-Year Low as 90% of the Total Maximum Amount of Mined Bitcoin in Circulation
  • Robinhood Partners with Chainalysis, Blockchain AML/KYC Analytics Firm Ahead of Crypto Wallet Launch
  • Nike Acquires NFT Studio RTFKT, Specializing in Creating Collectibles and Sneakers for the Metaverse
  • Elon Musk Tweets Tesla Making Merchandise Buyable with Dogecoin to “See How It Goes”
  • Mubadala Investment Company, UAE Sovereign Wealth Fund, to Invest in Crypto Ecosystem
  • BBVA Switzerland Becomes First Traditional Bank in Europe to Add Ethereum to Crypto Offerings
  • Twitch Co-Founder Justin Kan Announces Launch of Fractal, Marketplace for Gaming NFTs Based on Solana
  • Total Supply of Stablecoins on Exchanges at All-Time High at $21.5B
  • Robinhood Acquires Cove Markets Cross-Exchange Trading Platform, Team Will Focus on Obtaining Quality Executions for Customers in Crypto Market
  • Anchorage Digital Raises $350M in Funding Round D with Participation from Goldman Sachs, Andreessen Horowitz, Apollo Credit Funds, KKR, Wellington Management and others
  • NYDIG Raises $1B Equity Funding Round to Develop Institutional Bitcoin Products, Valuing it at +$7B with Participation from Bessemer, FinTech Collective, Affirm, FIS, Fiserv, Mass Mutual, Morgan Stanley and NY Life
  • Dune Analytics, Norwegian Analytics Startup, Raising Funds at a $1B Valuation
  • Nansen, On-chain Analytics Firm, Raises $75M in Round Valuing It at $750M Led by Accel with Participation from A16Z, Accel, GIC, SCB10X, Tiger Global and others
  • Paradigm, Derivatives Platform (not the fund), Raises $35M in Series A Funding from Jump Capital, Alameda, Genesis Trading and others
  • Stacked, Company Building Passive Investment Tools for Crypto Traders, Raises $35M from Alameda Research, Fidelity International, DRW, Jump Capital and others
  • Gala Games, Blockchain-Gaming Platform, and Crypto Investment Firm C2 Ventures Form $100M Fund to Invest in Play-to-Earn Games, Metaverse Environments and Other Projects
  • Thirdweb, Blockchain App Development Platform, Raises $5M from Gary V, Ryan Hoover and others
  • A16Z Investing in PleasrDAO, Decentralized Group of NFT Collectors and Digital Artists
  • Michael Jordan and Son (Jeffrey) Reveal HEIR, Web3 Fan Engagement Platform on Solana, Raising $10M in Seed Funding Round Led by Thrive Capital with Particpation from Solana Ventures, Alexis Ohanian and others
  • Ramp, Crypto Payments Infrastructure Company, Raises $52.7M in Series A Funding Round from Balderton Captial, NFX, Galaxy Digital, Seedcamp and others
  • Bitwise Launches Blue-Chip NFT Fund Tracking the Top 10 NFT Projects
  • Ledn, Crypto Lending Company, Raises $70M from 10T Holdings, Golden Tree Asset Management, Raptor Global and others
  • Robinhood Rolling Out New Crypto Gifting Feature
  • Solana Ventures Announces $150M Fund to Back Blockchain Gaming Companies
  • Sounds.xyz, NFT Music Startup, Raises $5M from CoinFund and Gumi Crypto
  • Ray Dalio Says Bitcoin Is Almost an Alternative to Gold for Younger Generation, Blockchain Revolution Is Inevitable, and He Views Crypto as an Alternative Money in an Environment Where the Value of Cash Money is Depreciating in Real Terms
  • Russian Central Bank Wants to Ban Crypto Investments in Russia
  • Mastercard Engineers Assist ConsenSys to Launch Rollups to Provide Enterprise-Grade Scalability to Organizations
  • Melania Trump Presents First NFT Based on Solana Protocol
  • Instagram CEO, Adam Mosser, Says Company Is Actively Exploring NFTs
  • Adidas Launches “Into the Metaverse” NFT in Collaboration with Bored Ape Yacht Club on Ethereum Blockchain, Raises $23.4M in One Day After Its Debut
  • Microsoft Executive, Yorke Rhodes, Sees Ethereum Being the New App Store in Decentralized Future
  • FBI Confiscates $180M in BTC Tied to Sony Life Embezzlement Case, Funds Were Tracked Down and Seized before Transferring Funds to FBI-San Diego’s Bitcoin Wallet
  • El Salvador Buys Another 21 BTC for Roughly $1M on December 21st at 21:00
  • Crypto Exchange, Kraken, Acquires Staking Platform Staked in “One of the Largest Deals in the History of Crypto” without Disclosing Financial Details

Zoom out, look back, and think about where this market is heading.

Bitcoin is becoming hard money as well as pristine collateral, and Ethereum is programmable money and the base layer of decentralized applications. Crypto assets enable the creator economy with strong ownership and property rights. The potential in NFTs and multiverse seem boundless with opportunities for artists, brands, and creatives.

There may be fear in the traditional financial system, and it can leak into the crypto asset markets. Luckily, they are more anti-fragile and efficient than traditional assets with asymmetrical as well as uncorrelated return profiles. Given their public and transparent infrastructure with global availability over the Internet, people are beginning to place more trust in bitcoin as well as crypto assets than ever as they recognize the enhancements that they bring them by eliminating middlemen while lowering costs.

Have a Merry Christmas and a Happy New Year!

2021: A Crypto Odyssey

(Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.)

Board of Governors of the Federal Reserve System (US), M2 [M2SL], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/M2SL, December 11, 2021.

Part One

Ordinarily, the issuance and supply of the US Dollar has been relatively stable with a steady rate of growth and inflation that was averaging around 2% annually. Using emergency powers and taking temporary measures in response to the COVID-19 pandemic, the Federal Reserve System Board of Governors with Congress approved a flood of US Dollars into the traditional financial system. They simply marked up accounts on a central database of member banks and institutions, or in other words they created money from nothing. Fed governors went on parade over national television about their ability to do so infinitely.

The call to adventure was all of the bureaucrats and politicians on Capitol Hill who signed off on the stimulus packages relaying the same Keynesian economic canon and term calling it all “transitory.” Many Americans shared their concerns regarding rising inflation as consumers saw prices across the board go up double digits, while the cheerleaders and those who were responsible for the windfall of stimulus money reassuring them that it’s simply going to be “transitory.” It’d only be transitory if they stopped all of the “temporary” programs that are buying mortgage-backed securities including other securities on top of all of the US Treasuries and not just tapering them off over a series of years.

Refusing to take their prognostications, a bunch of clever individuals saw right through the phony rhetoric being used by both bureaucrats and politicians as pure nonsense. There could be no way that the total money supply could increase by 40% since the start of the pandemic without there being any sort of corresponding reaction. Investors who took their cash (or as I like to call them “infinity bucks”) and held on tight suffered from the largest increase in inflation since the 80’s and those that traded it for fixed assets like bitcoin with a total of 21,000,000 benefited from the largest expansion of our money supply in history.

Paul Tudor Jones, Michael Saylor, and Stanley Druckenmiller were good mentors. These individuals each in their own right have made incredibly large sums of money in their careers and ventures. Jones who advises the Fed took the reputation risk away from Bitcoin with his piece “The Great Monetary Inflation,” Saylor took the dive before anyone else putting bitcoin on his company’s balance sheet, and Druckenmiller a highly sophisticated investor with George Soros back in the day solidified bitcoin and crypto as an emerging asset class holding great potential.

U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers: All Items Less Food and Energy in U.S. City Average [CPILFESL], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/CPILFESL, December 11, 2021.

Part Two

Coinbase, Coinbase Bitcoin [CBBTCUSD], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/CBBTCUSD, December 11, 2021.

Crossing the threshold, many companies and institutions have begun to follow the “smart money” by investing in bitcoin and crypto assets like Ethereum or Solana. Collectively, these corporations and humans were entering a new universe of digital assets with property rights unlike the traditional universe. Space and time almost seems to move differently since they are much more efficient than ordinary assets.

The newly initiated in bitcoin and crypto faced tests of their will to hold a digital asset that faces a more free market without circuit breakers or lenders of last resort. In the face of what seems like the early innings of mass adoption, both allies and enemies of bitcoin came out of the woodwork to criticize its energy consumption as well as volatility. China banned crypto mining and trading while Elon Musk was tweeting about DOGE and spreading fear, uncertainty, and doubt over bitcoin’s energy usage.

Approaching the abyss, bitcoin and the crypto market began to tank from their all time highs on the news that Elon announcing that Tesla had decided to stop transactions in bitcoin as well as selling some to “test its liquidity.” The fact that they were able to liquidate a nine figure position with moving the market until announcing afterward is truly an incredible feat. China historically had the most excess energy in the world and dedicated it towards bitcoin mining with the large output from their hydro power plants, but it’s a Communist nation and the decision was made from the top down to ban all crypto mining operations.

Over the summer, the bitcoin and crypto markets saw drawdowns of 50% or more in some cases. This is not the first time that has happened, nor will it be the last time because it is quite likely there will be a drawdown of this magnitude again. It is a free market and the price equates to truth in that it reflects what one person is willing to pay at that moment in time, and despite the multiple attempts from various parties to distort it as well as disrupt it (if not outright kill it) Bitcoin’s hashrate and price has since come back stronger!

Blockchain, Total Hash Rate (TH/s) [hash-rate], retrieved from Blockchain.com; https://www.blockchain.com/charts/hash-rate, December 11, 2021.

Part Three

Bitcoin’s energy consumption is nothing compared to other activities and industries.

After doing their own research, those aforementioned mentors took their hard earned dollars and feared what the bureaucrats as well as politicians were doing to their value and they risked a small yet meaningful allocation of it in bitcoin predominantly. Two hedge fund billionaires as well as another rocket scientist turned tech billionaire turned full-time bitcoin evangelist shared their strategy for any average citizen to copy in order to simplify it for them in hopes of trying to spare them from the ravages of inflation. Then in early Fall, the most amazing thing in bitcoin history happened when El Salvador adopted bitcoin as legal tender in tandem with the US Dollar.

As a third world country without much of the infrastructure that many developed and modern nations have today, Bitcoin has helped them find a way to bring them the benefits of a fixed asset that is non-sovereign with strong property rights as well as an efficient payment network without middlemen and rent-seekers. Bitcoin is their escape hatch out of a dollar debt-based relationship with the US Dollar that the IMF and World Bank have used to extract goods and resources from many underdeveloped countries by extending them unpayable loans denominated in dollars that get their value diluted, not to mention, ahead of an increasing interest rate environment (or so they say). Bitcoin additionally enables these people to access other crypto assets like ethereum and others that can also be used to own a piece of the network infrastructure and/or to participate in global collectives, commerce, elections, markets and more without fear of being censored or having funds in their custody being frozen by some authoritarian dictator or government.

In a world that sounds more bleak by the day, Bitcoin represents the resurrection of hope for a better future in many different regards and to many different peoples. Society is just waking up to the fact that it is both an asset and network like Facebook only it is larger and more private. BTC is the gateway to the cryptoverse, and crypto assets as well as non-fungible tokens are the keys to the emerging metaverse.

Breedlove, Robert. “Masters and Slaves of Money.” Medium, Medium, 15 May 2021, https://breedlove22.medium.com/masters-and-slaves-of-money-255ecc93404f.

Conclusion

Keeping calm and routinely stacking sats (slang for “satoshis” the smallest unit of measurement of 1 BTC) by buying the dips with small purchases historically has been a foolproof strategy for starters. After getting comfortable sending small amounts and transacting with bitcoin, it will become easier once it is more familiar from knowing how it works and actually see funds moving across the network in real-time. As funds reach more significant amounts, it’s wise to look into cold storage solutions such as hardware wallets in order to take self-custody over them rather than trusting them with an exchange or third-party.

A small allocation into bitcoin and crypto assets has been a powerful way to amplify returns for traditional investment portfolios and they are useful tools to combat the value that is lost to inflation over time. Keeping one to five percent of an individual’s net worth in bitcoin and crypto seems to be the most conservative proportion, even being suggested by some of the world’s most successful money managers. Bitcoin and crypto assets add to a portfolio’s diversification without adding too much overall risk due to their asymmetrical and uncorrelated return profiles compared to traditional asset classes.

Bitcoin alone has been enough to keep up with inflation as well as the Federal Reserve’s total assets on its balance sheet, but ETH as well as a handful of other crypto assets outpacing it year-to-date are exhibiting how a diversified strategy is really optimal. Any average investor looking to move further out on the risk curve can do so by simply adding bitcoin and ether, but they can easily find themselves moving in the wrong direction by taking on positions in crypto assets with weaker fundamentals and technical factors. There is more than ten thousand crypto assets trading at any given moment around the world right now, and a large majority will probably fail to achieve their goals or gain mainstream adoption.

Do your own research. Be intellectually curious and open minded. Have a happy and healthy new year!

It Was Not Priced In…

One year ago today was Bitcoin’s third block reward halving event in its history, since that time the point has been made crystal clear that it was not priced in…

Bitcoin back then was trading for less than $10,000 a pop. During the halving event on May 11, 2020 around 2:30PM CST, it was trading just over $8,500. In the days prior, Paul Tudor Jones made headlines announcing his bitcoin investment that premiere asset managers saw as career risk before him laying out his thesis in The Great Monetary Inflation. As unemployment was seeing records not seen since the Great Depression, the smart money was becoming bullish on hard assets as protection against the money printing machines around the world.

It was a bumpy year leading up to the event, bitcoin crashed in March with the coronavirus panic. In only two months, BTC found its footing again and saw gains over 100% off its 52 week lows. What a recovery! Not to mention, one year later after arguably the largest monetary expansion in our recorded history BTC is now worth more than $58,000.

If you had the conviction to buy BTC with strong hands during the washout in March 2020 and held onto your bitcoin, that means you have seen somewhere between 10X and 15X your original investment. Not bad when you think about everything else, except maybe perhaps bitcoin’s long lost cousin dogecoin or its closest competitor ethereum or plain old lumber possibly which are proving to make a good case for why it may help to have other eggs in your basket to optimize your portfolio’s returns.

Since May 11 last year, it has not been a straight line to the sky on the chart with bitcoin trading sideways for months as volatility dwindled into the Fall of 2020.

With the talk of a second wave, social unrest, and v-shaped recovery coming from every direction in the news cycle, the efforts being made to ensure there was not a fallout financially were unprecedented with trillions of dollars being created out of thin air to fight against an invisible enemy. The powers at be around the world through their massive efforts unfortunately were creating another invisible beast that the public would need to battle against, inflation. Cases of COVID-19 rose as the stock market rallied back towards new record highs despite week after week of very elevated unemployment numbers. This also coincided with one of the most contentious and controversial US presidential elections of all-time with social media companies going so far as fact-checking candidates and their stances plus statements online as well as escalated into them removing the sitting president, Donald Trump, from their platforms one after another.

To sustain a recovery in the US economy that would spill over into the rest of the world, US leaders pushed for lower interest rates on top of more loan as well as spending programs. Americans in lockdown receiving stimulus checks were quick to invest most of that money rather than actually spending it in the economy as intended. This created downward pressure on the dollar as its issuance grew enormously as the velocity of its use fell off the table quickly with the growing trend of trading “stimmies” in the hopes of making “tendies.” The Federal Reserve folks at the Marriner Eccles building in Washington, D.C. got bitcoin investor’s attention when they then began to openly discuss them possibly using digital dollars to essentially unleash inflation, universal basic income, and debt forgiveness.

Fed chairman Powell mentioned central bank digital currencies and their role in the future in October, and it was off to the races for bitcoin starting that month around $10,000. As election day played out and Americans were uncertain of the results for weeks, bitcoin began ticking up. As the GOP’s grip over control was loosening, the Senate failed to secure Judy Shelton a board seat on the Federal Reserve. She was arguably the last bastion of sound money as many viewed her as an awkward pick that wanted to put the US back on the gold standard during a time when the Fed’s balance sheet’s growth outpaced that of almost every asset and index on Earth besides a handful of exceptions, including bitcoin.

By December 15, the Senate majority leader Mitch McConnell congratulated Joe Biden and Kamala Harris on their victory while in the same 24 hours bitcoin’s price crossed over its previous all-time-high at $20,000.

The “Save America” rally on January 6, 2021 turned into an insurrection as many disgruntled Trump supporters stormed the United States Capitol building. They distrusted the election results and the media reporting them, so many of his fringe supporters sought to attack the building with the hopes of overturning the results of the 2020 US presidential election. It was unsuccessful and unfortunately claimed the lives of five people before, during, or after the mob attack with over a hundred people injured too. Sadly, it serves as an example of the rapid degradation of trust in our society and the demoralization of American citizens in their existing centralized systems.

The systems in which we participate and rely on are not fully transparent, so trust is necessary. If there was a blockchain or timechain-based voting system that could be audited by anonymized voters as well as pollsters privately and in real-time, it is possible that events like that never happen again. Around the world, governments in unison almost are eagerly taking on more and more debt near or at zero percent interest while printing more and more money to flood into the system. As Democrats regained control of the US Senate from the Georgia state runoff election and protesters took to storm the capitol, bitcoin was sailing above $30,000 and heading into $40,000 territory.

In the wake of the capitol event, Donald Trump was put through the process of being impeached again for the second time for now “inciting violence against the government of the United States.” Banks cut ties to Trump and his associates by closing their accounts. BTC held its head above $30,000 in January this year even while the newly confirmed Secretary of the Treasury, Janet Yellen, bashed bitcoin and crypto during her first official day on the job. Remember when Trump famously denounced bitcoin and crypto in 2019, saying the were highly volatile and based on thin air?

I wonder if his outlook and stance towards bitcoin have changed…

By the end of January, a peaceful transition of power to President Biden’s administration took place and the Senate Republicans were able to successfully vote against Trump’s impeachment to quash it for good. Simultaneously, as Biden went on a tear making news for signing one executive order after another, redditors on WallStreetBets were on the verge of blowing out major Wall Street hedge funds with some of the largest titans in the capital markets backing them. Amid the Reddit-fueled trading frenzy in the stock market with names like AMC, Bed Bath & Beyond, and GameStop up more than 100% in a single session in some cases, and the Senate quickly motioned to hold a hearing on the state of the stock market. A rush of retail day traders bid up these names creating a fiasco on Wall Street where the major firms and players in the market were shorting them to bet against their value going up, which caused one of the worst weeks since October with major indexes falling more than 3%.

As everyone became consumed with the revolt of redditors in the stock market against the hedge fund insiders and market wizards, bitcoin was benefiting as it rose from $30,000 to over $50,000 in February. Tesla on the 8th announced they had invested $1.5B into BTC, and by the 16th MicroStrategy announced it was buying $900M more bitcoin in addition to their first $250M purchase back in August of 2020. On February 19, 2021, bitcoin went over $53,688 to reach a $1T market capitalization for the first time in history. By the 23rd, Square announced that they had bought 3,318 BTC for an aggregate purchase of $170M.

Bitcoin began March 2021 just below $50,000. Then, a jump in bond yields sent gold and stocks lower while bitcoin saw itself climbing on the news of Biden’s $1.9T stimulus plan getting passed. The new president’s pick for chairman of the SEC, Gary Gensler, was confirmed and went on the record saying that he thinks bitcoin and crypto are a catalyst for change. By the middle of the month, the Fed decided to leave rates unchanged and said they would until 2022 at the earliest or 2023 at the latest with Powell also noting that bitcoin and crypto are more of a gold substitute than the dollar.

Bitcoin just does what it needs to do, and that should always be priced in…

Come April, Democrats are pushing Biden harder for even larger infrastructure spending as well as more stimulus checks going directly to Americans in the next spending bill. The Fed’s Kashkari during an interview mentioned he would not panic if he saw a 4% inflation rate. Accordingly, BTC flew back above $60,000 in the days prior to Wall Street turning all eyes to Coinbase for their direct listing on the NASDAQ. Batching all of this news with the Fed’s dovish minutes looking out into 2022+ timeline being released, the markets all were going bananas and setting fresh record highs.

As the stock market was showing signs of major strength with strong earnings and positive jobs numbers, the streak was snapped with Biden’s proposal of raising capital gains taxes. Bitcoin had a wild ride down into the $50,000 range after the hyped-up Coinbase listing with a massive wave of leveraged long positions being liquidated in a span of only 20 minutes over the weekend. By the end of the month, BTC made a valiant recovery in the face of the news of Tesla’s earnings call citing they saw a quarterly profit while also selling $272M of their BTC holdings leaving them with a remaining $1.33B of bitcoin on their balance sheet. Tesla’s CFO, or “Master of Coin” as they call him now, said that the company plans on accumulating and acquiring more bitcoin in the future easing fears they may dump the rest.

Founder and CEO, Elon Musk, quickly shot down Dave Portnoy’s criticisms over Twitter that claimed that he was just buying BTC to pump and dump it all along by clarifying that he has not sold any of his personal bitcoin holdings and Tesla’s move to sell was to “prove liquidity of Bitcoin as an alternative to holding cash on [its] balance sheet.” It did not derail the rally though, as bitcoin closed the month above $50,000. Many talking heads on Wall Street were gleefully make jokes that the 14 year old electric vehicle company makes more money selling bitcoin than making cars. The Fed left rates unchanged again while keeping an eye on the very hot real estate market, and Powell again mentioned the central bank’s need to understand how digital currencies work.

The Fed has taken a change in tune to letting inflation “run hot” with Powell mentioning that if inflation above 2% is persistent they have and will use all their tools to lower it…

Central banks are playing a dangerous game of chicken with bitcoin and inflation. If they do anything to tighten their monetary policy in the hopes of taming soaring inflation, the risk is pulling the rug out from beneath the rest of the market with all of the easy money that is currently propping its value up. Interest rates must remain sticky near or at zero because raising them also risks taking the wind out of the sails of the market. Acting more as bureaucrats and politicians than bankers, the Fed has been put in a position that’s “damned if they do, damned if they don’t.” If they continue to let inflation rise unabated with increased amounts of money printing, the Fed might weigh on low to mid-income earners and younger generations in the United States who disproportionately own far less of the QE-assets that benefit from their actions like the higher earners.

This month has been a head scratcher with the former Fed chairman Janet Yellen’s statements regarding interest rates that triggered a broad-based pullback on the news that she expressed some feelings that raising rates may be necessary to prevent the economy from “over-heating” with all of the government stimulus. Following that news, Wall Street was sent into a tizzy with all of the banks and her favorite speaking engagements going into turmoil thinking that she was suggesting or predicting some rate hikes in the future. Very quickly, Yellen flip flopped before the end of the day and started walking back her comments to ease tensions on Wall Street saying she was not making any recommendations while falling in line with the current Fed chariman by saying any inflation or price increases are “transitory.”

“If anybody appreciates the independence of the Fed, I think that person is me,” Yellen stated. “I don’t think there’s going to be an inflationary problem. But if there is the Fed will be counted on to address them.” It is leaving many wondering if her statements were a Freudian slip with an admission that tightening may be needed in response to stimulus spending that causes inflation due to her firsthand knowledge of the Fed’s inability quell it. Talking down these expectations seems almost reminiscent to Bernanke’s just before the Global Financial Crisis when he was telling members of Congress, “We believe the effect of the troubles in the subprime sector on the broader housing market will be limited and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.”

They always want you to think the economy and financial markets are better than they are in reality, and the situation they’re facing looks unmanageable without inflicting pain on the QE-asset holders (possibly bitcoin and crypto too).

At the time of this writing, all-time-highs are being seen everywhere you look whether its bitcoin, crypto, defi, commodities, debt prices, home prices, income, savings, or stocks. US inflation expectations have also never been higher since 2008, and the Federal Reserve, Treasury, and White House are the three blind mice that cannot see it. There is no one market that looks as if it is so financially and systemically important that if it waivered the entire market risks going with it. It almost seems as if we are not in a bitcoin bubble or another housing bubble for that matter, but more so of an “everything bubble.”

The truth may be that all of the assets and indexes that have seen record highs following March 2020 are not going up as much as the US Dollar’s value is going down. More than a decade after the GFC’s bailouts and easy money coming from the Fed, it is almost hard to find an asset or index that has not outperformed the dollar. If you look at it from another lens in terms of the total assets on the Federal Reserve’s balance sheet, then you may be able to paint a different picture. Price it all in bitcoin and then zoom out, the picture becomes clear: almost everything is trending towards zero in terms of BTC.

“Stocks only go up,” has been the mantra of not only Barstool’s DDTG but an entire generation of new investors with discretionary funds. Taking a long-term view of the stock market and zooming out like we did with bitcoin, it basically does just that with a handful of dips occurring over the decades that appear as wonderful buying opportunities in retrospect. Having the conviction to hold onto these positions historically have made people lots of money, but not everyone knows what “diamond hands” are or what “hodling” really means usually until they have sold and start doing the coulda, shoulda, woulda math. There is a key distinction between an investor and a trader, having the courage to let your winners run until they reach the logical conclusion of your investing thesis that prompted it.

Applying this to the “everything bubble” in the current bull market, many people do not even know what made them buy whatever it is they have invested in the first place besides emotion and fear of missing out that limits their ability to discern if they should ever step off the ride.

In America, the wealthiest 1% of Americans own more than 50% of all equities and the wealthiest 10% owns almost 90%. As the Fed insists on continuing trillions of dollars worth of asset purchases and bond buying programs as part of their QE scheme, the central bank is inflating asset prices in markets only accessible and desirable to the elite and wealthy that benefits from inflation more than it is a detriment to them. Before Robinhood and GameStop, far less kids and lower to middle class people were trading stocks and risking their hard earned money.

Artificially low interest rates and money printing have pushed more people with capital further out on the risk curve in search of higher returns, while making the lazy assumption that if the floor were to fallout beneath them that the Fed will catch them with a flood of liquidity. Traditionally, the Fed has only been looking to bailout the systemically important financial institutions and not the unsophisticated subprime borrowers and unwashed retail gamblers. As inflation looms and legendary investors saying that “cash is trash,” bitcoin as a decentralized and digital alternative to fiat currency that’s global, immutable, and non-sovereign maybe the best solution given its provably scarce supply of 21,000,000 versus the infinite dollar. Buying and holding bitcoin in the past twelve years as well as in the past twelve months compared to its legacy competition has been the best profit-maximizing strategy as the fastest horse.

A store of value is anything that holds its purchasing power in the future, and it is entirely based on a function of people’s perception of its worth or what they deem to be its intrinsic value. Liquidity, portability, purchasing power, and trustworthiness are the core characteristics to a store of value. Satoshi Nakamoto stated, “the root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currency is full of breaches of that trust.” Given the Fed authorized inflation over 2% and oversaw the US Dollar’s monetary base increase by over 20% in 2020, bitcoin is the superior store of value because its inflation rate currently at 1.84% is on a fixed schedule that decreases until it terminally reaches 0%.

As Paul Tudor Jones put it in The Great Monetary Inflation, “The goal, of course, is to be invested in the fastest horses over the duration of the ride.”

DISCLAIMER

An investment in any asset or strategy involves a high degree of risk and there is always the possibility of loss, including the loss of principal. Nothing written herein may be considered as an offer or solicitation to purchase or sell securities or other services. The trading and investing ideas and strategies discussed herein are not recommendations to buy or sell any security and are not intended to provide any investment advice and/or recommendations of any kind, but are made available solely for educational and informational purposes. Before acting on information from above, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

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Systemic Bliss Anniversary & Pi Day

Thank You for Reading!
On this day six years ago, the systemic bliss website was born out of a curiosity and thirst for knowledge in finance as well as technology and their role in society as a bridge to both perilous or promising outcomes. I am immensely grateful for all of the readers around the world, followers online, and supporters over the years. It cannot be left unsaid that the critics and skeptics haven’t served me well for motivation too that helped me craft my arguments and shape my thinking for the better. It has been a wild ride through it all, especially as bitcoin has just flown past $60,000 making new highs after first calling that price target out here back in January 2019! Our twitter handle is now 7 years old today as well, showing how long I’ve been keeping tabs on this fast moving space to keep a living record of the daily happenings in the world of bitcoin and crypto assets. If social media is not really your cup of tea these days, the newsletter maybe better suited to follow along for news, market commentary, and occasionally some memes on a more periodic basis than the blog and less frequent than all of the daily tweets with the benefit of being able to get it in a neat message directly sent to your inbox.

Where We’ve Been
On the inception day March 14, 2014, bitcoin was trading in the $600 range and tumbled over the next year to trading in the $200 range for that same day 2015. Pi day in 2016 was not much higher with BTC was in the $400 range. In 2017 on March 14, bitcoin was trading higher in the $1,200 range. The fourth anniversary was eventful with BTC above $9,000 in 2018 after having gone parabolic its first time in the months leading up to it. March 14, 2019 bitcoin was trading just below $4,000. On pi day in 2020, BTC was just above $5,000 after seeing a selloff sparked by the Corona Correction. The photo above was from bitcoin pizza day on May 22, 2020 when it was worth about $9,000. Today, bitcoin at the time of this writing is over $60,000!

Where We’re Going
Inflation is coming. If that can’t be tamed though, the Fed may need to avoid disastrous hyper-inflation by raising interest rates at the cost of ending the bull market that could possibly leach selling pressures into the bitcoin and crypto markets. Either route though still appears to present BTC as the strongest candidate for an asset that can effectively take the whipsaw and still make it as a store-of-value in the financial universe of infinite debt and money. Given the adoption of bitcoin by savvy Ivy League endowments, sophisticated investors as well as institutions, and the distinguished Wall Street banks, it has the greatest chance of repricing the world as the digital and global reserve currency. Ethereum and its competitors have been rewarded with outsized returns over the past year and their performance is rational given the greater risk of being regulated possibly being deemed as securities or failing to launch and/or scale at the rate they hope. All in all, together they will likely be critical components of a optimally diversified portfolio that continues to be the best performing asset class in the past decade as well as this next one.

What You Can Do
Stack satoshis! Earn bitcoin back through the Fold app and their credit card or BlockFi’s, who also can help you generate interest on your existing bitcoin or crypto holdings. Dollar-cost-averaging with money that you are willing to lose has always been the most recommended entry into BTC by the bitcoin community generally. River Financial and Swan Bitcoin are both great venues that have wonderful features as well as slick user interfaces that make it easy to securely buy and sell BTC-only without high fees or agile orderbooks. Nothing compares to taking bitcoin offline into cold storage, so to give yourself the most control and security over your funds it may be wise to look into hardware wallets or custody solutions to securely hold your own private keys. I have no interest or relationship in any of the companies mentioned, they are just solid businesses that are reputable and widely used in the bitcoin community.

Why You Should Stack
Its time to “get off zero,” the oppurtunity has not past you by for your chance to buy bitcoin. “Unit bias” is a common misconception that keeps most people from owning the best and leading crypto asset, bitcoin. Just because the current price of a bitcoin may be greater than you have to invest, it doesn’t mean that it’s not possible to start with smaller units like satoshis to start getting your stack up to that full bitcoin or the number that suits you. Remember, the bitcoin pizza will always only have 21 million slices and each one of those contains 100 million satoshis. Not all crypto assets are built the same, the size of the pie may not be fixed and the chefs (developers) may not always have your interest or satisfaction in mind. Don’t be fooled into thinking that because you can buy more slices of another crypto asset it will make that just as good, successful, or valuable as bitcoin.

Happy Pi Day! Grab a slice ASAP and enjoy the ride with systemic bliss.

DISCLAIMER
An investment in any asset or strategy involves a high degree of risk and there is always the possibility of loss, including the loss of principal. Nothing written above may be considered as an offer or solicitation to purchase or sell securities or other services. The trading and investing ideas and strategies discussed above are not recommendations to buy or sell any security and are not intended to provide any investment advice and/or recommendations of any kind, but are made available solely for educational and informational purposes. Before acting on information from above, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.