Bitcoin, front and center stage
Everywhere you look, it's bitcoin.
Exciting times in bitcoin! I posted this yesterday:
For years, mainstream critics of bitcoin constantly attributed its popularity to traders’ propensity to gamble, while ignoring the human rights implications of a censorship-resistant payments network. Something that Wikileaks employed as early as 2011, bitcoin finds itself right in the middle of geopolitics today. Canadian truckers are experiencing first hand the power of bitcoin to keep financial channels open when governments are reluctant to. Vladimir Putin must face the prospect of being cutoff from SWIFT, the world’s global wire transfer network. And the government of Ukraine just legalized cryptocurrency within its borders, at first glance unrelated to an impending Russian invasion, but in reality likely a desperate attempt at allowing its citizens to retain financial sovereignty.
Bitcoin is everywhere
Folks, I have some news that really shouldn’t shock you: bitcoin is officially, 100%, never-looking-back, mainstream. I was jolted into this earlier in the week while driving down to USC for my class on the bond market, teaching this semester’s cohort of Masters in Finance and MBA students. Last year, bitcoin had some hallmark “mainstream” moments, including Tesla adding $1 billion worth of BTC to its balance sheet, a legal tender law in El Salvador, and the SEC’s approval of a US-domiciled bitcoin ETF. But for some reason, driving past the former Staples Center, now Crypto.com Arena, and remembering the Crypto.com LeBron James Super Bowl commercial, it struck me that my former colleagues in the asset management industry probably no longer think of my decision to “go bitcoin” as a risk. We have crossed over the threshold as an industry and as an asset class, so much so that everywhere you look, it’s bitcoin. What are they bickering about in DC? Bitcoin. What is Russia doing to defend itself against American hegemony? Bitcoin. What is the new international symbol of bureaucratic defiance? Bitcoin. [Bloomberg journalist Joe Weisenthal wrote a great post on this topic, read it here]. I do believe that bitcoin will eventually become the world’s most recognized brand. The news cycle is only reinforcing that prediction. What do you think this does to overall adoption, demand, and ultimately the price? That’s why bitcoin is a long-term investment, and short-term thinkers are often purged from the owner base.
What did I miss?
Today’s post is also an opportunity to share some recent and upcoming news from me and The Bitcoin Layer.
First, I wanted to share two recent posts that went out to paid subscribers. A reminder, for those on the free list only, I always put plenty of analysis before the paywall so that you don’t feel spammed when I send out paid editions. I hope this is well received by you, the reader, and your feedback on this style is always appreciated. Of course, your support in the form of a paid subscription is highly energizing and thoroughly appreciated.
Check out my latest chart pack and global macroeconomic update to catch up on all that’s been happening with the Fed, inflation, interest rate hikes, and risk markets.
I also wrote a thought experiment called “Bitcoinium” to explore the idea that bitcoin is more like an element on the period table than a financial asset. Try it out—it’s a fun read.
Next week will be a big one! Here’s what to expect from me and The Bitcoin Layer:
A series of FREE POSTS diving into the exciting progression of bitcoin to a global reserve asset with massive geopolitical implications. Topics covered will include 1) Africa and bitcoin, 2) the middle class, inflation and bitcoin, and 3) bitcoin winning the cross-border payments battle. Make sure you’re subscribed to receive all this analysis straight to your inbox!
My interview with Peter McCormack should be released in a matter of days. It was wide-ranging, and Peter made sure to squeeze out some long-term predictions that have implications for bitcoin’s march toward world reserve currency. Follow me on Twitter to catch media appearances as they are released. I recommend YouTube for this one, as the view of the Pacific Ocean from Malibu that day was spectacular.
Have a fantastic weekend everybody!
Until next time,