Sunday Rundown - June 13, 2021
Happy Sunday!
Bitcoin’s price is still going sideways while altcoins bleed out. The market consolidation continues.
Scroll down for some tidbits to start your week.
BTW for those wondering, I filled my allocation to bitcoin, now I’m buying altcoins until bitcoin’s price moves out of the buying zone of my plan.
One altcoin each day, cycling through the altcoins already in my portfolio until I have an equal USD allocation for all. Then I’ll switch back to bitcoin if its price is still in the buying zone.
As for El Salvador’s adoption of bitcoin as legal tender, I shared some very brief thoughts in my most recent market update. This decision is huge, the consequences are uncertain, and the nuances are complicated.
If you missed that update, watch it now. I also address the bitcoin death cross.
Interesting to see how many people left crypto this year—and how many more have arrived. What does that mean for this bull market? Only time will tell.
Taproot Locks In: Bitcoin Protocol Upgrade Will Activate In November
Bottom line: bitcoin miners will activate Taproot, a protocol change, in November. Taproot will make smart contracts on bitcoin more private and less expensive.
My take: assuming everything works the way it’s supposed to, this will bring bitcoin one step closer to a global transaction platform. We’ll have to see whether Taproot undermines on-chain analysis or raises concern from law enforcement agencies, because it will obscure transactions.
Why we care: people think bitcoin is a static technology and think only altcoins can fix its problems. While there’s a lot of awesome things going on with altcoins and you need to have exposure to great projects in the altcoin space, don’t sleep on the king. Bitcoin is still king. A lot of smart people are spending a lot of time and money fixing its problems or engineering around them. Who’s to say they won’t succeed before Ethereum and other altcoins go mainstream?
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If you have a chance, read The 7th Property: Bitcoin and the Monetary Revolution by Eric Yakes. Interesting take on bitcoin in the context of our modern monetary system.
Imagine if The Bitcoin Standard gave you an accurate accounting of monetary history and a cogent examination of bitcoin’s role in our modern monetary paradigm. Tap the tweet and get the book.
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The Basel Committee on Banking Supervision issued a public consultation on the treatment of cryptocurrency held by banks. Tap this button to read the text and comment.
Coindesk posted brief coverage in the video below.
Keep in mind, the committee’s document doesn’t quite “greenlight” anything, it simply acknowledges that banks need clarity and coordination around their treatment of crypto. Given El Salvador’s embrace of bitcoin and the tentative acceptance of bitcoin deposits among some US banks, this is a necessary move.
How it turns out? We shall see.
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Relax and enjoy the ride!