Sunday Rundown - June 20, 2021
Down is the new up?
Happy Father’s Day to all fathers and people who have fathers! I’m off for the day but wanted to share some content you may enjoy. If you missed my most recent YouTube videos, watch them now:
Premium subscribers, I posted two updates this week, check your inbox or catch them here:
Seems like all the news revolved around the death cross and the miner exodus from China. While it seems like miners are selling bitcoin like crazy, on-chain data shows that’s only happening in some pools.
Overall, the mining sector writ large does not show much change in aggregate outflows or activity. The miner’s position index shows historically low levels of selling across all miners. See the circled line below.
The question is whether that’s from hoarding, lack of supply to sell, or migrating miners laying low until after they relocate, at which time they’ll sell.
We shall see.
Here are some non-death, non-miner things you may enjoy.
State Street Launches Digital Finance Unit for Crypto
Bottom-line: after dabbling with crypto business deals for years, the second-largest custodian on earth announces it’s going full-bore into crypto.
My take: it’s about time. Yet another legacy financial firm smells money in crypto. Add State Street to the growing list of companies that will make crypto safer, cheaper, easier, and more palatable for traditional investors, money managers, and rich people.
Why we care: this is not your average white-shoe firm, it’s one of the oldest financial institutions in the US and a Fortune 500 company. The Financial Stability Board—arguably the world’s most important guardian of the global financial system—has it on the “too big to fail” list. To have a firm like State Street on your side essentially guarantees that crypto will have “people on the inside” who can advocate and educate decision-makers about what’s going on. Could come in handy when governments craft regulations and approve financial products related to crypto.
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In the wake of El Salvador’s embrace of bitcoin as legal tender, one of Panama’s legislators will float a bill to make bitcoin legal tender in that country, too.
Whether the measure passes and in what form, the fact that this proposal gets legitimate consideration shows El Salvador is not alone in seeing bitcoin as a legitimate alternative to sovereign currencies. Rumor says Paraguay and Tanzania may also consider proposals to introduce bitcoin as legal tender, or perhaps something just short of that. Who’s next?
I tend to agree with the commentators in this video—it’ll be fascinating to watch how everything unfolds.
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I credit Rich Dad, Poor Dad for changing my worldview about money and investing. On a recent episode of his radio show, the author, Robert Kiyosaki, hosted Doug Casey, an investor and newsletter publisher.
You might like to hear their thoughts on bitcoin and their general perspective on the global financial system. They’re a little extreme for my ears, but their conversation is insightful and cautionary.
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Relax and enjoy the ride!