issue 2 - week of 10-25-2020
curating the good stuff for the casual bitcoin enthusiast each week
news
PayPal to allow cryptocurrency buying, selling and shopping on its network. “PayPal Holdings Inc joined the cryptocurrency market on Wednesday, allowing customers to buy, sell and hold bitcoin and other virtual coins using the U.S. digital payments company’s online wallets.”
https://www.reuters.com/article/paypal-cryptocurrency/paypal-to-allow-cryptocurrency-buying-selling-and-shopping-on-its-network-idUSL1N2HB14U
Paul Tudor Jones says he likes bitcoin even more now, rally still in the ‘first inning.’ “The longtime trader believes the unprecedented quantitative easing from the Federal Reserve is setting the stage for inflation to make a grand comeback.”
https://www.cnbc.com/2020/10/22/-paul-tudor-jones-says-he-likes-bitcoin-even-more-now-rally-still-in-the-first-inning.html
Bitcoin price hits new record high in these 7 countries. “Bitcoin price hits a new record high in seven national currencies of 500 million people.”
https://cointelegraph.com/news/bitcoin-price-hits-new-record-high-in-these-7-countries
PayPal in Talks to Buy Crypto Firms Including BitGo. “PayPal Holdings, Inc. is exploring acquisitions of cryptocurrency companies including Bitcoin custodian BitGo Inc. according to people familiar with the matter, a move that would expand its embrace of digital coins.”
https://www.bloomberg.com/news/articles/2020-10-22/paypal-said-to-be-in-talks-to-buy-crypto-firms-including-bitgo
A Former Goldman Sachs Hedge Fund Chief Has Predicted Bitcoin Is About To Surge To $1 Million—Here’s Why. "‘Just from what I know from all of the institutions and all of the people I speak to, there is an enormous wall of money coming into this,’ Pal said.”
https://www.forbes.com/sites/billybambrough/2020/10/18/a-former-goldman-sachs-hedge-fund-chief-has-predicted-bitcoin-is-about-to-surge-to-1-million-heres-why/#422b5155fb6b
The Bitcoin Rush Has Started for the Big American Companies, Nothing Can Stop It Now. “The 11th of August 2020 will surely remain an important date in the history of Bitcoin. It is the day when the Bitcoin rush officially started for the big American companies.”
https://medium.com/in-bitcoin-we-trust/the-bitcoin-rush-has-started-for-the-big-american-companies-nothing-can-stop-it-now-7cae9d48c5d3
Why Central Banks Want to Create Their Own Digital Currencies Like Bitcoin. “A guide to what digital currencies issued by central banks could mean for users, banks and the economy.”
https://www.wsj.com/articles/why-central-banks-want-to-create-their-own-digital-currencies-like-bitcoin-11603291131
UK-Listed Firm Mode Putting Up to 10% of Cash Reserves Into Bitcoin. “Mode Global Holdings PLC, a London Stock Exchange-listed company, has announced plans to make a “significant purchase” of bitcoin as part of its treasury investment strategy.”
https://www.coindesk.com/uk-listed-firm-mode-putting-10-of-cash-reserves-into-bitcoin
media
YouTube.
The Bitcoin Life Raft: The End of Monetary & Fiscal Policy As We Know It (w/ Raoul Pal)
Youtube. Real Conversations: Michael Saylor On Bitcoin - The Long-Term Bull Case
Youtube. Bitcoin Infiltrates Corporate America (w/ Michael Saylor and Raoul Pal)
Youtube. How Money Is Corrupted And How Bitcoin Fixes This
Youtube. Crypto Trading Tips Dollar, Gold, Silver & Stocks correlation - 23 Oct 2020
Podcast.
What Bitcoin Did: The Case for $500K Bitcoin with Cameron & Tyler Winklevoss.
https://www.whatbitcoindid.com/podcast/the-case-for-500k-bitcoin
Podcast. Unconfirmed:
Willy Woo on Why It’s ‘an Extremely Great Time to Buy Bitcoin.’
https://unchainedpodcast.com/willy-woo-on-why-its-an-extremely-great-time-to-buy-bitcoin/
finance/trading
Bitcoin Investment Thesis: Bitcoin’s Role as an Alternative Investment.
“In the second part of our "Bitcoin Investment Thesis" series, we examine bitcoin's ability to provide optimization benefits in a portfolio.”
https://www.fidelitydigitalassets.com/bin-public/060_www_fidelity_com/documents/FDAS/bitcoin-alternative-investment.pdf
Bitcoin Is A Mature Asset. “But knowing that bitcoin, at the time of this writing, has traded around 93 percent of the same hours as the S&P 500 has traded within its lifetime, allows everyone inside and outside of the Bitcoin space to reconsider how far along we really are.”
https://bitcoinmagazine.com/articles/bitcoin-is-a-mature-asset
Bitcoin Market Cap Gained per Dollar Invested. “A model that estimates how much Bitcoin's market cap moves per dollar invested.”
https://www.tradingview.com/script/0p0uCzK8-Bitcoin-Market-Cap-Gained-per-Dollar-Invested-BTC-JackSparrow/
tweets
Important Thread:
If you don't think Central Bank Digital Currencies are coming, you are missing the big and important picture. This is going to be the biggest overhaul of the global financial system since Bretton Woods.
I've just updated the NVT Price model with my current best practice to correct for investor volume drifting off the main chain.
NVT values Bitcoin on the current investor activity (on-chain volume). Here's how it compares to Realised Price; what the market paid for their coins.
#Bitcoin is the first software network capable of storing all the monetary energy in the world with no loss of power over time and negligible transmission loss. Assuming broad adoption, that would make it the most valuable invention of the modern era. Few understand this.
1\ The percentage of BTC held for at least 1 year has reached an ATH.
➡️ BTC is solidifying its role as a store of value at a fast pace.
Gold is breaking down versus bitcoin, as expected cc: @michael_saylor Everyone take note. The next thing I'm expecting is the correlations between BTC and the dollar and BTC vs equities to break down too... let's see. #Bitcoin
The first chart is from 2018 [Figure 3], printed in "#Bitcoin Spreads Like a Virus" where I laid out the math for bitcoin's price based on adoption. Did bitcoin continue along that red line? The updated chart 2 years later shows it did exactly what was expected.
Holy Cow
Most bullish commentary for #bitcoin that I have read from JP Morgan
"Even modest crowding out of #GOLD takes #bitcoin up multiples."
Widespread research piece reaches all clients of the bank.
Paypal announcement "cover" for other traditional players to get involved.
THREAD:
#Bitcoin halvings cause a supply shock. The slow accumulation of this supply shortage drives a bull market in the ensuing ~18 months.
2012 and 2016 halving -> 2013 and 2017 mania. 2020 halving on track for same.
This thread attempts to visualize those mechanics.
website spotlight
Skew.com: Skew has some of the most visually pleasing bitcoin charts we’ve come across. Check out the “heatmaps” and “spot” tabs for charts like those below.
https://analytics.skew.com/dashboard/heatmaps
https://analytics.skew.com/dashboard/bitcoin-spot
missed from last week
Efficient Price Discovery in the Bitcoin Markets. “…this paper seeks to evaluate the bitcoin price discovery process using proven, respected, and recognized academic methods that have been utilized for many other tradeable commodities and financial instruments over the past several decades.”
https://www.wilshirephoenix.com/efficient-price-discovery-in-the-bitcoin-markets