Tag: cryptocurrency

Crypto Is Not Money, Nor An Asset

Crypto Is Not Money, Nor An Asset

Crypto is purely a speculative vehicle with zero underlying value. Thus, why would advisors ever recommend that clients purchase crypto in their portfolios? Not Money: Crypto currency is not a store of value. Crypto currency is not a medium of exchange. Ever try buying something with Bitcoin, even at its peak? Massive haircuts at the … Continue reading Crypto Is Not Money, Nor An Asset

Coinbase: What’s Yours Is Mine

Coinbase: What’s Yours Is Mine

Just a reminder that if Coinbase (ticker: COIN), was to file for bankruptcy protection, customer assets would be considered Coinbase property. Why would any retail or institutional investor ever engage Coinbase as a custodian given that risk? The excerpt below is from COIN's 10Q filing: Moreover, because custodially held crypto assets may be considered to … Continue reading Coinbase: What’s Yours Is Mine

Regulating Crypto

Regulating Crypto

All Central Banks wish to control the money supply. The Federal Reserve is no different. To date Bitcoin and Ethereum alone are off approximately $1.4 Trillion from their collective peak (this type of inflation is not captured in CPI statistics nor in the velocity of money - which helps explain why velocity did not accelerate … Continue reading Regulating Crypto

The Baby Will Get Thrown Out With The Bath Water

The Baby Will Get Thrown Out With The Bath Water

The Federal Reserve will pursue some combination of modest interest rate hikes and potentially shrinking of its balance sheet / Quantitative Tightening in the coming weeks and months. The Fed's "Too Little, Too Late" monetary policy will do little to curb inflation. However, the Fed's modest tightening will likely continue to drive Equities lower - … Continue reading The Baby Will Get Thrown Out With The Bath Water

Lael Brainard As The Next Fed Chair Is More Likely Than Pundits Believe

Lael Brainard As The Next Fed Chair Is More Likely Than Pundits Believe

Ms. Brainard is a vocal advocate for a Fed-issued CBDC ("Central Bank Digital Currency"). China has rolled out its CBDC and the public is about to hear more about it during February's Beijing Winter Olympics. Thus, while the consensus is that President Biden will soon reappoint Jerome Powell to begin his next term as Federal … Continue reading Lael Brainard As The Next Fed Chair Is More Likely Than Pundits Believe

The Fed & Treasury Are Clearing The Runway For The Digital Dollar

The Fed & Treasury Are Clearing The Runway For The Digital Dollar

The Fed, Treasury and the SEC fired a shot at stablecoins. It feels to us that the three Federal agencies are clearing a path for the digital dollar. Stablecoins are crypto currencies that are pegged to a fiat currency and thus behave similarly to fiat currencies and therefore represent a potential threat to fiat currencies. … Continue reading The Fed & Treasury Are Clearing The Runway For The Digital Dollar

Why Would Anyone Follow Elon Musk Into Battle?

Why Would Anyone Follow Elon Musk Into Battle?

Tesla CEO Elon Musk (not a founder as he claims) admitted he does not enjoy being CEO today in the SolarCity trial. The Teflon will eventually wear off of pied piper Elon Musk. Mr. Musk was accused of fraud by the SEC in 2018 and was subsequently in violation of his SEC settlement. Mr. Musk … Continue reading Why Would Anyone Follow Elon Musk Into Battle?

What Will Happen to Crypto & Risk Assets When COVID Unemployment Benefits Expire?

What Will Happen to Crypto & Risk Assets When COVID Unemployment Benefits Expire?

Since last year we have held the view that the retail investor has piled into the riskiest assets whether they be cryptocurrencies or profitless, high-multiple Technology stocks. This retail phenomenon was powered in large part by Federal Pandemic Unemployment Compensation benefits (part of the CARES Act), which drew a new investor class into the market. … Continue reading What Will Happen to Crypto & Risk Assets When COVID Unemployment Benefits Expire?