MAJR News 065
Bitcoin and Ethereum see a small pull back after new highs, HUT 8 Bitcoin Mining doing record revenue in Q3, Twitter's new dedicated decentralized application team, Terra to burn $4B in LUNA tokens
MAJR NEWS BRIEF
Videos
Preston Pysh talks with Greg Foss (Bond Expert) and Guy Swann (Bitcoin OG) about the current market conditions and why the bond market is such a big deal.
Top Stories
BITCOINHut 8′s Revenue Rose More than 700% in Q3, Beating Analyst Estimates
Publicly traded bitcoin mining company, Hut 8 increased revenue by 756% in Q3’21 generating $40 million. The Canadian miner reported over $342 million (2k BTC) of bitcoin on their balance sheet. Bitcoin miners traditionally have to sell their coins to cover their costs, however given the rise of available and institutional quality financial services being built around bitcoin, miners are now hodling as part of their core business model. This is a game changer for miners, currently a $20 billion industry generating $60 million per day in revenue at current BTC prices and now they no longer need to sell their most valuable asset for fiat. This also a game changer for bitcoin holders as miners previously helped set the price floor by selling coins, now some of the biggest sellers are hodlers which means an even tighter liquid available supply for buyers.
Bitcoin Declines After Reaching a Record High; Ether Also Drops
Bitcoin and Ethereum both declined in the last 24 hours after reaching new highs. A small correction back to previous ATHs. Bitcoin declined 4% from $69k back to $65k, while Ethereum dipped 3% from $4,900 to $4,600.
ProShares Bitcoin futures fund in top 2% of all ETFs for volume
ProShare’s Bitcoin futures ETF (BITO) traded $400 million in volume this past Wednesday, and since it’s launch it’s been consistently in the top 2% of all ETFs by volume. The fund has seen $1.4 billion in inflows since late October. The ETF price is currently $42.3 and is listed on the New York Stock Exchange.
More on Bitcoin
CRYPTOCoinbase CEO Says NFTs Could Be ‘As Big or Bigger’ Than Crypto Trading
Coinbase reported $1.3 billion in revenue for Q3’21. The CEO Brian Armstrong also made a statement that the NFT marketplace could be bigger than crypto trading, which makes sense they recently announced their initiative for their own an NFT marketplace last week. The company has already received more than 2.5 million email sign ups. OpenSea, currently the largest decentralized NFT marketplace has 236k unique users. Meta Platforms Inc, previously Facebook will also have a digital wallet that will be interoperable to secure NFTs.
LUNA Hits All-Time High as Terra Community Passes Popular Burn Proposal
Terra (LUNA) a top layer 1 smart contract Ethereum competitor pushed through a community proposal to burn 88.7 million LUNA, worth about $4.7 billion. Burning tokens is akin to stock buy backs in traditional capital markets by permanently removing some of the circulating supply and therefore putting upward pressure on price for all token holders. This was one of the largest burns for layer 1s. Terra is unique because the platform has it’s own native decentralized algorithmic stablecoin terraUSD (UST), which is presumably very advantageous for its platform applications that don’t need to swap to new protocols for alternative stablecoins and liquidity. Terra is currently a $24 billion market cap protocol which is small relatively to it’s competitors - Cardano ($70B), Solana ($70B, Ethereum ($550B) and Polkadot ($50B). Lot’s of upside for a relatively risk off token with tons of network adoption.
Twitter to Explore Decentralized Apps With Dedicated Crypto Team
Twitter continues to put their money where their mouth is by building a dedicated crypto team to build decentralized social media applications. Decentralized social media is a big concept for crypto and an obvious one where centralized platforms are increasingly censoring content and deplatforming individuals for subjective or political reasons. A decentralized social media platform could come in many different forms but the basic building blocks would be open and transparent rules of operations dictated by code not people and creators and viewers would be rewarded equitably for their time and efforts. Voice and Mastodon are two platforms making a run for it, along with Reddit and Solana who just announced a $100 million initiative to build decentralized social media applications.
More on Crypto
'Crypto College' Instructor Has Raked in More Than $388K for Week-Long NFT Class
Rolling Stone Mints First-Ever NFTs With Bored Ape Yacht Club
MACROBiden, Conceding Inflation Peril, Says His Agenda’s Part of Cure
The consumer price index (CPI) is the highest it’s been in 30 years, ticking 6.2% this October YOY. The producer price index (PPI) was also high in October up 8.6%. This is a troubling article as the President acknowledges the current inflationary environment, but thinks the cure for inflation is more spending and higher wages. Literally pouring gas on the fire. In fact if you used the original basket of goods designed to measure consumer price inflation in the 1980’s, CPI would be above 14%.
China CPI and PPI: The world's second largest economy has a big inflation problem
The cost of goods coming out of China has jumped again hitting a new record in October clocking in at 13.5% YOY. September PPI was 10.7% according to the China’s National Bureau of Statistics. Investors should always be skeptical of the numbers coming out of the Chinese Communist Party, PPI is probably much higher. "We are concerned about the passthrough from producer prices to consumer prices," said Zhiwei Zhang, chief economist for Hong Kong-based Pinpoint Asset Management. "Firms managed to use their inventories of inputs as a buffer to avoid passing the higher costs to their customers before, but their inventories have been depleted."
Inflation Pickup Makes Fed More Likely to Raise Rates Next Year
The Fed is running out of places to hide as inflation is less and less transitory breaking new records each month. While many people think the Fed will be forced to increase interest rates, the White House and the Fed know that their game plan (monetizing government debt for increased spending) only works (still doesn’t work) in a low rate environment. When the US Debt to GDP is at 140% and the country’s largest generation is going into retirement with most of their assets in stocks, bonds and real estate, a small increase in rates could set the market on fire. The monetary and fiscal authority rhetoric seems to be pretty clear that they’re willing to let things run hot and supply chains will work themselves out over time.
More on Macro
U.S. Inflation Hit 31-Year High in October as Consumer Prices Jump 6.2%
High Energy Prices Likely to Mean Less Oil Demand This Year, OPEC Says
MEDIABTC051: Bitcoin & Why the Bond Market Is Such a Big Deal w/ Greg Foss and Guy Swann
Bitcoin and crypto adoption is here to stay. Don’t let your friends and family miss the opportunity of a lifetime.
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