MAJR News 057
George Soros owns BTC and says its gone mainstream, Colombia wants to mine BTC with waterfalls, Raul Paul says BTC is going to $400k & ETH $40 this cycle, CPG companies expect more price inflation
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In this episode of On The Margin Mike is joined by returning guests Grant Williams & Luke Gromen. The explore the fracturing geopolitical landscape between the east and the west, share their insights surrounding China's declaration of war on the U.S, how the current monetary system could collapse China's economy, the consequences of globalization, what the end game is for the dollar & how to prepare for the changing world order as two global superpowers collide.
Top Stories
BITCOIN
Bitcoin Is Soaring on Rumors SEC Will Approve BTC ETF in Two Weeks
Bitcoin is up over 30% in the last week and has regained $1 trillion market cap status clocking in at $55k per coin. The main reason for the bullish price action is due to the halving cycle which historically drives massive price movements at the end of the cycle (next 3-6 months). Analysts are also pointing to a renewed optimism for an approved Bitcoin ETF in the US, a Bitcoin Futures ETF where investors trade futures contracts betting on bitcoin’s price movement vs. actually investing in the underlying digital asset.
These Are The High-Profile Bitcoin ETF Applications Currently In Play
George Soros Fund Manager Says Bitcoin Has Gone 'Mainstream', Fund Owns 'Some Coins’
Notorious billionaire investor George Soros, famous for breaking the British pound in the 1990’s with a massive short position recently admitted that his family office owns bitcoin. "I’m not sure Bitcoin is only viewed as an inflation hedge,” said Fitzpatrick the fund’s CEO and CIO. “I think it’s crossed the chasm…there’s 200 million users around the world, so I think this has gone mainstream," added Fitzpatrick.
Colombia Could Use Waterfalls to Produce Bitcoin, Not Cocaine: Senator Petro
A Colombian senator and once presidential candidate, Gustavo Petro wants to follow El Salvador by mining bitcoin with renewable energy from the country’s waterfalls. Is Colombia next for bitcoin adoption?
MAJR Take: There’s ~18.8 million bitcoin already mined. An estimated
3.7 million bitcoin are lost
, gone forever. Of the circulating supply,
85% hasn’t moved in 3 months
due to increased “hodling.” There’s only 2.2 million BTC left to be mined over the next 120 years. This means there’s ~10% of liquid bitcoin available to trade… but now you have institutional money and nation states joining the fold… make sure you’ve secured your digital gold real estate because there’s not much left.
This will be one of the biggest decisions in your life.
More on Bitcoin
Fifth-Largest Bank in U.S. Now Offering Bitcoin Custody Services
SEC Will Not Follow China’s Blanket Ban on Bitcoin and Crypto Assets, Says Chairman Gary Gensler
Riot Blockchain tripled production this year and is hoarding $194M in Bitcoin
CRYPTO
Shiba Inu Up 385% in a Week, Becomes 12th Largest Cryptocurrency
Meme coin Shiba Inu continues its meteoric rise, soaring by another 50% over the day to become the world’s 12th largest cryptocurrency. The token popped after Elon Musk posted a picture of his new Shiba Inu puppy.
MAJR Take: We don’t cover meme coins. They’re extremely high-risk and shouldn’t be seen as an investment, but rather a very speculative bet. We’ve missed all the meme coin gains, which is ok because investing in crypto is already high-risk and focusing on fundamentals is the best approach. Be cautious with these things. You could lose all your money.
Congressman Submits Bill to Give Safe Harbor to Crypto Startups Selling Tokens
Republican House Representative Patrick McHenry proposed new rules for digital tokens that may allows crypto firms to avoid antiquated securities laws providing safe harbor for financial innovation. The Clarity for Digital Tokens Act of 2021 which would provide legislative backing for SEC Commissioner Hester Pierce’s “safe harbor” approach to crypto. The bill would give crypto startups up to three years to demonstrate "network maturity" and become decentralized to the point that their associated tokens no longer meet the definition of securities under federal law. It would also require these startups to provide certain disclosures to the purchasers of their tokens - the source code, transaction history, and "token economics."
Manifold Announces Verified NFT Studio, Funding from a16z and Initialized
Manifold bills itself as an NFT service "where the creator is the platform." Currently, NFTs (non-fungible tokens) have been widely adopted for digital art and collectibles have been minted using centralized or semi-centralized 3rd party platforms like OpenSea, SuperRare, Rarible, NBA Top-Shots, etc. These platforms dictate the terms of the sale, the minting and the secondary market where NFTs are resold and artists and platforms can capture revenue in the form of fees. Manifold is simplifying the minting process creating a smart contract that allows the creators to dictate all the terms to ensure maximum value capture. The company has been backed by Andressen Horowtiz (a16z) and Initialized Capital.
More on Crypto
Axie Infinity Creator Raises $152 Million in Andreessen-Led Series B
One of Germany’s Oldest Banks Taps Fireblocks to Custody Customers’ Crypto
MACRO
U.S. Initial Jobless Claims Fell More than Expected Last Week
Initial unemployment claims in regular state programs totaled 326,000 in the week ended Oct. 2, a decrease of 38,000 from the prior week, Labor Department data showed Thursday. The median estimate in a Bloomberg survey of economists called for a decrease to 348,000 applications. Federal pandemic unemployment benefits ended by Sept. 6 in all states.
Food Inflation Heats Up and Energy Crisis May Make It Worse
Energy and food prices have increased substantially over the last year. The United Nations index of food costs are up 33%. The surge in energy costs is adding to inflationary pressures. Escalating costs of producing fertilizers and transporting goods around with world due to rising freight costs and the lack of workers has increased bottle necks for supply chains. These energy and food problems can be felt through the developed world, but hit harder in developing countries. We’re currently going through one of the worst hunger crisis in the last 15 years.
Conagra Expects Higher Inflation, Posts Lower Quarterly Profit
Conagra, the CPG giant behind Slim Jim, Hunts Ketchup, Orville popcorn and PAM cooking spray joins the lists of similar companies such as General Mills and P&G that forecast increased price inflation for the next year that will affect net profit margins.
MAJR Take: Price inflation is a complicated phenomenon that occurs for many reasons - increase in the money supply, supply chain disruptions, lack of workers and dramatic weather events. These things cause an imbalance between supply and demand, where demand out strips supply of goods and services increasing prices. However, the worst part of inflation that’s the hardest to treat, is the psychological effect. Once people anticipate higher prices - companies will increase prices because they need to or because they believe people will pay for it. It’s interesting to think about how much of the increased prices are just from companies taking advantage of the moment…
McConnell Offers Democrats a Short-Term Debt Ceiling Increase
Senate Republican leader Mitch McConnel offered Democrats a deal to raise the US debt ceiling into December, but said the Democrats would need to do it through a process called reconciliation, which wouldn’t require any Republican votes.
MAJR Take: What a joke… the shit show must go on. Politics is only theater. Everything is fake, especially the money.
More on Macro
New Zealand Raises Interest Rates as Inflation, Housing Pressures Build
'Containergeddon': Supply crisis drives Walmart and rivals to hire their own ships
MEDIA
The END GAME for the Dollar: China vs the U.S. | Grant Williams and Luke Gromen
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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THIS IS NOT FINANCIAL ADVICE. IT’S IMPORTANT TO DO YOUR OWN RESEARCH. INVESTING IN CRYPTOCURRENCY OR ANYTHING FOR THAT MATTER COMES WITH RISK. THE INFORMATION PRESENTED IN THIS NEWSLETTER IS FOR INFORMATION AND ENTERTAINMENT PURPOSES ONLY.