Digital Asset Update + Open Q&A | October 2021 Video Summary:
- The idea around stablecoins and digitizing dollars is still in its early stages, but it is only gaining more and more adoption. We’ve been seeing a lot of positive development in this area recently. The US FDIC is starting to study deposit insurance for stablecoins. A Federal Reserve paper recently came out that discussed how the rise of cryptocurrencies could challenge the dominance of the US dollar. More and more countries are starting to consider Bitcoin as a legal currency, and more institutions are starting to favor and custody cryptocurrencies.
- DeFi, de-centralized finance, offers new avenues for borrowing and lending that are extremely similar in concept to the alternative ways of financing (other than banks) that many family offices and big money utilize. DeFi has the potential to open it up to the whole, as opposed to the few who are the 0.1% that really control a lot of the wealth around the globe. Visa has just deployed one of its first smart contracts on the Ethereum test network and they have a plan of creating the backend infrastructure to facilitate a global processing of central bank backed digital currencies.
- A recent study from Fidelity digital assets shows that 70% of investors have a neutral/positive perception of digital assets. This is a positive sign given that when something is perceived as acceptable by a large group of people, typically that spreads (think gold). There has also been a big push recently for institutions to try and add these things to their balance sheets and as more companies pushing for this it only further lends to the credibility to the space.
- The total cryptocurrency market cap is over the $2 trillion mark for the entirety of the digital asset space, which is nearing its previous all-time high back in May. As technicians, we want to see it break above that level, but again it shows that there is momentum here and the overall trend is generally intact. Total value locked on all of the different chains also recently hit an all-time high, which is another huge indicator for adoption.
- While regulation can seem frightening in this space, it’s a good thing, as long as it’s thoughtfully done. You have these legacy players in the space trying to use old rules on new technology, and they need to come up to speed on a lot of what this is all about. What more and more regulators are going to find as they dig into this space is it really is self-regulating in many ways due to the transparent nature of how public blockchains work. We do firmly believe that once regulators really dive into this and start understanding these things, they’ll see that it is a much more transparent systems than a lot of the current ones they use.
Questions from Q&A
- “What are your thoughts on Solana?””
- “What is your ‘green energy’ source?”
- “As Ethereum moves and next year when they have their upgrade, how is that going to affect mining?”
- “Are capital gains tax figured into the buying and selling of crypto, is it similar to a currency?”
- US FDIC Said to Be Studying Deposit Insurance for Stablecoins
- The rise of cryptocurrencies could challenge the dominance of the US dollar, new Fed paper says
- JPMorgan: Institutional Investors Are Favoring Bitcoin Over Gold
- US Bank launches bitcoin custody service as institutions race to cater to crypto demand
- ‘Not Just Bitcoin’: Bank of America ‘Bullish’ on Ethereum, DeFi and NFTs
- George Soros’ family office owns bitcoin, confirms CEO Fitzpatrick
- $6 Billion Soros Fund CEO: Bitcoin Is More Than An Inflation Hedge
- 60% of super-rich family offices own crypto or are interested as inflation soars, Goldman Sachs says
- White House Weighs Wide-Ranging Push for Crypto Oversight
Timecodes: 0:00 – Intro 01:08 – Headlines: Dollar Impact 04:55 – Headlines: Institutions 08:14 – Headlines: Family Offices 09:56 – Adoption 12:26 – Total Crypto Market Cap 13:17 – TVL 14:55 – Regulation 18:10 – Q&A 18:25 – “What are your thoughts on Solana?” 21:22 – “What is your ‘green energy’ source?” 22:57 – “As Ethereum moves and next year when they have their upgrade, how is that going to affect mining?” 25:58 – “Are capital gains tax figured into the buying and selling of crypto, is it similar to a currency?”