Crypto Venture Capital’s Rejection of Venture Capital and ‘The Box’

Well, on this Monday’s episode, “Odd Lots” had Sam Bankman-Fried (SBF). He is probably best known for his exceptional hair, but he also founded crypto exchange FTX. He ranks among crypto’s richest and, given he studied physics at MIT, probably one of its classically brightest (whatever that means). On the podcast, he compared crypto “yield farming” to a “box” that lets you take out more money than you put into it. Author: George Kaloudis Source link

But Exchanges, What Low Volumes You Have!

On the surface, low trade volumes seem inauspicious, especially considering the last time they were this low was when bitcoin’s price dipped below $30,000. However, if we zoom out a tad, this looks like nothing out of the ordinary. It looks like the cyclical nature of markets and not some sort of mass exit from the market. A mass exit would, for the record, require a jump in volume as those participants unload their positions. Right now, I’m not worried. Maybe I’ll start worrying if exchange volumes fall even more.…

Is Bitcoin a Risk-On or a Risk-Off Asset? Maybe It’s Neither

As such, it is probably more accurate to refer to bitcoin as an aspirational store of value. Yes, a borderless, permissionless, uncensorable, sound monetary system-of-value transfer with a predictable monetary policy is theoretically a great store of value, but until that narrative penetrates more than 100 million people, the other 7.8 billion people won’t view that system as a store of value, and that narrative will prevail. For now. Author: George Kaloudis Source link

Now That Q1 Is Over, Is the Bull Market Back?

Lastly, while the past is not indicative of the future, understanding the past can help us anticipate what might happen. Looking back, we know that it sometimes snows in April on the bitcoin market. But usually bitcoin performs well in April, with an average gain of about 17% over the month. So, who knows, maybe we’ll close the book on the bear market in the next 27 days. But maybe not. Author: George Kaloudis Source link

Gold 2.0? Try Reserve Asset 3.0

From there, Bretton Woods II was born, where the dollar still dominates, but in a system that mostly uses “inside money.” Inside money is made up of claims that are someone else’s liability, while outside money is the type of money that is the liability of no one. In other words, the money system became largely debt-based. So when China holds U.S. Treasurys, that is inside money. When Russia sells USD to buy gold, that is outside money. Author: George Kaloudis Source link

Why Did Bitcoin Surge So Much Against the Ruble?

First, we consider the number of bitcoin addresses that are holding ≥ $1. There was an uptick from 34,564,788 to 35,035,127 from Feb. 27 to March 1. Digging in further here, the number of Bitcoin addresses that were holding > 1,000 bitcoin also ticked up from 2,121 to 2,257 over the same period. While the general growth in addresses supports the idea that regular people are coming into Bitcoin, the growth in addresses with > 1,000 BTC (> $40 million) does not. Author: George Kaloudis Source link