MAJR News 062
Janet Yellen wants your unrealized capital gains, PlanB - bitcoin's 2nd leg up has started, Mastercard gets into bitcoin rewards, NEAR's $800M incentive program, FB's $10B into the metaverse
@dualvoidanima
MAJR NEWS BRIEF
Important Hot Garbage
Government (both parties) print too much money they can’t afford and they call it revenue shortfall. It starts with the wealthy and then it’s anyone with capital gains.
US taxpayers can’t stay in cash because its being debased by the government. There’s no yield in a “savings account” and therefore investors need to take on risk by investing into other vehicles (stocks, bonds, junk bonds, alternatives, crypto) to capture gains to preserve buying power.
Now, the US government wants your risk-rewarded buying power…madness.
Videos
Preston Pysh talks with renowned analyst, Plan B. He talks about whether the Stock to Flow Model will eventually fail, along with numerous other macro insights.
Top Stories
BITCOIN
PlanB - “The bitcoin bull market, 2nd leg has started.”
Here are two recent bitcoin charts tweeted from the anonymous Twitter account PlanB. PlanB is a Dutch institutional investor and previous asset manager who’s remained anonymous and is known for inventing the Stock-to-Flow model for valuing Bitcoin using its scarcity (S2F) against its four-year halving cycle. The model is widely adopted by the community and firms like Fidelity. It’s been deadly accurate and we just got our first “red dot” since the May’21 rally which signals a new all-time high. Bullish.
Crypto Could Become Global Reserve Currency: Rand Paul
Senator Rand Paul (R-KY) stated that bitcoin could become the world reserve currency as distrust in governments increase. Bitcoin has a long way to go until it’s even close to reserve currency status, but it’s a big deal when sitting senators are discussing bitcoin adoption to the point of reserve currency status in the public.
Mastercard set to offer Bitcoin rewards and purchases
Credit card giant, Mastercard is diving deeper into crypto by offering bitcoin rewards for purchases on both its credit and debit cards. It’s parted with Bakkt to help acquire the BTC for it’s 2.8 billion cards in circulation.
GBTC delivered better returns than Bitcoin ETFs last week
Grayscale’s flagship crypto product GBTC did more volume and better returns last week than the new Proshares Bitcoin Futures ETF. GBTC returned 8.8% while BITO fell 0.5%. Yesterday, GBTC traded $374M in volume compared to BITO which did $286M. Grayscale officially announced that they’ve filed with the SEC to convert their GBTC trust product into the first Bitcoin spot ETF.
More on Bitcoin
Taproot, Bitcoin’s Next Big Upgrade, Might Already Be Priced In
Crypto Fund Inflows Hit Record $1.5B as Bitcoin Futures ETFs Go Live
CRYPTO
Facebook CEO: Metaverse Will Be ‘Holy Grail of Social Experiences’
Facebook CEO, Mark Zuckerberg predicts that the company will bring over 1 billion people into the metaverse in the next decade. The company will invest more than $10 billion into its metaverse team, dedicated to VR and AR products and services.
MAJR Take: If you haven’t tried their VR headset, than you don’t understand how good VR is now and how transforming it will be in the next 10 years. Give it a try.
$2.6 Billion Quant Hedge Fund Joins the Rush to Crypto
GSA Capital is following other prominent hedge funds (Steve Cohen and Alan Howard) into crypto looking to capture serious returns while the crypto bull market is still here. The firm has $2.6 billion in AUM. They’ve been trading since August and declined to comment on the size of their investment.
NEAR Hits All-Time High Following Launch of $800M Ecosystem Growth Fund
NEAR, an Ethereum smart contract layer 1 competitor announced a massive incentive fund to bring development to its ecosystem, $800 million to fuel growth. Like clockwork, its NEAR token price is up 20% in the last 24 hours and 68.% in the last week. This is the largest incentive fund we’ve seen from the Ethereum competitors. NEAR’s market cap is closing in on $7B, but in terms of total value locked on the protocol and the number of applications using the technology it’s dwarfed by other layer 1s. See data here.
Play-to-Earn Game Firm Sipher Raises $6.8M in Seed Round Co-Led by Arrington Capital
Sipher, the team behind the development of Play-to-Earn (P2E) game World of Sipheria raised a $6.8M in a Seed round. The game is expected to launch this December and brings crypto-culture like meme coins and cypherpunks into a comic book style metaverse. Players use NFTs as their character to play the game and earn rewards by completing quests and multiplayer battles. Players will be able to stake their rewards bringing DeFi into Gaming. The round was led by Hashed and Arrington Capital, two prominent crypto VC firms.
More on Crypto
Treasury to Give SEC Considerable Authority Over Stablecoins Like Tether
Terra's Do Kwon Talks SEC Subpoena: DeFi 'May Not Fit In Nicely' With Current Regulations
MACRO
One River CEO Eric Peters: Crypto is Most Interesting Macro Opportunity and Investment
One River CEO, Eric Peters believes bitcoin and crypto technologies are massively transformational and have the potential to lead to dystopia or a renaissance. In November 2020, the firm purchased over $600 billion in bitcoin and Ethereum, weight more towards BTC and since they’ve gained over $1.2 billion from that one purchase. The firm manages over $2 billion in institutional assets.
“I think it is a transformation and definitely is the most interesting macro opportunity and macro investment thesis I’ve seen in my career,” Peters said during the Bankless podcast Episode 89 on Monday. “The connection to legacy financial systems — let’s call it Wall Street with new technologies — is going to first happen in the pools of capital directed by a limited number of people as opposed to some big investment committee,” he added.
Peru President Calls for Gas Nationalization, New Constitution
Peru’s President, Pedro Castillo asked congress to pass a law that would nationalize the Camisea gas field and stamp this reform into its constitution. The president is championing speech compelled by the people who have asked for major reforms. This radical move would hurt private companies, but become an asset to the people of the country.
Home-Price Growth Holds at Record in August
Case-Shiller index rose 19.8% as increase in demand for homes stays steady in August. Median home prices in September rose 13.3% YOY and the Federal Housing Finance Agency said home prices in August were up 18.5% YOY. Mortgage rates slightly increased in recent weeks, with the average 30-year fixed rate mortgage rose 3.09%. First time buyers dropped to 28% (lowest since 2015) which makes sense since prices have been so high pushing would-be buyers out of the market.
Fed Prepares to Taper Stimulus Amid More Doubts on Inflation
The Fed plans to start tapering their $120 billion per month asset purchases (US treasuries and mortgage backed securities - MBS). They’re targeting a reduction of $15 billion per month, ending the program by June 2022. However, Powel stated that he doesn’t believe it’s time to taper or raise rates.
More on Macro
U.S. Consumer Confidence Sees Surprise Jump as Delta Concerns Ease
Pfizer-BioNTech Covid-19 Vaccine for Young Children Under Review by FDA Advisers
MEDIA
Current Market Conditions w/ Plan B (BTC048)
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.