This week is no exception as the crypto news continues to be positive. Breaking News!! Bitcoin has passed the 1 Trillion dollar mark. A major flipping happened within the last 24 hrs, a popular investing website has made a 180 reversal on its opinion of BTC, MicroStrategy is at it again and everyone’s new favorite to hate, RobinHood is changing its platform to be more crypto friendly.
If you’ve been following the traditional markets you’ll know that Bitcoin is mooning and gold is languishing. Even though inflation fears are rising and gold has been, in the past, traditionally the world’s best store of value, the shiny yellow rock is having a hard time making new all time highs. Orange coin for the win If you just look at the numbers, Bitcoin is up 80% since January 1st of this year, while gold is down 7%.
A lot of people have speculated about why this is happening. It would seem like the same types of macro events, like inflation and the collapse of the financial system, would benefit both gold and Bitcoin. But orange coin goes up and yellow rock goes down. One reason could be is that Bitcoin simply has a lot more room to grow than gold. Most people who will ever own gold, already own it. While only a few percent of the world’s population owns crypto. As these new buyers step into the cryptoverse they’re driving up Bitcoin’s price.
BTC is a growth asset and as more people realize that, the trend higher in price just keeps accelerating. If you thought MicroStrategy already has so much Bitcoin that they couldn’t possibly buy any more of the stuff. Well, that simply isn’t the case. Gigachad Michael Saylor is back in the buying market and this time he’s offering up a $900 million convertible note which will be used to buy Bitcoin.
What this means is Saylor is selling an IOU ( the note) in exchange for a promise to pay back the principal plus interest worth of equity in MicroStrategy. This means Investors can get exposure to BTC without taking on the RISK of holding the asset themselves by investing in the company that holds it on their balance sheet.
Here’s what we think is so interesting about this latest offering. When Saylor first made the announcement the plan was for a $600 million offering. Seeing it get bumped up to $900 million means the investment market is hungry for Bitcoin. Second, check out the interest rate on this note! It’s 0%! The only way Saylor could possibly offer a 0% note is if there is so much demand that investors are fighting with each other to get in on this. The whole episode is just more evidence of the extreme demand for Bitcoin in the marketplace.
One of the emerging themes of 2021 is a wave of investors and institutions who are changing their mind about Bitcoin and crypto. Howard Marks Mark Cuban Ray Dalio JP Morgan Bill Gates The list goes on and the newest entrant is Motley Fool, one of the largest websites in the world that provides investing advice.
Back in 2013 Motley Fool ran an article with the title, quote, “Why Bitcoin Is a Horrible Investment Idea” Well it seems that they’ve changed their mind. A few days ago Motley Fool announced that they’re buying $5 million worth of Bitcoin and that they believe Bitcoin is a valuable asset to protect against inflation. So there you go, another one hater get’s orange pilled. The longer Bitcoin is around, the more recognition it gets.
NFTs are poised to be all the rage in 2021. These digital tokens have been popular with crypto enthusiasts ever since Crypto Kitties came on the scene in late 2017, but we’ve reached that point where a niche cultural fad is going mainstream. The bespoke auction house Christie’s is going to sell an NFT for the first time in history. It’s a digital collage done by an artist named Beeple, who made millions of dollars selling some of his NFTs in 2020. We think this is a really big deal for two reasons. One, it legitimizes NFTs as a real type of artwork. A lot of people have questioned how art that’s 100% digital can have value. Admittedly it’s a tough concept to wrap your mind around, but if Christie’s is getting involved it shows that NFTs are the real thing. Secondly, this auction shows how crypto culture is going mainstream. Crypto is breaking out of the box and finally gaining the recognition that it deserves.
For years one of the biggest criticisms of Robinhood’s crypto platform is that they didn’t allow withdrawals. One of the key advantages of crypto is that users can control their own money. They can send their crypto to whoever they want and nobody can stop or reverse a transaction. None of that applies if you’re just holding your crypto with Robinhood though. Not your keys, not your crypto, and the fact that Robinhood is going to finally allow withdrawals is a pretty big deal because it increases the surface of potential investors who can now truly own their crypto. This move also puts pressure on other platforms to do the same thing. How long before PayPal starts letting their users withdraw crypto as well?
BNB has a new #3 badge on its sash as it has flipped tether to stand on the winners podium. And hers where I get to say don’t be a Motley fool like me. As an illustration of the power of HODLE from my own wallet you can see just how much I would have it I had just held on to my measly 13 BNB since 2019. The future is here and nothing proves that better than the price of gold. The digital product goes up, the analog product withers in its vault. One is forward looking, one is lost in the past.