The Breakdown

Today on the Brief:

• SEC investigating Elon’s DOGE tweets?
• U.S. income growth has second biggest monthly gain ever
• Robinhood growth suggests crypto mainstreaming

Main discussion: Cathie Wood thinks bitcoin could replace bonds. In this episode, NLW lays out:

• How Cathie Wood made a name by being early in Tesla, bitcoin and innovation
• How ARK’s funds have grown 
• Why bonds aren’t performing anymore and why bitcoin could fill the gap in investor’s portfolios

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In today's episode, NLW looks at how bitcoin fits with the growing trend of ESG (Environmental, Social, Governance) investing. In it, he: 

• Argues that ESG investors should disregard the false idea that bitcoin is only used for crime
• Provides three frameworks for understanding bitcoin’s energy consumption 
• Demonstrates how marginalized communities are using bitcoin as a tool of economic empowerment
• Argues that bitcoin provides a new, networked alternative to corporate governance 

Today on the Brief:

• Fed Chair Jerome Powell comments on markets and digital currency
• Cathie Wood’s ARK faces toughest stretch since last September 
• India’s latest anti-crypto sentiment 

Our main discussion: More news on corporate bitcoin buying. NLW discusses:

• Square’s Q4 and overall 2020 bitcoin performance in terms of revenue and profit
• Square’s latest bitcoin purchase of ~3,300 BTC for $170 million 
• MicroStrategy’s latest >$1B bitcoin purchase, bringing the total to more than 90,000 BTC
• Why these announcements are losing their power to move markets 

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On today’s episode, NLW breaks down the final settlement of the New York Attorney General’s case against Tether. He argues that the outcome is extremely positive for the industry, discussing:

• Why Tether risk became a major source of FUD in 2021
• How conspiracy theories overtook legitimate concerns
• The history of the NYAG’s case against Tether
• Specific findings of the NYAG’s case around two times that Tether was not backed 1-to-1 by U.S. dollars held in Tether bank accounts 
• Why there was never any accusation of Tether printing USDT out of thin air to manipulate markets 
• The specifics of the settlement
• Why this conclusion clears risk from institutional investors

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Today on the Brief:

• Welcome back to the price rollercoaster
• The latest from China’s digital yuan trial
• A 3-week sprint to a stimulus package

Our main discussion: Canada’s first Bitcoin ETF.

NLW discusses:

• ETF 101
• Pros and cons of a bitcoin ETF
• History of bitcoin ETF proposals 
• Early performance for Canada’s BTCC ETF 
• Implications for a US BTC ETF in 2021

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On this week’s “Long Reads Sunday,” NLW reads Alex Treece’s recent essay “Why the US Needs Bitcoin.” The piece argues the U.S. will inevitably adopt bitcoin as a treasury reserve asset, but by doing so sooner rather than later it can enjoy geopolitical advantages. 

NLW follows with a discussion of his assessment of the prospects of a digital dollar backed by digital gold. 

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This week, instead of our normal Weekly Recap, NLW digs into Thursday’s congressional hearings around GameStop, Robinhood and WallStreetBets. 

He explores: 

• Why there was a significant focus on T+2 settlement 
• Bipartisan agreement on retail investors getting screwed, but different diagnoses on how to address
• Why Keith Gill, aka Roaring Kitty, aka DeepFuckingValue is a new American folk hero

Ultimately, NLW argues that any congressional action needs to make it easier for retail investors to be full participants in the market, rather than further limiting their options.

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Bitcoin is officially a $1T asset. As the price surged over $54,000, the total market cap of bitcoin reached the new all-time high. 

In this episode, NLW explores the significance of the milestone, arguing:

• There has been a slate of good news, from BlackRock rumblings to Canadian ETFs that have been driving recent price action
• There are a variety of institutions that couldn’t allocate to the space before because it was too small but which are now in play
• In the wake of the milestone, we’re likely to see more research house FUD
• We’re also likely to see a number of major bitcoin positions announced in the days to come 

-- Earn up to 12% APY on Bitcoin, Ethereum, USD, EUR, GBP, Stablecoins & more. Get started at nexo.io -- Enjoying this content?   SUBSCRIBE to the Podcast Apple:  https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M=   Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW   The Breakdown is produced and distributed by CoinDesk.com

 

Nik Bhatia is a financial researcher, a CFA charterholder and an Adjunct Professor of Finance and Business Economics at the University of Southern California Marshall School of Business. 

Nik’s new book “Layered Money: From Gold and Dollars to Bitcoin and Central Bank Digital Currencies” puts the rise of bitcoin into a larger historical context - from the first coinage of Rome to the introduction of credit in Renaissance Florence to the beginnings of interest rate trading in Antwerp to the genesis of the central bank system that shapes money today. 

In this conversation, he and NLW do a rapid tour across those two millennia of economic history, ultimately helping reframe what it means when we say that bitcoin is the new “digital gold.”

Find our guest on Twitter: @timevalueofbtc

-- Earn up to 12% APY on Bitcoin, Ethereum, USD, EUR, GBP, Stablecoins & more. Get started at nexo.io -- Enjoying this content?   SUBSCRIBE to the Podcast Apple:  https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M=   Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW   The Breakdown is produced and distributed by CoinDesk.com

Today’s episode of “The Breakdown” analyzes a number of topics across the bitcoin and crypto industry, including:

• Bitcoin reclaims $50,000 and looks towards a $1 trillion market cap
• Treasury yields rise, hammering gold but so far having no impact on BTC
• Bitwise launches a new DeFi index fund for accredited and institutional investors
• Christie’s is auctioning off NFTs
• Coinbase is trading at a $77 billion valuation on the private markets

-- Earn up to 12% APY on Bitcoin, Ethereum, USD, EUR, GBP, Stablecoins & more. Get started at nexo.io -- Enjoying this content?   SUBSCRIBE to the Podcast Apple:  https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M=   Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW   The Breakdown is produced and distributed by CoinDesk.com