Bitcoin Coming Of Age
Pantera Blockchain Letter, March 2021
Please forward this to your friends. Let’s help the world get smarter on crypto.
If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here (it’s totally free and always will be):
Headlines
SEC in Receipt of VanEck’s Bitcoin ETF Application - Blockworks
The Securities and Exchange Commission announced today that it is in receipt of VanEck’s application for its proposed bitcoin ETF. Should that be approved, it would set the stage for the first bitcoin ETF to be launched on an American exchange.
Bank of America Sees DeFi ‘Potentially More Disruptive Than Bitcoin’ - Coindesk
“Bitcoin is the most talked about cryptocurrency but Ethereum [the blockchain] has more features, including being more flexible” in its hosting of decentralized finance (DeFi) than the Bitcoin blockchain, according to Bank of America.
Bitcoin Coming Of Age
by Pantera Capital | March 16, 2021 | 16 min read
In this letter from Pantera Capital to its investors, Dan covers projections for bitcoin, the rampid inflation that is occuring in the US, and why he thinks Ethereum is still undervalued at just under $2,000. Here are the highlights:
Bitcoin was born in a financial crisis. It will come of age in this one.
As governments increase the quantity of paper money, it takes more pieces of paper money to buy things that have fixed quantities, like stocks and real estate, above where they would settle absent an increase in the amount of money. I think they will do that. The corollary is they’ll also inflate the price of other things, like gold, bitcoin, and other cryptocurrencies.
Investors often ask why we haven’t seen inflation show up. The answer is: It totally depends where you look.
The Consumer Price Index won’t show it. The Federal Reserve’s CPI target includes mostly things of infinite supply — flat screen TVs, flip flops. With the massive slack in the global economy, it will be very hard to see inflation in those things. That’s why I’m convinced the Fed and other central banks will keep their foot on the gas pedal way past the time…
Bitcoin’s monetary policy is mathematical by design — it cannot be “Quantitatively Eased” by any central authority. One might amend the old line — replacing “land” with “bitcoin”:
“Buy land; they’re not making it anymore.”
- Mark Twain
Before the United States, only five great powers had enjoyed the coveted ‘reserve currency’ status, going back to the mid-1400s: Portugal, then Spain, the Netherlands, France and Britain. Those reigns lasted 94 years on average. At the start of 2020 the dollar’s run had endured 100 years, which was reason enough to question how much longer it could continue….
Read the full post here.
Best Tweets
Going Viral
Note: This section is for cool/funny clips and memes, so if you come across any, please send our way! We’ll give you the h/t of course!
About Grokking Crypto
Crypto is moving so fast and trying to keep up with everything can feel a bit overwhelming. Dozens of crypto-related articles, podcasts, and YouTube videos are published every day. Moreover, 90% of these resources aren’t even worth reading or listening to, which makes the task of keeping up even more difficult.
Our goal with Grokking Crypto is to handle the screening process for you. We read, watch, and listen to everything crypto so you don’t have to. Each morning, at 8:30am EST, we send out an email with the best resource of the day, for free.
Feel free to shoot us an email with any feedback and suggestions at grokkingcrypto@gmail.com.
Thanks for reading and see you tomorrow!