Episode 196 - Flagship Friday #83 - A (Justin) Sunny Day in San Francisco
Another Friday, another Flagship, another excuse to dive into all the crypto shenanigans and goings-on of this past week. What has Justin Sun been up to again and how is it related to the word "chicken"? What do recent stats show about the future use cases of Bitcoin? Could it become the global reserve currency of the 21st century, replacing the gold standard and becoming the basis for a worldwide system of Cyber-Keynesianism or is the person writing this just a closeted bitcoin maximalist? What more could Karim possibly have to say about macroeconomics and politics and what's his new segment all about?
Additionally, today we talk once again about our favorite subject of the month, the Ministry of Truth's cryptocurrency, Libra. Did I say Ministry of Truth? I meant Facebook. Did I quote George Orwell? In the times we live in, can you even blame me?
Dive into the cryptoverse with us on today's Flagship Friday.
German startup called Fundament just received the go-ahead for the first tokneized real-estate backed bond that be offered to investors. $250 million Euro offering, approved by BaFIN (Germany's financial regulators). Will run on Ethereum and be using ERC-20 token
Iran is officially recognizing cryptocurrency mining as an industry within it's borders after a few months of discussion. Iran is enticing to miners bc of the cheap electricity rates available. They had previously seized and shut down two mining farms last month but have decided that it is now legal.
Brave browser adds ability to withdraw BAT earned form ads after verifying wallet through Uphold.
Norwegian Air to accept bitcoin and is opening a crypto exchange. This is only for customers living in Norway for now but planning on rolling out their exchange, Norwegian Block Exchange (NBX), in neighboring countries over the coming months.
(Story 1) (Adam) Justin Sun is definitely in the news and this is getting murky.
- A Yahoo article reported that at 3:30PM UTC Justin Sun was not facing formal charges but was not allowed to leave the country. Three hours later Justin was doing a live periscope in SF.
- He also postponed his Warren Buffett lunch over "health issues"
Allegations of illegal fundraising for Tron's ICO back in 2017 but Sun claims he complied with all financial regulators and refunded investors on Sept 20. 2017
Update (K) -
Lol So he says kidney stones, then Chinese media outlet Caixin - nha gov is looking at him for money laundering, illegal fundraising, and pai wo shadiness.
He posts on Weibo
It originated because I admire Buffet and his love of charity, and wanting to promote blockchain
- now says his own â€œselfishnessâ€ and â€œimmature words and deedsâ€ detracted from the effort.
- his â€œmouthâ€ got in the way of his good intentions
- He refers to his own efforts as â€œfailed over-marketing, which has generated a lot of consequences that I completely did not expect.â€
- To be clear he did pay the money
- He's scared tho from what he wrote, apparently Caixin is aligned with gov and taken very seriously, and this type of thing can be a "call out"
- In the past few weeks, I had my darkest moment with sickness and tiredness. I suffered the biggest drama ever in my life from peopleâ€™s doubting and questioning.
- I bought the Warren Buffett lunch because I admire him a lot and I have a huge passion for charity. The original reasons are good and simple. I cannot deny that I want to promote blockchain related business at the same time. However, because of my immature words, behavior, youth, and vigor, I spoke without thinking twice.
- He praises Caixin for being a great journal, helping reform, being media teachers
- "For the elders, leaders and regulators who care about me, I would like to express my sincere apologies to my premature marketing and words and deeds! I am deeply afraid of the adverse effects caused! I am young, not deeply involved in the world, and the blockchain belongs to the emerging industry. I am immature. It is the big pattern of the elders of the regulatory agencies and their great vigilance makes me understand the importance of social responsibility and social influence!
- he praises Chinese socialism and the reform and just tries to appeal to the party
(Story 2) Discussion: Attorney General Barr speaking out against encryption
- There have been some articles here and there about this and it keeps popping up. AG Barr spoke at a cybersecurity conference to push tech companies to provide law enforcement with access to encrypted devices. What are your takes on this
- (Story 3) Bitfinex & Tether Respond to NYAG Allegation
- Bitfinexâ€™s general counsel Stuart Hoegner disputed the NYAGâ€™s accusation that New York residents were using the platform for longer than previously stated by saying it â€œcontains a number of inaccurate and misleading assertionsâ€.
- It also ceased trading in 2017 and that no NY customer has been identified.
- Bitfinex & Tether claimed these allegations were misleading.
- They do not transact with any NY ECPs (eligible contract participants) and are claiming any reference to NY-based trading or virtual currency firms refer to foreign entities.
- They are also claiming they have not been proven to be a commodity.
- (Story 4) -
- Summary of Findings from Coin Metrics' State of the Network: Issue 9
- The amount of Bitcoin (BTC) supply that has been untouched (i.e. not transferred) for at least five years recently reached an all-time high.
- Store of value > medium of exchange?
Even tho supply keeps growing, percentage also ATH at 21.6%
Untouched supply tends to mirror Price movements
And Bitcoin really is special compared to the rest, price change stable while others getting slaughtered.
"Several narratives explain the strong relative outperformance in bitcoin over this period"
- US Regulators
- This year Poloniex, Bittrex, and Binance all started restricting US traders in certain markets
- June SEC filed a suit against Kin, CFTC investigating Bitmex, Libra panic
- Theory is this drives traffic to btc since it gets most "regulatory charity" (we did see this with people praising btc)
- heightened geopolitical tensions and a growing acceptance that Bitcoin serves as a digital store of value and hedge in uncertain times
- US-China trade disputes, increased threat of disruption of oil supplies in Middle East, Euro-zone fragmentation risk, tensions in Hong Kong, etc
- Environment has shifted towards monetary easing
- real interest rates down in most major developed countries, on all terms
- Pockets of weakness in forward looking macro indicators (probably talking about the yield curve for for example) has people expecting recession
- "It now seems nearly certain that the four major central banks of the world (the Federal Reserve, the European Central Bank, the Bank of Japan, and the Peopleâ€™s Bank of China) are on the cusp of another monetary easing cycle"
- As interest rates go down, opportunity cost of holding non-yield asset declines
- And since rates are so close to zero, theyll probably have to do some "unconventional" monetary tool like QE
- Environment has shifted towards monetary easing
- US Regulators
Ramesh Gopinath on LinkedIn: ""What's important is that Food Trust is a community approach. Farmers, breeders, logistics providers, supply chain participators, retailers - they are all putting their best efforts together." https://lnkd.in/egWA-wk #supplychain #foodtrust #foodsafety #blockchain"
NEW SEGMENT - DOES IT MATTER? (k)
1799 US adults
Do you trust FB?
Compare trust for Libra vs Btc
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