It has been an extremely dynamic and interesting week for crypto, so we will be covering some exciting news together. Hello, I’m Crypto Casey and welcome to another episode of Last Week Crypto.
Every Sunday, we review the performance of the largest cryptocurrencies, top gainers, as well as the latest global news stories affecting the crypto markets this past week.
This week we will highlight why bitcoin is looking quite bullish, what the Feds latest moves means for investors, Ethereums moon launch outlook, and finally how the decentralized exchange Uniswap pretty much back-handed traditional exchanges while also putting US stimulus efforts to complete and utter shame.
To check out the links to all of the articles we discuss, go to CryptoCasey.com/Last-Week-Crypto. This week’s episode is brought to you by Crypto.com, an exchange with over 55 different cryptocurrencies.
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So please use the link to my Instagram account listed in the description area to follow me and ask me anything you want, every Wednesday. Awesome. Let’s kick off Last Week Crypto. Looking at the top cryptocurrencies by market cap over the past week, Bitcoin up 5.6%, Ethereum up 4.3%, XRP up 3.3%, and Polkadot up a nice 14.8% overall.
Cool. Looking at the top gainers this week: Kusama up 42%, NEO, wow this one is a blast from the past up 37%, Quant up 29%, and Celsius up 21%.
Pretty green markets across the board and I’m not surprised considering bullish news like this: MicroStrategy Tells SEC It May Increase its $250Million dollars of Bitcoin Reserves they Purchased in August And let me give you some background on this situation, with a very short, wholesome story.
Back in 2013, Michael Saylor, the CEO of MicroStrategy tweeted: Bitcoin days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling.
Fast forward 7 years to just this past Tuesday, Michaels tweet is a very different tune: On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million dollars.
To date, we have purchased a total of 38,250 bitcoin at an aggregate purchase price of $425 million dollars, inclusive of fees and expenses. Wow, why the change of heart? Well, MicroStrategy’s Michael Saylor Explains his $425 million dollar bet on Bitcoin. MicroStrategy is prepared to HODL its bitcoin for at least a century.
I want something that I could put $425 million dollars into for 100 years, Saylor says. Something to hold for 100 years, eh. Well does this make sense from a financial perspective? I certainly think so and this tweet speaks to that longevity: Assets = Equity + Liabilities: The US dollar is 0% equity and 100% liability.
Physical gold is 100% equity and 0% liability and can be stolen. Bitcoin is 100% equity and 0% liability and is hard to steal. People naturally adopt the money with the least risks. And other technological and financial thought leaders agree.
Take heed of Jeffrey Booth, ‘Price Of Tomorrow’ Author, Who Says Bitcoin Is A “Lifeboat” Amid Financial Turmoil.
He has endorsed Bitcoin as a must-have investment in times when central banks are exacerbating the escalating debt problem.
Booth goes on the explain that, at the end of the day, he believes we only have two options left to get out of this exponentially growing national debt crisis: 1) Governmental default on global debt through a deflationary depression.
Which would involve declining prices, lower production, decreased wages, reduced demand overall, and the collapse of the banking system. Or option 2) Default through hyperinflation, which is pretty much what we’ve been doing to ease the effects of COVID on the economy.
And that outlook involves rapid, excessive price increases for goods and services in an economy, as cash and savings decrease in value, and eventually become worthless. This can lead to food supply shortages, bankruptcies, and lots of people not able to afford basic needs and cost of living expenses.
Option 1 would be a faster failure and better in the long run.
Option 2 will be slow and painful with severe consequences. So in terms of this past week, What does the Federal Reserves Latest Move Mean for Investors? Federal Reserve Chairman Jerome Powell on Wednesday fleshed out the central banks operating strategy unveiled last month, Confirming it will maintain near-zero interest rates and continue to purchase large volumes of securities.
The aim is to return the labour market to something like full employment and get inflation to moderately exceed its 2% target for some time.
If you’ve tuned in to previous episodes, you know that 2% target is actually more like 10% And to fully translate the aim: basically, the government is going to continue to artificially prop up big, zombie corporations that aren’t actually producing any value or innovating at all in order to avoid massive unemployment and to keep the stock market looking good for the presidential election, all at the expense of our long term financial future.
And if you don’t believe me, maybe take the Bank for International Settlements word for it: Biggest Crisis Test Is Still to Come With Insolvencies Officials in Europe and the U.S. have unleashed unprecedented easing in response to the Covid-19 outbreak, which has pushed up equity markets, even as economies face their deepest recession in decades.
While the liquidity measures have helped companies stay afloat, there are concerns they may also be creating a swathe of uncompetitive firms that hold back investment and innovation.
The real challenge is to distinguish between viable and non-viable firms, which, given the uncertainty about future demand patterns, is not straightforward. What’s also not straightforward or even true at all for that matter, is no one is trying to distinguish which businesses are viable versus nonviable.
The way it actually works is that a small, elite group of people control the money printer and simply print money to give away to their friends in the form of low-interest loans. When they need money, they just print more.
While the rest of us have to exchange our precious time to work hard and actually produce value to earn money. There’s no doubt we are heading towards another financial crisis, but the printing of money in response to COVID is adding fuel to the fire.
Peter Schiff sums it up nicely in this tweet: The U.S. current account deficit surged by 52.9% in the 2nd quarter to $170.5 billion, the worst quarter since the 3rd quarter of 2008, just before the financial crisis.
A swelling current account deficit indicates that the next financial crisis will be much worse than the last. And in the midst of financial crises, bank failures are inevitable.
And what’s interesting regarding banks, in particular, this past week, there is a new kid on block: Kraken Wins Bank Charter Approval Kraken Financial is the first digital asset company in U.S. history to receive a bank charter recognized under federal and state law and will be the first regulated, U.S. bank to provide comprehensive deposit-taking, custody and fiduciary services for digital assets.
From paying bills and receiving salaries in cryptocurrency to incorporating digital assets into investment and trading portfolios, Kraken Financial will enable Kraken clients in the U.S. to bank seamlessly between digital assets and national currencies. Absolutely incredible news for the crypto space.
And in a tweet, Kraken CEO Jesse Powell shares his thoughts about it: You can’t make this stuff up. This timeline is beyond twisted. Certainly didn’t see a banking license in the cards when we set out on this mission 9 years ago.
We have come full circle, crypto. Looking forward to banking you all and banning the accounts of sketchy fiat peddlers. Then below the tweet, you have a nice meme from that Captain Phillips movie with Tom Hanks and those pirates that took over his ship stating, Look at Me, I’m the Banker Now. Awesome.
Let’s jump into some more bullish news that has me thinking Ethereum is slated for a moon mission before the end of 2020. Ethereum 2.0 Gets One Last Dress Rehearsal Before launching. A second Ethereum 2.0 tested, called Spadina, will launch this month. Spadina will only last for three days with a specific focus on deposits and genesis.
An Ethereum 2.0 developer said recently that it’s on target for a November launch. Wow, considering this, token fee burn-in ETH 1 and 2 networks, people locking up tons of ETH to become validators on the mainnet, and, not to mention the anticipated artificial pumping of the stock market up to the presidential election things are looking righteous for Ethereums end of year price.
Even bitcoin is on the Ethereum hype train as Bitcoin Supply on Ethereum Tops $1B dollars, and if you just take a look at the chart depicted here, you can see a huge exponential growth curve emerging from January 2020, and going absolutely parabolic this past quarter, showing over $1 billion worth bitcoin tokenized on Ethereum.
Anthony Sassano knows what’s up: ETH is so gosh dang undervalued it hurts my face. You know who else faces are probably hurting: centralized exchanges and the US governments after Uniswap Token Launches set the standard for DeFi. In just a few days, it’s already one of the most widely distributed tokens in DeFi.
But Casey, why would the US government feel the blow? Well, Uniswap delivered a stimulus package that puts the Feds to complete and utter shame: Crypto Stimulus: Ethereum Based Uniswap Gave All Its Users Nearly $1,200 Uniswap released a governance token called UNI whose protocol gave away 400 UNI to every ETH address that used the exchange prior to Sept 1.
At a price of $3 per token, 400 UNI was worth $1,200 at the time of the launch, which coincidentally was the same amount as the US stimulus check.
However, in less than 24 hours, after being listed on mainstream exchanges like Coinbase, we have seen the price of UNI peak at around $8.40, making the 400 UNI worth a whopping $3,360 at its current all-time high at the time of this video.
Which has a lot of people sharing the sentiment of this meme featuring Doc Brown and Marty McFly from Back to the Future stating: We have to go back to make thousands of metamask accounts! So in closing, I agree with this tweet.
The Uniswap airdrop proved that decentralized applications will pave the way towards mass adoption. And if you have used Uniswap before September 1st, even if your transaction failed, you should be able to claim your 400 UNI tokens by going to the Uniswap exchange and connecting the wallet you used.
Then you should see a notification about 400 UNI in the top right corner of the screen. Click the Claim your UNI tokens button, next click claim UNI, then whatever wallet device you used to connect your wallet, open it to confirm payment of the ethereal miner fee to process the transaction, and that’s it, your UNI should arrive in your wallet after a few minutes or so depending on network traffic.
Sweet. Only in crypto can you unexpectedly receive random tokens worth thousands of dollars out of nowhere. Awesome. Well, that was last week crypto, with me Crypto Casey. If you enjoyed the episode, please make sure to like this video and subscribe to my channel for more crypto content.
To check out the links to all the articles we discussed, go to CryptoCasey.com/Last-Week-Crypto. Quick update on my crypto course, due to massive inundation of queries and action from everyone, I’ve been assembling a team to help me keep up with everything so that in addition to non-crypto related work and personal matters, has put me behind in launching the course.
I assure you it will be well worth the wait so thank you so much for your patience So what was your favourite story we covered this week? Did you receive 400 UNI from the Uniswap token launch? Are you going to miss out on $50 worth of more free crypto by signing up for Crypto.com?
If not, sign up using the link in the description area below. be safe out there you.