EddieJayonCrypto

 20 May 22

tl;dr

• Michael Saylor says Bitcoin will eventually be in the millions and MicroStrategy is a big buyer• More Terra turmoil as they are having a hard time even voting on a fix• Goldman Sachs economists think there is little effect on spending of most US households due to crypto plunge• Vitalik Buterin thi...

• Michael Saylor says Bitcoin will eventually be in the millions and MicroStrategy is a big buyer
• More Terra turmoil as they are having a hard time even voting on a fix
• Goldman Sachs economists think there is little effect on spending of most US households due to crypto plunge
• Vitalik Buterin thinks the Ethereum merge can happen in an August timeframe
• Tether has released its Attestation Report and it says they are fully backed
• SWIFT announced it will start cross-border test CBDC testing soon

Here is what is on my mind today.

1. I don't think anyone questions the resolve and belief of Michael Saylor that Bitcoin is the future, but he has taken things to the next level. While on Yahoo Finance Live he stated, "I anticipate that we will forever purchase bitcoin at the local peak. And I anticipate bitcoin to go into the millions". He is not the only one making the case, but given his knowledge and experience, I give him a little more weight.

2. There is still a bit of turmoil in the Terra community as major changes to a proposal mid-vote happened. Frankly, if you have an issue with process during a vote, I am going to question your process during a recovery attempt. This was not a smart step. Mind you, they still have to get the changes out and take a new vote. Execution is key here. The Terra community needs to demonstrate they are able to execute with dependability.

3. Goldman Sachs economists believe there will be little effect on the spending habits of most US households stemming from the crypto downturn. I beg to differ given US households' control about one third of the global crypto market. Keeping in mind this is an investment toward savings and growth, I think there would be at least a little impact. As well, I would go further to state one should not look at crypto as a silo without considering the stock market and other macro events. I, for one, definitely predict changes to spending habits will occur over the next two to three months. Another macro event is the current increase in pandemic cases along with the new Monkey Disease that has a 21-day gestation period. Hence, that is just the beginning.

4. Vitalik Buterin thinks the Ethereum merge can happen in an August timeframe. That is a little bit of good news now and can turn into great news when it happens. Stay tuned.

5. Tether has released its Attestation Report and it says they are fully backed. By what, I am not sure. They do say their reserves are liquid though. This is against the backdrop of supply in circulation now dropping an additional $2B, totaling a $9B drop to $74B amidst big selling pressure.

6. SWIFT, the international payments organization, announced it will be conducting cross-border tests for central bank digital currencies. SWIFT is working with Capgemini to stand up the system. With rapidly growing interest in CBDCs around the world and Terra plummeting, I am expecting strong stablecoin regulation as CBDCs pick up steam and cross-border functionality.


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