tl;dr
We have big numbers coming out this week and the Cryptoverse is already heating up. Here is what is on my mind today.1. Even though we have Case-Shiller home price index coming out this week all eyes will be acutely focused on the GDP numbers expected on Thursday. We already know the real estate ind...
We have big numbers coming out this week and the Cryptoverse is already heating up. Here is what is on my mind today.
1. Even though we have Case-Shiller home price index coming out this week all eyes will be acutely focused on the GDP numbers expected on Thursday. We already know the real estate industry has been hot, but interest rates are the highest they have been in over a decade. Even with that news, some homes have been out of reach except for the rich and wealthy. Homes in the northeast has very low inventory coupled with those high prices. I am expecting the economic data to start cooling inflation and maybe even greedflation.
2. Could there be a major vulnerability to Bitcoin? Well, it would seem that Antoine Riard, who was a security researcher and developer on Lightning Network's development team, thinks so. So much so that he has resigned his position at the network. He is convinced there is a an attack that could leverage replacement cycling attack to hit the network. Because the peer-to-peer payment system leverages off-chain channels to complete transactions, the attack would target the mempools on the network. I am still digging into this news, but if true, this is be a serious issue for the popular Lightning Network.
3. BRICS members, China, India and Brazil dumped about $18.5B in US Treasuries over the last month. I touched on India doing so last week. However, with the news that China and Brazil have also done so it makes me think of a very concerted effort. There is a possibility of coincidence, but this is 3 member nations doing so. India is trying to bolster the rupee and Brazil my be a tad strapped for cash. I think it is just the same old game for China. The decline of the US dollar in cross-border transactions is creating an opening for a new currency. Of course the BRICS nations are looking to introduce a new global currency to fill whatever void created by that decline. Again, we will have to keep an eye on BRICS movements.
4. There are reports that more stores in France are now accepting Bitcoin. One shop owner says that increase stems from people seeking stores to spend their BTC instead of fiat. You might ask why? The answer is simple. The customers get to avoid the high fees for swapping their fiat to the euro. There are even shops that are holding Bitcoin-specific events to tout their acceptance of the coin. Again, this is the tip of the iceberg.
5. In a recent report by McKinsey, they say that banks have enjoyed a collective boost of about $280B in 2022 stemming from interest rate hikes and associated fees. More specifically, banks have been able to increase their net interest margin. This lifted return on equity from the average 9% (since 2010) to 12%. McKinsey expects that to rise to 13% in 2023.
6. In major news, Binance is now supporting USDC on the Polygon Network. The new version will be recognized under MATICUSDCE on Polygon. Remember what I told you. Polygon's network is wicked fast and is expected to get fast and strong with the much anticipated 2.0 upgrade. I guess that's why you are seeing MATIC exploding over he past 24 hours, up almost 10% and up over 18% over the past 7 days.
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