All-Time Lows
The US Dollar Continues to Lose Value Against Bitcoin
Bitcoin reached it’s all-time high in US dollar terms this week.
If you’ve been paying attention, you’ve likely seen people sharing charts like the one below.
But allow me to illustrate to you what’s really happening with a chart that shows the inverse relationship between BTC and the USD.
USDBTC
Below is the value of the US dollar measured in BTC.
The dollar continues to lose value vs. BTC.
And the dollar is the strongest fiat currency in the world. That is, every other fiat currency on planet earth has lost even more value vs. bitcoin.
Theoretically, everything will fall in value vs. bitcoin forever.
If you doesn’t compute, consider the fact that gold is on the verge of hitting its all-time high in USD. Put another way, gold is about to be more valuable than it’s ever been IN THE HISTORY OF THE WORLD. And bitcoin is gold for the 21st century.
Sure, there will be periods where the US dollar shows strength against bitcoin like the one we just went through over the last two years. They will be short-lived, though.
Hyperinflation is the only way out of a fiat system, and we’re in the early stages of that happening with the US dollar. The price of bitcoin rising is the best indicator of the US dollar failing. As I said years ago in this newsletter, bitcoin is a bullshit meter.
Please do not interpret this message as “Frank is telling me to dump all my fiat into bitcoin right now.”
I’m not telling you to do anything. I’m simply sharing my perspective. Do with this information what you will.
And before we move on, congrats to everyone who held and stacked through this bear market. I’m sure people told you that you were crazy, and I’m sure you felt crazy at moments. I hope you feel better now.
Here are some words of wisdom from Strike CEO Jack Mallers on feeling crazy (click image below):
Want to Work in the Bitcoin Industry?
Two weeks ago, I interviewed Flo Montoya, artist and the creative force behind the Love Is Bitcoin account, about how to find work in the Bitcoin industry.
TL:DR — It isn’t easy. So, if you want to get involved, you better put on your hustlin’ pants.
And even if you don’t want to get involved, this is still a great listen, as Flo is awesome and she offered some very interesting perspective on what’s happening on an economic level in her home country of Chile.
Genesis to Return Funds to Earn Users
Gemini announced that it will be return Earn users’ funds.
If you had any assets in Gemini Earn, you should gain access to 97% of what you had there within the next 7 weeks. The remaining 3% will be paid out with the next year.
Full announcement from Gemini below (click image):
Trump on Bitcoin/Crypto
A lot of people in the crypto industry believe Trump will be good for Bitcoin/crypto.
I’m not one of those people.
I shared my thoughts on the topic with GoBankingRates on behalf of Finder two weeks ago.
Here’s the segment of the piece in which they quoted me:
Frank Corva, senior analyst for digital assets at financial services comparison site Finder.com, said that Trump may have changed his tone on crypto since 2019, when he tweeted against the asset class. However, he noted, “If he proved anything in his tenure as president, it’s that he’s very willing to say what people want to hear and then act in an antithetical manner.”
Corva added, “There’s little evidence in Trump’s past actions that make me believe we should trust him when he says he ‘can live with’ bitcoin (BTC) as a more widely used medium of exchange.”
A Pro Crypto VP Pick
What’s more likely happening, Corva suggested, is that Vivek Ramaswamy, who’s in the running to be Trump’s pick for vice president, is feeding Trump rhetoric he knows will resonate with crypto enthusiasts.
“On a recent episode of ‘What Bitcoin Did,’ on which Ramaswamy was the guest, he illustrated his thorough knowledge of how crypto works,” Corva explained. “He also shared that he is a proponent of the technology and that he owns some Bitcoin and Ether.”
So, if Trump picks Ramaswamy and wins the election, it might be a boon for crypto.
“Ramaswamy seems to be more principled than Trump and he seems to be a true believer in the promise of crypto, but Trump could just as easily begin ignoring Ramaswamy’s input once he is back in power,” Corva said.
At the same time, Trump could use the presidency to promote a new NFT collection, in which case, Corva thinks it would be quite hard for him to deny crypto.
Trump’s Crypto Incentives
Instead of paying attention to Trump’s newfound rhetoric around crypto, Corva recommends a wait-and-see approach.
“We’d be better off looking at what incentives Trump has to support the burgeoning asset class and technology,” Corva said. “Until this is determined, it’s best to keep in mind that there’s little Trump won’t say to get people’s attention and that his actions have not historically matched his words.”
That’s all for this week, ladies and gents.
I’m sorry I didn’t publish last week. I’m facing INSANE DEADLINES AND MY BRAIN IS BARELY FUNCTIONING — SOMEONE PLEASE HELP ME.
Paid subscribers, I will send out a market update edition of the newsletter later this week.
Thanks for reading and big hug!
Best,
Frank
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(This is me at $70k)