Yesterday in Crypto - Issue #9

Read time: ~7 minutes

Here’s what you missed yesterday, 7/26/23

In a recent landmark hearing held by the U.S. House Oversight Committee, the enigmatic issue of Unidentified Aerial Phenomena (UAPs), or UFOs, was brought to the forefront. The testimonies of key witnesses, including a former military intelligence officer turned whistleblower and two former fighter pilots, painted a picture of a reality that many might find hard to believe: that we are not alone in the universe.

David Grusch, the whistleblower, made startling revelations about the existence of a "multi-decade UAP crash retrieval and reverse-engineering program." He claimed that he had interviewed officials who had direct knowledge of aircraft of "nonhuman" origins. The former Navy pilots, Ryan Graves and David Fravor, shared their personal encounters with UAPs, adding more fuel to the fire.

What? Aliens? The whole world should be freaking out… but everyone’s calm. Are we so used to the crazy and the unheard of that nothing can phase us anymore?

This shift in perspective brings to mind another area where a similar paradigm shift is happening: the world of finance. Cryptocurrencies, once dismissed as a fringe concept, are now being recognized as a potential future of money. Just as the existence of UAPs challenges our understanding of the universe, cryptocurrencies challenge our traditional notions of money and financial systems.

If we are willing to entertain the possibility of extraterrestrial life based on the testimonies of credible witnesses and the demand for transparency, why can't we do the same for cryptocurrencies? The evidence is there: blockchain technology's potential to revolutionize finance, the growing acceptance of cryptocurrencies by businesses and consumers, and the increasing interest from institutional investors.

In a world where the existence of UFOs is being seriously discussed in Congress, the idea of cryptocurrencies being the future of money doesn't seem so far-fetched. Don’t be late.

The actions of central banks can have significant ripple effects throughout the world of crypto. Yesterday, the U.S. Federal Reserve, the country's central bank, raised its target interest rate by 25 basis points, pushing it over 5.25%. This is one of the highest levels seen since the financial crisis of 2008. This move marks the 11th rate hike in the last 12 policy meetings since March 2022, a clear sign of the Fed's ongoing battle against inflation, which hit a peak of 9.1% in June 2022.

While the Fed's efforts have managed to bring the inflation rate down to 3% as per the latest Consumer Price Index (CPI) figures, the crypto market has been keeping a close eye on these developments. The Personal Consumption Expenditures (PCE) inflation, one of the Fed's preferred metrics for rising prices, remains a challenge, leading to speculation about whether the Fed will continue to raise rates.

Despite the hikes, the crypto market has shown resilience. Bitcoin has benefited from both bank failures and excitement around a potential U.S. Bitcoin spot ETF. Even after the announcement of the latest rate hike, Bitcoin's price remained steady, continuing to trade for roughly $29,300. This resilience underscores the unique dynamics of the crypto market, which continues to grow and evolve amidst a changing financial landscape.

Robert F. Kennedy Jr., a U.S. presidential candidate, has recently announced that he purchased two Bitcoin for each of his seven children. This move is not just a personal investment decision, but it also sends a powerful message about the long-term value of Bitcoin and its potential role in the future of finance.

Kennedy's decision to invest in Bitcoin came after he faced criticism for advocating for the cryptocurrency without having any personal stake in it. In response, he decided to "put his money where his mouth is" and purchased a total of 14 Bitcoin. This investment was made public during a Twitter Space discussion and aligns with a leaked financial disclosure that showed Kennedy had a substantial amount of Bitcoin by the end of June.

This move by RFK Jr. highlights the power of BTC’s fixed supply.

Let’s get a little perspective on BTC supply through some facts:

• There are only 21 million BTC that can ever exist. Kennedy just took 14 off the market with a plan to hold long term. Now there’s 20,999,986.

• Microstrategy (a US Software company) holds a ridiculous 152,333 $BTC. They’ve never sold and don’t plan to.

• Tesla holds thousands of BTC.

• Over 63% of the total supply of BTC is dormant. This means the owners have not sold over moved their coins in over 1 yr. Once people get this stuff, they don’t let it go.

• Over 1 million wallets hold at least 1 whole Bitcoin. There’s a lot of people accumulating.

Kennedy's move is a clear signal to other individuals, institutions, and governments about the potential long-term value of Bitcoin. If others follow suit and start rapidly accumulating Bitcoin, it could lead to a massive supply shock in the market. This could potentially drive up the price of Bitcoin and further establish it as a valuable asset for the future.

That’s all for today. We’ll see you on tomorrow.

“Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value.”

Eric Schmidt - Former Google CEO