~ Welcome to v12 of #thebalance ~
According to some horoscope sites out there, the Aries sign signifies “one of power and domination.” It would have been quite the coincidence if Zuckerberg and the Winklevii were both born in Aries season. Thankfully, they weren’t. And this week’s post isn’t focused on the perceived drama between the two sides, don’t worry.
But, one has to admit, it is rather peculiar that the two sides BOTH happen to be head to head once again in the crypto universe and BOTH have named their projects after zodiac signs (whats with the astrology theme in crypto btw). What does this tell us about where the future is headed??
This soon-to-be-a-movie storyline aside (not joking), it is clear that the spotlight on digital assets as a whole (Bitcoin and others) has now officially gone primetime.
I have tried to steer clear of the crypto category thus far in #thebalance’s life cycle (given it is my day job and it is also where a good portion of my spare time is spent), BUT with all the latest developments, I am finding it just too difficult (and all too important) not to post about it this week.
Highlights on what you will find in this week’s post, include:
#GetSmart >>> covering the more recent mainstream developments in the digital asset category (with a political tint) + some 🤯 thoughts
#GetCastin’ >>> A ‘cast on the Bitcoin Billionaires novel + an audio doc series on digital assets (that I HIGHLY recommend)
#GetBitcoin >>> How to purchase this asset, if you feel so inclined ₿₿₿ (someone please find me a real BTC emoji)
⬇️ More below :) ⬇️
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***Just as a refresher, the core thesis of this newsletter is to pique your curiosity by aggregating interesting topics in a thematic, bite sized, and relevant manner (w/ original posts occasionally) - ranging from blog posts, books, music, events, podcasts, and ideas on how to stay active, travel or otherwise... And please keep sending feedback my way… the goal is to make this thing worth it for you!***
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#GetSmart
The future is becoming increasingly digital. We know that already.
Wouldn’t it make sense that our money would be 100% digital too? After all, “money” is just a technology that humans invented.
You might say, well, Block, isn’t my bank account or Venmo or my credit card “digital” money already?? For one, sort of, but not really (these services are proxies). Two, these services are luxuries in the US that many outside our wonderful country (or outside the “west”) do not have access to. Third, at the end of the day, the US financial system (and much of the west) is still based very much on a capital markets / banking system that was first architected in the late 1700s. Only in the last ~100 years did the US, for example, move to a non-gold standard based society (when FDR “cut” ties from the US Dollar to Gold in 1933). And, only after this point, one could argue, did the US Dollar intrinsically have inherent value…..
Ultimately what makes the US Dollar work so well, for example, is that we, the people of the United States have unwavering trust in the Government (I am not talking about elected officials, but rather the system itself and what it stands for). Moreover, many of the institutions we interact with daily are built on this arguably outdated system (lumping in the banking system with our federal government, for simplicity)… Nonetheless, I would say we have it pretty good here in the US.
So why would anyone want to change things?
Enter Bitcoin in 2008. With the economy in the toilet, the internet proliferating, and distrust of the US & global financial system through the roof, the timing was ripe for a different way to do things to emerge.
Fast forward ~11 years later, Bitcoin and alternative digital assets continue to make waves globally….
>>>> Crypto as just another asset class
Whatever your opinions on “crypto” may be, this chart should convey that digital assets (natively digital, in many cases) are here to stay. And should be taken seriously.
(source: ARK-Invest)
>>>> Crypto as money
Matt Levine said it best in Money Stuff (I won’t attempt to outdo his brilliant post, an absolute must read). Highlights include:
“The human capacity to generate collective fictions is our most powerful and general technology, the thing that distinguishes us from other animals and enables long-term cooperation and complex societies, and money is one of the most important collective fictions.”
“Money is just a bunch of computer entries, but it has to be scarce to be valuable, and the computer entries have to reflect a social consensus of who has how much money.”
“The principal form of modern monetary technology is really legal and regulatory technology. The structuring and regulation of banking is about making sure that the money is scarce and is allocated in socially approved ways.”
>>>>> Gemini Dollar, Zuck Bucks or USD?
As mentioned above, it is abundantly clear that things are heating up on the quest for a global currency. In case you missed it, Facebook announced plans for its own cryptocurrency, native to its platform (Gemini Dollar envy maybe??) called Libra (a so-called ‘stablecoin’ tied to a #balance of the underlying denominations of the USD, GBP, Euro & JPY), that it hopes one day will “trade on a global scale much like the U.S. dollar.”
To me, the craziest thing about this grandiose plan of the Zuck’s is that it has set us on a path toward a globally recognized internet first, non-government issued, natively digital currency (IF the company can pull it off). Facebook is technically the biggest “country” after all at ~2.4bn users globally…. Whether or not they can achieve it, is one thing. But one only needs to look East for a quasi-blueprint of what this might look like….
>>>> Global Implications
The bigger picture, in my opinion, is that digital assets (talking payment tokens here) are now at the forefront of global politics. The fall out from this initiative will shape the global economy and trade policies for years to come (trade wars anyone?).
To quote Levine, once again, driving this point home, “If Libra gains widespread acceptance, its lack of one-to-one correspondence will give it a tendency to displace national currencies. If you mostly spend dollars, and Libra is always going up and down against the dollar, that will be annoying and you won’t want as many Libras. But if you mostly spend Libras—if Facebook is successful at making this the main currency of the internet—then that dynamic will reverse. If the dollar is always going up and down against the Libra, that will be annoying and you’ll want more Libras. The dollar will start to seem unstable and useless. If you buy most things online, and if everything online is priced in Libras, then you’ll end up living your life denominated in Libras, and only converting your Libras into dollars on your occasional touristic visits to the physical world.”
>>>> Trumpian tactics
I hate to promote any Tweets by Mr. Trump, but this is too good not to highlight & further proves the point that the “battle” is here. The sitting US President has tweeted about crypto this past week. It has arrived, ladies and gentleman.
I won’t give an opinion on the above, but instead will point you to the CEO of Coinbase’s comment, in response:
>>>> The Quest for World Domination Goes on
More detail on other key developments (just these last couple weeks!!), if you would like to read more, some good links below:
🇨🇳 China & digital currency; Facebook’s Libra forcing China to step up plans for its own cryptocurrency (PBOC was the first major central bank to study digital currencies in 2014)
#GetCastin’
Laura Shin interviewing Ben Mezrich, author of Accidental Billionaires (the story behind Facebook that was turned into the movie, The Social Network) is back at it again with his Bitcoin Billionaires book, the story behind the Winklevii and the Bitcoin boom. Rumor has it that this will be made into a movie as well…
Gemini (Winklevoss) and Libra (Zuckerberg) names a coincidence? I think not. Have a listen here (only 30 minutes): Worthy of your time
BONUS: Still the best and wholly comprehensive series to date in my opinion, covering crypto, blockchains, Bitcoin and everything else… Patrick O’Shaughnessy’s Invest like the Best Hashpower Podcast Series ⭐⭐⭐ highly recommend ⭐⭐
#GetBitcoin
Now that Bitcoin is “back” again…. to the many of you who have asked me, “What do you think of Bitcoin? Is now a good time to buy?”
I can’t answer that (sorry to break it to ya). Instead, I say try it for yourself.
The best way to learn about where the future of capital markets is heading - is to get involved firsthand. With awareness at an all time high, there is no better time than now :)
Have a great week all!!
Curiously,
Brian
***Including a snippet from the Exponential View newsletter (a must read for me each week), which posts the below carbon tracker. Latest update below:
“Each week, we’re going to remind you of the CO2 levels in the atmosphere.
The latest measurement (as of July 1): 413.76 ppm; 12 months ago: 409ppm; 50 years ago: 326.66ppm; 250 years ago, est: 250ppm. Share this reminder with your community by forwarding this email or tweeting this.
Climate change adaptation is not just a matter of keeping the sea out or building more resilient city infrastructure. It’s also about social adaptation—the laws, the institutions and the basic commitment to recognizing the rights and needs of those worst affected by climate change.
We’ve passed the seasonal peak for readings of CO2 at Mauna Loa. As our plants green, particularly in Siberia, they will suck some of the CO2 out of the atmosphere. Focus on the delta over the past 12 months. The delta itself continues to increase. We are ~3,965 days from the dreaded 450ppm threshold.”***
A little bit about me:
My friends call me Block. I am endlessly curious and eternally optimistic - obsessed with digesting content, seeking to broaden my perspective and always striving for balance (hence this newsletter).
Minnesota born & raised, I now live and work in New York City. I have a passion for new ideas, different perspectives, and all things technology.
I am an open finance enthusiast, futurist, investor, entrepreneur, builder, advisor, life long learner, hockey player, traveler, podcast addict, hip-hop head, e-newsletter junkie, event planner, and comedic-short producer. Follow me on Twitter here and Instagram here.
“Find a question that makes the world interesting.” - Paul Graham
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