SM Market Review (Aug 2021) 25% undervalued, substantial upside price risks

In the past we used to write more detailed and opinionated pieces on market conditions. We are veering away from that to a short and succinct monthly market comment. We’ll keep opinions more thematic in nature and release those separately. What has happened in the month of August? After reaching a low of $29,800 in … More SM Market Review (Aug 2021) 25% undervalued, substantial upside price risks

SM (ed. 14) Crypto yields are sucking in trad-fi

Traditional investors are confounded by the yields available in crypto. We earn next to nothing on traditional dollars but earn 5%+ on crypto dollars. I can imagine traditional investors look in from the outside and think “this is too good to be true!”, “Those bright shiny lights in the distance are going to blow up … More SM (ed. 14) Crypto yields are sucking in trad-fi

SM (ed. 13): Stablecoins – bitcoin’s Pandora’s box

Stablecoins are an important and revealing innovation. With deep liquidity, lightning-fast settlement, and dramatic user growth these crypto USDs pose important questions for regulators and traditional financial markets. TLDR: Stablecoins present both challenges and opportunities to regulators, the financial system, and investors. The unfolding regulation of these instruments provides insights for the clash between centralized … More SM (ed. 13): Stablecoins – bitcoin’s Pandora’s box

SMM: (ed.12) Illegitimate government policies raise self-custody imperative

The South African government is attempting to apply capital control regulations to the crypto industry. These regulations are an apartheid government relic and are difficult to apply to crypto. Bitcoin’s decentralized, permissionless and censorship resistant technology will find ways to circumvent regressive regulations. If government undertakes the large administrative burden required to execute these policies … More SMM: (ed.12) Illegitimate government policies raise self-custody imperative

The Book of Satoshi

Great to contrast bitcoin’s humble beginnings on a cypherpunk mailing list vs. the institutionally investable $1tn network today. Or perhaps we can contrast the collaborative atmosphere of the early contributors vs. the tribal warfare waged on twitter today. While many things have changed, many have not. Bitcoin scaling, transaction fees, privacy and numerous other topics … More The Book of Satoshi

SMM: (ed.11) The ESG Solution

The environment is precious, resources are scarce, and we are compelled to sustain this beautiful planet for future generations. Bitcoin’s detractors single out bitcoin mining as regressive and environmentally damaging, which catches the eyes of the increasingly powerful ESG and green movements. But this approach reveals a gross misunderstanding of the technology. This month’s article … More SMM: (ed.11) The ESG Solution

SSM: (ed.10) Worried about a ban? Then you need bitcoin more than you think

This article originally appeared in Bitcoin Magazine. Skeptics often argue that governments will ban Bitcoin when it becomes too important and threatens national sovereignty. At least these critics understand Bitcoin’s importance and the power that state currency monopolies exert over us. What they fail to understand is the power of distributed open-source technologies and the … More SSM: (ed.10) Worried about a ban? Then you need bitcoin more than you think

SMM: (ed.9) When bitcoin is fundamental & legacy markets are idiosyncratic

Today, bitcoin is idiosyncratic to traditional financial markets. Unlike bonds, equity and property, bitcoin’s returns are uncorrelated with economic growth, inflation, or risk premia. Bitcoin is related to these variables insofar as unsound money makes sound money more attractive, but no observable correlation exists. As a result, it can be tricky to position bitcoin in … More SMM: (ed.9) When bitcoin is fundamental & legacy markets are idiosyncratic