Wow, what a month! We will only know in hindsight, but Russia’s invasion of Ukraine and the resulting financial response from the west could be pivotal in the evolution of the global monetary system. As people try to make heads or tails of the destruction in the Ukraine potentially seismic shifts are underway financially. The … More SM (Ed.20) Sanctions and War raise importance of Border-less, Censorship Resistant tech
In 2021 El Salvador became the first nation to adopt bitcoin as legal tender, a monumental occasion on bitcoin’s monetization path. Despite this encouraging development, I do not think we are going to see many major nations following in its footsteps just yet. Small, dollarized countries will be tempted. But for the vast majority of … More SM (ed.19): Rogue State Demand?
I am often accused on being a bitcoin evangelist with nothing negative to say about bitcoin. Well, here is a risk that most people do not think about… Being co-opted by Wall St. Bitcoin’s potential is immense – an independent global reserve asset, the foundation of a more ethical financial system, uncorrupted by centralized financial … More SM (ed.17): Co-opted by Wall Street – Bitcoin’s Biggest Risk?
There is immense value in the broader crypto ecosystem of decentralised financial technologies but the bright shiny lights of the fastest appreciating token also pose a risk. Desire to beat the market can distract us. Bitcoin remains the most important asset in the ecosystem because of its resilience to external attack. Bitcoin is a reserve … More SM (ed. 15) Bitcoin is the Reserve Asset of Crypto
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
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
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
In January 2020 an internet chat group took down a Wall Street hedge and got one back for the little guy in a classic Robinhood story – or so you’re led to believe… While there’s a tinge of truth here, a reverse Robinhood story is on-going and unsound money is at the centre. [Reading time: … More SMM: (ed. 7) When will this Game of reverse Robinhood Stop?
This is a very short note that gets to the essence of the what and why of bitcoin. Bitcoin is an elegant combination of 3 attributes and there are 4 broad groups of people who find it valuable. The 3 key attributes: 1. A digital protocol for exchanging and settling value on the internet Fiat … More What is bitcoin and who needs it?
Bitcoin’s detractors often refer to it as a speculative asset. This is partially true – an investment in bitcoin involves a speculation on an inherently uncertain future. But the connotation implied by ‘speculation’ is often unhelpful because it associates bitcoin with fly-by-nights who are merely trying to make a quick buck. In this article I … More Embracing Speculation: High-probability potential in a speculative world