Long Reads Sunday #78. TL;DR: A stage setting week where all the narratives competing for our attention in 2020: China & central bank digital currencies Global regulatory arbitrage Bitcoin halvening + bitcoin as a macro asset Tokenized securities Came to play. Long Reads Time!
2/ The geopolitical situation underlying crypto (and all markets) this week was Iran’s missile response. As news broke, @travis_kling pointed out the price of bitcoin moving in parallel with gold and crude, as it had since the announcement of the killing of Suleimani the week previous. https://twitter.com/Travis_Kling/status/1214695361320669185
4/ For those interested in more of this, Travis also explained on the pod last year about *HOW* bitcoin could plausibly become a safe haven, not based on ideology but simply based on rational market actors behaving as you might expect https://twitter.com/nlw/status/1215090565081071618
5/ Beyond bitcoin in the macro environment, another theme across this week was regulatory action and regulatory arbitrage. In advance of a deposition with the SEC, Telegram announced that TON would NOT be integrated with their messenger https://twitter.com/spencernoon/status/1214207204078821376
8/ Still, it has to be said that the most significant regulatory news came from Europe. As the “Fifth Anti-Money Laundering Directive” (aka AMLD5) does into effect, crypto co’s are picking up and leaving with worry of the information and monetary costs of compliance. https://twitter.com/lawmaster/status/1215358292869943297
9/ And then, of course, there’s China, where the People’s Bank of China this week published a paper saying that the “top-level” design of their digital currency is complete. Whatever the truth, it’s clear China *wants* to be seen as ahead in this race https://twitter.com/nlw/status/1215732898634063879
10/ There’s no doubt, however, that Libra and China have awakened the attention of other global economic leaders. European Central Bank President @lagarde again commented on their explorations around a digital currency https://twitter.com/ecb/status/1214926506570452993
11/ In other parts of the European central banking establishment, there is more skepticism. IMF chief Economist @GitaGopinath wrote in @FT last week that the key feature of reserve currencies isn’t technology or features but institutions and trust https://twitter.com/GitaGopinath/status/1216376530529652736
15/ Jumping back to Iran and bitcoin in the macro context, one question some have had is “how useful is bitcoin as #DissidentTech if the internet can just be shut off?” @nwoodfine explains all the work going into addressing that question https://twitter.com/nwoodfine/status/1214238101796638721
23/ Like I said at the beginning, this was an interesting week with little glimpses of lots of the narratives competing for our attention in 2020. But let’s close with something extra cool…
25/ Between @SDinwiddie_25 and @RussellOkung, it’s increasingly looking like many folks in the mainstream are going to have their first exposure to bitcoin and crypto via a sports hero, rather than some ICO or other. This is a very good thing.
27/ For more bitcoin and crypto analysis everyday, subscribe to The Breakdown podcast! Catch it everyday on @CoinDesk or subscribe via your favorite podcast app https://plnk.to/nlw?to=page