Friday, July 1, 2022

The Rise & Risks of Central Bank Digital Currencies

by The Sharp Edge, Corey’s Digs:

When asked if a United States CBDC would be used to control how, when and where the population spends their money, a senior vice president for the St. Louis Fed’s Research Division responded, “in life, one can’t give absolute assurance of anything…The best we can hope for, is for Congress to respond to the electorate’s concerns about privacy.”  However, signals by the Biden regime and the Federal Reserve indicate they intend to move forward on a CBDC, regardless of any approval from Congress, industry leaders or the public.  In fact, there are a growing number of research and pilot programs in various phases of development in America and around the world, despite public concerns of an impending digital currency enslavement system tied to a digital ID and social credit system.

Has JP Morgan Become Bitcoin’s Best Friend?

by Tom Luongo, Tom Luongo:

There was a lot of fanfare made recently over an investment note from JPMorgan Chase which seemed to elevate bitcoin over real estate and other traditional asset classes as the “alternative asset of choice.”

A May 25 investor note made the argument that bitcoin was around 28% undervalued and that the bank was targeting an upside price of around $38,000 per coin, in effect making an argument for bitcoin’s recent price weakness being overdone relative to real estate, private equity and private debt.

The Crypto Crash and Why It’s Impossible For “You!” to Cash Out

by Mish Shedlock, Mish Talk:

The entire crypto universe is crashing. I am told that I am an idiot for confusing Bitcoin with Crypto.

The Madness of Crowds

The entire crypto market cap including Bitcoin is $834.54B as I type out. At it’s peak, the entire space was worth $2.9 trillion.

I mentioned the words “crypto” and “bitcoin” in the same sentence the other day to be informed that I was an idiot for confusing the two.

History is not on the side of the crypto’s grave dancers

by Simon Black, Sovereign Man:

On June 12, 1817 in the city of Mannheim, Germany, a local inventor by the name of Karl von Drais unveiled a brand new, futuristic invention he had just developed.

It was called a laufmaschine, or “running machine” in German. And it was essentially the world’s first bicycle.

There were no pedals, no seat, and no chain to connect the wheels; the rider basically had to propel the laufmaschine with his feet, then balance on it once achieving sufficient momentum.

The Crypto Apocalypse Is Here

by Michael Snyder, End Of The American Dream:

Over the last seven months, we have witnessed a cryptocurrency collapse that is so epic that it is truly difficult to put it into words.  Last November, the total market capitalization for all cryptocurrencies crossed the three trillion dollar mark.  This week, the total market capitalization for all cryptocurrencies actually dipped below one trillion dollars.  In other words, approximately two-thirds of the value of all cryptocurrencies has already been wiped out.  Some are calling this a “crash”, but the truth is that this is the sort of full-blown “collapse” that so many have been warning about for such a long time.  A lot of crypto investors are now deeply in the red, and the outlook for the months ahead is very bleak.

Crypto-Carnage Hits Every Asset Class Tied to Crypto

by Pam Martens and Russ Martens, Wall St On Parade:

It wasn’t just cryptocurrencies that crashed yesterday, it was crypto exchanges, crypto mining stocks, publicly-traded companies holding large investments in crypto, and crypto ETFs.

By the time the closing bell rang yesterday, ProShares Bitcoin Strategy ETF had tanked by 20.22 percent on the day, bringing its year-to-date loss to 50.4 percent. Other crypto-related ETFs were similarly hammered. VanEck Bitcoin Strategy ETF gave up 19.86 percent, bringing its year-to-date loss to 53 percent.

Crypto CONTAGION spreads as Ponzi-like elements of the crypto ecosystem start unwinding uncontrollably

by Mike Adams, Natural News:

Crypto carnage is spreading quickly, with the LUNA token demonstrating a near collapse a few weeks ago, and now the Celsius crypto lending platform declaring what is essentially a “bail-in” freeze of all customer assets.

If you had crypto deposited with Celsius, you no longer technically own it since you no longer control it. Celsius just halted all withdrawals, which is something banks do when they are on the verge of collapse. Now the only real question is how far this systemic purge of the crypto bubble will go: Is Tether about to crater? What about Microstrategies, the largest holder of Bitcoin? CEO Michael Saylor is now publicly trying to assure everyone that Microstrategies won’t collapse. Usually this is the kind of thing CEOs say when they are approaching collapse.

Charlie Munger Accidentally Makes a Case for Bitcoin In His Attack on Cryptos

by Mish Shedlock, Mish Talk:

Berkshire Hathaway’s Charlie Munger Calls Bitcoin Stupid and Evil.

Audience Participation

Here’s a great clip of a young high-school age girl asking Warren Buffet for one investment idea at the Berkshire Hathaway annual shareholder meeting.

I partially covered this video in my previous post. In this post I want to cover the Bitcoin angle and statements by Munger.

Singapore’s Central Bank: We Want to Be a Responsible Global Crypto Hub

by Kevin Helms, Bitcoin:

The Monetary Authority of Singapore (MAS), the country’s central bank and the regulator of the crypto sector, says that its licensing process for digital asset service providers needs to be stringent. “It needs to be because we want to be a responsible global crypto hub with innovative players, but also with strong risk management capabilities,” said the central bank chief.

MUST HEAR ANALYSIS: Will gold-backed ruble end metals manipulation?! — Tom Luongo

from Arcadia Economics:


Central Bank Digital Currencies Are Doomed To Fail – And Here’s Why

from ZeroHedge:

As central banks including the Fed, the ECB and (of course) the PBOC (along with some 85 others) scramble to roll out their own digital currencies, some naive crypto bros might assume that the financial establishment and the government have completely embraced cryptocurrencies. But as we have pointed out before, this isn’t exactly true. The reality is that while they have spoken of ‘the financial revolution,’ they have only embraced some aspects of cryptocurrency.

For example, they have embraced the fact that all transactions on a digital blockchain can be carefully tracked and monitored, assuming they are the ones in control of said blockchain. This deep level of vision and insight would allow centralized financial authorities (like the Fed) to exert unprecedented levels of control over Americans’ spending habits.

What Happens When You Take Away The Bread From The Bread And Circuses

from The Dollar Vigilante:


Second Largest Israeli Bank Leumi Launching Cryptocurrency Trading

by Kevin Helms, Bitcoin:

Israel’s second-largest bank, Leumi, is launching a cryptocurrency trading service to allow customers of its digital investment platform to trade cryptocurrencies. “The service will allow Pepper Invest customers to buy, hold, and sell cryptocurrencies.”

Major Israeli Bank Launching Crypto Trading Service

Pepper Invest, the digital investment platform of Pepper by Leumi (TASE: LUMI), announced Friday the upcoming launch of its cryptocurrency trading service.