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In This Issue:
Bitcoin Is A Blessing
Bitcoin Thoughts And Analysis
Legacy Markets
Binance Crushes FUD
Have You Tried Storing Crypto On Your Gameboy?
Ledger Delays Recover Feature
From Working With Steve Jobs To Building Identity On Blockchain | Phillip Shoemaker, Identity.com
Bitcoin Is A Blessing
Bitcoin's market capitalization currently stands at approximately $530 billion. To fully appreciate this figure, it's worth drawing some comparisons, as it underscores the fact that we are still in the early stages of Bitcoin's journey.
In terms of market cap, Bitcoin comfortably sits between the 10th and 11th largest global companies, Tesla ($601B) and Taiwan Semiconductor Manufacturing Company ($471B). To provide some fun and interesting comparisons:
Bitcoin's market cap is just a little smaller than the combined market capitalization of Home Depot ($301B), Lowe’s Companies ($125B), and Deere & Company ($110B).
Conversely, Bitcoin is slightly larger than the combined market cap of Samsung ($341B) and T-Mobile ($169B).
It has the same market cap as McDonald's ($209B), Netflix ($160B), Starbucks ($115B), and Dollar General ($46B) combined.
In terms of large tech companies, Bitcoin is dwarfed. If you combine Apple ($2.7T) and Microsoft ($2.3T), which totals $5 trillion, Bitcoin fits into this sum 10 times over. Similarly, it fits into Google three times over, and Amazon twice over.
The oft-discussed scenario of Bitcoin surpassing gold ($13T) seems less daunting when we remember that the precious metal's market cap is 24.5 times larger than Bitcoin's. If Bitcoin were to achieve this, each coin would need to be worth $667,000.
For another perspective, consider that as of December 31st, 2022, the U.S. stock market was valued at $40 trillion. Gold’s market cap can fit into the stock market’s 3 times, while Bitcoin fits into it 75 times.
Switching gears, let's consider Ethereum. Fascinatingly, the entire supply of Ethereum could be bought by Bernard Arnault, the richest man on the planet, and CEO of LVMH, whose net worth equals Ethereum’s market cap ($222B).
Ethereum's market cap is sandwiched between the 42nd and 43rd largest global companies, Costco ($215B) and Pfizer ($226B). To illustrate this in a more tangible way: if Ethereum's market cap equaled the average height of a man (5 feet 9 inches), then gold's market cap would stand as tall as the Statue of Liberty (390 feet) - a whopping 65 times taller!
Further, BlackRock, with $9.1T in assets under management (AUM), could purchase the entirety of Bitcoin 13 times and Ethereum 10 times and still have funds left. The top 10 money managers, with a combined AUM of $32.5T, could buy all Bitcoin 50 times and all Ethereum 27 times over.
For a final comparison, when compared to the total value of financial assets worldwide, Bitcoin is akin to the Earth next to the sun, and Ethereum resembles Mars. These cryptocurrencies, though we value them greatly, are just tiny specks in the financial universe.
Given these perspectives, it becomes clear that we should focus less on internal disputes and more on promoting adoption. Although our collective voice may seem loud, in the grand financial cosmos, it's no louder than an African dung beetle toppling over in the Egyptian desert. Cryptocurrencies have yet to reach their full potential in terms of impact and relevance.
High-impact milestones such as Bitcoin surpassing the size of the world's largest companies, becoming a global reserve currency for major countries, outperforming gold, and reaching a billion users are within reach over the next decade. However, until then, there's work to do, and internal strife doesn't help. While it's important to counter misinformation and poor practices, we shouldn't lose sight of our main goal.
The next time you hear criticism from someone about Bitcoin, instead of retaliating, promote understanding and invite them to see from a fresh perspective.
No other entities on the planet possess the the fervor of Bitcoin and Ethereum relative to their size. Let's harness this passion for the better, not the worse.
Bitcoin Thoughts And Analysis
This continues to look like a bearish retest of the neckline of the head and shoulders resistance. While this seems to be just chopping sideways, my analysis still favors a decent drop before heading back up.
Anything can happen, but this classic pattern is technically confirmed and price is clearly struggling below it, using it as resistance.
$25,212 still should be retested.
Legacy Markets
European and Asian stock markets are grappling with significant setbacks due to concerns over China's economy, stubborn inflation, and a standstill in U.S. debt-ceiling negotiations. The Stoxx Europe 600 index and the MSCI Asia Pacific Index have experienced significant drops, and U.S. equity futures suggest more losses. Despite strong inflation data from the UK and the fall of industrial metals, Marks & Spencer Group Plc stood out with over a 10% jump in share prices. The U.S. is facing a potential default as progress in debt negotiations has stalled. Moreover, uncertainty and potential risks in the market have driven up the premiums demanded by investors to hold U.S. debt. In the commodities sector, copper dipped below $8,000 a ton for the first time this year, while oil prices rose following warnings from Saudi Arabia's energy minister. The New Zealand currency fell after a rate hike by its Reserve Bank.
Key events this week:
Fed issues minutes of May 2-3 policy meeting, Wednesday
Bank of England Governor Andrew Bailey speaks, Wednesday
US initial jobless claims, GDP, Thursday
Interest rate decisions in Turkey, South Africa, Indonesia, South Korea, Thursday
Tokyo CPI, Friday
US consumer income, wholesale inventories, durable goods, University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 1.5% as of 9:34 a.m. London time
S&P 500 futures fell 0.2%
Nasdaq 100 futures fell 0.2%
Futures on the Dow Jones Industrial Average fell 0.2%
The MSCI Asia Pacific Index fell 0.7%
The MSCI Emerging Markets Index fell 0.6%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro rose 0.1% to $1.0781
The Japanese yen was little changed at 138.58 per dollar
The offshore yuan rose 0.2% to 7.0488 per dollar
The British pound was little changed at $1.2425
Cryptocurrencies
Bitcoin fell 1.8% to $26,736.98
Ether fell 2% to $1,816.88
Bonds
The yield on 10-year Treasuries was little changed at 3.70%
Germany’s 10-year yield was little changed at 2.47%
Britain’s 10-year yield advanced 13 basis points to 4.29%
Commodities
Brent crude rose 1.1% to $77.69 a barrel
Spot gold was little changed
Binance Crushes FUD
Yet another day goes by, and Binance finds itself in the crosshairs of a controversial article. This time, it was Reuters leading the charge, alleging that Binance improperly mixed funds in 2020 and 2021. Instead of spreading these unconfirmed claims, I've chosen to highlight the response from Binance's head of PR, which effectively counters the allegations.
“This story is so weak that they had to put up front, ‘Reuters found no evidence that Binance client monies were lost or taken’ in a transparent attempt to protect themselves from a libel suit. Underneath that, they then pinned 1000 words of conspiracy theories (which we explained were false) with zero evidence other than a ‘former insider.’”
F**k the FUD.
Have You Tried Storing Crypto On Your Gameboy?
For those of you who harbor significant trust issues, there now exists an option to store cryptocurrency on your GameBoy, although it potentially involves risks that aren't fully understood yet. Keyp's is a company that has engineered a GameBoy cartridge (an insertable game) that generates a fully random seed based on quests, movements, and player decisions. While the concept is intriguing, GameBoys are hard to come by, and the term 'random' is seldom completely accurate. All wallets purport to generate a random seed, but the mechanics behind this 'randomness' are often not fully disclosed. Although this product is innovative and fun, it isn't suitable for serious investors seeking to secure their wealth. It should be regarded more as a novelty item.
Ledger Delays Recover Feature
Following a barrage of negative feedback, Ledger has opted to postpone the rollout of its Recover feature, pledging to collaborate closely with the community. Despite the hiccups and missteps throughout the process, Ledger deserves recognition for reconsidering their plans and deciding to open-source their new feature. Undoubtedly, some challenging decisions must have been made in recent days. Soon, we expect to see a white paper that describes the Recover feature in detail, which will likely invite further examination. However, this iterative process is integral to making progress. Well done, Ledger. This is what learning and adapting looks like.
From Working With Steve Jobs To Building Identity On Blockchain | Phillip Shoemaker, Identity.com
While working alongside Steve Jobs and building Apple's App Store, Phillip Shoemaker realized there were a lot of issues with identity and privacy: app developers who would break the rules of the App Store and whose apps were deleted could easily register with new credentials. After leaving Apple, Phillip decided to focus on this problem and solve it using blockchain. So here comes the story of Identity.com!
In this episode with Phillip Shoemaker, we discussed:
Way into crypto
Developers' identity issues
Solving identity issues
Pseudonymity
Privacy violations
Not your keys, not your identity
KYC & AML
Identity theft problem
Regulation & identity
FTX case
What will happen if your identity is stolen
Working in Apple
Working with Steve Jobs
From app store to dapp store
Solana phone
Ecosystem is the most important
The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.