7 Comments
Mar 21, 2022Liked by Arbitrage Andy

This letter is too good to be free. Keep it up G

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author

Thanks man! Really appreciate it and noted of course haha

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Mar 1, 2022Liked by Arbitrage Andy

I have a question. Why did he choose to attack on the 24th? I understand that the tanks travel better on frozen grounds but shouldn't Putin have waited an extra week to get fuel and food supplies at the borders to go and refuel and restock soldiers?

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deluxe write up brother

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So, let’s say that bitcoin or whatever your fav crypto project becomes accepted enough that you can use it for day to day purchases, and companies can use it for paying suppliers and so forth. Why is this bad for equities? If Apple can produce an iPhone for X BTC, they will still charge you X+25% for the device. I don’t get why this would be so catastrophic for your equity portfolio? Unless you think the average WACC will increase in a crypto dominated financial system, which would be an impediment to adoption no?

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The currency argument isn't really the piece that I like to focus on (sure it could happen), but Bitcoin doesn't have to be used for everyday use for us to see the price explode. It is the premier sound store of value and as we are seeing with the LUNA $BTC buys for stable coin use cases, it can be a reserve asset that other instruments are backed by, which is particularly advantageous because Bitcoin is limited in supply. Or, it could replace gold, and conservative estimates put bitcoin at 300-500K if that were in fact to happen (it overtakes Gold Market Cap).

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Interesting, but how is that argument holding up now with the current Russian sanctions? Hard to launder BTC in quantity partially due to network surveillance no? Odd Lots has a recent episode on this topic, forecasting central banks relying more on gold in the future because it can’t be traced as easily and is stored on-location as opposed to Russian & Afghani FX reserves, hard to see central banks owning monero or some of the more anonymous cryptos for rep risk reasons. https://podcasts.apple.com/us/podcast/zoltan-pozsar-on-russia-gold-and-a-turning-point-for/id1056200096?i=1000552671226

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