On November 13, 2024 Bitcoin reached us$ 92,893.88 for the first time, you can find a recap of bitcoin price prediction here.
I can imagine what's happening in seniors heads, i can imagine what's happening to bankers, law and finance profesional with more than 25 years experience. in some countries finance is HEAVILY regulated, any discussion about something relatively new like crypto will end in answers like:
- we dont do that!
- i dont understand it!
- this is not legal!
- this is not regulated!
That's how they express professionalism!
they dont have a DevOps, algorithm, encryption, or blockchain development background. they spent years reading about laws, regulations, legal proceeding, court decisions. 300 pages thick books, so over the years convictions are formed and mindsets are setup.
Law enforcement officers apply the law. legislators design, write and vote in favor of or against. a bill became law if the majority vote in favor of it.
The majority allways tend to (must) express the will (majority) of the people. so there's 3 stakeholders:
- people
- politicians
- law enforcement
Law enforcement standing against the will of the people is a very, very, very bad posture. politicians must play their part of the game, listen to the people, change the law.
Mara new self-owned sites
Trump support for crypto align with his aim to bring back manufacturing jobs to the united states. publicly traded crypto mining companies in the united states employ around 1,500 people and they choose to locate their sites where energy is cheap.
One must understand that the united states specialize in design and engineering, the cost of living is relatively high, it's not a cheap labor country. So it's a little tricky even for the US government because if they work to attract investors, those investors have to create high quality, well paid jobs
According to bitcointreasuries.net Mara has the biggest bitcoin holding among crypto mining companies with 27,562 BTC followed by Riot Platform inc with 10,928 BTC.
until recently Marathon digital holdings, inc relied on 4 hosting operators :
- 2 in the united states - hut8 and applied digital corporation
- 1 in the UAE - zero two
- 1 in paraguay - penguin infrastructure sa
Very small operations abroad:
Even if operating through third-party hosted sites has proven to be a succefull business model, Mara consider itself too dependent on these third-parties, On November 11, 2024 Mara published a press release announcing the:
- - Acquisition of 2 sites in hannibal, ohio and hopedale, ohio totaling 222 MW,
- - Development of a mining operation in findlay, ohio with 150MW.
A total addition of 372MW
The company now is managing a mix of:
- third-party hosted sites:63.24%
- self-owned and operated sites:36.76%
Payment
On November 11, 2024 Nano Labs Ltd announced in a news release that it started accepting payments in bitcoin in exchange for its products to provide clients and partners with greater payment flexibility.
Nano Labs Ltd decision is motivated by the growing adoption of cryptocurrency among business seeking efficient and secure ccross-border transactions.
Looks like the swift system is on the path!
Against Bitcoin as a US strategic reserve?
There's actually a political debat about Bitcoin as a strategic reserve, how much Bitcoin should the US governement acquire?
Peter Schiff is a vocal Bitcoin skeptic according to wikipedia. On November 11, 2024 he tweeted on x.com describing a a scenario where :
- US government purchase 1 million Bitcoin,
- HODLers begin cashing out,
- Market crash.
Positions
| Name | Acquisition | Opinion | Date | Source |
|---|---|---|---|---|
| RFK | 4,000,000 | in favor of | Jul 27, 2024 | Bitcoin 2024 speech |
| Sen. Lummis, Cynthia M. | 1,000,000 | in favor of | Jul 31, 2024 | S.4912-BITCOIN Act of 2024 |
| Peter Schiff | 1,000,000 | against | Nov 11, 2024 | x.com tweet |
Bitcoin compared to other strategic reserve:
Some data in the table below are estimate only and not official. Please visit the official pages in the links
| Asset | Unit | Quantity | Price | us$ B |
|---|---|---|---|---|
| Gold stock/US reserve assets | troy ounce | 5,936,025,580 | 42.22 | 250.62 |
| Strategic petroleum reserve | WTI Barrel | 379,656,000 | 71.83 | 27.27 |
| Bitcoin | 1,000,000 | 125,000 | 125 |
Just to have an idea about the size of the other reserves that the united states have, if we take an average bitcoin price of us$125,000. the bitcoin reserve will represent half the gold reserve.
The question (probably) is: Can all institutionals in the world add Crypto to their assets portfolio? Technicaly speaking, yes, 1% crypto assets can even be the right thing to do from a diversification perspective.
Bitcoin treasury reserve strategy
On November 12, 2024 Genius group Ltd published a press release announcing that its board has adopted a global "Bitcoin-first" strategy with Bitcoin to be the primary treasury reserve asset. The company will acquire an initial target of $120 million in Bitcoin, to be held for the long term as its primary treasury reserve asset.
Speculative trade
On November 12, 2024 UBS chief investment office published a daily update describing crypto assets as a speculative trade rather than a strategic investment in portfolios due to its 78.8% annualized volatility.
Of course they are against bitcoin. Banks are fragile business, they enjoyed profitablity in a monopolistic market structure because the size allowed them better manage risks. Governments in the world wanted banks to be strong through regulation!! unfortunatly blockchain engineers are looking for a better financial system.
Banks based on software will probably embrace blockchain massively in the future, i would like to see that in 2035.
Illegal rigs
According to an article published by THE STRATS TIMES On November 13, 2024 thailand police have dismanteed 9 illegal bitcoin mining operations and charged 2 suspects with stealing more than US$280,000 worth of electricity, police said n Nov 13.
i dont think it's a good idea!! a smaller operation, probably 1 site with solar energy pannels and storage could have been more sustainable. your search of financial freedom must not lead you to jail!!
This is a weekly recap, expect the next recap on Friday November 22, 2024 | 04:00PM UTC.
0 Comments