In the world of crypto it is absolutely essential to do your own research. My advice, read a lot but approach everything with a critical mind.
Here are some stuff you should check out this week.
Nick
Converging to negative rates
Here is a snapshot of the interest rates of the major central banks around the world:
People’s Bank of China 3.85%
US Federal Reserve 0.25%
Bank of England 0.10%
Bank of Japan -0.10%
European Central Bank -0.50%
Yep that’s right, at the exception of the PBoC all the other major centrals banks are clustered around 0%. The European Central Bank and the Bank of Japan have turned to negative rates a long time ago. And look how well this is working for them…
The take out message here is that the trend is towards a convergence of the central banks interest rates towards some negative value. As early as last week the Bank of England said they are now considering it (see news below). And the whatever Jay Powell is saying in public, the Fed can’t resist the temptation to go negative too at some point.
At this point there is only one thing to do. Protect your money, buy Bitcoin.
The Bank of England is going negative
After saying that they are not gonna use negative rates the BoE is changing their mind. You can’t trust the central banks to even stick to their own rules. Bitcoin does not have a governor or a chairman. There is no committee deciding on Bitcoin monetary policy. Everything is in the code. Nothing will change. No surprise.
In England the official rate is at 0.1% and apparently this is not enough to stimulate the economy. So if something is not working let’s do more of it and go negative…
Here is some hilarious quote from the article:
The European Central Bank’s latest assessment of negative rates in the eurozone has been broadly positive. It found that negative rates of 0.5 per cent eliminated the perception that the central bank had run out of monetary ammunition, and encouraged investment and bank lending — partly because separate cheap financing of banks by the ECB had encouraged lending at the same time as rates were moved negative.
JPMorgan vs Goldman Sachs
These days things are changing so fast that it makes my head spin. Do you remember Jamie Dimon, CEO of JPMorgan, trashing Bitcoin a few years? Well now it seems that JPMorgan is coming around. They are banking Gemini and Coinbase. They are also publishing interesting research pieces on Bitcoin. Overall being pretty open minded about it.
Meanwhile Goldman Sachs which was all about cryptocurrencies back in 2017 is now comparing Bitcoin to the tulip bubble (that’s new, nobody did that before…) and sees no value to it.
I guess this is another example of do your own research. Read everything but think critically.
Signed messages
Want to have a good laugh? Check that out: Craig Wright is being called a fraud in messages that have been signed by the Bitcoin addresses he claims to control…
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