March 3, 2021 | Issue #158

MUST READS

Banks Giving Bitcoin a Boost

JPMorgan, Fidelity, Citi, and Goldman Sachs all made headlines this past week. Let's take a closer look:

JPMorgan
Strategists at JPMorgan Chase & Co. have officially endorsed a 1% allocation to Bitcoin in a note to clients.

Fidelity
Fidelity's Director of Global Macro, Jurrien Timmer, said that Bitcoin "could be treated as a form of digital gold… a possible counterweight to future monetary inflation."

Timmer also shared a report, which suggests that Bitcoin may be an appropriate replacement for some part "of the bond side of a 60/40 portfolio."

Citi
Next up, Citi released a monster 108-page report dubbed Bitcoin At the Tipping Point. The report notes the advantage of Bitcoin in global payments, including its decentralized design, lack of foreign exchange exposure, fast (and potentially cheaper) money movements, secure payment channels, and traceability.

Goldman Sachs
Finally, and perhaps the most significant of them all, Reuters reported that Goldman Sachs has restarted their cryptocurrency trading desk. The bank is now exploring related Bitcoin services, the potential for a Bitcoin ETF, and custody solutions.

For what it's worth, one bank has been fueling the digital asset revolution long before anyone else.

PayPal Bids $500M to Acquire Crypto Startup

It appears PayPal is fully committed to expanding its digital services.

Last month, the payments powerhouse announced that it would begin allowing clients to buy and sell crypto.

Today, PayPal announced that it has bid to acquire Curv – a crypto custody firm that helps companies transfer and store digital currencies – for $500 million.

Coinbase Releases Public S1

Coinbase released their much-anticipated public S1 last week, clearing the way for them to list their stock on public US equity markets. Coinbase intends to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol COIN. And the listing will likely happen within the next few weeks. 👀

Some key insights from the S1 document:

Institutional volume is surging
While user growth is high, the number of active users has only recently surpassed Q1’2018 levels by just 3%
21% of retail users also engage in at least one non-investing product like borrowing, lending, staking, or other protocol participation (a very promising sign for the world of DeFi)
Coinbase’s revenues are predominantly from its transactions or trading-based segment, accounting for 85% of revenues in 2020

Further Reading:

Coinbase sends S1 filing to Bitcoin creator Satoshi Nakamoto
Coinbase says it holds bitcoin as an investment on its balance sheet

They Don’t Want You to Read This

Financial author Adam Baratta wants to warn long-term investors to start preparing for the financial winter that’s brewing under their noses.

If you want to know what’s about to happen when the music stops and this overheated bull rally comes to end… then claim your free book here.

DEEP DIVE

Cardano (ADA) Gets An Upgrade

Last week, the crypto markets fell off a bit. Bitcoin fell 15%, Ethereum plummeted 22%, and DeFi lost a ton of momentum.

But while markets slumped, one popular altcoin continued to push higher...

Cardano (ADA).

Cardano now has the 3rd largest market cap after Bitcoin and Ethereum, largely due to the anticipation of its newest upgrade, "Mary."

Google searches have skyrocketed to new highs in the past few weeks, coinciding with the latest price record for the ADA token. ADA is up a whopping 200% since last month.

Named after Frankenstein author Mary Shelley, Cardano’s newest upgrade just went live. It means that, for the first time, users will be able to create their own unique tokens, including NFTs, and transact directly with these on the Cardano platform.

For those interested in learning more about Cardano's update, here's everything you need to know.

The Bridge to DeFi

Decentralization was once a core value.

Has the game changed or is it the players?

As centralized chains start to increase their adoption, some parts of the community start to become concerned.

What’s being planned behind the closed doors of Binance?

Bitcoin Pioneer Shares No. 1 Strategy

Expert reveals how he made over $1 million on a single investment... then left the stock market for something much, much more exciting.

This true story led to a crypto strategy that he's now sharing for free today.

Find out why he sold all his stocks for Bitcoin.

REGULATORY FRONT

🎥 [WATCH] Miami Mayor: Bitcoin's Appeal is that Governments Can't Manipulate It

Miami Mayor Francis Suarez has generated a lot of headlines recently as he is pushing to make Bitcoin a part of his city's economic future.

In a recent interview for Axios on HBO, he explains why the city is looking at Bitcoin for the future of Miami and pushes back against the economic orthodoxy of people like Treasury Secretary Janet Yellen who say it's a bad idea.

You Might Not Have to Tell the IRS About Your Bitcoin

The IRS said Tuesday it will not require crypto investors who simply bought “virtual currency with real currency” in 2020 to report that transaction on this year’s tax returns.

The exemption is narrow, however. Investors who swapped one crypto for another, sold their positions or received a token airdrop will still need to check the crypto box under the latest IRS FAQ update.

Digital Dollar’s Dystopian Future

The year is 2023. Blockchain technology has reached unprecedented heights. DeFi is mainstream. Gas fees are negligible now. Your memecoins alone are worth millions of dollars. You’ve reinvested half of your net worth in NBA Top Shots, and you’re confident that this is the best financial decision you’ve ever made.

And then the US government makes the "inevitable" announcement...