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HEALTH, WEALTH, AND HAPPINESS

April 26, 2022

"Oh, you almost got me

I was just starting to doubt

Then I remembered

That my own mind is my greatest contender

I'm sticking to my guns."

- PJ Morton, Sticking to My Guns

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Fidelity to Allow Retirement Savers to Put Bitcoin in 401(k) Accounts (Wall Street Journal): This is big news. Fidelity will be the first major retirement-plan provider to allow investors to put a portion of their 401(k) funds into bitcoin.

The 23,000 companies that use Fidelity to administer their employee retirement plans will soon have the option to "turn on" bitcoin functionality, allowing their employees to allocate up to 20% of their retirement portfolio into the digital currency. 

According to the Wall Street Journal: "Proponents of adding a small dose of cryptocurrency to a portfolio say that it can raise expected returns without increasing overall risk."

Which is, of course, what we've been saying for years.

Investor takeaway: Expect a huge influx of new investors into crypto. And now that Fidelity has taken the bold and decisive move to offer crypto to its clients, expect every other retirement plan to follow suit.

Fidelity is already sitting on top of over 750,000 retirement accounts with over $1 million dollars saved up:

Courtesy CNBC

Opening all those savings into bitcoin is going to mean a flood of new crypto investors -- and if the price of bitcoin keeps trending upward, a flood of new wealth into their retirement accounts.

Investor takeaway: This is one of those "crossing the chasm" moments where we will see bitcoin entering the mainstream in a big way. Hold on!

It's official, the first U.S. home loan has now been approved on the blockchain.

Unlike many DeFi protocols that require over-collateralization of a given loan, Teller utilizes the customer's real-life credit score in order to verify their ability to pay, and the new Texas homeowner put up no collateral to receive the loan, just a down payment. 

Down to Earth

The above article in Decrypt was also tweeted out by Circle co-founder & CEO Jeremy Allaire, as it represents a significant step forward for their stablecoin USD coin.

Both the down payment and the $500,000 loan were paid in USD coin. To the best of my knowledge, this is the first time a house has been purchased using a stablecoin.

In this single transaction, an irreversible bridge has been created between the up-in-the-clouds DeFi market and down-to-earth traditional finance. 

That's one small step for the housing market, and one giant leap for decentralized finance.

As Elon Musk, who recently bought Twitter, is frequently quoted...

Make no mistake, this is exactly what's happening here. The crypto industry is now taking on the big banks head-to-head in one of their core markets.

Are the advantages great enough to completely replace the very industry that brought us the 2008 financial crisis?

I believe that they are, and that it will happen much quicker than most people think. 

Classic example 

Another very small, but interesting detail here is the fact that Polygon was utilized in order to minimize the on-chain transaction fee. 

As we know, those who are spending upwards of $1 million dollars on a picture of a monkey might not care so much about the size of the transaction fee. Ethereum fees, however, have become prohibitive for many potential users, especially in developing economies.

In the context of a real estate deal, it presents a classic example of a trait commonly associated with wealthy people. One is the idea that expenses are not negligible simply because they're tied to a greater expense.

In other words, you wouldn't pay an extra $100 transaction fee on your mortgage any more than you would leave a $100 tip at a restaurant.

It also serves to highlight the scalable nature of this new technology, despite much criticism to the contrary.

As always, many thanks for reading. Do feel free to reply directly at any time for any reason, or to pass this message forward to anyone who may be interested.

Have an awesome rest of your day.

Mati Greenspan 

Analysis, Advisory, Money Management

Bitcoin Market Journal is a daily newsletter that makes you a better crypto investor. It is created by Evamarie Augustine, Charles Bovaird, Mati Greenspan, John Hargrave, and Alexandre Lores.

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