The Infrastructure Bill, Bitcoin and Crypto

To investors,

The infrastructure bill that is currently making its way through the government has a lot of crazy things in it. This isn’t exclusive to this specific piece of legislation. The document is over 2,500 pages in length, which means that it is impossible that any politician has personally read the entire thing.

Earlier this week, I sat down and tried to read some of the document. It was quite hilarious because even after reading some of the sections, I still didn’t know what it was saying. Additionally, we found sections that included the removal of invasive plant species, $1 billion for an organization that is overseen by a politician’s wife, and what appears to be authorization for the US government to purchase marijuana to be used in studies of the impact of driving high. Seriously…you can’t make this stuff up.

Buried within the infrastructure bill is another concerning topic — there is a drastic increase in the government’s surveillance capabilities related to the bitcoin and cryptocurrency industry.

As you all know, I rarely care about politics. I don’t identify with any political party. It all generally strikes me as confusion of motion with progress. I choose to focus on bodies of work that are more quantifiable, along with less reliant on the bureaucracies of a government. With that said, this is one of those situations where politicians are willing to change their mind if they hear from people in their districts.

The intricacies of this legislation is beyond the scope of this letter, so I suggest you read this article that does a great job outlining what is happening: Click to read here

Once you are up to speed on the issue, it brings up the most interesting part in my mind. We are likely going to find out which technology is truly decentralized and which is not in the coming months and years. There are a lot of folks who continue to market their work as having decentralization, but yet they can censor transactions, ban users, and generally act in a centralized manner.

That is unlikely to stand the test of time. Regulators are beefing up their scrutiny of the industry. There will be more legislation in the future. The technology that has true decentralization will survive. The technology that is centralized will not survive or it will be heavily impaired. This is the difference between the creation of rules and the ability to enforce them. As I constantly remind people, jaywalking is illegal in NYC but everyone still does it. The police couldn’t possibly enforce the rules.

Going back to the current infrastructure bill, I am not a fan of telling anyone what they should or shouldn’t do. We all live in a free country where you have the right to participate (or not!) in the democratic process. If you’re interested in contributing 5 minutes of your time, you can call your local representative by following the instructions here: Call your senator

Otherwise, remember that the people building decentralized technology have the tailwinds of a digital economy. The more we digitize, the more decentralization becomes important. No individual or organization needs to have so much power. The trends of automation will usher in a new era that is marked by collective governance of systems, along with full transparency and programmatic, immutable systems.

Hope each of you has a great day. I’ll talk to you tomorrow.

BONUS: We are running our 6th cohort for the Bitcoin and Crypto Training Course starting Tuesday August 10th. Graduates have already been hired at Coinbase, BlockFi, Gemini, Kraken, and many other great companies. Want to increase chances of being hired? Apply here: https://pompscryptocourse.com

-Pomp

SPONSORED: You don’t have to be a hedge fund guru to know that markets can rise and fall quickly (Dogecoin anybody?). Sometimes, the most attractive growth can be found in some of the oldest of places. Despite being hundreds of years old, the art market is poised for tremendous market capitalization growth.

Deloitte projects the total wealth held in art and collectibles to expand from $1.7T to $2.7T by 2026. I largely attribute this to the rise of securitized assets, opening the doors to the art market for all. Founded in 2017, Masterworks.io is the leading platform for blue-chip art investing with over 185,000 registered users. They have purchased over $180MM in art from artists like Banksy, Basquiat and KAWS.

I’m a big fan of what Masterworks is building - so check out more here.

THE RUNDOWN:

A16z, BlockTower, Alameda Back $12.5M Round for TrustToken: TrustToken, operator of decentralized finance lending protocol TrueFi and stablecoin TUSD, has raised $12.5 million in a new funding round. Blocktower Capital, Andreessen Horowitz (a16z) and Alameda Research led the round by purchasing TRU, TrueFi’s native token, according to a company statement. TrustToken said it would use the proceeds to expand its team and TrueFi’s operations. Read more.

Grayscale Hires David LaValle to Be ETF Head: Digital asset management firm Grayscale Investments has hired David LaValle, the former CEO of index provider Alerian, to be its ETF chief, according to Grayscale CEO Michael Sonnenshein. LaValle is Grayscale’s first hire for its ETF business following the posting in the spring of several job listings by Grayscale for ETF specialists. Read more.

Uruguayan Lawmaker Proposes Bill to Allow Crypto to be Used for Payments: A senator from Uruguay has introduced a bill to allow businesses to accept cryptocurrencies as payments and regulate their use within the South American country. The bill, which was presented on Tuesday by Sen. Juan Sartori, seeks to provide “legal, financial and fiscal security in the business derived from the production and commercialization” of cryptocurrencies. Read more.

Lionel Messi NFT Collection Set for Launch: Argentinian soccer legend Lionel Messi is to be commemorated by a non-fungible token collection for the first time. Widely considered to be the greatest player of his generation, Lionel Messi, 34, will be celebrated in an authenticated NFT collection, dubbed "The Messiverse," which will be available from 21:00 UTC Aug. 20 on blockchain platform Ethernity Chain. Read more.

British Fashion Brand Burberry Releases First NFTs: Luxury fashion brand Burberry has launched its first non-fungible token collection in partnership with Mythical Games. The latest luxury brand to embrace NFTs, Burberry will feature its items via Blankos Block Party, a game with digital vinyl toys known as Blankos that live on the blockchain. Read more.

LISTEN TO THIS EPISODE OF THE POMP PODCAST HERE

Emmanuel Straschnov is the founder of Bubble, the most powerful no-code platform, which empowers entrepreneurs to build production-ready web apps.

In this conversation, Emmanuel and I discuss:

• the no code movement

• bootstrapping

• raising $100 million Series A

• corporations using no code

• where the industry is going

I really enjoyed this conversation with Emmanuel. Hopefully you enjoy it too.

LISTEN TO THIS EPISODE OF THE POMP PODCAST HERE

Podcast Sponsors

These companies make the podcast possible, so go check them out and thank them for their support!

1. Exodus is an absolute game changer in the crypto wallet space. With over 100 assets supported, one-click built-in exchange, Trezor hardware wallet integration and 24/7 customer support, this is a no brainer for both newcomers and crypto heavyweights. Download Exodus on desktop, iOS, and Android using my code http://get.exodus.com/pomp

2. Cosmos is building the Internet of Blockchains, marking a new era of interoperability, scalability, and usability. The free flow of assets and data between blockchains with bridges to Ethereum and Bitcoin will unleash the potential of DeFi, NFTs, and much more. Dive into Cosmos at cosmos.network/pomp

3. OKEx is a leading crypto exchange known for providing the most options for crypto traders and investors. Whether you want to trade spot, futures, options or swaps, OKEx gives you institutional-grade tools and a best-in-class trading engine. The platform offers credit and debit card funding options and supports 40 different fiat currencies, including EUR, CAD, GBP, TRY, INR and RUB, to name just a few. You can invest, trade, and earn yield, all within one place at okex.com. OKEx is not available to customers in the United States. 

4. Choice is a new self-directed IRA product that allows you to buy Bitcoin with tax-advantaged dollars, while still holding your private keys. You can go to retirewithchoice.com/pomp to sign up today.

5. Unstoppable Domains makes crypto easier by replacing your address with [AnyName].crypto. They allow you to send and receive over 70 cryptocurrencies, including BTC, ETH, and LINK with a single blockchain domain. Go to unstoppabledomains.com and get [YourName].crypto to make your crypto life easier.

6. BlockFi provides financial products for crypto investors. Products include high-yield interest accounts, USD loans, and no fee trading. To start earning today visit: http://www.blockfi.com/Pomp

7. Crypto.com allows you to buy, sell, store, earn, loan, and invest various cryptocurrencies in an user friendly mobile app. Join over one million users today. You can download and earn $50 USD with my code “pomp2020” when you sign up for one of their metal cards today.

8. Public Rec is on a mission to make comfort look good. Their fan-favorite Flex Short is the ultimate crossover short you’ll need all summer long. From the beach to the gym, this quick-drying short has you covered. Comfort starts with a better fit. Free shipping. Free returns. Visit www.publicrec.com/pomp and use POMP at checkout for 10% off!

9. Circle is a global financial technology firm that enables businesses of all sizes to harness the power of stablecoins and public blockchains for payments, commerce and financial applications worldwide. Circle is also a principal developer of USD Coin (USDC), the fastest growing, fully reserved and regulated dollar stablecoin in the world. The free Circle Account and suite of platform API services bridge the gap between traditional payments and crypto for trading, DeFi, and NFT marketplaces. Create seamless, user-friendly, mainstream customer experiences with crypto-native infrastructure under the hood with Circle. Learn more at circle.com.

10. Gemini is a leading regulated cryptocurrency exchange, wallet, and custodian that makes it simple and secure to buy bitcoin, ether, and over 30 other cryptocurrencies. Offering industry-leading security, insurance and uptime, Gemini is the go-to trusted platform for beginner and sophisticated investors alike. Open a free account in under 3 minutes at gemini.com/pomp and get $20 of bitcoin after you trade $100 or more within 30 days.

11. Revolut is a finance app in the US and UK, that say they're the simplest way to access crypto. Sign up today at Revolut.com/pomp and make 3 card transactions to get $15, which you can exchange for any tokens Revolut supports. As usual, when you move your money from fiat to crypto your capital is at risk. See T&C's for details. Revolut is a financial technology company. Banking services provided by Metropolitan Commercial Bank, Member FDIC. Cryptocurrency services provided directly by Paxos Trust Company, LLC.

12. Did you know nearly 338 million dollars worth of NFTs were sent last year? And in 2021 that number is growing faster than ever. Looking to make your first NFT? Check out NEAR’s fast, scalable, low-cost, open-source platform. Learn why NEAR is the infrastructure for innovation at near.org

13. Amber - Invest, trade, swap, and earn crypto with Amber App, where new users can receive 16% APR on BTC, ETH, and USD Stablecoins! Click here to sign up now.

14. LMAX Digital - the market-leading solution for institutional crypto trading & custodial services - offers clients a regulated, transparent and secure trading environment, together with the deepest pool of crypto liquidity. LMAX Digital is also a primary price discovery venue, streaming real-time market data to the industry’s leading analytics platforms. LMAX Digital - secure, liquid, trusted. Learn more at LMAXdigital.com/pomp

You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable.

Nothing in this email is intended to serve as financial advice. Do your own research.