13th April 2024 > > Hong Kong & use-cases.

tl;dr

Hong Kong aims to be a leading crypto investment hub. Cryptos have no use-case? I am not so sure about that.

Market Snap

Market Wrap

Middle East concerns hit all risk-assets (so much for that record FTSE close) including BTC, which was then aggravated by the wholesale liquidation of leveraged longs. This game plays out over and over again, hurting the vast majority of those directly involved. The motivation for continually losing money in the same way entirely escapes me.

With the halving fast approaching, volatility will likely be greater than normal next week.

Curious Cryptos’ Commentary – Hong Kong

Following our discussion on 28th March it is being reported that on Monday the authorities in Hong Kong – who report directly to tyrant Xi and his murderous henchmen – will approve spot BTC and spot ETH ETFs.

The CCC speculated that these funds would be open to investors on the mainland, as a sop or as a bribe to party members who are keen to move much of their ill-gotten gains stolen from the state off-shore. After all, if the prevailing culture amongst party apparatchiks is to steal from their fellow countrymen, they are not going to be comfortable leaving those assets at the mercy of others who behave the same way.

Right on cue, the new ETFs will be accessible from the mainland using a program known as Stock Connect. Matrixport yesterday wrote:

“A likely approval of Hong Kong-listed Bitcoin Spot ETFs could attract several billion dollars of capital as mainland investors take advantage of the Southbound Connect program, which facilitates up to 500 billion RMB (HK$540 billion and $70 billion] per year in transactions." 

This just adds to the ever-growing demand shock for BTC.

Curious Cryptos’ Commentary – Peter Schiff

Schiff is at it again, claiming that BTC is less useful than a pet rock, which does at least demonstrate he pays some attention to some of the more trivial crypto stories.

Schiff clearly has no understanding of the concept of tokenisation which is beginning to revolutionise and democratise the investment landscape for everyone’s benefit. Tokenisation will allow individuals and institutions to very precisely build the exact portfolio to suit their own needs, more cheaply and more quickly than ever before. For those who need capital, the costs of doing so will plummet dramatically, improving productivity and making everyone wealthier.

And that is just one element of the crypto revolution. Some other tools off the top of my head:

-          A re-modelling of the $25 TRILLION collateral industry.

-          Huge productivity improvements for banks and industry in shedding back-office jobs.

-          Fast and cheap cross-border payments of particular benefit to the world’s poorest.

-          Combatting election fraud.

-          Self-id combined with zero-knowledge proofs is very exciting.

-          Financial privacy.

-          Security of the energy grid driving green energy adoption.

-          Banking for the unbanked.

-          Inflation hedge.

-          Streamlining the conveyancing process.

-          A disruption of the insurance industry with guaranteed outcomes and payouts.

I could go on, but I think you get the gist.

Cryptos have no use-case? Think again, Schiff.