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8th September 2021 > > El Salvador.


tl;dr

Wholesale buying of BTC buy governments is maybe not that far-fetched an idea.


Market Snap






Market Wrap

Let’s just look at the CCC from yesterday:


“Steady as she goes, this gentle climb towards the mid-50s looks unstoppable for now (cue a sell-off later today …)”


From $52k to $42k in a matter of minutes just hours after the CCC made this statement classifies as a sell-off in my books.


It has been reported that $3.5bn leveraged longs were liquidated yesterday, causing a lot of pain.


This is good news for all of us who will never trade on a leveraged basis. The next pain move will be a short squeeze working in our favour.


Occasional Series – Masks in parliament and strange times

Boris Johnson made a statement on Afghanistan to parliament on Monday. Needless to say, this event was as well attended as PMQs.


Just five Tory MPs – including Michael Gove and Theresa May – wore masks.


Almost every opposition MP was masked up, with the notable exception of Jeremy Corbyn.


Some commentators are pitching this as a stark demonstration of a culture war over masks and the other nefarious restrictions that have been, and continue to be, placed on our freedom and our liberties.


Perhaps that is true.


But perhaps it means that Corbyn was a willing plant to ensure Labour were unelectable and that he really is, underneath it all, a Tory?


The very wealthy, woke, tofu munching, second homeowners of Islington - who form the core bedrock of Corbyn’s support - will never recover from this revelation.


Strange times my friends, strange times.


Occasional Series – Keir Starmer, and even stranger times

“Read my lips: the Tories can never again claim to be the party of low tax”.


I think he is right.


But if the choice is between higher taxes and ever more higher taxes, where do you go from there?


With only those two options available, I do not see the point in working at all. (*)


Curious Cryptos’ Commentary – El Salvador

As previously reported (see CCC 4th August 2021 amongst others) El Salvador has passed a law recognising BTC as legal tender alongside USD (the country imports its monetary policy from its rather larger and more prosperous neighbour with no input, no control and no prospect of that monetary policy working in their favour).


If you recall, Bank of America was particularly constructive about this move identifying four key potential benefits: the bank said the country’s adoption of BTC could streamline remittances, promote financial digitisation, provide greater consumer choice, and open the country to foreign investors.


As part of the preparations the Government has set up a $150mm fund to buy BTC to put on their balance sheet.


Until recently I have always considered the idea of countries owning BTC as all just pie in the sky, wishful thinking by people who really could do with a reality check. Wishful thinking because the price impact of a serious move in this direction would undoubtedly be significant and undoubtedly be positive for the price of BTC.


After the surprising news (to me at least) that Bulgaria and Ukraine are long term holders (see CCC 27th August 2021) I am beginning to consider that maybe this idea that Governments buy BTC for their own balance sheet is not so far-fetched after all.


(*) The CCC is not work for me. It is my passion. Do not worry, the CCC team will always be here for you.

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