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BitDigest February 25 · Issue #849

Feb 25, 2021
Author
Gregory Landegger
Gregory Landegger
  • Digital asset pricing regains support at $1.5 trillion level
  • Powell says Congress must approve digital dollar
  • East Caribbean Central Bank announces first digital currency transaction
BitDigest February 25 · Issue #849

Weekly Stock Review

BitDigest February 25 · Issue #849

Fed needs to learn from decentralized networks

🅱️Yesterday, we observed the Federal Reserve’s system for interbank payments experience technical failures causing payment delays across the system. Hopefully as Fed Chair Jerome Powell and Treasury Secretary Janet Yellen continue to comment on the evolving  role of digital currencies, they can also address the fact that decentralized networks do not have single-points of failures like they just experienced.

The Headlines

BitDigest February 25 · Issue #849

Digital Dollar May Require Congressional Approval

www.reuters.com
Fed Chairman Jerome Powell expanded his thoughts on the issuance of a digital dollar by suggesting that congressional authorization may be needed for the central bank to proceed with the development and roll-out of a CBDC.
BitDigest February 25 · Issue #849

ECCB Completes for DCash Transaction

www.coindesk.com
The East Caribbean Central Bank (ECCB) announced it has completed the first retail transaction for its “DCash” digital currency at a supermarket on the island of Grenada.
BitDigest February 25 · Issue #849

Fed Defines Preconditions for CBDC

www.federalreserve.gov
📝The Federal Reserve issued notes outlining the preconditions that will need to be met for the issuance of a general-purpose central bank digital currency. These include having a clear foundational policy objective, being supported by a robust technology that ensures its safety and efficiency, broad stakeholder support, a strong legal framework, and ‘market readiness” ahead of widespread acceptance and adoption.
BitDigest February 25 · Issue #849

Thailand Seeking Public Opinion on Crypto Investor Certifications

www.sec.or.th
The Securities and Exchange Commission of Thailand plans to hold public hearings on its proposal to have digital business operations test and qualify crypto investors before being permitted to offer investment services
BitDigest February 25 · Issue #849

Galaxy Announces Preliminary Q4 Results

www.newswire.ca
📈Galaxy Digital (TSX: GLXY) is reporting that its assets under management has grown to $815 million and expects to report income in the fourth quarter of $325 million representing a quarter-over-quarter increase of 650%.
BitDigest February 25 · Issue #849

MicroStrategy Adds $1 Billion in Bitcoin to Treasury

www.microstrategy.com
📈MicroStrategy (NASDAQ: MSTR) announced that it used proceeds from its recent zero-coupon debt offering to purchase an additional 19,452 bitcoin for $1.026 billion, allowing the company to continue its focus on two corporate strategies: enterprise analytics software, and acquiring and holding bitcoin.
BitDigest February 25 · Issue #849

Argo Starts Trading on OTCQX

www.londonstockexchange.com
📈British publicly traded crypto miner Argo Blockchain (LSE: ARB) has begun trading on the US OTCQX Best Market under the ticker ARBKF.
BitDigest February 25 · Issue #849

JPM Tests Crypto Payments in Space

www.reuters.com
JP Morgan tested a blockchain payment between two satellites orbiting the earth to demonstrate that blockchain networks can power transactions between everyday objects with the IoT payment occurring through a completely decentralized and out-of-this-world system.

Mergers & Acquisitions

BitDigest February 25 · Issue #849

HIVE Acquires Data Center Doubling Capacity

www.mailchi.mp
📈Crypto miner Hive Blockchain (TSX.V: HIVE) announced the acquisition of a 50 MW, low-cost green power, data center in New Brunswick, Canada for a purchase price of CAD $25 million in company shares at a $5 price per share.

Exchange, Custody and Product News

BitDigest February 25 · Issue #849

Coinbase Holding Crypto on Balance Sheet

www.blog.coinbase.com
Coinbase posted a blog explaining its role as a partner to publicly traded and private companies looking to add crypto assets to treasuries revealing that the digital currency exchange has held bitcoin and other crypto assets on its balance sheet, since its founding in 2012, and plans to maintain an investment in crypto assets as the company believes in the long-term potential of the cryptoeconomy.
BitDigest February 25 · Issue #849

Coinbase is Now a 'Decentralized' Company

www.blog.coinbase.com
Coinbase announced that the company no longer has a ‘headquarters’ and will operate through a decentralized, ‘remote first environment’ that will allow about 95% of employees to continue working from home in a post-COVID world.

Thoughts on the Ecosystem

BitDigest February 25 · Issue #849

Munger (Still) Does Not Understand Bitcoin

www.cnbc.com
😱Berkshire Hathaway Vice Chairman Charlie Munger who famously called bitcoin ‘rat poison’ says that bitcoin is “too volatile to serve well as a medium exchange.” When asked whether he thought it was crazier for bitcoin to hit $50,000 or for Tesla to reach a $1 trillion fully diluted enterprise value, he said: “Well I have the same difficulty that Samuel Johnson once had when he got a similar question, he said, ‘I can’t decide the order of precedency between a flea and a louse,’ and I feel the same way about those choices. I don’t know which is worse.”
BitDigest February 25 · Issue #849

Gold and Bitcoin Will Not Cannibalize Each Other

www.coindesk.com
Contradicting Citi’s recent analysis, Goldman Sachs says that bitcoin and gold serve different roles in portfolios – a defensive play with gold versus a more risk-on trade with bitcoin – and does not expect the assets to cannibalize each other with “enough room for both” existing in the market.
BitDigest February 25 · Issue #849

Bitcoin May Be Alternative to Gold, Not to Currency

www.bloomberg.com
📺Rebecca Patterson, director of investment research at Bridgewater, does not consider bitcoin to be an alternative currency, but rather an alternative to gold or “digital gold.” The company is looking for lower volatility, greater liquidity, and regulatory certainty before bitcoin can be considered a true store of value.

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