Daily Crypto Update 11/10/21
In today’s letter surprisingly or not we will dive deeper into the inflation numbers.
📚Record-high inflation and Bitcoin with a new ATH
📚Circle launched Circle Ventures
📚Twitter creates a crypto team, explores decentralized apps
📚Record-high inflation and Bitcoin with a new ATH
During the pandemic, the money printer went br... increasing the dollar supply by 35% in just a year and a half. Firstly, the FED stated that there will be no inflation but soon after that, the U.S “Central bank” changed its mind noting that the inflation will be “transitory”. Despite the FED’s positive overview, it seems that the inflation is here and will stay for longer than expected but what about the actual numbers?
Yesterday the U.S. Bureau of Labor Statistics’ report went hot out of the oven just to show us that the inflation is higher than the expectations – 6.2% year-over-year and 0.9% month-over-month. The current CPI is the highest it has been since October 1990, the highest inflation in 31 years.
What exactly was up? Well, not a super necessary thing – just food, electricity, shelter, gas. Food is up 5.3% year-over-year, gas – 6.1% from last month, electricity is up 1.8% in a month and many other goods and services are also seeing a price increase.
Despite the high numbers, the FED continues with its propaganda, telling us that inflation is “under control” and is based on supply chain issues. However, if we keep the inflation of 6.2% steady, for 10 years your $100 000 will be just $54 800 – surplice. Welcome to the world where we print money and decrease your purchasing power!
After we made a depth overview of the report’s numbers let’s see how they affected the crypto market.
By any standard Bitcoin cemented its ideas as a better hedge against inflation, compared to gold. The leading cryptocurrency increased in price hitting a new ATH at almost $69 000 - $68 742.
The price of Bitcoin increased dramatically over the last 12 months and according to Bitcoin Stimulus, Americans who put their $1 200 stimulus check from April 2020 into BTC, would now have approximately $12 000. However, the stock dropped and the crypto market followed. As of writing Bitcoin is changing hands at around $65 405.
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📚Circle launched Circle Ventures
This year was an absolute tear when it comes to crypto fundraising but here is the latest update. USDC issuer, Circle, launched Circle Ventures. The Circle’s hand will invest in early-stage crypto projects, new technologies, and protocols to help them grow and become an important part of the crypto ecosystem.
Earlier this year, Circle raised $440M from strategic investors like Digital Currency Group, Valor Capital, and crypto exchange FTX.
📚Twitter creates a crypto team, explores decentralized apps
Twitter announced it created a dedicated crypto team that will explore decentralized apps.
Twitter Crypto will be a decentralized social media and could even allow content creators to earn crypto. Net, net Twitter’s approach is positive. The social media giants hold a lot of information. Additionally recently Instagram went down for more than 4 hours so it looks that decentralization matters.