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Caitlin Long @CaitlinLong_
, 5 tweets, 3 min read Read on Twitter
1/ Interesting response from @Bakkt today. For #bitcoin this is good news/bad news. First the good--Bakkt disclosed it's not using margin or leverage (explicitly). That's positive. But then the bad--it was silent about hidden leverage, which is subtle...
medium.com/bakkt-blog/htt…
2/ ...and insidious--namely, rehypothecation & commingling of collateral in the clearinghouse, rather than in an individual futures contract itself. Read about how commingling & rehypothecation happen here: forbes.com/sites/caitlinl…
3/ ...and, having negotiated collateral agreements as a pension fiduciary (& tried to get CCPs to agree not to commingle or rehypothecate collateral), this is where the devil is truly in the details. A standard collateral agreement is here (see para 6c): findknowdo.com/sites/default/…
4/ ...I look forward to reviewing all of @Bakkt's legal documents when they're made public (including the warehouse custody agreement, collateral agreements of ICE Clearing US & intraday variation margin posting requirements) to determine degree...
5/ ...by which @Bakkt creates fractionally-reserved claims on #bitcoin. Plus, Bakkt didn't answer questions abt how will it handle forks--lots of questions posed on that including by @aantonop. I look forward to reading the complete disclosure package when it's available! Thanks!
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1/ CRINGE ALERT: if the regulator of your #crypto exchange/custodian requires this, run! "A DAB (digital asset biz) shld have a minimum amount of assets on-hand, within the organisation, to withstand the withdrawal of all client assets." @BermudaMonetary
cloudfront.bernews.com/wp-content/upl…
2/ I found that gem in Bermuda's "Digital Asset Custody Code of Practice." Consumer protection is listed as the first core objective of the effort (bma.bm/BMANEWS/BMA%20…). Sorry, but I don't see much meaningful consumer protection in here. @TraceMayer would probably agree...
3/ ...and here's another gem, in a section titled Account Segregation🤔:
"While keeping client assets separate from its own, DABs may commingle client assets..." Believe it or not, the quote in the prior tweet was in a section titled Proof of Reserves! There's a lot of great...
Read 12 tweets
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1/ TWEETSTORM to answer ?s many asked abt #Wyoming's new #blockchain bills, including blockchain-friendly #bank bill. Bottom line: in addition to enacting 5 blockchain-friendly bills in 2018, 6 more bills have an elevated chance of becoming law bc they're now "committee bills"...
2/ ...& more bills are coming. Told ya' #Wyoming isn't done yet! Major opposition from the banking industry to the #bank bill & we weren't sure of outcome, but it v powerful committee endorsed it 13-1 & the only vote against it came from a banker. Next step=legislature in Jan...
3/ ...with momentum behind it (tho it's not law yet!). WY Banking Commissioner approached us after the 13-1 vote came in, to start rule-making work now. We're forming a group thru Digital Asset Trade Assoc (@asset_trade)--email info@digitalasset.org if you'd like to join that...
Read 15 tweets
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1/ Great morning for a tweetstorm updating the latest on the interaction of #WallSt & #bitcoin, drinking coffee from my new BitMug (thanks AC Fenton!) @brucefenton
2/ The most significant news--maybe most important news to date on the #WallSt front--was @tzeroblockchain's token generation event on 10/12 (a fully-compliant #STO on the public #Ethereum mainnet of true preferred stock, issued by an SEC registrant). Investor letter captures...
3/ ...perfectly the true benefit of owning #cryptoassets (which defenders of the legacy system love to ignore): investors have the option to opt out of the legacy system, which is unstable & unfair. Owners can either hold tokens at a broker/dealer OR IN A PERSONAL WALLET at...
Read 13 tweets

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1/ 10 years ago today, in an unknown location, a mysterious figure whose identity is still unknown, tapped a key on his keyboard, spurring his CPU into action.

In doing so, Satoshi reified his vision for a decentralized digital cash that he'd published 3 months earlier.
2/ The fan in his computer began spinning to keep the CPU, burning from the burden of work it had been given, from overheating.

The CPU in Satoshi's computer was searching for a special pattern, much like a digital needle in a haystack, that would secure #Bitcoin's first block.
3/ Here is that needle:

0x000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f

It is the hash of Bitcoin's "Genesis Block", which created the first 50 bitcoins ever to be mined (by a quirk of Bitcoin's protocol these 50 bitcoins can never be spent).
Read 11 tweets
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1/ Very pleased to share a summer project: a comprehensive, supply-side view of the base money supply across the globe. What is base money? Gold? Fiat? Bitcoin?? Have some charts to share…
2/ To begin, it's important to understand the universal accounting identity: Assets = Debt + Equity. Today, it's true that all fiat money is debt-based. But before exploring fiat money, let's look at asset-based money.
3/ Traditionally, commodity money has been asset-based, most notably gold. Gold is a true asset of the holder. If you own gold free and clear, it is your asset, and no one else's debt, no one else's liability.
Read 61 tweets
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Bought #bitcoin for my personal account for the first time since the fork last year. Felt good. If it falls some more, I’ll buy some more.
I’ve never been good at timing the bottom, but I have learned the power of averaging in when investing in a space as volatile as #crypto.
Why’d I buy now? Sentiment extremely bearish, while $BTC appears to be respecting psychological support of $6K.

If we break it meaningfully, I’ll be watching the 5 yr moving averages—but I’m no trader, so give what I say little weight.
Read 3 tweets
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1/ Everyone wants to know when #Bitcoin will bottom. I have some good news and some bad news. Which would you like first?
2/ Bad news, right? Everyone wants the bad news first. If you can stomach the broccoli you'll get rewarded with dessert. At least, that's what I tell my daughter!
3/ Ok, here goes: bear market bottoms are NOT formed as sharp V-like corrections, retaking the highs; that's what bull markets look like.
Read 11 tweets
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Starting today's #Bitcoin news thread...

Remember you can find the newsletter, YouTube, and SoundCloud links to the Daily Bitcoin Recap at kyletorpey.com
US Treasury Secretary Warns Against Bitcoin Becoming the Next ‘Swiss Bank Account’

🤔Wonder if he knows that's the whole point.

bloomberg.com/news/articles/…
The Bitcoin Investment Trust will undergo a 91-for-1 split on Jan. 26. That’ll turn the 1.9 million shares currently outstanding into a whopping 174.4 million. It will cut the stock price from around $1,950, where it currently sits, to roughly $21. bloomberg.com/news/articles/…
Read 34 tweets
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1/ #Bitcoin is in a mania. I admit that. People are accumulating. If bitcoin was a typical investment, it would be setup for a 90% sell-off. But this isn't a typical investment.
2/ It's important to understand that #bitcoin is divisible to 8 decimal places. 0.00000001 btc = 1 Satoshi, the smallest unit (that the base layer will recognize).
3/ It's true, #Bitcoin isn't usable for everyday payments at the base level, no cryptocurrency is, but it is good at making transactions that are censored by credit cards and other payment methods. ie wikileaks donations, dark mrkt prescription drugs, etc.
Read 10 tweets

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