1/ house hearing on cryptocurrencies



brad sherman just stated he believes it is more beneficial to society that people play the California lottery than invest in cryptocurrencies, ladies and gentlemen this is your elected representative
2/ now on to witness testimonies - Eva Su from the Congressional Research Service reminding everyone that bitcoin and ethereum are *not* securities, good start

she's focusing on securities regulation and potential changes to securities laws
3/ ok next witness @alexisgoldstein

kicking off with archegos capital and form 13-F issues and then extrapolating to crypto - this is nonsensical since exposure today is on-chain and fully collateralized?

she claims "dire risks" from forced liquidations in crypto (how?)
4/ she's now talking about rug pulls but calls them "honeypot tokens"

she says she's a user of @PancakeSwap and is now talking about yield farming. mega chad move.

quoting a tweet about $DOGE APY on pancakeswap - "the longer you wait, the less free money you get" 🤣
5/ ok next is Christine Parker from @reedsmithllp

opening statement - blockchain / distributed ledger technology is good, crypto is the "fuel" (?)

now articulating a case for a new financial regulator as well as more industry SROs (self regulatory organizations)
6/ ooh hard hitting statement - "every representative has a law-abiding constituent who trades crypto"

good voice of reason against the likes of brad sherman who opened by saying all crypto users evade taxes and engage in crime lol yes this is a congressman
7/ ok next "blockchain lab" person from @Wharton

she's talking about "enterprise blockchain" and "addressing climate change" with blockchain (unclear as to what she means by blockchain?)

"impossible to estimate crypto market cap" - m'am plz @MessariCrypto @coingecko
8/ she estimates a $200T market cap for crypto (bullish!) but we need MORE REGULATION and coordination and cites Dodd-Frank as an example

mmmyah Dodd-Frank was one of the worst pieces of financial regulation EVER

in the words of the FSC republicans:
…publicans-financialservices.house.gov/issueshome/iss…
9/ now @valkenburgh from @coincenter is up

he's highlighting how much regulation there already is in the crypto space, and how existing laws are being applied to the crypto space

"we don't need new regulations" - the ones we have are working, he gives clear examples
10/ wow Peter just cited the Nigerian Feminist Coalition / #EndSARS movement as an example of bitcoin powering freedom and censorship resistance around the world - love this being on the congressional record

(see this amazing podcast w @AnitaPosch - bitcoinundco.com/en/nigerian-fe…)
11/ ok now @alexisgoldstein is citing 100:1 leverage not understanding the difference between a levered product and actual cash leverage - hard cringe as this is a fundamental difference between crypto-fi and tradfi

they're pushing form 13-F hard woof woof
12/ can someone send Sarah Hammer a link to @MessariCrypto pls i'm hurting

now talking about central clearing as the solution - the whole point is decentralized clearing re: @xmargintrading - we really should have more technologists testifying, so many mischaracterizations
13/ @RepTomEmmer is helpfully pointing out that application of laws has not been consistent

US regulators are picking winners and losers - not enforcing with consistency in court of law as intended
14/ ok side bar @RepAdams has some serious style and i am here for it

she's now talking about crypto twitter and our arch nemesis @elonmusk and investor risk - not really sure how this ties back but let's see

eva su claiming lost keys require regulation?
15/ ok now @RepLoudermilk saying we need to look at blockchain / crypto as a solution to poor stewardship of federal government data which is a far bigger systemic risk

i like him - states decentralization feature of crypto is a solution to US gov't data / cybersecurity risk
16/ ok prof hammer needs to stop saying "blockchain" it's grinding my gears so hard rn - WHAT BLOCKCHAIN

she keeps saying "blockchain decentralizes x" but in her opening statement cited private, permissioned blockchains

UGH SHE JUST SAID BLOCKCHAIN NOT CRYPTO lol wut
17/ now she's flipping - USD stablecoin needs to be resilient to systemic risk re: gov't control of private keys - i'm not really sure how that aligns with prior statements but ok, i'm here for it, and yes, decentralization requires an economic incentive ie cryptocurrency
18/ ok i'm going to stop listening - its getting repetitive and off track

@fscdems how can the industry address some of the statements presented by witnesses as fact which are incorrect and fundamentally mis-characterize how crypto markets function? thank you in advance

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More from @Melt_Dem

30 Jun
1/ some insights from our amazing speakers

Ian Lee from IDEO VC / SyndicateDAO

"we are building a new social graph that reflects what you believe in based on what you invest in and who you choose to back."

influence isn't about likes + RTs, its about how you allocate $$$!
2/ Kinjal Shah from @blockchaincap / Komorebi Fund

"today, a career is a collection of activities, a portfolio. DAOs are an amazing way for people to build this portfolio based on their participation in different communities."

DAOs can help reshape traditional career paths!
3/ Erikan from Audacity Fund

"people should be paid for their passion, their time, their creativity - so many creators are exploited and left empty handed while platforms and their investors are enriched. what's the value of time? DAOs can help people earn money for their time."
Read 5 tweets
20 Jun
1/ the #Bitcoin network is a complex, dynamic ecosytem, and the latest changes to the distribution of the network are interesting, but not unpredecented

let's look at the data - here is how market share has evolved over the last three months
2/ total hash rate on the network fluctuates in response to a number of factors including the cost and availability of ASICs (capex), the cost and availability of power (opex), and the price of bitcoin

looking at the last six months, we've seen a lot of volatility in global hash
3/ the size and rate of this decrease is consistent with other previous drops. migratory mining has been a trend for the last 3-4 years!

long-term, hash rate will respond to these variables and seek jurisdictions where there is clear, consistent policy and ample renewable energy
Read 8 tweets
14 Jun
1/ paul tudor jones suggests a 5% allocation to #bitcoin as an effective portfolio diversifier

our team @CoinSharesCo did the research, and our recommendation? 4%

why?

let's delve into portfolio construction and the numbers - see the full report here coinshares.com/research/a-lit…
2/ over the last 18 months, bitcoin has been increasingly financialized as an asset

our weekly digital asset fund flows report shows AUM in crypto products is nearly $50B, a sharp increase from $5B a year ago when PTJ first talked about bitcoin 😎

medium.com/coinshares/vol… Image
3/ behavioral analysis of bitcoin holders also shows that investors holding bitcoin longer than a year has risen from ~30% in 2012 to ~55% today

in 2020 alone, ~22% of all bitcoin in existence were moved off exchanges (presumably into LT custody + ETPs) Image
Read 8 tweets
8 Jun
1/ there is now over $100B of dollars on-chain

there are seven stablecoins with >$1B in market cap

while market cap is an important metric, there are a few other insights we can glean from looking at velocity and collateralization rates

a short thread 👇 on crypto dollars
2/ velocity is the rate at which money is exchanged in a financial system

high velocity money tends to be associated with more developed systems

$USDT is HIGH velocity with one tether changing hands more than 1.5x per day

the USDT/BTC trade pair is *BY FAR* the highest volume
3/ some stablecoins have virtually no velocity, meaning once issued, their use as a medium for exchange is very limited

notably UST (trueUSD) and TUSD (terra USD) are the lowest velocity - this will be an interesting area to explore further
Read 6 tweets
28 May
1/ excited to launch the Pleb Mining Council

individuals have always been the backbone of the bitcoin network

the bitcoin network has 150,000 petahashes of compute.

0.15% of global hash rate, or ~220 PH, is run by plebs. help us take it to 5%!

compassmining.io/education/pleb Image
2/ our relationship w/ @compass_mining is driven by getting more individuals into mining bitcoin, and distributing global hash rate more broadly

we thought it would be fun, educational, and timely to create a Pleb Mining Council to help drive this effort

POWER TO THE PLEBS!
3/ since starting my self-mining experiment w Compass a few months ago, *so* many of you have reached out to me about your desire to learn more about mining

see my experience below, month 4 update coming shortly 👇

Read 6 tweets
18 May
1/ "at @CoinSharesCo, we use data to inform our perspective of the #bitcoin market"

thanks to @CNBC for having me and @jillruthcarlson on. let me just drop some facts here so we can stop talking about elon & other trivial BS and focus on FACTS

📹👇🏾
cnbc.com/video/2021/05/…
2/ over the last few weeks, BTC option skew was relatively bearish.

in #bitcoin, the tail (ie futures / options) wags the dog. this past week, we saw BTC spot prices drift lower, which proved options skews to be right.

TL;DR - traders were bearish

h/t @GenesisVol for data
3/ let's zoom out

in the last five months, bitcoin more than tripled its prior 2017 all time high of 20k, hitting 65k at one point.

ethereum has yet to triple its 2018 all time high of 1400, and is currently trading around 3400

traders are positioned to capture $ETH upside!
Read 12 tweets

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