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Weekly retrospective – Good signs for Bitcoin

Photo of: Nathan VDH
by Nathan VDH

With the speech of Jerome Powell, President of the FED, during the week, inflation and consequently the discussions on safe havens were again topical. This is a topic that was addressed by Jim Cramer, the popular host of Mad Money on CNBC. In a podcast with Morgan Creek Digital co-founder Anthony Pompliano, the latter addressed the mentalities in front of the gigantic transfer of wealth between generations that is in the making.

“I think my children, when they receive my inheritance, will not feel comfortable with gold, and will feel comfortable with cryptocurrencies,” he candidly explained. “I have to start recognizing that I may be using a typewriter,” he said of his perhaps outdated gold storage practices.

“When I look at my inflation manual, it tells me to buy gold, buy art and buy mansions,” Cramer said of the safe haven values for people of his generation. He also later mentioned his and his wife’s choice to buy real estate as a hedge. “What we didn’t have on the menu was cryptos,” he said, and he considered cryptos and gold in the same category, saying, “You have to have one or the other.

” We’re on a collision course, which makes me feel good about the gold I have, but I think it makes perfect sense to add crypto to the menu.” He finally supports the idea of giving 1% of one’s net worth to digital assets.

We recently reported that MicroStrategy had purchased 21,454 BTCs for $250M in its cash position. MicroStrategy continues to execute on its strategy and this week completed the purchase of an additional 16,796 BTCs for $175M. “To date, we have purchased a total of 38,250 BTCs for an aggregate purchase price of $425 million, including fees and expenses. “said Michael Saylor, CEO of the company.

In an interview, Saylor argues that Bitcoin is scaling well as a safe haven. “We acquired 21,454 BTC via 78,388 off-chain transactions and then secured it in a cold portfolio with 18 on-chain transactions,” he gave as a relevant example. “If Bitcoin is treated as a reserve asset, according to our model, 99.98% of all transactions will be off-chain, and assets at risk will be in a cold portfolio 99.92% of the time. »

This would have seemed impossible just a few years ago. The Kraken Cryptocurrencies Exchange has received a bank charter in the State of Wyoming. Kraken Financial is a wholly-owned subsidiary of Kraken, headquartered in Cheyenne. It will be the first regulated U.S. bank to provide deposit, custody, and trustee services for digital assets. You can learn more here.

There was a time, not so long ago, when many claimed that Bitcoin Cash represented the “real” Bitcoin and would eventually replace it. The ratio between the two assets hit its bottom this week. BSV is not doing much better since then. It is now clear that these projects have failed and that only BTC can truly call itself Bitcoin!

The Ethereum network is going in the opposite direction. Miners pocketed more than $16M in transaction fees on Thursday, a record on the network. The excitement around decentralized finance applications is at the root of this activity. In fact, more than $1 billion worth of bitcoins were recorded as tokens on the same ETH network. 92,600 BTCs are registered there, representing 0.42% of the total supply. In January, there were less than 1,200.

Positive sentiment towards bitcoin is likely to continue to strengthen. Indeed, there is evidence that off-price options for bitcoin are becoming increasingly popular. As of Sunday, the $36,000 call options and $32,000 strike price expiring December 25 saw the highest level of activity on the Deribit exchange.