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ELECTRICITY GENERATED FROM VOLCANOES TO MINE BTC

The main story in the cryptoverse of course comes from our new friend, the president of El Salvador, who tweeted this...

And here’s the thing, Bitcoin mining has taken a lot of heat for being harmful to the environment. But this is mostly trash from environmentalists. 

And especially the mainstream media. Any time they can, they’ll push fear, uncertainty, and doubt (FUD) in the world.

On the flip side, mining Bitcoin does require large amounts of electricity to power the computers that generate the cryptocurrency. 

But look, that’s by design. The energy use is well worth it. Big time.

That said, crypto folks such as Twitter CEO Jack Dorsey, say Bitcoin mining could lead to more renewable energy projects (like the one announced in El Salvador).

This was on display the other day as Salvadoran President Nayib Bukele said his country, which has just adopted Bitcoin as legal tender, would make it easy for miners to harness green geothermal energy from the country’s volcanos. Super cool.

THE TAKEAWAY

This is a big deal. Why, you ask? Simply because this energy source is renewable. And because a lot of renewable energy right now is currently underutilized. 

Or it’s considered “stranded” energy. Yes, stranded.

As the Editor of TFIC, Marty Bent, also wrote this on his Twitter page recently...

“The dream: find a large stranded gas well in a rural part of the country, use some gas to mine bitcoin and the rest to power the small Citadel town I build up around the mining op. Start with a quality restaurant, library and church.

Slowly but surely add to the town from there.”

That sounds like the future, eh? Get ready for some Bitcoin mining operations to pop up left and right in this country. 

But here’s the thing, unlike nearly every commodity on Earth… 

Electricity is pretty darn hard to move over long distances. El Salvador’s geothermal plants, for example, could step it up in this regard. But truth is, the country has a weak economy. And many of the country’s power plants are underutilized. 

Using them to mine Bitcoin, however, helps utilize this hard-to-use energy. 

The best part? This has already been demonstrated with Bitcoin mines powered by natural gas flaring in the U.S. as well as China and underused hydroelectric plants.

And for China’s underused hydroelectric plants, the Ya’an city’s guidance even emphasized that electricity by blockchain firms should come from generated power that’s being connected to the state grid. That’d be ideal.

“On principle, blockchain companies should construct factories near power plants that have excessive power and are integrated with the State Grid,” the guidance says. 

Moving on...

MASSIVE BITCOIN CONFERENCE HOSTED IN MIAMI

Thousands of Bitcoiners flocked to Miami from all over the world for the 2021 BTC Conference, which was billed as the largest crypto event in history. 

On day two of the festivities, Miami-Dade County Commissioner gave the opening remarks to a sold out crowd...

“This is an entire industry visit," Cohen Higgins said.

"These are businesses. These are financial industries and we want them to have a home and I think Miami-Dade County is the perfect home.”

Who else? Kevin O'Leary from CNBC Shark Tank. He was there. Laser eyes and all. But he didn’t speak much about $100k BTC (or anything like that). Instead, he spoke about ‘green bitcoin’ and mining with clean energy. Go figure.

THE TAKEAWAY

When you have crazy politicians like Elizabeth Warren talking, this is what you get. She apparently dislikes proof-of-work Bitcoin mining (yet knows little to nothing about this technology or this space). So, what should you expect? 

Expect more of this rhetoric, as Bitcoin mining infrastructure, moves to the US.

Meanwhile…

• At the conference, former Presidential Candidate Ron Paul said, "Everybody wants monetary freedom, I would hope, but… I want to clarify that because some people want free money, and that's different. There's a lot of free money circulating out there, and it's all fake. It's all political corruption."

• And there’s the CEO of Twitter, Jack Dorsey, who said, "Whatever I can do — whatever my companies can do — to make Bitcoin accessible to everyone, that is what I will do for the rest of my life." 

Of course, while on stage, many folks booed the Twitter CEO and founder. Don’t think you can censor a president of a freakin’ country and not receive backlash from local citizens (and free independent thinkers worldwide). 

Your move, Jack.

Next up…

SOLANA LABS RAISES $314 MILLION BY A16Z

Left out of the loop? Here you go. Solana Labs, the developer of the Solana blockchain (a competitor to Ethereum), has raised $314.15 million in a private token sale round.

And this round was led by Andreessen Horowitz (a16z) and Polychain Capital.

In case you don’t know, Solana is the blockchain that Civic (CVC) migrated over to after dealing with Ethereum issues (high fees, among other things).

Who else participated in this round? Alameda Research, CMS Holdings, CoinShares, Multicoin Capital, Sino Global Capital, and a few others. 

THE TAKEAWAY

With fresh capital in hand, Solana Labs plans to launch an incubation studio to speed up project development on top of the Solana blockchain. 

If you hold any Solana (SOL) in your portfolio, this is bullish news long-term. But, if you don’t hold any, you can go get some on the Binance exchange.

MORE REDPILL CRYPTO NEWS

• Ethereum founder, Vitalik Buterin, on Lex Fridman’s podcast 

• British billionaire Alan Howard just led a $25M investment for crypto

• Jack Dorsey suggests Twitter to integrate Lightning Network

• Google advertising policy opens doors to wider Bitcoin community

• Decentralized finance (DeFi) is fueling the crypto craze—as well as recent volatility, according to The Wall Street Journal

• Texas governor, Greg Abbott, greenlights state-chartered banks to custody crypto, and has come out in full support for blockchain technology

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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From robots, to bitcoin, to the future of jobs with artificial intelligence. We’ll give you a small glimpse of the future. 

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BUILDING A CITY ON BLOCKCHAIN

Right now, there’s an initiative to build a 68,000-acre innovation park based around blockchain in Nevada. Company’s CEO, and crypto millionaire, Jeffrey Berns, said the site is “the size of Reno” to highlight the power of a public blockchain. 

It will include houses, banks, shops and schools, all using blockchain. And it’s not just Nevada that will make this shift. 

Cities worldwide will use blockchain and emerging technologies to help in many other ways. How? Well, for one, by deploying trash bins that notify garbage trucks when full. This makes collection routes more efficient (and cost-effective).

In Boston, the city installed solar-powered park benches that function as outdoor cell phone charging stations. Is that it? Nope. At the same time, these benches will be able to collect data on air quality and noise pollution.

And get this, the mayor of Chicago called upon the Boring Company to build a private high-speed tunnel to transport passengers in autonomous electric vehicles (EVs). If done, this would take you from downtown, to the airport, in roughly 10 minutes. 

THE TAKEAWAY

Smart cities will use blockchain in a few different ways:

• BUSINESS MODEL LAYER: This includes governance models, data standardization, legal stuff, and commercial models...

• PLATFORM LAYER: This includes consensus mechanisms, with the help of smart contracts, authentication, and authorization...

• INFRASTRUCTURE LAYER: This includes building a community in the cloud, managed blockchains, proprietary components, and more...

Balaji Srinivasan, the former chief technology officer (CTO) of Coinbase, and former general partner at Andreessen Horowitz, breaks down a lot of it here:

Moving on.

AUTONOMOUS PRODUCTS, TESLA, AND ELON MUSK

Futuristic autonomous products that you can buy that will be able to work by themselves, earning you money. Want an example? 

How about a home robotic chef.

And let’s not forget SpaceX’s starlink, which could one day let users sell an internet connection to their neighborhood. Details here.

What else does the future hold? Well, in the future, you could be making money from home (by controlling robots doing the work in a factory). 

Telepresence is work that can be done through the use of augmented reality (AR) or virtual reality (VR). And with feedback gloves, you’ll be able to feel the objects you are interacting with when operating the robot. 

It’s already happening. Model-T Operations are robots that will start working at family mart convenience stores in Tokyo by 2022 (or sooner). 

You’ll even be able to do this in dangerous situations. For example, firefighters will eventually be able to operate robots that go into burning buildings. 

Telepresence work will get more advanced too.

Where exactly? Medicine. One day, surgeons will be able to perform operations on soldiers from a distance. Telepresence robots will be deployed in hospitals. 

And it doesn’t stop there. Truck drivers will have their jobs replaced by self-driving trucks, such as the Tesla semi. But don’t worry. 

There will be new jobs (where humans monitor a fleet of self-driving trucks). And if one has an issue, the human will be able to log in, see through the truck’s cameras, and find out what’s wrong. It could even send out robots to fix the issue. 

THE TAKEAWAY

Robot operator as a job? Yep. As well as a brain-to-computer personal trainer. 

But here’s what’s most exciting: We’ll be able to buy autonomous technology. 

This means, once you’ve paid for them, they will be able to make money for you, on their own. One day, a Tesla car will have those features. Where family or friends can have access to your self-driving Tesla car. And you can set a time for when you need it back. 

There will also be an option to share it with the public. Making it act as a self-driving robo-taxi. Earning money while you’re at work or sleeping. Instead of it just parked (not doing anything). Elon Musk estimates a Tesla robo-taxi could pay you $30,000 per year. 

What other autonomous technologies could you buy? Smart homes are another thing. Tesla’s powerwall stores excess energy. Not only can it store energy from the solar panels on your roof. But it could receive and store energy from the grid, when prices are low (which is usually in the middle of the night). 

And then sell it back to the grid during peak hours, at a profit. 

• Next big tech money making question: Will there be home cooking robots that cook meals to be sold (and delivered) around different neighborhoods? Yes. They’re already in restaurants. Restaurants first, homes next.

• What about SpaceX’s starlink internet dishes? Starlink will allow people who buy a dish to distribute and sell excess internet bandwidth to their neighborhood. 

• What about power cleaning robots? Yep. That will be another autonomous technology you could buy (and profit from). They will be able to clean a person’s home when the homeowners are out. 

Drones will be another one. You’ll be able to have them programmed to do different things. From tracking down lost pets (using chips). To send it flying to examine roof damage. Or use it for security reasons. Your call.

WHAT ABOUT MONEY AND BITCOIN?

Well, at some point we’ll bring back Bitcoin’s earliest adopter, Hal Finney, who at the age of 58, was cryogenically frozen to see the future.

He’ll see how a non-fungible token (NFT) acts as a blockchain equivalent of a certificate of authenticity for any piece of digital media (GIFs, videos, tweets, games, selfies, etc). 

Everything will be tokenized. And NFTs will be used to help as we all build digital collections by collectors, artists, sports fans, and more.

When Finney comes back, he’ll be one of the richest people in the world. He’ll get healthy. And then see a world where all jobs become automated... 

At this point, we will live in a post-money world. Where every human gets a universal basic income (UBI) to survive, to not be overruled by artificial intelligence (AI).

Sounds far away, but tech moves fast....

Money is becoming decentralized. And people are already putting chips into their hands allowing them to store bitcoin keys that can make payments. 

This proves that this is more science than fiction. Further out in the future, our own DNA could be used to store our financial records.

But here’s what Elon Musk says about the concept of money...

Eventually, AI will make money a non-issue. Which will remove our need for labor. Today, AI can only perform one specific task. Like driving a car or speech recognition. But sooner or later, artificial general intelligence will do many tasks. 

So, what happens when we have limitless labor in the form of AI and robots? Well, artificial general intelligence will have achieved all mental and physical tasks that humans do. They will be solved by AI (and other big innovations). 

THE TAKEAWAY

Manufacturing will be done by machines, robots, and nano fabricators. And all energy requirements will be met with nuclear fusion, solar, and other forms of renewable energy. In the future, there will be no reason to have money (as everything we need will be available for free). And our labor will not be required. 

This is when a universal basic income will be given; when all humans receive the benefits of automation. Andrew Yang says this UBI money would come from “taxing the tech companies that profit from artificial intelligence,” such as Amazon and Google. 

MORE REDPILL CRYPTO NEWS

• Ethereum’s co-founder Vitalik Buterin becomes youngest crypto billionaire

• How much energy does Bitcoin consume? – Harvard Business Review

• Andreessen Horowitz is planning it's $1 billion cryptocurrency VC fund

• Decentralized Finance (DeFi): On blockchain and smart contract-based financial markets – St. Louis Federal Reserve

• Multicoin Capital raises $100 million for its second fund

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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Following Coinbase’s flashy Nasdaq debut, the crypto market has had a pretty rough few weeks. What caused it? Keep reading. We've got you covered.

Bitcoin (BTC), the world’s largest cryptocurrency, is hovering around $50,000 right now. Plus, Venmo is getting into the crypto game. And non-fungible tokens (NFTs) are making it mainstream. Don’t know what those are? Don’t worry.

Today, we'll break everything down for you.

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BITCOIN FALLS AFTER COINBASE DEBUT

"Coinbase is the leader here in building this new financial system. It's evolved to a point where there's no turning back," said Ross Gerber, CEO at Gerber Kawasaki Wealth and Investment Management.

And truth is, he's right. It was a big moment for the crypto industry. In fact, what we just saw was a shift in finance (as we get to know an entirely new set of leaders).

But the real question is: why the retreat in Bitcoin and crypto prices?

Well, there have been blackouts in China, which have led to mining issues. And then there's been investor jitters over Biden’s plan to nearly double capital gains taxes.

That’s why one investment manager has even warned of Bitcoin being “very frothy,” and believes that it could pull back even more to the $30,000 price level.

THE TAKEAWAY

Be cautious. And don't risk more than you can afford to lose. The crypto market is very volatile. But for those that are new to the space, don’t panic. 

Price drops like what we're seeing right now are normal. 

Hold onto your Bitcoin... and weather the storm. Just be informed about why things have spooked some investors. 

Here are the main reasons:

• A U.S. Treasury Department report going after crypto money launders

• An upcoming ban in Turkey on using cryptos as currency

• Misinterpreted insider sales of Coinbase equity ($COIN)

• A few whales are liquidating some of their BTC holdings

• Plus, important Chinese bitcoin miners have suddenly gone offline

And one analyst, Willy Woo, says the Chinese coal mining accident was a big reason as to why there's been a violent drop in Bitcoin's hashrate (and overall price). 

This event, plus the electricity outage in China's Xinjiang region, may have reduced the Bitcoin network's processing power by 19%. 

What does that ultimately mean? 

It means the whole thing may have exposed Bitcoin's heavy dependency on coal-driven energy. But fear not, things are changing…

In fact, here's what you can expect long-term: Decentralized micro-energy sources for Bitcoin mining!

Tesla already has its hands in the cookie jar. And by that, we mean the company's ability to sell solar panels, solar roofs, and batteries. 

It's all about energy, folks.

This kind of system Tesla is creating will be able to feed surplus energy into the power grid. Yes, the same one that froze over in Texas earlier this year. 

Tesla Powerwalls can store surplus energy and power various things in your home, including air conditioners, appliances, devices, electric vehicles (EVs), and much more.

But here's the best part: The excess energy from Tesla’s micro-energy sources can be rerouted to run crypto mining operations. 

Neat, right? Without crypto mining, the surplus energy is either wasted or stored (and sold for pennies on the dollar). 

But now, with Tesla expanding into the power market, along with other energy companies, they'll be able to turn stranded energy, or excess power, into a digital asset, like Bitcoin. Something of value. 

Something that's instantly bankable.

In other words, the future is full of energy (and very bright).

Moving on...

VENMO JUMPS IN WITH BOTH FEET

Venmo became the latest company to embrace cryptocurrency, joining the ranks of payment service providers PayPal (Venmo’s parent company) and Square, all of whom are taking crypto mainstream. 

If you haven’t heard, Venmo will support a few cryptos. A few popular ones like: bitcoin, ethereum, litecoin and bitcoin cash.

THE TAKEAWAY

The Venmo app will let the customers get started with as little as $1.

But that's not all. Venmo has also created a series of educational videos. Helpful videos to explain some of the basic concepts behind crypto and blockchain.

You can look it up on its website and within the app. 

This is great news for mainstream adoption. Bitcoin is spreading. And the fact that you're reading this means you're ahead of the herd.

Next up...

NON-FUNGIBLE TOKENS (NFTs) ARE MAKING A SPLASH

NFTs rely on blockchains to prove they're scarce, a necessary attribute of digital trading cards, works of art, and other collectibles. 

Each one is unique, too. Which is why many experts believe that NFTs will be one of the significant growth vectors in crypto throughout 2021. 

As an example, digital artist Mike Winkelmann — known as “Beeple” on social media — sold 20 of his digital art for more than $3.5 million.

NFTs represent a bunch of different items, including artwork and game collectibles from organizations such as the National Basketball Association (NBA). 

But first, who is Dapper Labs? They’re responsible for the high-flying digital collectibles platform NBA Top Shot. They recently raised funds that should net the firm more than $250 million at a valuation of about $2 billion.

In fact, NBA Top Shop project is probably the most popular non-fungible token (NFT) series by volume after being launched in October of last year. And guess what? The firm has generated about $100 million in NFT sales.

And get this, another digital artist named Mad Dog Jones broke an NFT record by selling $4 million worth of tokenized animations of his Tokyo artwork in just 9 minutes on Nifty Gateway (another popular NFT platform).

Here's what some of his artwork looks like...

THE TAKEAWAY

For everyday folks, NFTs make the internet ownable. The “Creator Economy” and NFTs are a big deal. Even if many of these assets are in a bubble, we're on a march towards individuals mattering more than institutions. And that’s very exciting.

MORE REDPILL CRYPTO NEWS

• TIME magazine reportedly holds Bitcoin on balance sheet

• Why crypto is coming out of the shadows – Morgan Stanley

• Billionaire Daniel Loeb’s hedge fund investing in crypto

• Chainlink and Polkadot referenced in report by European Central Bank

• Candidate for mayor Andrew Yang plans to make New York City a bitcoin hub 

• WeWork officially accepting crypto as form of payment

• Crypto giant Binance.US hires former bank regulator, says WSJ

• Jack Dorsey’s Square and Cathie Wood's Ark suggest Bitcoin mining encourages the adoption of renewable energy – Business Insider

• Citi on the future of money - Crypto, CBDCs and 21st Century Cash 

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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Coinbase filed their S-1 for the big IPO, non-fungible tokens are making waves, and ARK Invest’s Cathie Wood thinks Bitcoin could replace bonds.

We've got all of that and a lot more below.

Let’s get this started.

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COINBASE IPO? HERE’S WHAT INVESTORS SHOULD KNOW

Coinbase is doing a direct listing that would value the company at $100 billion. 

And that, my friend, is a lot. That would be the largest valuation on a private tech company since Facebook went public in 2012. 

With Bitcoin up over 600% since the beginning of last year, the decision for crypto exchanges was easy – go public. 

And look, it’s not just Coinbase:

• Bakkt, a crypto exchange backed by Microsoft, is going public via a SPAC, VPC Impact Acquisitions Holdings ($VIH)

• Gemini and Apifiny, two other crypto trading platforms, have also announced plans to go public in the near future

Coinbase Releases Public S1: It’s official, folks. Coinbase just released their much-anticipated public S1 filing. But what’s that exactly? 

A registration document. 

And it should clear the way for them to list their stock on public US equity markets. 

The end game? Coinbase intends to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol ($COIN). 

And the listing will likely happen within the next few weeks. 

Here’s what you need to know about the filing:

• Demand? You bet. Look no further than institutional volume. It’s rising fast.
  

• Also, 21% of retail users engage in at least one non-investing product like borrowing, lending, staking, or other protocol participation (a promising sign for the world of decentralized finance, or DeFi, for short)
  

• Coinbase’s revenues are predominantly from its transactions or trading-based segment, accounting for 85% of revenues in 2020.
  

• Like Microstrategy and Tesla, Coinbase says it also holds bitcoin (BTC) as an investment on its balance sheet.

THE TAKEAWAY

Coinbase raked in $1.27 billion in total revenue in 2020. That’s more than double its $483 million net revenue the previous year, with a net margin of 25%.

And it doesn’t stop there…

Because the company said it has 43 million verified retail users on its platform, 2.8 million of which make monthly transactions.

How many institutions are on board? Roughly 7,000 institutions!

Furthermore, when Coinbase officially goes public, some of its investors and executives are going to get super wealthy. And it will start with CEO Brian Armstrong, who took home nearly $60 million in compensation last year. 

But get this, his 21% stake in Coinbase could be worth north of $20 billion if the company reaches its rumored $100 billion valuation. 

Other key figures to profit? Co-founder Fred Ehrsam and venture funds Andreessen Horowitz, Union Square Ventures, Ribbit Capital, and Tiger Global.

Moving on…

NON-FUNGIBLE TOKENS (NFTs) - A NEW TYPE OF DIGITAL ASSET

Haven’t heard about non-fungible tokens (NFTs) yet? 

They’re the new hot trend in crypto, and some of its leading players are starting to post extremely impressive revenues. 

NFTs have exploded in popularity... In fact, during this pandemic, investors have scrambled to spend big money on items that only exist online.

“Non-fungible” refers to items that cannot be exchanged on a like-for-like basis. 

In other words? Each one is unique. 

On the flip side, there are “fungible” assets like dollars or bars of gold.

So, what makes all this work? You guessed it… the blockchain.

Blockchain technology allows the items to be publicly authenticated as one-of-a-kind, unlike traditional online objects which can be easily reproduced or faked.

Here are the deets of one deal: NBA Top Shot, a blockchain-based platform, lets users buy and sell officially licensed NBA collectible highlights known as “Moments.” 

And so far, it’s doing pretty well.

It has generated over $205 million in total sales since going live less than six months ago.

THE TAKEAWAY

But here’s the crazy part... 

According to crypto tracker CryptoSlam, Top Shot has done over $187 million in sales over the past month, a massive rise of 1,197% compared to the prior 30-day stretch.

What’s more, this traction could be just the start. 

NBA Top Shot creator Dapper Labs has reportedly begun talks with retired NBA players to secure rights to historical highlights. 

What’s next? Well, our firm believes they’ll expand their product to other major professional sports... such as the NFL and MLB. But time will tell.

Next up...

‘BITCOIN MAY REPLACE BONDS,’ SAYS CATHIE WOOD 

Bitcoin should be considered a new asset class, one that may even serve as a reserve currency in the future, ARK Invest’s Cathie Wood recently stated.

“You think about the traditional 60/40 stock-bond portfolio, but look what’s happening to bonds right now,” she said.

“If we are ending a 40-year secular decline in interest rates, that asset class has done its thing. What’s next? We think crypto could be the solution,” said Wood.

But first…

In case you don’t know...

Cathie Wood is the CEO of exchange-traded funds… funds based on disruptive technologies like artificial intelligence, blockchain, robotics, 3D printing, and more. 

As Wood spoke at a virtual conference by Bloomberg, bonds continued to sell off.

Economic expectations? Savvy investors and traders are expecting higher inflation this year (as the economy tries to make a comeback).

But here’s the problem: Inflation would erode the value of bonds that have already been issued. The Federal Reserve (and other central banks) have pledged to support global economies by buying bonds for as long as it’s needed…

In simple terms: It’s a policy that has helped Bitcoin (BTC) gain in value.

“We know there’s a concern given all the quantitative easing and the no-rules based monetary policy out there. Fixed income has done 40 years of really hard work,” Wood said. “If Bitcoin represents a new asset class, why not invest in it?”

And we agree - why not? Bitcoin really could replace bonds. She’s right.

THE TAKEAWAY

Saving the best for last…

Wood clarified that she still thinks we’re in a deflationary environment… and not an inflationary one. Why, you ask? Because “technologically enabled innovation and creative destruction” brings prices down. 

That’s something many economists (and talking heads) on the mainstream media, simply do not grasp. But the truth is, technology is deflationary.

Of course, it will take years for technology to roll out… but it’s happening. And it’s happening faster than any of us ever imagined.

MORE REDPILL CRYPTO NEWS

• Goldman Sachs to restart bitcoin trading, and launch futures this month

• Citi says Bitcoin at ‘tipping point’ as institutions come on board

• How a 10-second video clip sold for $6.6 million – Reuters

• Why $1 million Bitcoin is coming – CoinDesk

• Shark Tank's Kevin O'Leary reverses stance on Bitcoin, says crypto is here to stay, and then invests 3% of his portfolio

• Forget speculation: Investors want Bitcoin for yield – Blockworks

• Tesla CEO Elon Musk says Bitcoin on ‘the verge of broad acceptance’

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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Today’s newsletter covers Elon Musk dropping a big bomb on Twitter.

And then, after that, we’ll unpack what happened this week with GameStop, the stock market, Reddit groups, trading apps, and hedge fund elites. If it all seemed like too much, we can't blame you for tuning out. 

But here’s what you need to know...

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BITCOIN SOARS AFTER TESLA CEO ELON MUSK SAYS THIS ON TWITTER

Elon Musk, the world’s richest man and the greatest innovator of our generation, changed his Twitter bio to a single word: Bitcoin.

View here...

For those that don't know, he's the founder and CEO of several multi-billion dollar companies, yet the only thing that he's identifying with at the moment is Bitcoin. 

On top of that, he tweeted this...

You're right, Elon. 

It was inevitable. But you knew that. You took the redpill of money a long time ago. As a matter of fact, it wasn't long ago when you tweeted this...

And let's not forget the day when Twitter user Will Reeves, sent this out: "just passed by and saw @elonmusk has a bitcoin ATM at the Gigafactory."

Yes, a Bitcoin ATM at the Tesla Gigafactory in Nevada. 

The tweet was accompanied by a Google maps image revealing the location of the ATM on the northern side of the massive factory complex.

According to a report by Finbold, the ATM was installed by LibertyX in August of last year solely for the use by employees of the factory.

But hey, that's just a coincidence right? It could be fake news? Maybe. Regardless, the crypto community is stoked to have Elon Musk endorse BTC loud and clear. 

If you ask us, it won't be long before Elon does what Michael Saylor, the CEO of MicroStrategy, recommends: putting Bitcoin on the company's balance sheet. 

To be honest, we shouldn't be surprised when Elon puts Bitcoin on Tesla and SpaceX's balance sheet. The world is changing. And everything we're seeing, right now, will serve as a milestone for when the world woke up to the decentralized system.

Because the truth is, the legacy system doesn’t work any longer. 

Millions of Americans need a new, trustworthy, and fair financial system. And that's exactly what we're going to get.

Sure. The price action is fun. Who doesn’t like seeing Bitcoin and smaller cryptos jump 3x or more? We certainly do. But the larger significance is about decentralized alternatives to today’s financial system.

THE TAKEAWAY

Google searches for “bitcoin,” a barometer of widespread interest, surged following Musk’s cryptic endorsement of Bitcoin. 

As for price movement...

Bitcoin is looking strong, having pierced a two-week bearish trendline on our firm's charts. Resistance is seen at $40,112 (Jan. 14 high), followed by the psychological level of $42,000. Will we go to the moon? Yes. 

And then Elon shall take us to Mars.

Moving on...

INSIDE THE REDDIT ARMY THAT'S CRUSHING WALL STREET

Over 1M+ "degenerates" made history this week... 

Details: the army from the subreddit r/wallstreetbets was where it all started. At the heart of the GameStop saga is a struggle between two different groups of investors: A band of amateur day traders Vs. a bunch of Wall Street pros. And in case you don’t know, these pros are known as short-sellers.

What’s short selling? It's how investors make money off a stock falling.

But here’s what happened: Earlier this week, trading volume surged in shares of GameStop, AMC Entertainment, as well as Bed Bath & Beyond and BlackBerry, stunning Wall Street firms betting that the value of those stocks would fall.

The surges came from small retail investors (from that subreddit). These smaller guys had trading accounts ranging from $500 to $2,500. 

And what did the small guys do? They teamed up together in an economic tug-of-war against major investment firms... 

Companies like Citron Research and Melvin Capital, which had placed bets that GameStop shares would fall (in a practice called short selling, as we just mentioned). 

Ultimately, they had to fold their entire position by buying back their short shares, which also created more demand. This is a perfect storm called a “short squeeze.” And get this, the GameStop stock, which sat at $10 a few weeks ago, went as high as $380.

The point of all this? This is the first time that we’ve seen the small guy, organize and punish fat cat hedge funds as a target. It’s a complete paradigm shift, since it’s usually the other way around. When hedge fund folks loot our markets, it’s all good. 

But when small retail investors destroy a hedge fund, all of a sudden... 

CNBC analysts start calling for more regulation, new rules, and censorship. Or they’ll halt trades “for our own good,” blame foreign powers, and they may even talk about “fundamentals.” But as we’ve just explained, this is all B.S. 

STOCK MARKET MEETS INTERNET FRINGE CULTURE

This subreddit believes that the stock market is a casino. Plus, these "degenerates" have a "yolo" mentality, vowing to either "get rich and ride away in a Maserati or end up living underneath a bridge."

But the point is this: we just saw Reddit's misfit investors go to war against the big boys. They exploded onto the mainstream, moving from the front page of Reddit, to the front page of the New York Times. Just like that.

Is this part of the Fourth Turning? You bet.

Small guys are fighting back. Redditors are taking down hedge funds. And Bitcoiners are taking down the central banks. Together, they’ve become a huge, decentralized collective “fund” that aims and shoots.

Could this be the beginning of the end of traditional fundamentals? We believe so. Just look at Tesla as a shining star.

And let’s be honest. Most, if not all, traditional markets are manipulated anyways. The crypto market is a more “raw” version of the equities market. 

If you want free market capitalism... (and not crony capitalism which is what we’ve had for so long), then the crypto market is the place to be.

But once the billionaires were bleeding, what did they do? Call up their elite buddies, of course. They had the folks at exchanges and trading platforms halt trading.

Angry traders have already filed a class action suit against Robinhood, striking back against the restriction.

And it didn’t stop there, the subreddit’s Discord server was even banned. Why? For allowing "hate speech." Some folks in the mainstream media have called these small investors "terrorists." Seriously? Sorry, but that's ridiculous.

Key points:

• It’s a David Vs. Goliath story: Folks on Reddit feel like they're shifting the power dynamic by betting against Wall Street. Why are they doing this? Because they feel historically wronged by big shots. Like the hedge fund guys in fancy suits. And the bankers, too.

• In addition to $GME, traders following the r/WallStreetBets subreddit have been piling into AMC ($AMC), Blackberry ($BB), and Nokia ($NOK).

• These funds were betting GameStock would fall — like Melvin Capital and Maplelane. But they lost billions after the Reddit army pumped up the stock.

• WallStreetBets described itself as "4chan with a Bloomberg terminal." Look closer at communities like 4chan, or 8kun, or WallStreetBets, and you’ll see plenty of similarities. They all have an edge. 

• One key element to 4chan is its opposition to mainstream "normie" culture. For them, that means: focusing on mutual funds, long-term slow gains, maxing out your 401(k)s, buying index funds, etc. But on WallStreetBets, that's all depicted as a sucker's game. And we agree.

Corruption in plain sight: Wall Street hedge funds running to the exchanges to halt trading to prevent losses is another example of why the game has always been rigged in favor of the elites. When you lose, it's okay. But when they lose, the game is turned off.

Bottom line: What's going on is basically a targeted distributed denial-of-service (DDoS) attack of short hedge funds by a small, yet powerful group of retail investors. 

Some of the high-profile short sellers of GameStop, closed out their positions (ending their trades). And the Reddit army celebrated with memes like this…

Reports show us that the hedge funds have lost more than $5B on the GameStop stock. Sure enough, they got some help. Melvin Capital received a $2.75B bailout from Citadel and Point 72 to help with finances. More bailouts.

Wonderful.

Underdog ethos: The battle continues. But it’s clear, they have a desire to expose the hypocrisy and call out the flawed, corrupt system that leaves them feeling the way they do. A similar sentiment held by Redpill Crypto Readers who are aiming to topple conventional thinking. That’s why our firm teaches you how to exit the matrix, invest in Bitcoin, and help you win big with smaller, more speculative cryptos.

Keep in mind: Cashapp, Robinhood, Ameritrade, Fidelity, and E-Trade all restricted AMC and GameStop trades. What do you call it when multiple companies shut down trading on the same stocks? Not a free market. 

In other words? The system is rigged. Bitcoin isn't.

• Another hedge fund to know about -- D1 Capital -- which has to be one of the biggest losers that bet against r/WallStreetBets. And get this, they also just sohappen to be one of Robinhood’s biggest investors. 

• Mike Novogratz, head of Galaxy Digital, was saying much the same thing on Twitter: "This GME squeeze is deeper than a squeeze… It's a revolution happening in parallel with the social unrest across the country”

Whatever this Reddit group's motivation, be it political, revolutionary, monetary, or just meme-fueled anarchy -- we, at Redpill Crypto Research, dig it. Because it's working. They have the world's attention now. 

What else will they do with it? 

THE TAKEAWAY

Taxis don't like Uber. Hotels don't like Airbnb. Bookstores don't like Amazon. Hedge funds don't like the rise of retail investors. 

Innovation is not always liked.

If you ask us, the exodus has just begun from Wall Street, into Bitcoin and crypto.

Just think: First, they censored a sitting U.S. President. Then they censored words. And now they've censored trades. Nearly every person with a keyboard and an internet connection is pissed off right now. But don't worry.

The system can't stop the decentralized revolution that’s coming. This is the beginning of the end for centralized finance (and centralized institutions, too). The elites can try to regulate and make Bitcoin much more difficult to use... but good luck trying to control something that is transnational, decentralized, and infinitely expansive.

Remember the last financial crisis?

2008: Too big to fail. 

2021: Too small to win.

And get this, it took less than a day for big tech, big government, and the corporate media to spring into action and begin colluding to protect their hedge fund buddies on Wall Street. This is what a rigged system looks like, folks. Carry on.

MORE REDPILL CRYPTO NEWS

• Bitcoin is ‘less risky the higher it goes,’ says Investor Bill Miller on CNBC

• Morgan Stanley boosts stake in Bitcoin-laden MicroStrategy to 10.9% 

• Rothschild Investment Corp. has acquired another $700,000 in Grayscale’s Bitcoin Fund 

• Elon Musk’s Starlink is going to be a game-changer. What happens when the entire world is online (and has access to 100mbps) no matter where they are? Good things.

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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Hey Redpill Readers!

Today’s newsletter covers the BTC price correction. If the BTC price drops to the $30k range, should it make you worried? A big no… but we’ll talk about that later.

We’ll also talk about a billionaire’s take on BTC, new price predictions, Biden’s pick for SEC Chair – and much more. So, let’s get to the details.

Subscribe now

BTC DROPS TO 30K RANGE BUT RECOVERS FAST

After hitting the $42k all time high on January 8, the BTC price fell about 28%, just as we predicted it would. It sits at the $35k range now (with much more upside).

Reasons for the drop? Here’s what you need to know.

• It’s retail-driven, says Nexo Co-Founder and CEO Antoni Trenchev. Sell-offs by retail buyers occurred as soon as the crypto topped $40k across exchanges. “Profit-taking once Bitcoin passed $40,000 triggered small investors who are, understandably, more prone to panic (and excitement) and resort to selling faster,” he said. Are you buying? Or are you selling? It’s your call.

• We’re also dealing with an overbought market... according to Asset Manager Arca’s Chief Investment Officer Jeff Dorman. Institutional and retail investments have been getting on the BTC market (for good reason) as early as last year. And what happens with an overbought market? They inevitably lead to dumps by investors who want to take profit as soon as the price peaks.

• Just a pullback before Bitcoin reaches $200,000, says this analyst. We’re on the same page. It’s not a matter of IF, it’s a matter of WHEN. On-chain analyst, Willy Woo, is spot on. He was also an early investor in Bitcoin and bought his first one in 2013. But brace yourself for more volatility.

Should you be worried? Not at all. Bitcoin is ripe for a quick correction.

Analysts share the same outlook as us. Like who? Well...

• BitRiver’s chief commercial officer Dmitrii Ushakov says that the BTC drop “should not seem unusual to anybody who has been following the space since the 2017 boom.” And we totally agree.

• Scott Minerd, who is the global chief investment officer at investment giant Guggenheim Partners, also weighed on this in a tweet: “Bitcoin's parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.”

THE TAKEAWAY

Despite the fall: Bitcoin whales are buying the dip. And institutional investors are unworried. What are we doing? Still stacking Satoshis.

Quick details: The recent crypto pullback did not stop a few wealthy investors from accumulating more BTC. Data shows an increase in crypto wallet addresses of whales amid the 20% collapse of BTC price on Monday.

The truth is, there’s a loss of faith in institutions. And Bitcoin (BTC) is a sign of the loss of faith in the institutions of the fiat world.

Right now, investors remain unfazed and bullish on the leading crypto. Like who? Well, for one, there’s SkyBridge Capital’s Founder Anthony Scaramucci.

And with Biden’s big stimulus coming, we expect the bull run to resume very soon.

Moving along…

ETH SUPPLY SHORTAGE – SO HODL ON

Ethereum (ETH) is rising just shortly after it weathered the impact of Bitcoin’s drop. Reason? Supply shortage.

The breakdown: Data from CryptoQuant shows that the supply of ETH across centralized exchanges is down to 8.1 million. Alex Saunders of Nuggets News first noted in a tweet that “exchanges will run out of ETH in 10 days at current rate.” Saunders suggests that 20% of the ETH supply may be wiped out from the platforms. Similar data indicating low ETH supply can be gleaned from Glassnode.

THE TAKEAWAY

A new all time high for ETH is just around the corner.

Again, it’s the law of supply and demand. Traders are flooding Ethereum with large buys but there’s little supply left. Sure sounds like a launch pad for an ETH moonshot price.

So, if you have some ETH in your portfolio, keep the faith and hodl on.

BILLIONAIRE BITCOIN SKEPTIC IS TURNING INTO A BITCOIN BULL – THANKS TO HIS SON

Check this out... Billionaire Howard Marks (who has been a Bitcoin skeptic for a long time), just made a turnaround on Bitcoin and cryptocurrencies. 

Backstory: The CEO of the asset management Oaktree Capital called cryptocurrencies unreal in his 2017 note to investors titled “There They Go Again… Again.” 

Here’s what he said: “Some businesses accept Bitcoin as payment. Some buyers want to own Ether because it can be used to pay for computing power on the Ethereum network. Some people want to put a little money into [this] profitable phenomena rather than run the risk of missing out. But they’re not real!”

But now, he wrote in his latest memo that thankfully his son “owns a meaningful amount” of Bitcoin while he was a skeptic - back in 2017. The billionaire went on to say he is “striving to learn” about Bitcoin and cryptocurrencies.

Welcome to the crypto club, Howie! And to new subscribers, welcome to the Redpill crypto newsletter. The more folks that take the Redpill of money (Bitcoin), the better.

THE TAKEAWAY

Billionaire Howard Marks is not the only prominent figure in finance who disliked crypto yet had a change of heart, years later.

Who else, you ask? There’s Jamie Demon, the CEO of JPMorgan Chase & Co who previously called Bitcoin a fraud... and billionaire investor Stanley Druckenmiller. Also, Mark Yusko, the Founder and CEO of Morgan Creek Capital Management.

So, don’t be surprised when you see something negative in the news about Bitcoin and cryptos. It’s what a lot of them do. They spread fear and doubt. And then they go and buy Bitcoin (and other cryptos) behind closed doors. 

But the good news: Institutional money still can’t come into our space and scoop up as much Bitcoin as they’d like. There are on-ramp issues. And regulation isn’t clearly defined. In short, this is bad for Wall Street. But great for small-time investors. You have the opportunity, right now, to front-run the institutions. 

Do it and don’t look back.

SEC LEADERSHIP IS CHANGING… 

Gary Gensler is Biden’s pick to head the Securities and Exchange Commission

SEC recap: Reports say that Gary Gensler is expected to be the next Chairman of SEC. The former chair of the Commodity Futures Trading Commission (CFTC) for five years is a professor at MIT teaching blockchain and digital assets.

In other words, he’s a fintech savvy guy (and not a schmuck).

What else you should know? Gensler is bad for Wall Street but good for crypto. Now, why do we say that? Because he enforced the toughest financial reforms on Wall Street during his earlier role at the CFTC. But he’s mostly been supportive of cryptos.

Meanwhile…

Acting Enforcement Director Marc P. Berger, the head of the division responsible for the Ripple lawsuit and the action against Telegram’s initial coin offering, exits SEC.

Here are the deets: SEC announced in its press release that Berger will end his tenure this January. His departure comes after SEC Chairman Jay Clayton stepped down from his post in December 2020.

THE TAKEAWAY

Gensler is a man for crypto. Sure, that can change. And we’ll keep you updated if that does. But here are some of his notable sentiments on cryptocurrencies:

• He recognizes the potential of blockchain to be a catalyst for change as real… This is what he wrote on his 2019 December article for CoinDesk: “The potential for this technology to be a catalyst for change is real… cryptocurrencies and blockchain technology have already prompted real change and can continue to do so.”

• He called Bitcoin a modern form of digital gold… During the Congressional hearing on crypto and blockchain, Gensler remarked, in response to Rep. Collin Peterson questioning what’s behind the cryptocurrency ecosystem, that “There’s really nothing behind gold either… what’s behind it is a cultural norm. For thousands of years we liked gold.”

And he added… “We do it as a store of value, so Bitcoin is a modern form of digital gold. It’s a social construct.”

And he is a popular choice in the crypto industry: Jake Chervinsky, general counsel of Compound, views this Gensler guy in a positive light (for our space). He said in a tweet: “Gary Gensler deeply understands crypto & has strongly supported bitcoin for years. His selection as SEC chair signals a policy shift in favor of a bitcoin ETF.”

Unlike his predecessor Jay Clayton (sorry Jay), Gensler understands how cryptocurrency works and he’s generally into it.

So, what do we expect with the SEC leadership change? Adoption. And a better approach in dealing with us crypto folks. And maybe clarity on regulation, too. Regulation that supports the innovation, instead of crippling it.

But like we said, things can change. He could be a wolf in sheep’s clothing for all we know. Let’s give him a shot and see how Gensler and his leadership plays out.

MORE REDPILL CRYPTO NEWS

• $100,000 plus BTC price by August 2021… This is the bullish prediction of Pantera Capital CEO Dan Morehead for BTC. His reason? Mainstream adoption.

• Twitter CEO Jack Dorsey shares passion for Bitcoin – and defends his Trump Twitter ban. Censorship (even if it’s your worst enemy) is a bad move. This will lead us, however, into decentralized platforms. Are we living in a movie? Is this scripted? Maybe it was all part of the (decentralized) plan anyways.

• BTC market cap overtaken by Wrapped Bitcoin (WBTC)… just for a short while.

• In other news… Grayscale completely turned away from XRP. The asset manager will dissolve the XRP Trust. Reason? SEC's Ripple lawsuit.

• And let’s not forget this biggie… EU Central Bank President Christine Lagarde calls for global regulations for crypto. She says Bitcoin conducts “funny business” and is “totally reprehensible money laundering activity.” Oh really, Christine? There she goes again… taking on Bitcoin and calling it ‘funny business’ when she cannot even prosecute fiat money launderers. What a joke.

• Financial advisors are joining the crypto club, shows a Bitwise published-survey

• One single Bitcoin at $34k now buys one Tesla. Crazy numbers, but true. Maybe this should be the new 2021 exchange rate: 1 BTC = 1 Tesla

• Citing a possible five or 10-year time horizon, this billionaire venture capitalist said he thinks Bitcoin will reach $200,000 at some point. “The reason is because, everytime you see all of this stuff happening, it just reminds you that our leaders are not trustworthy and reliable,” he told CNBC.

• Mark Cuban: Crypto ‘exactly’ like dot-com bubble - expects Bitcoin to survive and thrive like Amazon. In other words? Take the redpill, folks. Keep stacking. 

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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Hey Redpill Readers!

Today’s newsletter gives you a BTC update… some key takeaways… and a valuable macro economic analysis from our firm. 

Don’t worry. We won’t bore you to death. But it’s important you understand the manipulation going on in order to exit the matrix. 

Our goal? To help you (and thousands of other Redpill readers) grow your money in the crypto space. So, let’s dive in, shall we? 

DAN LARIMER FROM EOS RESIGNS

The man, the myth, the legend. 

Daniel Larimer, CTO of EOSIO developers block.one... and founder of the decentralized exchange Bitshares (as well as blockchain-based social media platform Steem), made a big announcement.

In a new blog post, he resigned and said… “[I] am proud of the EOSIO software I was able to create and launch with the help of an extremely talented group of engineers. Alas, all good things must come to an end. I have resigned my position as CTO of block.one.”

And while the post didn’t specify a reason why, Larimer’s social media activity may explain it. In a recent Twitter post... the technologist said that “it’s time to abandon” the social media platform. 

What does that mean? Well, it could be a possible response to Twitter banning president Trump and multiple app stores deplatforming Parler. 

Does he love or hate Trump? Who knows. 

What we do know is that he’s a freedom fighter and believes in freedom of speech (whether that be Obama, Biden, Trump or whoever). Everyone deserves a voice. Even your worst enemy.

THE TAKEAWAY

He’s a man on a mission... 

And that, folks, is quite clear: “I will continue on my mission to create a free market, voluntary solutions for securing life, liberty, property, and justice for all,” the second half of his post read. 

“I do not know exactly what is next, but I am leaning toward building more censorship resistant technologies,” he wrote.

If this is true, our firm supports him 100%.

Let’s not forget: Larimer is not the only high-profile executive that has made an exit. Near the end of last year, the IOTA Foundation “parted ways” with IOTA founder David Sønstebø in a “unanimous decision.”

Next up…

BIDEN PREPS $3 TRILLION STIMULUS PLAN 

If Biden is put in office, the administration plans to flood the U.S. economy with trillions of dollars. Yikes.

What this means: Bad for paper money, but great for Bitcoin. 

Most smart investors (including Redpill readers), have already made the shift away from the weakened U.S. dollar a long, long time ago.

But pres-elect Joe Biden asked Congress one thing: To provide Americans with $2,000 in stimulus payments to help offset the destruction of small businesses and the crazy economic impact of Covid-19. 

And get this, the incoming president also proposed a $3 trillion dollar tax and infrastructure package as part of his “Build Back Better” program.

More money printed? Yep, plus, more direct relief to Americans.

Biden doubled down on his call for more...

“Economic research confirms that with conditions like the crisis today, especially with such low interest rates, taking immediate action – even with deficit financing – is going to help the economy”

THE TAKEAWAY

Based on our research, we know Trump is aware of the corruption. And the dangerous policies used by the Federal Reserve. He’s talked about the gold standard. Sound money. And all that jazz.

Which is why... 

He nominated economic advisor Judy Shelton to the Fed... who is she? Just an outspoken critic of the Federal Reserve.

But here’s the thing…

Even President Trump continued on with poor economic policies. Year after year. In fact, under his leadership, the United States passed a massive $2 trillion stimulus bill, back in March of last year. 

And more recently: Trump did this, he signed a $900 billion relief package that paved the way for $600 stimulus checks.

The federal government’s inflation-boosting policies align with record intervention from the Federal Reserve… 

And when we say ‘record intervention’ - we mean it. We’re talking about them deploying trillions of dollars in 2020. 

Trillions printed out of thin air... just like that. Of course, no one asks how the money is created. Where it comes from. Or any of that. They just want their free money. And then proceed to arrogantly argue with people on Facebookland over fake news. It’s quite sad.

Keep in mind: The vast majority of journalists at BBC, CNN, FOX and other mainstream media outlets have zero understanding of economics. 

Regardless…

Last year, money was printed to combat a liquidity crisis. And to keep overnight rates under control. Don’t believe me? Look here...

The Federal Reserve's balance sheet exploded.

If that’s not alarming, then we don’t know what is.

THE TRUTH ABOUT INFLATION

Bitcoin is imposing on the minds of academics and economists around the world the truth about inflation. 

Real inflation is running at 15% or 20% per year. Why? Because real inflation is based on money supply. And NOT the government reported figure, the Consumer Price Index (CPI). That’s what the media pushes.

But that’s not inflation. 

That’s fake news... and the sheep, like your eldest brother or my eldest sister or whoever, may have seen those same inflation numbers in a BBC article or something similar. But that’s not critical thinking. 

Which is why, so many will miss out on this generational wealth shift.

Inflation is near 20% per year, when you look at the money supply growth. That’s why Bitcoin is going into a parabolic move higher, as you read this, right now. It’s rising because it reflects the truth. Period.

But that’s why we’re considered “the few.” 

And let’s not forget media darling: Janet Yellen, the former Federal Reserve chief, who has made millions in speaking fees from crony-capitalist financial firms. To make matters worse, she benefitted massively from the Fed’s money-printing and bailouts. Nothing to see there, though, right?

But again, the sheep could have broken away from the matrix (which is the media, universities, and the whole damn financial system) a long time ago.

How long ago? Starting in 2008, when the financial collapse happened. In fact, precious metal investors broke away, even before that. Bitcoin’s price is simply doing what paper gold leverage has been doing in recent decades.

Paper gold has been increasing every single year: Often hitting new all time highs. But physical gold prices have been stagnant. Again though, paper gold supply has increased exponentially. 

For those that aren’t asleep to the (disguised and quiet) corruption on Wall Street, JP Morgan just paid a huge fine for manipulating the price of gold. 

How? They created fake paper gold contracts... And then, they sold them into the market and drove down the price. Sure, there are laws and regulations in place... but there’s little to no enforcement of them. The rabbit hole for gold manipulation goes back decades. 

But we’ll save that one for another day.

THE TAKEAWAY

To sum up 2020: $9 trillion dollars of monetary stimulus worldwide in a single year. By far the highest amount we've ever seen. 

That’s 3x the size of what we saw in 2008! 

So, when will the sheep wake up? As long as the media exists... 

And as long folks keep being programmed through their television… it could be several years more! Unfortunately, at that point, they’ll be left behind.

Bottom line: While everyone is focused on a virus with a recovery rate between 97% and 99.75%, we know better. That’s why we recommend you turn off the TV. And focus on what’s going on behind the scenes. 

Not trying to downplay the pandemic… but the agenda is out there for those that are wise enough to connect the dots. 

Please, seek the truth. Invest now. And share this newsletter with other people that need to take the redpill of money (BTC). Having said that… happy new year, and happy new financial system!

MORE REDPILL CRYPTO NEWS

• Mexican billionaire Ricardo Salinas Pliego says BTC is his ‘best investment ever.’ And again, that’s coming from a billionaire. His BTC portfolio plan? Hodl on for another 5 or 10 years.

• Universal passport? Yep. A new ‘universal passport’ has been unveiled. And it aims to give blockchain users access to networks — directly from the wallets they already use.

• Could brains grown in a lab become conscious?We need to hurry up and work out what consciousness even is first.

• Giving citizenship to robots is a real thing now. The crypto friendly island of Malta (also called blockchain island) officially wants to give civil liberties to bots and AI. How creepy.

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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Today’s newsletter covers our market analysis... 

From a BTC price watch, to XRP’s lawsuits, ETH’s upshot, a $1 trillion dollar crypto market, and JPMorgan’s prediction, too.

Plus, a brief take on Warren Buffet’s rat poison comment. Here we go...

BTC SKYROCKETS, ETH PRICE UP, XRP LOW

Bitcoin set a new all-time high as it crossed past the $40k milestone.

Crazy stat: BTC recorded an 80%+ gain since it hit $20k in December last year. And it gained more than a 20% increase in just seven days this month after its record-breaking 300% gain in 2020.

So, what’s driving the present BTC rally? Investments pouring in. Analysts believe that the recent price hike is driven by institutional demand and investments from well-off players.

It’s not just BTC that’s been bullish these past few weeks.

Quick look: ETH, or Ethereum, is also up to more than $1,200. 

Will it break records? Most likely.

We’ve seen more than a 60% gain in just one week. But it’s clear to us that it’s going for the recorded $1,433 all-time high, placed in 2017.

What triggered Ethereum's rally?

• A ride-off to BTC momentum… Analysts say that the ETH surge is due to the BTC bull run. For one, OKCoin’s Communications Lead, William McCormick, said “as [long as] bitcoin goes through a bull run, it [will] drive more interest in crypto overall.”

• Grayscale Investment Strategy… Joshua Frank, CEO of The TIE, recently tweeted attributing the ETH bull run to buy ups from Grayscale’s ETHE investors to pay the loans (for the purchase of shares) in Grayscale’s Ethereum Trust.

Here’s what he said: “A large number of Grayscale's ETHE investors via private placements received their shares today. ETH's run might be in large part due to those institutions buying ETH to cover their loans.”

Still, bad news for XRP fans.

What you need to know: XRP’s price dipped to a $0.22 low recently.

And in case you missed this… the XRP’s price volatility is due to the SEC lawsuit against Ripple, Inc. and its executives for the alleged sale of unregistered securities.

Just a few XRP updates:

• Voyager Digital and Blockchain.com are the latest crypto exchanges to suspend XRP trading, adding to the long list.

• Whales are selling their XRP assets despite the sharp fall… Truth is, the SEC allegations against Ripple caused a lot of uncertainty.

• And another lawsuit... Ripple’s lead investor, Tetragon Capital, filed a lawsuit against the company to enforce a contractual right requiring Ripple to redeem the preferred stock owned by Tetragon.

THE TAKEAWAY

Looking ahead: The question of many is how long will the BTC and ETH rally hold up? Well, at Redpill Crypto Research, our firm’s top analyst sees a 30% pullback from here, at best. But don’t hold your breath.

Our say? The BTC bull run is far from over. Why?

Because of the law of supply and demand… Data from Glassnode suggests that only 22% of the BTC supply is left circulating in the market. Meaning? A big BTC supply shortage.

So, where is the other 80% of BTC? Mostly illiquid… which means, a large chunk of it is likely hodled long-term by institutional investors.

Willy Woo on the liquidity trend: “It’s bullish” he says. Retail and institutional demands are spiking. So, if you’re still waiting for 2017-like dips, don’t bother. Now is the time to take the BTC redpill. Add some to your portfolio... or get left in the dust.

And what about the ETH bull run? How long will that last? Well, the trend shows that a robust BTC pulls other cryptos with it.

Will institutional investors behind ETHB begin to ramp up? They could. According to Grayscale, ETH is inviting more and more institutional players as BTC becomes flooded with wealthy investors.

But here’s the issue: ETH trading becomes pricey as its transaction fee soared along with the spike of ETH trading volumes.

Deets: ETH transaction fee recorded a peak of $17.43 per transaction while placing its average at $10.20 on the first Monday of the year. 

For those who don’t know, gas fees are the price paid to miners on the ETH network to execute transactions on the platform. Presently, gas fees are unfixed and varies depending on the network traffic.

The high ETH fee is a problem. Says who? 

Binance CEO Changpeng Zhao tweeted on the issue noting that the high fees are causing real problems for real folks. He mentioned, exchanges ‘running with $10-20 loss on each withdrawal’ which sucks... big time.

Also, Messari ETH analyst Wilson Withiam said, the fee increase ‘can ward off potential users.’ Anyhoo… the actual solution is underway. ETH 2.0 should solve this issue. But it may take years before the upgrade is complete.

As for XRP? Mostly pain…

More investors are selling their remaining XRP assets. And Litecoin bested XRP, as the fourth largest crypto, as one major investor filed a lawsuit against Ripple (on top of the SEC’s earlier complaint).

And this brings us to…

GRAYSCALE SCRAPPED XRP TO FUND MORE BTC, ETH AND OTHER CRYPTO BUYS

Grayscale recently announced the removal of XRP from its Digital Large Cap Fund. XRP previously comprised 1.46% of the fund.

After dropping XRP, Grayscale’s fund portfolio now holds 81.63% of Bitcoin (BTC), 15.86% of Ethereum (ETH), 1.43% of Litecoin (LTC), and 1.08% of Bitcoin Cash (BCH).

Reason for the dump? To fund the others.

THE TAKEAWAY

Will it be a dead end for XRP? Maybe. 

Maybe not. It’s a legal process and the outcome is determined by the allegations, defenses, and evidence presented by all parties. And resources, too. Ripple recently announced that it will fight the SEC case in court. 

Onward…

CRYPTO MARKET VALUE HITS $1 TRILLION

The total value of all cryptocurrencies recently hit the $1 trillion milestone for the first time in crypto history. Crazy, right?

Full story: CoinGecko’s data, shared with us, shows the global market capitalization of roughly all cryptocurrencies combined is more than $1 trillion. CoinGecko accounts for at least 6,124 cryptocurrencies.

And expectedly, Bitcoin topped the leaderboard with roughly $674 billion in market capitalization. That’s a two-third portion of the crypto market.

Ethereum follows with an estimated $135 billion market cap.

THE TAKEAWAY

Why this milestone matters: It’s about crypto adoption.

It indicates large investments from players like PayPal, MassMutual, One River, Square, MicroStrategy, and more…

On this point: Messari Finance Analyst, Jack Purdy, said “the $1 trillion mark cements cryptocurrency as an investable asset class that no longer sits on the fringes of traditional finance as a toy for retail investors.”

He added… all of this demonstrates “that this asset class is large enough to absorb large orders like we’ve seen recently with the slew of institutions entering over the last few months.”

And know this… this is just the start. As the market cap breaches the $1 trillion mark, more investors will see the viability of digital assets.

What else to watch out for?

Bitcoin’s market cap, by itself, could hit the $1 trillion mark.

Blockchain.com research head Garrick Hileman predicted that in 2021, Bitcoin will become a trillion-dollar asset. Why? Because of more buy-in from retail and Wall Street investors going forward.

Next up…

JPMORGAN PREDICTS A BTC RISE TO $146,000

More bullish BTC news. Bitcoin can reach $146K long term. Says who? Strategists from JPMorgan Chase & Co., the investment banking giant.

Full details: They wrote about “a crowding out of gold as an ‘alternative’ currency [which] implies big upside for Bitcoin over the long term.”

Plus… “Bitcoin’s [current] market capitalization of around $575 billion would have to rise by 4.6 times – for a theoretical bitcoin price of $146,000 – to match the total private sector investment in gold via exchange-traded funds or bars and coins.”

THE TAKEAWAY

JPMorgan’s prediction will happen. Reasons? Bitcoin is seen as a store of value. It’s limited. And it can circulate with ease. 

Moving on…

TRUMP BANS CHINESE PAYMENT APPS

Just weeks before leaving the White House…

President Donald Trump signed an executive order banning Chinese payment apps including AliPay, the payment processing firm owned by Ant Group.

Soon, US citizens will be prohibited from using AliPay, CamScanner, QQ Wallet, SHAREit, Tencent QQ, and more.

Reason for the ban? National security.

Trump justifies it by citing sensitive data and financial information collected by the apps. And how they’re turned over to the Chinese communist government (which could expose US citizens to threats and risks).

THE TAKEAWAY

Beyond that, they could just be caught up in the US-China trade war.

Looking back: A similar thing happened with apps like TikTok and WeChat in 2020. And under the same pretext of national security risk, too.

In any event… Trump’s days in office “are numbered,” but we expect way more political chaos to continue in the coming weeks.

MORE REDPILL CRYPTO NEWS

• Investor Bill Miller says Warren Buffett’s famous BTC rat poison comment is right. BTC could be the rat poison and the rat could be cash. Boom! We like how you think, Bill.

• New BTC hash rates hit new high as price continues to soar. 

• Mainstream media – both the Financial Times and Newsweek – are finally starting to cover Bitcoin in a positive light. No FUD spread. 

• What will you do if BTC price hits $1M? Mavs owner says he’ll bid for the presidency plus a BTC giveaway to every citizen. 

• Ex-Fed Reserve Governor and former BTC skeptic, Kevin Warsh, changes mind about crypto. He says BTC makes sense in a portfolio.

• Are federally-regulated banks allowed to make payments and other activities using stable coins? Yes, according to US Federal Regulator.

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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We just entered 2021 and BTC has already hit new all time highs surpassing the $30k mark (and beyond). But before we touch on that... 

Let’s analyze and take a look at the crypto market.

From XRP trading suspensions to new BTC price predictions.

Let’s get to it…

BIGGEST US CRYPTO EXCHANGE IS GOING PUBLIC

Coinbase announced earlier this month that it confidentially filed a draft registration statement for an initial public offering (IPO) with the Securities and Exchange Commission (SEC).

Quick info: Founded by CEO Brian Armstrong, Coinbase has become the largest crypto exchange in the US. The trading platform has more than 35 million users around the world buying and selling cryptocurrencies.

What happens if Coinbase goes public? Simply put, it can sell shares to the public which means it can raise capital from investors.

If approved, Coinbase would be the first major cryptocurrency exchange in the US to go public. This would be huge for the crypto industry.

The announcement of Coinbase comes at a time when Bitcoin broke out past the $20k mark. Now, it’s past $30k.

Nice timing.

THE TAKEAWAY

Well…

 It’s always a two-way street.

Going public would help Coinbase raise capital. And massively expand its ventures with the cryptocurrency market.

In other words… 

The cryptocurrency industry would go much, much further with mainstream adoption. No doubt about it.

But an IPO also brings Coinbase and its crypto ventures closer to strict scrutiny considering it’s being approved and regulated by the SEC.

Looking forward: What’s on our mind is whether the Coinbase IPO application involves a blockchain – in the form of a digital token. If it does, that would be real big for the crypto industry.

Moving on…

CRYPTO EXCHANGES SUSPEND XRP TRADING AS PRICE FALLS FURTHER

Major crypto exchanges, including Coinbase, are suspending XRP trading as price falls more than 30% following the SEC nasty lawsuit against Ripple, Inc., the company issuing and managing XRP. It’s also a hit against two executives for allegedly selling $1.3 billion unregistered securities.

Bad times for XRP.

Here are the major trading platforms that announced an XRP trading suspension:

• Coinbase, a major crypto currency exchange, announced recently that it will suspend XRP trading on January 19, 2021 due to SEC lawsuit against Ripple. But users may still deposit and withdraw from their XRP wallet.

• OKCoin also released notice of suspension for XRP trading and deposits in its platform following news of SEC lawsuit. Starting January 4, 2021, users can no longer trade and deposit XRP on OKCoin.

• Bitstamp, a Luxembourg-based crypto exchange, also announced a halt to XRP trading and deposits for users in the United States also because of the SEC lawsuit. 

• OSL, a Hong Kong based crypto exchange, also suspended XRP trading and payment services until further notice.

The result? XRPprice crashed 25% after the filing of the SEC complaint.

And it fell more than 30% after big crypto exchange Coinbase announced the suspension of XRP trading on the platform.

Ouch.

THE TAKEAWAY

Indeed, this is a worrying development.

As big exchanges like Coinbase suspend XRP trading and deposits, minor crypto exchanges would likely also delist XRP from their platforms.

This puts XRP in a difficult place…

And according to many analysts, XRP’s price is expected to sink considering the sell-off triggered by the FUD caused by the SEC lawsuit.

So, what’s next?

Too early to guess. A quick chart analysis from our firm does little help since the drop is more of investors’ sentiment (at this point in time).

But there is some good news for XRP holders… all of this may change depending on how Ripple responds to charges and how the SEC plays its cards. Will we see a slap on the wrist? A small fine? 

Time will tell.

But still, it could be a challenging road to recovery for XRP.

Meanwhile… 

WHALES BUYING MORE BTC DESPITE THE PRICE SURGE

Whales are buying more Bitcoin rather than selling them amidst the bullish rise of BTC price. On chain data shows... 

Wealthy investors continuously buying BTC since the holidays.

Says who?

Santiment, a behavior analytics platform for cryptocurrencies.

According to its report, BTC worth roughly $647 million were transferred from small addresses to large addresses.

Here’s what Santiment said:

“Over the last 48 hours since Christmas, #Bitcoin addresses with 1,000 or more $BTC now own 0.13% more of the supply that smaller addresses did previously. This is about 24,158 tokens, which translates to $647.7M at the time of this writing.”

Keep in mind: Accounts with 1,000+ BTC are treated as whales considering Bitcoin has hit new all time highs of $30k.

CryptoQuant CEO Ki Young Ju also tweeted that “BTC whales seem exhausted to sell.” And we agree.

He also noted that “fewer whales are depositing to exchanges.” 

Concluding that BTC price surge will continue “as institutional investors keep buying and [as the] Exchange Whale Ratio keeps below 85%.”

THE TAKEAWAY

It looks like whales continuously hodl and increase their BTC portfolio despite the price hike. But why?

Analysts say it might be for two reasons:

• A positive outlook for a BTC price break-out… Passing the $30k mark sets the new short-term of $35k as the next target.

• No significant price correction is being seen as of now… BTC price has been bullish over the past days. And no major resistance has been noted. But that could quickly change.

The thing is… whales can influence the BTC market price to either dip or rise when whale traders buy or sell crypto in large volumes.

So, it’s better to look out for the whales’ activities as they somehow open opportunities to buy low and sell high.

For now, hodl on and stay tuned…

BTC HITS NEW ALL TIME HIGH AT $30,000

Bitcoin (BTC) passing $30,000 and hitting highs of near $31,000 has caused a lot of pain for traders betting on a bearish pullback.

Max Keiser recently said Michael Saylor, the CEO of MicroStrategy, is planning a George Soros “break the bank” move with Bitcoin. 

For those unfamiliar with this story…

In the world of economics and finance: Soros is known as “the man who broke the Bank of England” when he made $1 billion in one day, September 16th, 1992 (known as Black Wednesday). 

We’re talking about an institutional player with the ability to go large and make or break a currency. Literally. 

It’s a crazy, yet true story.

But what Michael Saylor is trying to do with buying Bitcoin (and using low cost finance) compared to Soros’ attack on the British Pound, you start seeing every single current asset bubble that way.

In other words? All bets are against the central bankers.

THE TAKEAWAY

And as the Fed continues to lower interest rates... we see Bitcoin and cryptos as a one-way bet with no top. As for BTC price?

Analysts previously set $30,000 as the mark to break for BTC to record new all-time highs. And BTC did just that.

If you don’t have any BTC yet in your portfolio, there’s still time. 

Get some, even fractions of it. 

We highly encourage our readers to do so as it’s an asymmetric bet with big, big upside. It’s also built on strong principles which many of you already know as you’re an early investor and redpill crypto subscriber.

Just remember...

"If you're [still] looking for an entry to HODL Bitcoin long term, don't nickel and dime an entry. You're not going to sweat a few thousand dollars of non-perfect entry when it's $100k,$200k,$300k in a year," popular statistician Willy Woo summarized.

So, good days ahead for BTC maximalists and hodlers.

If the crypto market keeps its current pace, data suggests that the BTC price will break out past the $35k milestone next.

The truth is, Bitcoin marks the beginning of a new future and a new monetary standard. And that is revolutionary.

“The present is theirs; the future, for which I really worked, is mine.” - Nikola Tesla, Serbian-American inventor and futurist

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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Hey Redpill Readers!

Today’s newsletter brings you the latest crypto stories and trends.

From Bitcoin’s bullish price hike to a Google crash… and more. 

Let’s get to it…

BITCOIN PRICE HITS ALL TIME HIGH

If you’re a Bitcoin holder, congrats! 

Today, your patience pays off because...

Bitcoin, the world’s largest crypto, just hit $28K.

It’s been on a tear and has been super bullish!

So, what’s behind Bitcoin’s massive rally?

• A quick rewind… the Bitcoin price rally in 2017 was attributed to the surge of retail investors.

• Now… the Bitcoin massive breakthrough to $28k is due to the institutional investments pouring in.

A recap of some big names joining the crypto market:

• Mexican billionaire Ricardo Salinas Pliego who earlier revealed that 10% of his liquid portfolio is a Bitcoin investment...

• Big name investors like JPMorgan, Paul Tudor Jones, and Stanley Druckenmiller...

• And then there’s PayPal, Square’s CashApp, Michael Saylor’s MicroStrategy with mind-blowing investment figures...

THE TAKEAWAY

As we expected… Big-time investors publicly acknowledging BTC as a valuable asset (and then entering the crypto space) really strengthened public confidence in the cryptocurrency.

Plus, it facilitated the breakout to the $20k resistance…

And beyond...

Just as our firm predicted.

Will it keep going upwards?

Some experts are calling for $30k BTC by the end of the year. Some liken this massive rally to 2017’s BTC price hike and dip.

But today’s price rally is different. Reason? Institutional investments which were lacking during the 2017 price rally.

With high-net investors backing it, BTC could be stronger than ever.

Our final point… those who embraced BTC during the 2017 dip (or prior) as a buying and hodling chance… well, they’re a lot richer.

And this is why you should listen to the experts, and not the talking parrots on television. They don’t understand economics. And what’s worse, they often work for Wall Street. Not mainstreet investors, like yourself.

Next up…

ZUCK BUCK’S RENAME TO DIEM GETS LAWSUIT THREAT

A quick look back: Mark Zuckerberg has entered fintech. His FB-founded Libra Association is gearing up for the 2021 launch of its digital coin.

In fact, the Libra Association recently renamed itself to Diem.

Why? To avoid its past image which was met with intense regulatory issues.

And its currency is now also called “Diem” which isn’t great.

But here’s the problem: Libra Association picked the wrong name.

A London-based fintech app with the same name, but unrelated to Facebook, or to its backed Libra Association, objects to the rebranding.

Yikes.

Diem threatens to sue Facebook to protect the identity of their brand.

And get this, the Diem Co-Founder and investor Chris Adelsbach said that while he is reluctant to sue the social media giant, legal advice was given to him to protect his company’s brand.

He went on to say…

“It wouldn’t have taken that much effort for Facebook to find out if there’s another Diem in financial services […] They obviously took the view that ‘we can just crush them, we’re Facebook’.”

THE TAKEAWAY

If a lawsuit pushes through… this will be another trademark violation which threatens delay on the launch of Facebook’s cryptocurrency project.

The logo issue: Last year, Current, another fintech company, sued Facebook and its subsidiaries over a Calibra’s logo that looked highly similar to Current’s. The logo has since been changed and Calibra has been renamed to Novi Financial.

In other words? Changes, changes, and more changes.

Now, for some real talk…

If the lawsuit proceeds, it’s a battle of resources – a David versus Goliath thing. But if not, it ends with a settlement. And the only question asked is ‘how much?’

Meanwhile….

BITSTAMP SAYS SORRY FOR ‘TOXIC WASTE’ COMMENT ON XRP

Bitstamp apologized to XRP after calling it trash in a published report.

Full story: Bitstamp, a digital asset exchange, published a Messari report entitled “Crypto Theses for 2021” that called XRP a “toxic waste” and XLM and LTC as “piles of sh*t” in friendly terms.

The next day…

Bitstamp tweeted an apology for the unprofessional language used in the report.

Ryan Selkis, Founder & CEO of Messari also explained in a tweet the purpose of using the offensive language. He says it’s to ‘keep the readers engaged’ in reading the lengthy report.

He went on to say that... “Bitstamp may have expected a more cerebral ‘Pro’ piece from our analysts vs. the yearly [company] hot takes. I don't blame them for being caught off guard.”

THE TAKEAWAY

Our take: The apology was an appropriate response. 

But Selkis shouldn’t have been blamed for his relaxed manner of presenting the report. Some prefer the professional and formal way of writing. Some don’t.

Either way…

He has a right to do what he wants, especially when it comes to keeping the readers engrossed up to the end of a lengthy report.

Next up is some FUD of the month…

FRANCE BANNING ANONYMOUS ACCOUNTS IN CRYPTO

France Finance Minister Bruno Le Maire issued orders requiring crypto exchanges to check and authenticate the identity of crypto owners.

Here’s what we know about the regulation…

• Cryptocurrency exchanges are required to implement stricter know-your-customer (KYC) system

• Stricter ID requirements which will require two proofs of identity of traders for the first Euro spent

• Registration of crypto exchanges with France’s financial administrative regulators

The French minister also asked crypto service providers to implement a total ban on anonymous crypto accounts.

He explained that the government must ‘dry up all the terrorist financing circuits for the smallest euro’ and ‘strengthen the fight against anonymity of crypto-asset transactions.’

THE TAKEAWAY

French government remains wary of cryptocurrency platforms being a haven for illegal activities such as money laundering and terrorist financing.

But in fact, traditional finance tops money laundering.

Large banks across the globe facilitate suspicious transfers of huge amounts of fiat money for financial criminals and terrorists with little oversight.

Says who?

Experts on the crypto market have long assured that cryptocurrency takes the smallest of the pie when it comes to illicit transactions.

For one… Binance Founder and CEO Changpeng Zhao “CZ” said that it’s ‘probably a thousand times less’ when it comes to the volume of illicit activities compared to fiat.

He added…

Money can hardly be moved anonymously in crypto... 

Considering that it’s an ‘open ledger’ and that transactions leave a trace. This means ‘you can trace the funds all the way back to where the coins were mined’ which makes sense.

Final thought: Crippling regulatory measures that defeat the reason for decentralized finance – which is, financial freedom -  is quite honestly, a no-no.

But what do you expect from folks like that? 

More fear, uncertainty and doubt. 

Moving on...

GOOGLE CRASHED – WHY?

A few weeks ago, Google was worthless… just for a few minutes.

Here’s the story: Google services such as Gmail, Google Docs, and YouTube temporarily went offline across the world for approximately 45 minutes.

Users around the globe went crazy as they kept getting error messages when accessing their Google accounts.

‘#Googledown’ trended on Twitter.

And with users trying to figure out what went wrong with Google…

“Is Google down?” was a top search for that day.

So, what went wrong?

Google says it experienced an ‘authentication system outage for approximately 45 minutes due to an internal storage quota issue.’

Whatever that means. 

The important thing is Google fixed the issue and restored all services.

Plus… it apologized to its users and promised to make sure that the issue won’t happen again.

THE TAKEAWAY

The Google outage on Monday revealed two things:

• Billions of people are reliant on Google's services… For most people, G-services became platforms for remote work and classes particularly during this pandemic.

• A bad Google crisis is a possibility… With its vast clients worldwide, Google outages could well disrupt people’s normal routine.

People across the world who are hugely dependent on Google services felt the impact of the brief outage.

But for the crypto space, the good news is…

Despite the Google outage, Bitcoin prices have remained up. And blew past higher prices going into Christmas and the days following.

And lastly, in some rather shocking (and bullish news) for Bitcoin...

TESLA’S ELON MUSK ASKS ABOUT CONVERTING ‘LARGE TRANSACTIONS’ TO BITCOIN

Musk also fired off a series of entertaining – and a little racy – tweets (here, here, here, and here). And get this, in one of them, he said... 

"Bitcoin is almost as BS as fiat money," which could be taken as a backhanded compliment. But we know the truth. 

Elon knows more about BTC and cryptos than he lets on.

But what better way to spread awareness than being a troll and making the sheep think (for once in their lives)?

One of those R-rated Bitcoin tweets prompted a response from the new leader in oru space, MicroStrategy's Saylor, who's a big Bitcoin bull. And who has loaded up his company's treasury with BTC.

"If you want to do your shareholders a $100 billion favor, convert the $TSLA balance sheet from USD to #BTC. Other firms on the S&P 500 would follow your lead & in time it would grow to become a $1 trillion favor," Saylor wrote.

Musk soon replied…

"Are large transactions even possible?" To which Saylor responded: "Yes I have purchased over $1.3 billion in #BTC in past months & would be happy to share my playbook with you offline - one rocket scientist to another."

THE TAKEAWAY

In short? We’re no longer going to the moon folks… we’re going to mars. So, get ready Redpill investors. It’s going to be quite the ride!

MORE REDPILL CRYPTO NEWS

• Ruffer Investment Company Ltd. buys $744M worth BTC. The UK-based investment manager moves to BTC and reduces their gold position. Reason? For the “continued devaluation” of fiat money.

• Bitcoin Senator Lummis seeks BTC awareness campaign in the US Senate. Always a good sign.

• Another big-fish investor… MassMutual bought $100M Bitcoin

• Joining the crypto club… CNBC host Jim Cramer says he bought BTC at $17k. He’s been wrong about so much, but he finally made a smart decision with this purchase. Good for him.

• Glassnode CTO Rafael Schultze-Kraft describes BTC market indicators as ‘insanely bullish’ and predicts BTC price to increase tenfold from here. $30k? $50k? $100k? Time will tell.

• CNBC reports cryptocurrency XRP plunged 25% after the SEC filed a nasty lawsuit against Ripple – ouch

• Michael Saylor is back at it again. The CEO of MicroStrategy splurged another $650M on the latest Bitcoin investment

• Who else? Anthony Scaramucci from SkyBridge Capital. They plan on investing $25 million in Bitcoin (possibly more)

• Also, thanks to the Coinbase IPO, the price of a bunch of crypto companies is “about to go way way higher” – says Barry Silbert

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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Hey Redpill Readers!

Today’s newsletter brings you the latest crypto news and analysis.

But first, a crypto quick-take…

On the top movers and shakers in the space.

ETHEREUM 2.0 IS HERE

The long-awaited Ethereum 2.0 has finally arrived as the Ethereum network launched its Beacon Chain this December.

QUICK EXPLAINER: ETH 2.0 is the improved version of Ethereum… an upgrade that aims to make it more fast, more scalable, and more sustainable.

Here’s what we know so far:

• The launched Beacon Chain addresses Ethereum's security. The Beacon Chain introduces proof-of-stake to the Ethereum network.

• Proof of Stake (or PoS) pertains to a concept where a person can mine or validate block transactions based from the coins he or she holds.

• 880,000 Ethereum have been staked to date, which is around 355,000 more than the minimum amount required.

Looking back... this is huge, huge news for the crypto community as the planned launch of the upgrade has been brewing since early 2020.

And this major transition for the world’s second largest cryptocurrency is set to take Ethereum to new heights.

So what’s next up with this upgrade? Well, the next phase will be the introduction of “shard chains” which is more geek speak.

But in case you don’t know what those are…

Shard chains are means of increasing the network capacity (while reducing network congestion), as well as increasing the number of transactions per second.

In other words, more efficiency (across the board).

But the next phase of this Ethereum 2.0 upgrade won’t take place til next year.

THE TAKEAWAY

With the success of this initial upgrade, more people will be desiring to have Ethereum because they can stake it and validate it.

And as demand for Ethereum rises, its price is also expected to increase, too.

The upgrade on Ethereum’s security is good news. Which creates positive sentiment among crypto users (who will likely fuel Ethereum’s price).

FINAL NOTE: What if the entire series of Ethereum 2.0 upgrades succeeds? Well, for Ethereum fans, that would be an insane milestone. A big win, for sure.

Onwards…

PAYPAL CEO TELLS CRYPTO INDUSTRY TO WORK WITH REGULATORS ASAP

PayPal CEO and President Dan Schulman made an important request to the crypto industry during the Web Summit Online Conference.

In fact…

The head of the payment processing giant asked the crypto industry to work well with financial regulators. I know. We all want to do our own thing.

But he says it’s the only way for the crypto industry to thrive (in addition to offering more utility). And that makes sense.

But his main point is… regulatory compliance is important. Without it, the crypto industry can’t fully thrive.

Doubling down: Earlier this year, Schulman even voiced his willingness to collaborate with regulators around the world…

As he said, ‘the shift to digital forms of currencies [are] inevitable.’

THE TAKEAWAY

Schulman’s call for cooperation with regulators renews the unavoidable debate on the pros and cons of crypto regulations.

Some, like Schulman, welcome regulations.

For them, playing by the rules is the only way forward.

On the flip side: Other crypto advocates oppose regulations altogether.

They claim that it will cripple the industry considering the regulators’ bias for traditional fiat currencies.

But whatever side you’re on… our take is simple.

Regulators and the crypto industry should meet halfway.

Regulations cannot be entirely avoided.

In fact, regulatory measures on the crypto market that aim to protect crypto users across the platforms are fine (for the most part).

But tight regulations that eliminate the idea of free markets, and crypto freedom, as well as limit the potential of digital currencies, are no-nos.

Beyond that…

A large number of nations, including many G-7 members, agree on the importance of crypto regulation. They want more rules for crypto. But do we?

Not really.

See also: Erik Voorhees, CEO and founder of ShapeShift.io, who said… institutions will protect Bitcoin from government overreach.

As far as that goes, Voorhees noted his belief that “the greater the mix and diversity of holders, the better,” before continuing… 

“Democratization of control over money is the essence of Bitcoin.”

Plus…

Our man in the mix: Free thinker and former congressman, Ron Paul, believes the government is “watching very closely” to see what happens with cryptos.

But having said that…

“We should do whatever we can” to legalize Bitcoin, says the libertarian hero (and an outspoken critic of the Federal Reserve). Rock on, Ron.

Next up…

S&P DOW JONES INDICES TO LAUNCH CRYPTOCURRENCY INDEXES NEXT YEAR

Here are the details: S&P Dow Jones Indices, a division of financial data provider S&P Global Inc, announced that it will launch crypto indices in 2021.

Boom!

The S&P will be using data from its partner Lukka, a blockchain data provider based in New York, to launch the indexes on more than 550 cryptocurrencies.

Major traditional financial companies getting involved in crypto is big-time!

Right on point… Peter Roffman, global head of innovation and strategy at S&P Dow Jones Indices, said something else that was important…

He said “with digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks.”

And we fully agree.

THE TAKEAWAY

This move by the S&P Dow Jones crew will only help Bitcoin, Ethereum, and the other cryptocurrencies gain mass exposure.

What made these institutional firms venture into digital currencies?

Well…

For one, we don’t think it's merely because of industry buzz. But it is because of the credibility and promising nature of blockchain technology.  

And let’s be real… this small community of crypto heads have all built their credibility, their philosophy, and their technology from the ground up.

Cypherpunks and libertarians have been leading the way for years. And this kind of mainstream adoption has been something they’ve anticipated for a long, long time.

Lastly, in other bullish news…

BITCOIN COULD POSSIBLY EVOLVE INTO A GLOBAL ASSET, SAYS BLACKROCK’S CEO

BlackRock’s CEO Larry Fink says Bitcoin can possibly ‘evolve’ into a global asset.

Oh wait...

You might wonder if we’re talking about BlackRock’s Larry Fink…

The guy who called cryptocurrencies an ‘index of money laundering’  and extremely ‘speculative’ investments, just three years ago.

Well, yes… exactly the same guy.

The CEO of the world’s largest asset manager has turned bullish on Bitcoin last week while speaking at the Council on Foreign Relations…

With the former Bank of England Governor, Mark Carney.

Here’s what he said: “Bitcoin has caught the attention and the imagination of many people.” Still untested though. And still pretty small relative to other markets.

And he added: “Can it evolve into a global market? Possibly.”

THE TAKEAWAY

Fink isn’t the first of his kind to change his mind about BTC and cryptocurrencies.

In fact… he adds to the number of huge figures in traditional finance that previously talked about cryptocurrency in a negative light…

But are now diving head first into the Bitcoin rabbit hole.

Like who? Well, JP Morgan’s head honcho Jamie Dimon for one. And billionaire investor Stanley Druckenmiller to name another.

With all these legends changing tunes towards cryptocurrencies… new all-time highs for Bitcoin should be coming. We see good times ahead, folks.

MORE REDPILL CRYPTO NEWS

• Crypto for pizza? Now possible as Pizza Hut Venezuela accepts cryptocurrency payments. Order your next pepperoni pizza with crypto, will ya?

• Private German bank starting a cryptocurrency fund next year

• Nigel Farage, leader of the British Brexit Party, said that it’s “crucially important” for people to get into crypto amid the pandemic.

• Crypto Industry says no to Congress’ Stable Coin Proposal

• Spotify is hiring for Payments roles that include a focus on the zuck buck aka Facebook’s Diem (ex-Libra project). One role is for potential moves with crypto, stablecoins, blockchain, and central bank digital currencies (CBDCs).

• Australian crypto exchange accidentally leaks personal data of 270k users

• Blockstack, a team we rate highly, may have successfully transformed its STX token from securities registration to commodity status.

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They’re meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security.

All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision. © 2020 Redpill Crypto Research. All Rights Reserved.

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Hey Redpill Readers,

In today's edition, we'll cover Mark Zuckerberg and his zuck bucks. What do we mean by that? We’re talking about Facebook's own crypto project Libra, of course. 

You’ll also hear about the latest rise in stocks and bitcoin. Plus, we'll cover one other big part of the 'new norm' - remote work.

So, let's get to it...

FACEBOOK-BACKED LIBRA IS OH-SO-CLOSE TO LAUNCHING

The founder of Facebook, Mark Zuckerberg, has entered the digital payment space. And his team is working their magic through the Libra Association, a FB-founded parent organization with 27 members.

What else do you need to know?

Here's what you need to know: In an attempt to appease Swiss authorities (and financial regulators around the world), the association has changed its strategy away from creating a global stablecoin to something different.

Instead, they'll launch multiple stablecoins… with each tied to a different fiat currency (such as the U.S. dollar, yen, peso, and so on).

The zuck buck's bull case: Digital payment functionalities could work smoothly across Facebookland. Heck, it could even be integrated into messaging apps, which would be even more bullish. And there’s one more thing...

Let's not forget, Shopify has already signed on as a partner.

THE TAKEAWAY

What are stablecoins? In case you don't know, stablecoins are cryptocurrencies that don’t fluctuate in value against a specific fiat currency. 

For instance, one unit of a USD-backed stablecoin is always worth one dollar. Libra mentioned USD, EUR, or GBP as base currencies for its different stablecoins.

Launch date for the zuck buck? Just right around the corner, actually. Facebook's libra could launch in January 2021.

Bottom line: On top of a standalone app that will let you send AND receive Libra tokens, you’ll also be able to manage your account from Facebook Messenger and WhatsApp. Sure sounds like the ‘blue pill’ of cryptos, but who knows!

Facebook's goal: To help people that wish to use it for remittance purposes and peer-to-peer payments. Got some family struggling (financially) back home in Venezuela? Don’t worry, “send them some libra tokens.” 

That’s what they want.

But governments around the world aren’t having it.

In fact, they’re working on something entirely different...

You see, what governments are looking to launch is their very own central bank digital currency (CBDC). Take a look here:

• China is expanding pilots of the digital yuan

• Cambodia has launched their own CBDCs

• And the Bahamas has done the same with something called the ‘Sand Dollar’ which we gotta admit, is a pretty cool name

And it doesn't stop there…

Many other countries are looking to do the same, including the U.S.

The common denominator here: Well, whether it's the Libra or the Bahama's Sand Dollar, a common thing they both aim to do is expand access to financial services (particularly to those that need it the most). Plus, both can expedite payments. 

If you have a smartphone, you can send money. Simple as that. 

Next up…

STOCKS, BITCOIN, AND CRYPTOS MOSTLY UP IN NOVEMBER

First, let's look at stocks: Recently, they went up. In fact, global equities had their best month since 1988. Why? Because of a few things... 

1) news that a coronavirus vaccine would get approved real soon 

2) society not collapsing following the presidential election and

3) hopes for stimulus (and maybe the Treasury secretary pick, too)

• Growth with small-cap stocks (Wall Street talk for small companies that are publicly traded), had their best month ever — up about 19% 

• We just saw Dow 30,000 in the stock market, a big milestone. A milestone nearly 125 years in the making

• But we're not surprised... Tech stocks and a few small-caps were expected to lead the economic recovery - like Tesla, Salesforce, Slack, Zoom, etc 

Cryptocurrency: Bitcoin, the world's largest crypto, hit an all-time high recently. The reason? Network effects. 

And commitments from players like PayPal, Square, and MicroStrategy.

Non-cryptocurrency: The U.S. dollar had its worst month since July, which is a sign investors stayed away from fiat money. Time's are changing...

And the sheep are starting to wake up.

Maybe.

Commodities: Listen, there’s this one shiny metal we all love (and have found value in for thousands of years). We're talking about gold. A big safe haven for investors. So how did gold perform in November, you ask? Well, it had its worst month since 2016. 

THE TAKEAWAY

More companies want a piece of the BTC pie. It’s no longer considered a ‘scam’ or a ‘speculative gamble’ or a thing desired by ‘conspiracy theorists’ aka Satoshi fan boys. 

In fact, it’s completely misunderstood by 99% of people… 

And that includes the media… and these so-called ‘investigative journalists’ that so many people trust (and worship). Think they’re free thinkers? Not so much.

When the media tells you WHAT to think and HOW to think…

You’re in trouble.

The people that eat this stuff up are the same people that have zero understanding of economics (i.e. my eldest sister, your family members, co-workers, friends, etc). 

Ironically, these people are the loudest ones on Facebookland (often arguing and fighting with people on small topics while completely missing the big picture).

Smoke and mirrors, folks.

But that’s what separates us Redpill readers from the rest. 

We know what’s going on... And we know that Bitcoin is a legit asset with the brightest minds in the world working on it, developing it, and investing in it. 

The problems we’re solving... 

And the intellectual capital in this space is next level. 

But the truth is this...

Maturity matters: Which is why the Bitcoin price just hit a new all-time high. Expect higher prices as the crypto market matures more and more. For now, we enjoy the journey to the new high above $19,892. Meanwhile, the rest get left behind.

Crypto data also suggests institutional demand is here: And it's one reason behind the recent rally. On-chain data points show that the demand for Bitcoin from institutions has been increasing super fast.

In November, Grayscale recorded all-time high net inflows... And then, there's the CME Bitcoin futures market. They saw its ‘open interest’ climb to $1 billion. In other words, Bitcoin is not going anywhere (and it’s definitely not slowing down).

As the billionaire, Stanley Druckenmiller explained, Bitcoin is likely here to stay... "It’s been around for 13 years and with each passing day it picks up more of its stabilization as a brand."

Bottom line: based off of our firm's research, more institutions invested in cryptocurrencies during the third quarter of 2020 than ever before.

What else is up more than ever before? 

Remote work.

And whether you like it or not, we're never going back to normal.

Details below...

PEOPLE ARE NOT ONLY INVESTING FROM HOME, BUT ALSO WORKING FROM HOME

Vaccines are here. Which means, we hope you enjoyed spending all that time with your wife and kids. Too bad that's over with. 

Gas up the car. And get ready for your morning commute! It’s time to head back into the office, folks. Actually... not so fast! 

You see, right now, there's a debate among three camps: 

• Return to your cubicle (office time): The folks in this group have an old way of thinking. And an even older way of conducting business. But regardless, this is an option that’s available once the dust settles a bit more...  

• Stay working from home (remote time): Tech companies have been doing this for years. I've been remote for the past 10 years so this hasn't been a "big change" for me. Nor some of the folks at our firm. But if they work well at home or work well sitting on a beach, does it matter? Also, if you want to keep costs down, while getting sales online, this may be your best option...

• Hybrid (hammer time): Lastly, this camp is open-minded and sees a wide range of solutions. Whether you're working in your pajamas from home, from the office, or from the beach - a hybrid option is on the table. And again, does it really matter where someone is working from if they're getting their work done, growing your business, and producing on time? We say no. 

Do your thang! 

And here's the most interesting part...

If you think about it, it’s not really up to the companies to choose. Employees will ultimately make that decision.

THE TAKEAWAY

Remote work is the future: For those that were able to figure it out, it was available 10 years ago. But it’s here now. And it’s available to all of us. 

One more thing, the ability to work remotely is not even enough.

Let me explain...

We must make the shift: A shift towards a decentralized system architecture. With so much chaos and unpredictability, both decentralization in the workplace and system architectures have taken center stage. And rightfully so.

Don't know about you… but we really like our day-to-day 'work' like we like our day-to-day 'money' - decentralized.

And...

While each company faces its own set of challenges, decentralized organizations are better equipped (to take on today’s crazy business environment).

Crypto companies already doing it? Look no further than Binance.

They’ve employed a remote workforce for most of their existence. They have roughly 1200+ team members in 50+ countries and regions. 

Plus… tech giants like Apple, Microsoft, Twitter and Facebook have all instituted mid-to-long-term remote work policies, too.

MORE REDPILL CRYPTO NEWS

• Great move from Bitstamp... one of the world’s oldest and largest cryptocurrency exchanges has just introduced an insurance policy.  It covers the theft and other losses of user funds held on its platform.

• Bloomberg is bullish on BTC. How bullish? Well, Bloomberg’s quarterly note on crypto assets posits BTC at $100,000 by 2025.

• In unrelated crypto news... this company is getting rich by turning jackfruit into pork. There’s been an increase in interest for vegetarian and vegan food in Thailand and NR Instant Produce is cashing in on the trend.

• In Orwellian news... a new AI camera can detect if shoppers are wearing masks or not. If a shopper goes without a mask, the camera displays a message asking the customer to please wear a covering while in the store.

• Dapper Labs, the company behind CryptoKitties, has now raised a total of $52.5MM from big traditional investors such as USV, Samsung Ventures, a16z, Venrock, and Warner Music Group.

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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Hey Redpill Readers!

Today’s newsletter is best enjoyed with Thanksgiving leftovers. Heat something up. And let’s set off your post-holiday with some quick crypto updates.

BITCOIN PRICE SKYROCKETS TO $19.4K ON TUESDAY BUT DIPS 11% OVERNIGHT

Economy update: Stock market is up. Unemployment rate is declining. And yet, more than 11M Americans are still unemployed.

Also: Americans' incomes and savings fell last month.

But for those of us on the crypto side...

Bitcoin’s price just hit $19.4k for the first time since 2017. On Tuesday, it blew past the $19k milestone in a little over 24 hours.

That’s right! Bitcoin almost broke out closer to its $20k all-time high mark.

Many anticipated the possibility of Bitcoin crushing $20k as its momentum is expected to increase in the following weeks. 

Some key reasons behind the Bitcoin’s price momentum:

• Investments from big companies... On top of PayPal and CashApp large buys, MicroStrategy invested a mind-blowing $425 million in BTC while Square poured its $50 million which constitutes 1% of the company’s total assets.

• Massive public backing... following high-profile figures and huge institutional investments and positive remarks from the likes of JPMorgan and American billionaire investor Stanley Druckenmiller.

• BTC supply reduction... with large buys from Galaxy Digital and Stone Ridge who purchased 10,000 Bitcoin (roughly $162 million dollars worth).

And, MicoStrategy CEO Michael Saylor has been praising Bitcoin left and right, publicly.

Here’s a taste...

As you can see, he has definitely taken the redpill of money.

Holiday Pullback

But just in time for Thanksgiving Day, BTC price drops by 11% overnight after almost breaching the all time high.

What were the causes? Whale selloffs and BTC over buys. Jeez!

But in case you don’t know… “whales” are wealthy crypto investors.

• Whales moved their HODLed BTC to exchanges indicating heavy selling.

• Jason Deane, a Bitcoin analyst at Quantum Economics, says that another reason for Bitcoin price drop might be the BTC overbuying in the recent months.

• Resumption of OKEx withdrawals… The major crypto exchange resumed all withdrawals after weeks-long suspension fueling the speculation that the BTC price plunged soon as they resumed normal business.

THE TAKEAWAY

Some are worried about this price drop saying it may continue and be a repeat of the 2017 BTC crash.

But around our research table… we doubt it.

Where to next? Well, once in a while, a significant price drop happens. Plus… the BTC market cap substantially increased since 2017.

So, we’re still heading into a best-case scenario.

And if our research is right… BTC could recover and stabilize before the year ends.

And if there’s still any doubt how Bitcoin is on the cusp of mainstream adoption, J.P.Morgan recently extended banking services to Coinbase and Gemini.

Who are they? Two of the largest bitcoin exchanges, by far. 

They want a piece of the action with new accounts more than doubling from a year ago.

And let’s not forget: Citibank recently released a report suggesting that bitcoin could reach $318,000 by December 2021.

With huge institutions backing it up, bitcoin could be stronger than ever.

Reality zone...

• Earlier this year, Visa granted Coinbase power to issue bitcoin debit cards

• Jack Dorsey, CEO of Twitter, is taking steps towards incorporating bitcoin and other cryptos into his payments business, Square 

• Nasdaq-listed MicroStrategy recently purchased $475 million in bitcoin to make it its primary treasury reserve asset

• PayPal recently announced that it will enable bitcoin purchases for its entire 360 million client base (massive news)

• Fidelity is offering bitcoin trading to its institutional clients

• Crypto asset-backed ETFs—a whole new investment class—are about to come to the market. Canada’s 3iQ is moving forward with an exchange-traded Ether Fund. This means, America can’t be too far behind.

Now comes the best part…

We’re still super early in this bull cycle. 

Socionomics pulse: Mainstream awareness remains low and network fundamentals are much, much stronger than the 2017 run we had. 

Redpill prediction: This is why, many analysts at our firm are expecting bitcoin to blow past it's all-time high of $20,000 and set new records, very soon.

 So, our advice is simple: Stick to the plan and hodl on.

Meanwhile…

CYPHERPUNK HOLDINGS ANNOUNCED INCREASED BTC STAKE

Investment company Cypherpunk Holdings (CSE: HODL) announced on Thursday its increased their BTC investment to 276.479 from 72.979 on June 30, 2020. 

Its investment is worth around $4.8 million under the prevailing BTC market value.

And guess what…

The purchase makes Cypherpunk Holdings the ninth largest BTC public investor.  

THE TAKEAWAY

More and more public companies are investing in BTC. 

In fact, besides the privacy focused Canadian investment firm, there are fourteen other publicly-traded companies with BTC investments. Names like Square, Galaxy Digital Holdings, and MicroStrategy Inc.

Here’s the thing… The total stakes of all these companies are equivalent to 67,731 BTC… or a total value of roughly $682,898,077.

Bottom line: The growing number of institutional investors strengthens the cryptocurrency position in the crypto market.

Plus, it’s a significant step toward greater adoption and use of cryptocurrencies as a unit of transactions. Good times ahead, folks.

Up next…

RUSSIAN PRIME MINISTER PROPOSES LEGAL MEASURES TO PROTECT DIGITAL ASSETS

Russian Prime Minister Mikhail Mishustin proposed changes in the Tax Code that would recognize cryptocurrencies as property.

The second most powerful figure of the Russian Federation also announced the government’s plan to lead the local crypto market development in a “civilized direction” to protect crypto users’ rights and interest.

You read that right… The aim of the proposal is to give crypto users legal protection against “illegal actions.”

Let’s be real… this sounds great, right?

The measure will afford users ‘legal protection’ against ‘shadow schemes.’

THE TAKEAWAY

But there’s one little problem...

PM Mishustin’s proposal comes at a time when strict crypto regulations are also being proposed by the Russian Government.

• In mid-November, Russia wants to require cryptocurrency owners to report their crypto transactions and wallet balances to tax authority.

• Plus… they also wish to impose imprisonment on whoever fails to comply with the annual reporting of crypto transactions.

So, it remains doubtful whether Russia is ready to completely embrace cryptocurrencies and afford users enough legal protection.

MORE REDPILL CRYPTO NEWS

• ‘Bitcoin’ searches high at Google Trends after BTC price rally

• OKEx users move out after the exchange resumed withdrawals

• Tether's market cap reaches $19 billion

• BTC price could rise to $100k by 2021, a crypto investor says

• User suspended by PayPal for crypto trading in the platform - What the hell?

• Inside the competition that will save Bitcoin from quantum computers

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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Hey Redpill Readers!

Here are the latest must reads in the cryptoverse...

BILLIONAIRE RAY DALIO SEES GOVERNMENTS BANNING BTC

The head honcho at Bridgewater Associates, Ray Dalio, had a stark warning about how future governments will deal with Bitcoin.

The founder of the world's largest hedge fund recently said… he sees three problems with BTC (and cryptocurrencies) that could change things a lot:

• Lack of venues... He argued that there are not enough venues and retailers that accept cryptocurrencies for purchase. Which is why the American billionaire went on to say: "I can't take my Bitcoin yet and buy things easily with it."

• Way too volatile... Dalio said it's volatile nature could affect its future. And he's got a point, if we really want to use BTC and cryptos for transactions. But do we?

• The billionaire also predicts: Governments will "outlaw" bitcoin. In fact, he believes they will "use whatever teeth they have to enforce that."

Diversify with gold? Dalio instead praised gold and central bank digital currencies.

But he's not the end all, be all. 

THE TAKEAWAY

There are other legends in the traditional financial world that have spoken up…

Like who?

Well, there’s Mexican billionaire Ricardo Salinas Pliego, the second-wealthiest man in Mexico and 166th wealthiest person in the world. 

He revealed that 10% of his “liquid portfolio” is invested in Bitcoin.

Honestly, it’s about time Ricardo stepped up his game.

And there’s more... 

How about billionaire investor, Stanley Druckenmiller, who built his $4.4 billion fortune as the head of Duquesne Capital Management. 

Quick rewind: He claimed in 2018 that he “didn’t want to own bitcoin,” yet he recently came out and changed tune. He said and we quote: "If the goldback works, the Bitcoinback will probably work [even] better."

If we didn’t know better…

It sure sounds like Druckenmiller has taken the redpill.

Exit the matrix. And join the club, Stan. It’s never too late.

Next up?

ETHEREUM 2.0 UPGRADE IS COMING REAL FAST

Eth 2.0 is right around the corner, folks.

What does it bring to the table?

In a nutshell:

• It's a multi-year plan to improve the scalability, security and programmability of Ethereum (but without compromising on decentralization).

• This is happening under what Vitalik Butirin refers to as a “rollup-centric ethereum” with a lot of exciting new capabilities. Ethereum will soon be able to scale, and scale fast, to around 3,000 transactions per second. Don’t know about you. But we like it fast. Fast like a nascar.

• The development for Eth 2.0 is built around a separate proof-of-stake blockchain network called the beacon chain. And, on this new platform, all you ETH holders with a minimum of 32 ETH will be able to earn rewards in the form of annualized interest on their wealth.

Which leads us to a big question...

Would you rather have 1 BTC or 32 Eth? It's your call.

THE TAKEAWAY

Right now, more than 500,000 ETH have been locked and loaded into Eth 2.0’s deposit contract, jump-starting this new network (and multi-year development phase).

Meanwhile, JPMorgan analysts say: Institutions are all piling into Bitcoin. 

The truth is...

You really can't go wrong with either of these two options.

GOLD BUG CHANGES GAME PLAN AND INVESTS IN BTC ‘COCKROACH’

Here are the deets: Pendal Group, an Australian Securities Exchange-listed investment manager with over A$100 billion (US$73.6 billion) in assets under management, is making a splash in our space. How, you ask?

Well...

They're getting into Bitcoin and for good reason.

Says who? Says Vimal Gor: Right now, he’s Pendal’s head of bond, income and defensive strategies. And he said recently that the company is now investing in Bitcoin futures on the Chicago Mercantile Exchange (CME).

THE TAKEAWAY

Zooming with the Australian Financial Review: Gor thinks not only is bitcoin “entering the realm of mainstream,” as shown by the entrance of major hedge fund managers, but that no one entity can stop it.

In fact... he took it a step further with another goodie. He said “bitcoin is a cockroach that exists [and that] they can’t ban it out of existence.”

This is an arrow shot back at Dalio... and his prediction of a government ban. But we agree with Gor. Can’t get rid of cockroaches. 

And you certainly won’t get rid of BTC.

But good luck trying.

MORE REDPILL CRYPTO NEWS

• World’s second-biggest bank to issue $3B in bonds tradable for bitcoin

• Did you know the AP published election results on ethereum’s blockchain? - read more about it, right here

• Are you a Scott Adams fan? We are. Here’s a Dilbert cartoon on blockchain

• FTX is allowing Trump bettors to hold onto their bets until February

• JP Morgan Analysts: Group of large investors may be ditching gold ETFs for bitcoin

• President-elect Joe Biden tapped former Federal Reserve Chair Janet Yellen as the next U.S. Treasury Department head, with oversight of FinCEN, IRS and the Office of the Comptroller of the Currency (OCC)

• ‘Cypherpunk, Crypto Anarchy and How Bitcoin Lost the Narrative’ – Brady Dale’s crypto-philosophical essay makes for an interesting read 

• Square and PayPal bullish outlook amid the crypto surge

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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Hey Redpiller Readers,

A few more days before Thanksgiving day! 

Thinking of what meal to gobble up with the fam bam? Lots of turkey, we hope. And one more thing. Don’t forget to tell your family about all your crypto gains.

But now…

Let’s jump right in. Here we go. Some updates over the past few days to get your holiday conversation even more interesting. 

BITCOIN IS LESS VOLATILE THAN MANY STOCKS, VAN ECK’S RESEARCH REVEALS

Well, this is a huge surprise… Van Eck, an investment management firm, unexpectedly revealed crazy new research. 

The result? The fact that the volatility of Bitcoin’s price is actually less volatile when compared to traditional stocks. Who knew?

Here are the details...

• Bitcoin’s volatility trend is lower than 112 stocks on the S&P 500 during a 90-day period and lower than 145 stocks YTD (year-to-date). 

• 29% of the S&P 500 stocks are more volatile than Bitcoin while 22% exhibited more volatility trends during a 90-day period. 

And mind you, the Bitcoin fans did not just make these stats up. It’s the research of a reputable investment firm.

Time for the sheep to wake up? It’s certainly a clap back for the naysayers who warned against a Bitcoin investment and those that even called the movements of cryptocurrency’s price a ‘meteoric rise and fall’ and nothing more.

Boy, were they wrong. 

And guess what’s even more interesting… How about the fact that Van Eck describes itself as ‘the leader in gold investing’ - meanwhile, gold is a competitor asset to Bitcoin. That’s gotta tell you something.

Reports say that of Van Eck’s nearly $50 billion managed assets, majority are linked to gold. In fact, the company has long founded the popular Gold Miners ETF. 

THE TAKEAWAY

Building confidence in the cryptocurrency… Some speculate that the purpose of Van Eck’s research is to allay SEC fears than to encourage investors. 

Regardless… This notable research is likely to work as a charm in easing concerns from both the SEC and crypto investors on the alleged extreme volatility. In other words? When it comes to the BTC price, no need to fear. 

Stay calm and hodl on, friends.

But first, some context: If you don’t know what “hodl” means, listen up…

Hodl is slang in the cryptocurrency community for holding the crypto rather than selling it. A person who does this is known as a Hodler. 

And this goes way, way back…

It originated in a December 2013 post on the Bitcoin Forum message board by an inebriated user who posted with a typo in the subject, "I AM HODLING."

Holding, hodling – same thing – but now you know!

BITCOIN SHORTAGE? NO WORRIES, SAYS EXPERTS

Quick throwback to last week: PayPal allowed all its users in the US to buy, hold, and sell crypto. That contributed to the BTC price rise we’ve been seeing.

And...

Just this weekend, the impact of PayPal’s crypto services have started to be felt across the crypto market. But we’ll say, it was a trend our US-based crypto firm saw coming.

As a result...

Bitcoin’s price spiked – and it was all thanks to the big boys. 

We’re talking about big companies, like PayPal and Square’s Cash App, and them buying 100% of all newly-issued bitcoins. 

Yep, you read that right. 

That’s why, crypto investment firm, Pantera Capital, claims that with these companies buying Bitcoin in large amounts, a Bitcoin shortage is possible. 

But should small crypto traders worry? Well, experts say there’s nothing to worry about. Who are these experts exactly? Pedro Febrero, an analyst at Quantum Economics, says that while Bitcoin supply may be limited because of these large purchases, the big companies will eventually need to sell it. 

And besides… he added, “not all Bitcoin is simply being hodled.” 

On the same vein… Shawn Dexter, Quantum Economics’s finance analyst, claims that these companies’ mass crypto acquisition will help ‘increase the underlying security of the network, furthering the store of value offering.’

THE TAKEAWAY

With big companies betting on the cryptocurrency, it’s expected to cause a supply reduction for quite some time. 

But here’s the deal: A real Bitcoin shortage triggered by the large buys of giant companies is simply a step towards mass adoption. PayPal buys are expected as the company opened the door to its crypto trading services (to cater to its millions of users). 

And the thing is… logically, bigtime companies like PayPal will eventually sell their digital assets and return it to circulation. What does this mean? It means the selloff is a sure-fire way to level the cryptocurrency price. 

So, chill out! 

ETHEREUM’S PRICE SKYROCKETS TO $600 

Who doesn’t love a little ETH price action? Ethereum fans scored the best trades on Monday as its value soared to $600, the highest price spike since June 2018. 

Moonshot mindset: ETH crypto heads see its price going to the moon, long-term. And this price movement is a good start. In fact, the price surge comes just three days after it breached the $500 mark in November 2020. 

But again, let’s look at the data... 

• Ethereum’s price recorded a remarkable increase since August 2020. It’s up by $389 or a 54% increase since then.  

• PLUS, Ethereum’s market cap has risen to $66 billion. A 28% spike in the last month and 34% in the last three months. 

So what’s triggering Ethereum's price hike?

Well…

For those in the ETH community, you already know it’s all about... 

The upgrade: Reports noted that the value surge of Ethereum stems from the hype of the impending launch of Ethereum 2.0. 

The cryptocurrency upgrade is made to resolve the ‘coin’s scalability issues.’ It will remove miners from the network to optimize the settlement of transactions. 

THE TAKEAWAY

Our firm predicts Ethereum’s rise to be part of a big, long-term trend.

Why? 

Because of its upgrade. Its use cases. Its founder, Vitalik Buterin, a Russian genius (and our future crypto overlord). It’s dev progress and community. 

And much, much more.

But listen...

The second largest crypto platform in the world by market cap is expected to dominate the market for the foreseeable future, next to the almighty king, Bitcoin. 

Its historical trend shows it can easily withstand the volatility, too.

Plus…

Its price movements are attracting wide support from many new investors. And let’s be honest, there’s nothing wrong with that. 

The more, the merrier.

Best case scenario: It will put Ether traders in an interesting place. From a little margin of profit, they are expected to make mind-boggling profits as the cryptocurrency is set to surpass the $600 mark in the coming weeks. 

Our firm has our eyes set on $1,000 ETH in the mid-term... 

So, be on the look-out for that!

MORE REDPILL CRYPTO NEWS

• 66% Price Hike by XRP noted this week

• US Treasury Office Proposes Ban on Discrimination Against Crypto Firms

• Singapore considers wholesale CBDC, says local executive

• SEC Chair’s Exit makes Bitcoin ETF possible

• Two Big Investment Firms File Bitcoin Fund with the SEC

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

Hey Redpill Readers,

You might be wondering what the ‘FUD’ is going on with the crypto globe. Well, a lot of good news. And ‘FUD’ news, too.  Here are the hot stories that boiled up this week.

FINANCIAL TIMES AND FOX BUSINESS LAUNCHED ‘COORDINATED MEDIA FUD’ AGAINST BITCOIN

A report of ‘coordinated media FUD’ about Bitcoin (BTC) circulated recently after mainstream media outlets began to release news dismissing BTC’s market value. 

But in case you don’t know… 

‘FUD’ stands for fear, uncertainty, and doubt.

The media talking heads are pros at spreading all of that (and more).

Full story: Reports show Financial Times releasing an editorial piece titled ‘The elusive promise of Bitcoin’, while Fox Business writes ‘Bitcoin no match for gold in coronavirus world.’ These came after BTC’s value surged to almost $20k this past week. 

Plus...

• Fox Business quoted Peter Schiff, one of our favorite economic minds on the planet. He’s the CEO of Euro Pacific Capital Inc. But here’s our beef with him. We love the guy, but he’s a Bitcoin hater, big time.

• Peter was quoted stating that the BTC is “not a store of value because it has no value in store.” The article goes on to say that BTC’s value rise is alarming and warns against investing in the cryptocurrency.

• Meanwhile, Financial Times’ states that BTC’s status as a safe haven is “more theoretical than anything else” citing its volatility and that “there are no fundamentals on which to base a judgment of Bitcoin’s value.” They also say its current price just “reflects what people are willing to spend on it.” 

But whether you agree with Peter (and the mainstream media), or not, the truth remains. And our research firm suspects BTC’s price will continue to rise regardless of what they say. Why? Due to the weakening of the dollar, that’s why.

THE TAKEAWAY

Cryptocurrencies have been targeted by the media's FUD campaign since they emerged as viable units of transaction. Why? In hope to sway public opinion, of course. 

Media outlets have since called BTC a currency of delusion and a haven for fraud and laundering with very little evidence to support their allegations.

In fact…

Fiat money takes the cake when it comes to money laundering, by far.

To what end? Well, the truth is, the media’s FUD does nothing but create a slow down in cryptocurrency investments. 

And the crypto market benefits most from these publicities as they draw the public's attention, stir interest, and bring crypto into daily conversation. 

Remember, folks… despite all of this, BTC is still up and rising above the FUD. 

Redpill wisdom says: Follow the smart money, not the fake news.

And...

With that said...

BINANCE SUES FORBES FOR DEFAMATION 

October was a pretty good month for Binance… until Forbes rocked the boat and ruined it’s ‘smooth sailing.’

Media FUD last month: Forbes published a disparaging article alleging the purported schemes of the global cryptocurrency exchange to evade regulations and to profit secretly from crypto investors in the United States.  

The article cites a “Tai Chi” document allegedly detailing Binance’s scheme to “intentionally deceive” U.S. regulators. It revealed a plan to funnel revenue from financial entities in the US to Binance without being placed under enforcement. 

Yikes.

Binance’s response: Binance just sued Forbes Media LLC and its crypto writers, Michael del Castillo and Jason Brett, in the U.S. District Court of New Jersey over an article it published last month alleging the purported schemes of the global cryptocurrency exchange to evade regulations  in the United States.  

The big points of the suit: 

• The exchange dubbed the post as misleading and defamatory and alleged "millions of dollars" in losses as a result. Ouch...

• Binance claims that the magazine and its journalists harmed the platform by alleging false statements. Double ouch!

• It denies Forbes’ allegations disputing the veracity of the “Tai Chi” document. It’s demanding compensation for damaging it’s reputation. 

THE TAKEAWAY

The upside: While the odds of winning defamation suits against the media are tough considering the general requirement to prove not just the harm done but also the deliberate intent, it serves to let people know the legitimacy of the business. 

It’s beyond doubt… the steady growth of the exchange giant invites frequent media attacks that sow FUD among crypto peers. But the constant effort to discredit the legitimacy of digital currencies in the market is a big no-no. 

Those who are new to the game may be dissuaded. 

But for us Redpillers… we follow the money, not the media. 

$6 MILLION INVESTED IN BITCOIN LAST MONTH - BY WHO?

By one rapper named, Logic, whose real name is Sir Robert Bryson Hall II. He joins the frenzy of big stars investing in Bitcoin after the celebrity revealed his last month’s $6 million Bitcoin purchase. 

A report guesstimates that his ‘canny financial move’ might have profited almost $2 to $4.4 million depending on what he meant by “last month.”

And now… the retired rapper is showing more support for the crypto space by changing his Twitter name to “Bobby Bitcoin” of all things.

Earlier this week: Game of Thrones star Maisie Williams set her crypto Twitter followers abuzz after her Twitter poll on whether she ‘should go long on Bitcoin’. It’s unclear whether Williams has taken her followers’ advice to dive deep into the snow and ‘join the free folks.’ But… if I were Maisie, I’d move just as wise and quickly as Logic did.  

After all… winter is coming.

THE TAKEAWAY

The cryptocurrency is finally getting serious public attention and enticing the elites and institutional investors. Now, as the Bitcoin price records a steady increase this week, several known personalities and wealthy figures are publicly disclosing the fact that they have bought (and held) the cryptocurrency. 

Bottom line: Cryptocurrencies are too far from being the dead end. It’s just beginning to realize its value in the marketplace. With lots of people joining the cryptoverse, we’ll see soon the reality we’ve been waiting for – a widely profitable crypto world.

MORE REDPILL CRYPTO NEWS

• DAiM Launched the US’ First Bitcoin Pension Plans

• Morgan Creek Digital Co-Founder Jason Williams Sold Chevy For Bitcoin

• Traders Anticipates Increased Volatility as Bitcoin’s Value Soars

• New cryptocurrency regulations proposed in Russia

• Airbnb considering cryptocurrencies and blockchain according to its IPO prospectus, and we must say, that’s bullish as hell

DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

Hey Redpill Readers!

How’s the past few days been for you? For our crypto market, it’s been full of hustle in high-tech finance. Here are the biggest crypto fillers for the last week.  

NO MORE WAITLIST FOR PAYPAL’S CRYPTO TRADING IN U.S.

Looking back… U.S. cryptocurrency users who wished to trade on PayPal had to fall in line for a slot. The company’s waitlist was a hold up for many cryptocurrency users in the U.S. looking to trade through the online platform. 

But those days are over… PayPal finally announced on Thursday the lifting of the waitlist policy to buy and sell cryptocurrency in the U.S.

All eligible users can now buy, hold, and sell Bitcoin, Ethereum, Litecoin and Bitcoin Cash using their Paypal accounts. 

Not just that… PayPal also increased its purchase limit to $20,000 per week from the initial limit of $10,000. Think it’s still too little considering the rapidly growing number of cryptocurrency users?

Well…

It’s a little milestone towards greater milestones. The immediate future holds great things for cryptocurrency trading on the platform. 

• As a purchase unit… PayPal plans to allow users to make PayPal purchases with cryptocurrencies in the next year. That makes a lot of sense since those cryptos have definite value in sale transactions. 

• Going global… PayPal is planning to make cryptocurrency payments available to its 26 million merchants around the world in the first quarter of 2021. The company is the biggest online payment network with millions of users globally. The global roll out of Paypal’s cryptocurrency payment services would work for the benefit of millions of online stores overseas (who would love to opt for digital currencies over physical currencies). 

THE TAKEAWAY

The full launch of PayPal’s crypto trading services for its users and merchants in the U.S. is another breakthrough towards the shift to digital currencies (a trend).

Cryptocurrencies have proven to be convenient and accessible payment methods for online merchants (a fact).

But here’s the problem: The potential of cryptocurrency payments to facilitate an efficient payment system remains unrealized as regulation mounts. 

Many supposed that PayPal’s license to allow its crypto merchants to trade in the platform comes from a bargain with the regulatory body to ensure that a crypto coin in PayPal, stays in PayPal. What’s holding them back from accepting that digital currencies are the new things? Simple. The value of the $ in the marketplace. 

A BITCOIN ALLY IN THE U.S. SENATE

Meet the Bitcoin Senator… Republican candidate Cynthia Lummis, a bitcoin owner and digital currency advocate, wins election to U.S. Senate from Wyoming. The former Republican congresswoman defeated Democratic candidate Merav Ben-David with 73.1% of the vote. She will be filling the seat of former Senator Mike Enzi.

Two notable things that makes the Lummis win interesting: 

• Lummis will become the first woman to represent Wyoming in the U.S. Senate.

• She’s the first bitcoin owner to be elected in the U.S. Senate (Or at least the first one to disclose so…)

The Senator-elect’s state is a hub for cryptocurrency merchants. It previously passed laws recognizing cryptocurrencies as valuable market assets and even allowed a couple of banks to transact using cryptocurrencies.

How did the incoming Senator come to own Bitcoin? Lummis disclosed that she first bought Bitcoin in 2013 on a tip from her son-in-law. Her reasons for buying: economic power of scarcity and the potential for bitcoin to address some of the manipulations in the financial system.

Political vision for the digital currency… and get this, the Senator-elect echoed her ‘hope to bring Bitcoin into the national conversation.’ 

Here’s what she said: “I do hope. I am a former state treasurer and I invested our state’s permanent funds so I was always looking for a good store of value. Bitcoin fits that bill. Our own currency inflates, Bitcoin does not. Twenty-one million Bitcoin will be mined and that is it, it is a finite supply. So, I have confidence that this is going to be an important player in stores of value for a long time to come.”

THE TAKEAWAY

Wyoming voters seem to have made a good choice… Crypto traders see Lummis as a new prominent political figure to shape up the future for digital currencies in the U.S. 

Why her win matters: Lummis’ election is a promising development for the cryptocurrency market. A big one.

In fact…

She is expected to pitch in to protect digital currencies from ‘strict federal encroachments’ and advocate for eased regulations on cryptocurrencies. This will make it easier for companies to engage in cryptocurrency business in the U.S. 

TOP SEC OFFICIAL TO STEP DOWN BY END OF YEAR

SEC confirmed in its Monday’s Press Release that its Chairman, Jay Clayton, will be leaving the agency at the end of 2020. He led the Securities and Exchange Commission for the past three and a half years. Clayton is expected to serve as the next United States Attorney for the Southern District of New York.

Clayton’s planned departure gained overwhelming support from crypto traders. He’s obviously disliked in the crypto market for all these reasons: 

• He advocated for more crypto regulations, though last month he expressed willingness to explore the idea of a tokenized exchange-traded fund  (ETF).

• Last year, he cautioned investors that Bitcoin will not be traded on a major exchange until stronger regulations are in place.

• SEC has continued to reject Bitcoin ETF under his watch.

• Under his leadership, SEC has taken many actions against ICO projects.

What to look forward to?

Well, with Clayton’s leaving, crypto traders have two things to hope for: 

• SEC will approve a bitcoin ETF

• Cryptocurrency regulations will be eased

THE TAKEAWAY

Clayton’s exit hints changes that will affect the cryptocurrency market. Crypto traders hope to get SEC approval for Bitcoin ETF next year and a more favorable regulatory stance towards cryptocurrency. And who knows… a new SEC leadership might just pave the way for a massive crypto market boom. 

MORE REDPILL CRYPTO NEWS

• Jon Cunliffe of England’s Central Bank on digital assets like crypto: Banks will have to adjust (and adjust fast)

• Salary in crypto now possible as BitPay launches its new payroll service

• An optimistic trend: Bitcoin price increase above $16k 

• Crypto traders on Chinese platforms switched to Binance following government’s crackdown 

• Research expert says privacy is crucial to the creation of new Central Bank Digital Currencies (CBDCs)

  ---

  DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

  Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.

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