The Breakdown

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Bitcoin Leads to Hyperinflation? Meet the Strangest FUD Yet Jul 13, 2021

Show notes

In this episode, NLW focuses on:

Inflation measures, impacts and who’s to blame
News out of Paraguay concerning pro-bitcoin legislation

A recent “Wall Street Journal” survey of economists revealed they expect higher inflation rates to persist for years to come. “Money Week” ran an op-ed playing on the increased attention on inflation where they pin bitcoin as an unused hoard of productive wealth and a reason for inflation. Is bitcoin really to blame for expectations of continuing inflation?

El Salvador’s influence continues to permeate other nations hoping to make similar advances in crypto. On Wednesday, July 14, a Paraguayan “Bitcoin Bill” is expected to be introduced. Though the exact contents of the bill are not yet known, Paraguay would be the next country setting a positive stance towards crypto.

Lastly, NLW covers more in bitcoin and crypto news. What does Grayscale’s move to make its Large Cap Fund a Securities and Exchange Commission reporting company mean? Also, can China’s post-COVID economic recovery be an indicator for what will happen in the rest of the world?

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The Progressive Case for Bitcoin Jul 11, 2021

Show notes

On this edition of “Long Reads Sunday,” NLW reads an excerpt from Sen. Elizabeth Warren’s questions to SEC Chairman Gensler about crypto and crypto exchanges. NLW then reads an essay responding to Warren’s recent discussions of the topic from Murtaza Hussain called “Elizabeth Warren’s Bitcoin Blind Spot.”

Can a New Wave of Crypto IPOs Rekindle Wall Street Excitement? Jul 10, 2021

Show notes

On this edition of “The Breakdown’s Weekly Recap,” NLW looks at how Wall Street momentum in crypto rose last year only to fade this year. With Circle coming to markets via a SPAC merger and Robinhood going public, is there a chance those events will bring some renewed excitement?

As Biden Targets Big Tech, a Reminder That Decentralized Technologies Are Anti-Monopolist Jul 10, 2021

Show notes

On this episode of “The Breakdown,” NLW analyzes President Joe Biden’s “Factsheet: Executive Order on Promoting Competition in the American Economy,” including:

The shift in public sentiment against Big Tech
The order’s implications to the tech and finance sectors
Crypto’s decentralized nature as intrinsically anti-monopolist

For a period of time, tech companies enjoyed the highest public opinion among large corporations. However, the rise of ad-focused platforms and the advent of social media (with all its demons) encouraged increased scrutiny. Privacy concerns only add to the distaste toward companies including Amazon, Google, and Facebook.

With public opinion souring, governments are similarly implementing various regulation schemes as they become wary of the threat of monopolization. Take Europe, for example, which created the General Data Protection Regulation system, and China’s more aggressive actions against social media. The U.S. has dabbled in tightening its reins on big tech with an assortment of antitrust lawsuits, but President Biden’s recent executive order takes the mentality to a new level.

The public mindset and regulatory shift places crypto as the potential solution to concerns of monopolization. Crypto’s decentralization – its lack of CEOs and corporate power structures – make it an attractive path away from monopolies in the American economy.

Are GBTC Unwinds Bullish or Bearish for Bitcoin? Jul 09, 2021

Show notes

NLW explores the debate surrounding the GBTC unlock’s bearish or bullish nature on this episode of “The Breakdown,” including:

Historical impacts of market structure on prices
GBTC’s influence on markets as its premium attracted investors
Analysis of the GBTC unlock bearish vs. bullish debate

Grayscale Bitcoin Trust, GBTC is an investment vehicle that allows institutional and public market investors to invest in bitcoin without purchasing the cryptocurrency directly.

While many GBTC investors were simply looking for public market exposure to bitcoin, many firms also took a more strategic approach to capture the neutral arbitrage trade of GBTC shares trading at a premium to the native asset value (NAV) of bitcoin. The demand for public market vehicles coupled with a lack of other alternatives placed GBTC at a desirable premium.

The GBTC NAV trade was a significant source of buying pressure through the back half of 2020 and the beginning of 2021, but when the premium turned to a discount (thanks to a variety of factors, including competition from other bitcoin proxies in the public markets), that source of buying pressure dried up.

When an investor buys into GBTC, their shares are locked up for six months. More than 100,000 bitcoin worth of shares are expected to be released throughout July. The looming flood of shares into secondary markets has sparked a debate on whether the unlock will be bearish or bullish for the spot price of bitcoin.

Featuring commentary from Lyn Alden, Loomdart, Willy Woo and more.

De-Globalization vs. De-Nationification: Which Trend Wins? Jul 08, 2021

Show notes

Today on “The Breakdown,” NLW explores what he calls “the shifting tectonic plates of the global social order.” On one side, he argues, are the forces of de-globalization, with nations turning inward and focusing on economic sovereignty. Part of that is states exerting more control over corporations and Big Tech. On the other is a process of de-nationification, where powers previously reserved for states – such as printing money – are increasingly in the hands of new internet-based networks and corporations. This shapes the larger context of crypto disruption and puts a lens on understanding the growing regulatory debate.

Will Bitcoin or Russia Be Blamed for the Latest Ransomware Attacks? Jul 07, 2021

Show notes

On this extended-brief style episode of “The Breakdown,” NLW discusses recent news, FUD and policy in the world of crypto, including:

The ransomware group behind the Colonial Pipeline attack strikes again
An increasing list of regulatory actions against Binance
The China crackdown on crypto trading

The attack against Colonial Pipeline pushed ransomware fears to a new level. REvil, the same group behind the Colonial attack, stuck once again. Kaseya, a company providing network-management services, was the most recent victim. With one million machines infected, the media and regulators look for an easy target to blame for the increase in ransomware attacks. Who will take the fall: Russia or Bitcoin?

Binance continues to fall under increased regulatory scrutiny. Barclays Bank, one of the U.K.’s biggest, has stopped card payments to Binance. At the same time, Thailand filed a criminal complaint against the company, and the Cayman Islands said Binance would not be allowed to do business there. Though Binance is the current target, do these actions suggest a shift in sentiment from banks and regulators on crypto?

China’s crackdown on crypto continues, this time with an emphasis on trading. The business administration department of the People's Bank of China and the Beijing Financial Supervision and Administration bureau issued yet another warning about crypto trading. This warning was joined by an enforcement action against Beijing Qudao Cultural Development Limited, as well as Didi, a popular ride hailing app. Is China banning itself from crypto?

The State of Institutional Adoption of DeFi, Feat. Circle’s Jeremy Allaire Jul 06, 2021

Show notes

This conversation was originally released as a sponsored content webinar from Circle and CoinDesk. NLW decided to release it on his podcast of his own volition and was not paid to do so. The conversation covers why institutions are becoming interested in DeFi, which institutions are starting to participate and what barriers remain.

Declaring Independence and Freedom From Bitcoin FUD Jul 04, 2021

Show notes

On this holiday edition of “Long Reads Sunday,” NLW reads Jeff Dorman’s “Debunking 10 Digital Asset Bear Market Theses.”

Are We On the Verge of a New Regulatory Era in Crypto? Jul 03, 2021

Show notes

On this edition of “The Breakdown’s Weekly Recap,” NLW looks at:

Why this week’s congressional hearing suggests elected officials are taking crypto more seriously
A slate of CBDC news from around the world
The beginning of a new macro narrative for Ethereum and DeFi

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