A highlight from Visa Just Supercharged Stablecoin Legitimacy
On l. But it's the institutionalization of bitcoin and now clearly stable coins theory that is driving this bull market and icing no signs of that changing. Welcome back to the breakdown with me. And i'll w it's a daily podcast on macro bitcoin and the big picture power shifts remaking our world. The breakdown is sponsored by next dot. Io and casper and produced and distributed by coins us. What's going on guys. It is monday. March twenty ninth and today we are talking about how visa might have just supercharged stable coin legitimacy and this episode is one of the extended brief styles five topics each about a similar length. Some a little bit shorter than others. But they're just a lot of things that i wanted to touch on briefly so that any further ado let's dive in first. Let's discuss nfc's making it to snl. I'm sure that you've seen it by now. But the saturday night live. Cast led by pete davidson did a full song about. Nf ts to the tune of. Eminem's without me. Here's the setup. Janet yellen isn't a class talking to a group of econ students and one of them. Pete davidson wants to ask about a guy who look suspiciously like. Morpheus joins in and then the janitor in the hall gives a cogent explanation delivered in rap form of course about unique digital scarcity. I did one of my twitter. Serve as today asking about what you guys wanted covered on this show and it is very clear you are done with. Nfc's for the moment. I respected so. I just wanted to give my l. Dr on my take about whether this is a top signal or a mainstream moment to me. It all comes back to this thing that i've been saying which is that. We have to separate and teases concept from one the price of nfc's right now and to the absolute schlock and those prices are attracting as people try to capitalize. I don't know when exactly the money top will be whenever people stop buying literally anything that says an t. assuming a greater fool by the next one but it seems pretty clear that there is there. They're conceptually a part of why people are responding is that they like the new medium. I've talked about this from the music perspective. Where an artist justin blau can find the fifty fans that have the highest combination of passion for what they do and money and make the money that they would have for a full tour in one. Go but the biggest evidence to me that it's not just fully. A speculative market bubble is nba top shot. They're the biggest tease by sales volume all time and it's not close. Four hundred sixty one million in sales across three hundred and thirty eight thousand owners. The next closest crypto punks with one hundred and eighty four million across just two thousand owners in other words. The thing that is the biggest in the nfc. Space is the one that completely abstracts away. Any notion of crypto. It's about the end product. Of course that end product is only possible because of the tax but what people love is the nba. Top shots themselves anyway without. Let's move onto green bitcoin. Mining as we've been discussing post tethers settlement with the new york attorney general and post the tesla investment. The bitcoin environmental flood has definitely ascended to the primary concern for the cycle last week. Fed chair jerome powell reference energy consumption as part of the reason. He has skepticism around crypto. Which isn't something. I noticed before suggest to me that there is a growing behind the scenes narrative at the top levels of policy around bitcoin environmental fund as well. There are tons of answers to this as we've explored extensively but broadly. I see them in three categories. The first is we get to decide what value and what we spend energy on with a subset of that being. Let's compare it to the existing money system. A second response is much. More of bitcoin is being produced by renewables than many critics. Think and the third is that bitcoin mining actually creates economic incentives and economic viability for otherwise unusable energy. Number three is by far my favorite. But i do think number too much more is produced by. Renewables is going to be important as well today. The uk listed argo blockchain and canada-based dmz blockchain solutions announced that they are planning to launch terror. Pool here's a quote from the release. Tarapur pool represents the first ever opportunity for the creation of green bitcoin. The initiative aims to expedite the shift from conventional power to clean energy and reduce the impact of bitcoin mining on the environment the mining poor provide a platform for cryptocurrency minors to produce bitcoin and other cryptocurrencies in a sustainable way. Adding onto that the argo. Ceo said addressing climate change is a priority for argo and partnering with dmc to create the first green. Bitcoin mining pool is an important step towards protecting our planet now and for generations to come. Now i don't love the designation of green bitcoin because it implies other bitcoin isn't green and in that way validates in reinforces the narrative. We're trying to combat the same time we're dealing with a lot of politicians and pundits who need simple things to latch onto which green. Bitcoin could conceivably help. What's more. I like hash. Power shift to better sources in terms of both renewables and especially trapped sources. And so i'm glad to see that shift. It's also good because to the extent that the us is home. Base for the environmental flood argo is expanding in the us significantly. They purchased three hundred and twenty in west texas last month to open a two hundred megawatt facility next on this extended brief. Let's discuss the square. Cfo's comments on bitcoin when square i announce its allocation to bitcoin. Some argued that even though it represented a much smaller percentage of the company's cash then for example what micro strategy was doing. It might be even more influential to other corporate officers. The reason it was much easier to imitate. It's much easier for a cfo of another publicly listed company to take squares model of a small percentage of treasury and make that argument to the board of directors. And whoever else they need to get the approval of to actually make that allocation this imitate ability is why it's notable that square. Cfo has been an outspoken advocate for similar allocations fortune magazine. Cfo newsletter. this weekend featured an interview with square. Cfo on rita. She said a few things. I shine square see bitcoin and cryptocurrency in expanding access to financial services especially when look globally second she said that their investment represents about five percent of squares cash now and that they intend to hold for the term third. She said quote. There's absolutely a case for every balance sheet to have bitcoin on it.