Bitcoin has continued to churn sideways due to market volatility caused by geopolitics. We are confident about an uptrend in the stock market into the end of March, and this should allow some much needed price relief for Bitcoin. Capital has begun to rotate from commodities back to equities and crypto, which will benefit both sectors.
Biden’s recent executive order was designed to be a bipartisan piece of legislation that will allow for the U.S to become a major player in the innovative field of blockchain technology. The Democratic Party will continue to take a pro-crypto stance with the approaching midterms, and the executive order accordingly highlighted the importance of energy-efficient cryptocurrencies in response to climate change. Bitcoin is notorious for its high energy consumption, and the “mining” of it will likely see its own form of regulations. The green agenda will continue to be one of the most prominent trends of this decade, and all of the altcoins that comprise our long term portfolio are eco-friendly and technologically superior when compared to most mainstream cryptos. By far the most critical piece of information mentioned in this bill was the creation of a U.S digital currency. This will allow for the Federal Reserve to direct the U.S economy more efficiently and enable the government to track transactions, send stimulus, and implement negative interest rates. We will see central bank digital currencies rolled out over the next few years and it will be rolled out as a way to service the unbanked. After a digital dollar is sufficiently implemented in the United States, the government will then undertake the initiative of creating digital ID’s. In previous briefings, we have discussed how assets such as stocks, real estate, and commodities could be tokenized on blockchains, but this could also include personal identities. This could potentially enable the public and private sector to track an individual’s search and payment history, passports, and could be leveraged to reduce fraud, but also to clamp down on anyone adversarial to the American regime. In other words, it streamlines the efficiency of government in its totality, providing a highly attractive proposition for widespread adoption in the coming years. 2022 in particular should see a major advancement in the transition of our economy to complete digitization.