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That's a lot of Money!
$2.5 Billion in Crypto Funds
Despite the price fluctuations of Bitcoin and the Crypto market, we saw some of the most bullish news this past week. Here is a run down.
Andreessen Horowitz launched a third crypto fund titled “Crypto Fund III” which is valued at $2.2 billion. This is the largest crypto fund ever and is extremely bullish. If you know your history Andreessen Horowitz has been very successful with their investments, making big bets on tech and internet companies, now they are making the bet on crypto. (source)
PayPal and Visa participate in Blockchain Capitals $300 million investment fund. Not only are these companies building their own crypto services/technology they are also investing in other crypto projects and companies. (source)
Citigroup has launched a digital asset unit within its wealth management division. It seems every bank is jumping into crypto and preparing to offer their wealthy clients crypto trading and custody services.(source)
US Crypto regulations move forward with the U.S. House of Representatives passing two crypto bills - The Consumer Safety Technology Act, sponsored by Rep. Jerry McNerny (D-Calif.), directs the Consumer Product Safety Commission to establish a pilot program to explore use cases for artificial intelligence in commerce. The two blockchain bills – the Blockchain Innovation Act and parts of the Digital Taxonomy Act – direct the Secretary of Commerce and the Federal Trade Commission (FTC) to study and report on the use of blockchain technology and digital tokens. (source)
The Bank for International Settlements(BIS) has given its full backing to the development of central bank digital currencies (CBDCs), saying they are needed to modernise finance and ensure 'Big Tech' does not take control of money. They just gave the green light for even central bank to get onboard the digital and token economy.(source)
With both institutional investors and governments moving in the same direction it’s just a matter of time before we see another bull run to new all time highs. This new asset class is being established and all signs point to growth and adoption which will lead to higher prices.
Something else that is interesting is China pushing Bitcoin miners out of the country. Now these miners are moving to other countries to setup shop. On its face this may seem bearish but its actually bullish, here’s why:
For years one fo the criticism for Bitcoin was the concentration of mining in China. The Mining pools in China controls over 50% of the hashrate. From an optics standpoint this bad when you now have governments and institutional investors buying and adopting Bitcoin.
The US is allowing miners from China to setup shop in different starts such as Maryland, Texas, and Florida. The US will now become one of the major pillars for Bitcoin and crypto mining. (source)
As always my friends, patience is the key, sit back and watch this asset class grow. All of the puzzle pieces are coming together.
Are you tracking your taxes for your Crypto trading? Be sure to do so, I personally use TaxBit to help me prepare my crypto taxes which I then share with my accountant. Visit TaxBit’s website to learn more.
Disclaimer - Thinking Crypto and Tony are not financial or investment experts. You should do your own research on each cryptocurrency and make your own conclusions and decisions for investment. Invest at your own risk, only invest what you are willing to lose. This newsletter is for educational purposes and NOT investment or financial advice.