November Week 1 - 2024

AMERICAN RESET
Why the 2024 Election Could Be a Turning Point for Crypto… and America’s Future 

Everyone’s talking about how consequential this election is, but very few people are looking at it from a digital assets point of view. Why? It might just be because they don’t yet understand the role crypto and digital assets could play in saving the U.S. economy. More importantly, Bitcoin and its underlying technology represent something crucial, freedom. Whoever takes the presidency in 2024 will either set America up for a prosperous, forward-looking future or, by neglecting this opportunity, leave us lagging behind in a world increasingly shaped by digital currency.

Believe it or not, cryptocurrency owners might just become a powerful voting bloc in this election. Between 7% and 21% of Americans now own some form of crypto, roughly 18 to 50 million people. And these people seem to care about candidates’ stances on crypto. A Gemini survey recently found that 73% of crypto holders would be influenced by a candidate’s crypto policy. In swing states like Arizona and Georgia, the number of crypto believers actually exceeds the margin Biden won the 2020 election by.

Crypto PACs like Stand with Crypto and FairShake are mobilizing and raising millions to support candidates who see the potential in crypto. But here’s the real question. Will the next president understand the long term implications of nurturing this industry? Donald Trump has claimed the “Bitcoin president” title, promising to create a Bitcoin reserve and ease regulations. But on the other side, the Biden administration is basically seen as anti crypto, with a mission to eradicate the industry.

In a decade, we might look back on this election not for the reasons people are focusing on now, but because of how the crypto vote shaped our future. I can only hope the next president will make the U.S. a leader in this space and protect the promise of freedom that Bitcoin represents. In a world leaning digital, the stakes are higher than ever, and the crypto vote may matter more than anyone realizes. 🇺🇸

MONEY RESET
BRICS Greenlights Russia’s Plan for a New Payment System 

It looks like BRICS (Brazil, Russia, India, China, and South Africa) has given Russia the nod to move forward with a new global payment system. According to Russia’s Deputy Finance Minister Ivan Chebeskov, this isn’t just a Russian wish it’s a shared sentiment across BRICS and even within larger groups like the G20 and the IMF. Chebeskov didn’t hold back, calling the current payment system “outdated, expensive, and ineffective.” He’s not wrong; anyone who’s dealt with high fees, slow transactions, or frustrating processes knows the system could use a serious upgrade.

The proposal aims to develop a payment network that moves away from traditional Western systems, which Russia views as overly controlled and even politically weaponized. Chebeskov argues that Western dominance in financial infrastructure isn’t just outdated but also unsustainable in a world where technological advancements demand efficiency and accessibility. As he put it, “If this growth is not possible within the financial infrastructure of Western countries… then we will create our own.” And that’s exactly what Russia is setting out to do, with the backing of its BRICS partners.

This move isn’t just about cutting costs or speeding up transactions; it’s about shifting financial power. Western countries may resist, but Chebeskov sees this as “inevitable.” He compared it to past technological revolutions, where the adoption of new standards became unavoidable because they were simply better.

So, will we see a BRICS-powered payment system become the new standard? It’s not going to happen overnight. Chebeskov is clear that this transition will take time, testing, and piloting. But with the green light from BRICS, it’s now a real possibility, one that could redefine how money moves across borders in the years to come.

ECONOMY RESET
Larry Fink Warns the Fed Will Disappoint on Rate Cuts

Larry Fink, the CEO of BlackRock, is sounding the alarm: don’t expect the Fed to cut interest rates as much as everyone’s hoping. While the markets seem set on the idea that the Fed will bring rates down significantly, Fink thinks we’re in for a reality check. Speaking at the Future Investment Initiative in Riyadh, he predicted a modest 25 basis-point cut at best before 2025, not the two or more that many are betting on. His reasoning? We’re dealing with “embedded inflation” like never before, and the Fed won’t be able to ease up as much as investors want.

And he’s not the only one with a contrarian view. SkyBridge Capital founder Anthony Scaramucci has a different take on the Fed’s strategy: he thinks they might just let inflation run a little hotter than their 2% target to help manage the U.S. debt crisis. Given that interest payments on America’s $35 trillion debt are already eating up 23% of federal tax revenue, running higher inflation might seem like an easy way out if not ideal. In Scaramucci’s view, that would push the Fed to ease only lightly while letting inflation “bake in” to help devalue the debt.

What does this all mean for markets and Bitcoin? Well, rising inflation and the Fed’s reluctance to slash rates could actually bolster Bitcoin’s appeal. If inflation stays higher than the Fed’s target, Bitcoin’s reputation as a hedge could bring more big-money inflows, especially as we see Wall Street-backed Bitcoin ETFs take off.

The takeaway? If you’re counting on a big rate-cut bonanza, you might be setting yourself up for disappointment. With folks like Fink and Scaramucci predicting a more cautious Fed, it’s clear that the path forward may be bumpier than expected and Bitcoin may just benefit from all this uncertainty.

DISCLAIMER:
This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions or investments. Please be careful and do your own research.