News
25 March 2020

US congressional leaders agree on $2tn stimulus deal

U.S. Congress has reached agreement on a historic $2 trillion stimulus package to help combat the economic woes brought about by the coronavirus. The legislation still requires formal approval, but the deal which amounts to the largest stimulus package of all time should be enough to calm investors who have seen equity markets drop nearly 30% over the course of the last month. The bill will include large corporate bailouts, lines of credit for small businesses, direct compensation for individual families, and four months extended unemployment insurance.

Why it matters - Bitcoin, and most financial assets for that matter, have become increasingly correlated with the broader equity markets as investors are selling everything in the midst of a dramatic liquidity crunch. The uncertainty that has gripped the financial world has led to a converging on this "dollar trade," however, this new round of stimulus should, in theory, provide financial markets more confidence to begin reallocating their dollars. If this were to occur, you could expect a decoupling of disparate financial assets including bitcoin from the equity markets. If history is any guide, this reallocation would go towards "safe-haven" assets such as gold and what many in crypto believe would be bitcoin. - As clearly laid out in the genesis block, Bitcoin was created in response to central banks around the world conducting irresponsible monetary policies. The global financial system was bailed out at the expense of taxpayers who were left footing the bill. This massive stimulus package, while intended to prevent further economic despair, will similarly need to socialize the losses as value cannot simply be created out of thin air. Bitcoin was created for this exact environment by providing an opt-out for those who do not believe in the sustainability of this fiat system.

[[ embed url=https://youtu.be/NgkKRvlkPl4 ]] Apple Podcast - Spotify While BitGo may not be as much of a household name as Coinbase and Binance, they’re easily one of the industry’s most important institutional custodians. BitGo supports custody for over 200 assets and In 2019 alone, accounted for ...
A federal judge has rejected Telegram’s request to carry out the distribution of GRAMs to non-US investors, stating the company failed to explain how it could effectively fence off US investors or “lawfully modify” the sales agreements. The decision comes less than a week after the same judge ordere...
Coinbase has invested 1 million USDC into the ETH/USDC Uniswap pool and 100,000 into PoolTogether as part of its effort to provide more liquidity in DeFi. Coinbase is a part of the Centre Consortium along with Circle that launched USDC in 2018. Last fall, they announced the creation of a Bootstrap F...

3 coins to keep an eye on 👀