Krypto Connect Issue #1
Hello and welcome to Krypto Connect
This is our inaugural issue, so we welcome any feedback from our readers. This is a work in progress for myself and my co-collaborator, Mark Sefton, but essentially we will issue updates bi-monthly (every 2 weeks) and seek to do two things:
1. Provide some education that is not “geek speak", and
2. Keep readers abreast of what’s interesting - where the finance and banking industry collides with the Cryptocurrency industry.
Our underlying assertion is that we are at the early adoption phase on the blockchain and cryptocurrencies curve, but that their impact on money, assets and financial services is rapidly gaining pace.
Remember that many of the PDFs we mention can be found here via Christo Partners open drive here. If you are after some basics, go to our 1 page blog link (http://christopartners.com/key-topics/), kick back with a wine and enjoy some interesting commentary from professional investors, quants and macro guys. We assure you the time investment will be worth it.
This week we will simply look at 2 things:
- Is bitcoin worth anything when compared to traditional hard assets like gold and silver? Yes, way more according to PlanB, an anonymous quant from the Netherlands with over USD one billion under management.
After reading Dr. Saifedean Ammous’ book, The Bitcoin Standard, PlanB picked up on the main theme which said the bitcoin is hard money because of its extremely high stock-to-flow ratio. PlanB did extensive and detailed modelling and he has concluded that bitcoin will soon pass gold’s SF ratio and keep on going. The price implications of this are enormous and unprecedented. Click here to read his report (PDF).
- What is the economics of bitcoin? Saifedean Ammous is an economist and author focusing exclusively on bitcoin, who authored the first academic book on the economics of bitcoin, The Bitcoin Standard: The Decentralized Alternative to Central Banking, published by Wiley in 2018.
The book is summarised as follows: The key message in this book summary: Money has come in all shapes and sizes throughout history, but there’s only ever been one truly sound system: money backed by gold. The “gold standard” underwrote an age of prosperity and stability. That all changed in the early twentieth century, when European governments abandoned gold and fiscal prudence to fund their war efforts. The world hasn’t been the same since, and we’ve endured decades of rising debt and boom-and-bust cycles. High time for a change, then. That’s where Bitcoin comes in. Like gold, it’s a highly effective unit of exchange. But if it’s going to lead us to a new age of sound money, the digital currency will have to overcome some teething problems. A more detailed summary of the book is summarised here.
That's it for now. Any comments simply zap back an email. Feel free to follow us on twitter (https://twitter.com/KryptoConnect). Of course, anyone interested in the space is welcome to join the newsletter free here.
Peter & Mark
Krypto Connect
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