Fidelity manages over $11 trillion in assets

1} They are one of the titans of the traditional financial system. When their team shares an opinion publicly, people around the world pay attention

That’s what they had to share - “In my view, Bitcoin is a commodity currency that aspires to be a store of value and a hedge against monetary debasement. I think of it as exponential gold.”

This is the first time that someone has used the phrase “exponential gold.” It is a perfect way to describe bitcoin though. The digital currency embodies the sound money principles of gold (outside the system and can not be debased), while benefiting from the asymmetry of new technology adoption.

Interesting chart to constantly look into if you looking to ape into Bitcoin. Downside protection of gold, upside of tech stocks—exponential gold. Truly an unique asset. This shows purchasing power trends for various assets from 1900 till today. They write “gold is money of course, but it’s too deflationary and clunky to be used as a medium of exchange. Hence, investors own it primarily as a store of value – and one of the many reasons Bitcoin is often compared to gold.”

Gold has done a fantastic job of preserving purchasing power over the years. I don’t know many young people who are interested in holding the precious metal though. They look at it as an asset with no upside return, regardless of whether that is right or wrong.

If bitcoin can leverage the sound money principles to benefit from these periods of high-inflation and/or undisciplined monetary policy, just as gold has done for decades, then it would make sense that young people will continue to allocate capital to the digital version.

As Balaji Srinivasan once said,

By 2040 everyone under the age of 30 will have grown up in a world where bitcoin existed. They will see no difference in the “newness” of bitcoin vs gold. Both assets will have been around forever in their eyes.

2} Bitcoin started almost 15 years back and has been running ever since

Gold is so distributed that governments can't literally keep track of your gold. It is stacked in a house, put in a bank, worn as a jewelry, gifted in weddings

It's so valuable yet so omni present and there was a time when it was used as a preferred payment mechanism as well, it flows from the mines then to processing and finally finds it way to banks, institutions and retail. Energy used to mine gold makes the metal precious along with other factors as well

All this is the physical realm, one that everyone understands. Governments can control this realm through law and order, institutions setup and necessary regulation.

Now comes this new invention in a digital world which is relatively new with new rules and ways of working. The divergence starts with the physical presence transforming to a digital presence. While we are still figuring out this world, their is a payment system running in parallel via code and decentralized set of nodes

No one knows who created it, so the basic foundation is anonymous, perfect recipe for something that can be disruptive:

Digital, Anonymous and where Code is law

The global cryptocurrency market cap today: $1.38 Trillion

Daily change: 0.64% | Yearly change: 26.56% 

Bitcoin (BTC) is the largest cryptocurrency with a market cap of $687 Billion.

Weekly change: 1.84% | YTD change: 112.67%

Another important metric is Bitcoin dominance which can be used as a rough indicator of the relative strength of Bitcoin versus other cryptocurrencies. A high Bitcoin dominance means that Bitcoin has a large market share and is potentially more influential in the overall cryptocurrency market and vice-versa.

Bitcoin dominance: Current Year: 52.00% | Last year (Nov 2022): 38.29%

The market sentiment has gone back to greed levels with Bitcoin touching $35k this week

Note: The data used is based on metrics like Volatility, Surveys, Bitcoin Dominance, Social and Google Trends. Source: Coinstats

Let's have a look at Ethereum supply changes post its merge to a PoS blockchain from PoW.

The significance of the chart - understand how the supply of Ethereum is decreasing post the merge, which means “deflationary economics” for the Blockchain

Supply change since merge POS -254,095 ETH

The graph highlights POS issuance since the merge. Impressive numbers, look super bullish for ETH long term given the supply of ETH is not growing as before

Sam Bankman-Fried Found Guilty On All Counts: Latest News & Hot Takes Jury took just four hours of deliberation before convicting the former FTX CEO

The Simpsons Take a Dig at NFTs, Crypto in 'Treehouse of Horror' Episode "Remember how we were always saying we wish Bart was less fungible," Homer asks Marge after he puts his son on-chain.

And now the funny part,

Here is the Simpsons episode, give it a try

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DISCLAIMER: None of this is financial advice. 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. Please be careful and do your own research