BOS update Jul-Aug 2024
Politics, banking, lies and scams
USA: the crypto candidates
The U.S. political landscape has shifted dramatically in recent weeks with an assassination attempt on Trump, Biden dropping out of the presidential race, and Kamala Harris running to be the first female US president.
For the first time in fifteen years, crypto has now become a political issue, with both US major parties declaring their support for cryptocurrency. Trump has made a fortune from selling his vanity NFTs (digital trading cards with his face on them), and has declared that he will “Make Bitcoin Great Again”. We shall see…
Trump has promised to make the government back the US dollar with real assets such as gold or Bitcoin. This cheers the unschooled masses, but the smart people know that the US Federal Reserve is not controlled by nor answerable to the government. Trump can promise whatever he likes, but the Fed can completely ignore him.
Trump’s second promise was to make the US into the Bitcoin mining capital of the world. This is also beyond presidential control. Bitcoin miners are free and independent businesses, not bound by borders or political leaders. They will establish themselves wherever they can find the cheapest electricity.
Many Bitcoin mining operations have been set up in Iceland, where melting glaciers run turbines for cheap electricity or volcanic vents can generate cheap electricity. As with all naturally powered turbines, the supply of electricity can fluctuate up and down, or cease for several minutes per day.
An electricity supply that can be interrupted is not suitable for most businesses, schools, healthcare and so on, but the occasional fluctuations in power or 15-minute blackouts are of minimal concern for Bitcoin miners. Unless the USA covers its desert regions with wind power or solar power, the Bitcoin miners will stay wherever they are.
Key takeaway: most politicians make promises that they later do not keep. Trump is making promises that are impossible for him to keep. Keep calm and don’t believe the hype.
News from Wall Street
The SEC approved the first-ever spot Ethereum ETF, which started trading on July 23. This approval was unexpected, as analysts initially gave it a 25% chance, which surged to 75% shortly before the deadline. The launch of these ETFs is significant for the market, legitimising Ethereum as an institutional investment and potentially bringing in $4.7 billion to $15 billion in the first six months.
The fees for these ETFs are competitive, ranging from 0.15% to 0.25%, except for Grayscale’s 2.5% fee, which has led to significant outflows from its ETF. Despite some initial mixed performance, Ethereum ETFs saw a strong debut with $1.55 billion in inflows. The market shows growing institutional support for cryptocurrencies, with expectations for Solana ETFs next.
Bitcoin’s price dropped due to macroeconomic factors, including poor U.S. unemployment data, Middle East tensions, the German government sold its Bitcoin holdings and rises in Japan’s interest rates from 0% to 0.25%; the first rise in decades. Aussie rates are on hold, the Federal Reserve is expected to cut rates in response to Japan, and demand for crypto from nations other than Germany remains strong.
Death to scammers
Hacks and outages occurred almost every day this month. AT&T reported a data breach exposing millions of phone numbers and call logs. LiFi Protocol was exploited for $10 million due to a call injection attack. WazirX was hacked for $230 million due to a multi-sig wallet compromise. Compound Finance got hit by a $24 million “governance attack”.
Meanwhile, due mainly to centralisation, the world experienced problems with its Internet, banking, booking, and airline infrastructure. One company flubbed their code, not mentioning any names, Crowdstrike, and the resulting bug stopped Microsoft and any computers that were running Windows software.
This would not have happened if users were running any other type of software, or if this software was open-source and peer-supported. Interestingly, the Bitcoin network has been running for 15 years and has never experienced a hack or outage.
Perhaps decentralisation and open-source blockchain could solve many more problems than just currency, investment and finance. If only we could incentivise people to use it…
(We are Kidding: whilst people must pay Microsoft or Google to use their software, the Bitcoin network and blockchain systems will actually pay you!)
If you are not yet making money whilst you sleep, helping to decentralise and secure the new financial system, then please get in touch with support@bostontrading.co
How did we go this month?
Bostoncoin
The Bostoncoin fund is lagging Bitcoin, for the first time in nine years, due to large institutions still buying heavily into Bitcoin and ignoring altcoins (for now).
When alt-season starts, we expect to kick BTC once more. The Bostoncoin fund has still outperformed most stock market mutual funds and superannuation funds.
July 30 2024
BOS Price AUD 77.8215346214
BOS Price USD 50.521268
Honourable mentions to our investments in
Solana 754%
Arweave 562%
Kaspa 517%
Injective 311%
XYO 183%
Bostoncoin (BOS)
One year: 11.53%
Three years (-)49.90%
Five years: 209.98%
DARTcoin
The DARTcoin continues to outperform the BTC benchmark, albeit with more volatility. Those who can handle the peaks and troughs will often gain more over the longer-term.
July 30 2024
DART Price AUD 203.1549698705
DART Price USD 132.7810260592
Honourable mentions to
Pendle 563%
Thorchain 515%
Render 351%
DARTcoin (DART)
One year 251%
Two years 165%
Three years 203%
In addition to attending crypto events in Bali and Los Angeles in the next few months, Jeremy will appear live in New York, NY and Scottsdale, Arizona. Tell your friends they can get discount tickets to great investment events and find out how to become a Cryllionaire; ask us for details on half-price or free tickets.
Remember that we also have a cupboard full of cool Boston swag for those who share the good news about the world’s number one crypto fund. If you do not yet have a Boston coffee cup, Boston pen, Boston umbrella, Boston shirt, Boston hat, Boston gym bottle or Boston watch, then start by forwarding this newsletter to a friend, or suggest your cousin check out our website.
Can you believe there are still people out there earning 5% on their spare money, and have no idea how to make 200%? Imagine how happy that you can make these people… We would love to send you a gift for bringing a newbie to the puppy party, and they will totally love the fun.
See you next month
JB
