** Anthony Scaramucci , the founder of SkyBridge Capital , said Monday that JPMorgan Chase & Co.’s (NYSE:JPM) reported plan to allow clients to borrow against their Bitcoin (CRYPTO: BTC) holdings has the potential to change the financial dynamics of the leading cryptocurrency.**
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Enough said. In related news, stable coins are impacting treasury yields.
I’m an old fuddy-duddy, but I don’t like when real money mixes with funny money.
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Sweet!
The YT experts were saying 4 months ago, that the US was moving to make US Treasuries the base (global currency) underpinning specific stablecoins.
Japan was selling UST , China was selling UST.
UST auctions were NOT attracting buyers…
US needs a “buyer”.
Enter stablecoin.
Win win.
Ralph has no real comment, except that
1 it appears the YT guys read the tea leaves correctly.
And 2 it appears that crypto is moving from tulip bulb to “functionally useful”.
ralph
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Money is funny, it all goes to what people will accept. I have been watching Bitcoin for quite a while, and it keeps making more and more inroads. I am agnostic, even though I do have Bitcoin, but if the music stops I will be out.
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We’re living in interesting times, our old forecasting models are no longer applicable. You said earlier that black swan events can’t be predicted, I get it. Prediction is becoming more and more difficult. I don’t like that.
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Collateralizing Ponzi schemes would be a major change of direction.
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Fortune favors the brave.
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Andy,
Does this make you bullish or bearish on BTC? After all the backing of Anthony Scaramucci. I’m impressed.
I moved money market funds into short term treasuries in March on the theory that that was the safest place for my ‘safe’ money. Collateralizing stablecoin feels an awful lot like collateralizing cdo’s in 2007 but worse.
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Jamie has been talking out of both sides of his mouth. On one hand he agrees bitcoin is rat poison and on the other hand he gears up his company to take advantage of selling the rat poison.
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How can you not be bullish? It has only been going up for the last 3 years. This will drop at some time too, but for now the music still goes on, and it keeps making inroads into the financial industries. I don’t understand people who take a stand for or against Bitcoin, to me, it’s just a momentum trade. But I am amazed at how it has done by getting ETF’s developed, and now more and more companies are investing in it. I do think it has passed the chasm.
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Agreed. If you have a stable coin backed by UST, why not just have the UST?
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That would be entirely out of character for a seasoned Investment Banker…
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This is the idea behind it, you can’t stick UST on the blockchain so they back a stable coin, which can be put on a blockchain, and moved around the world. Put aside the “only criminals will use it”, tired refrain that we all have heard. I think everyone would agree that moving money effortlessly and cheaper is a good thing. That is what they are trying to accomplish with stable coins. Much like letting people trade stocks for a cheaper price. It wasn’t that long ago that people had to pay real money to buy and sell stocks. Anyway, that is the theory. I know it isn’t perfected yet, and it is still in the future, but it is coming, especially with the United States Government behind it now. That is huge.
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2022 seems to have been a shake out.
FTX?
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Those who own it consider that as a legitimate asset. Companies, even countries are buying Bitcoin for their treasury. Those who don’t own it, calling it Ponzi is throwing lot of people into idiot pool, while acknowledging total ignorance about the product.
The adoption is getting wider. You worry about it, if you are a government, since you want to control the currency. Current administration is not worried. 
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$JPM makes lot of risky bets and given their balance sheet, this is going to be miniscule. But it is important for them to retain certain type of customers and more importantly, we have folks who have all sorts of grievances and they have the ears of the President, Whiner-in-chief. $JPM can hedge their exposure and will be okay.
„Ponzi scheme“ was a direct quote from Jamie, not too long ago. So JPM collateralizing ‚Ponzi‘ would be quite a development, regardless of your view or mine.
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Bitcoin is not being adopted as a currency, that is for certain. It is being adopted by people who wanted to speculate on the price.
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When the music stops, it’s too late to get out.
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