To our investors and friends,
Bitcoin has had an exciting week, finally breaking through the important $10,000 level on Saturday! After pulling back slightly, it’s surged to a high of $10,400, trading at $10,330 at the time I’m writing. After this week, Bitcoin’s overall performance is 42% YTD and we’re just 6 weeks into 2020. Buckle up 🚀
This week’s feature is a piece by Byrne Hobart that does a great job reflecting on the role of Bitcoin in a portfolio. He writes,
If you’re worried about the market overshooting, the traditional hedges are treasuries and gold. Treasuries outperform as a deflationary safe-haven, and correlate inversely with equities when inflation is low. Gold outperforms during times of high inflation (because it’s hard to make more of it) and during times of deflation (because other assets’ returns get crushed, and the opportunity cost of owning it is low).
If you think there’s a nonzero chance that bitcoin will become a safe-haven, you have to buy the argument that it will become a major one.
In the near term, bitcoin fits into the gold framework. Its supply is limited, by design; it doesn’t produce a return, so its opportunity cost is low when rates are low, but in the event that inflation accelerates, the lack of additional supply should cause it to outperform.
News Highlights
Bitcoin Rockets Past $10,000 after the Fed Says it's 'Taking a Deep Look' at Digital Currency
Business Insider reports on Federal Reserve Chair Jerome Powell’s recent comments on digital currencies. "Every major central bank is currently taking a deep look," Powell said at a Congressional hearing on Tuesday. "We feel that's our obligation, technology has now made that possible. I think it's very much incumbent on us and other central banks to understand the costs and benefits and tradeoffs associated with a possible digital currency."
When Disaster Strikes, Bitcoin Facilitates Organized Charity and Grassroots Giving
As Colin Harper writes for Bitcoin Magazine, the Bitcoin community has been behind some impressive borderless, philanthropic efforts. Read the full story to learn about the Pineapple Fund, BitGive, the Giving Block, and other initiatives.
Bitcoin in Space via the Blockstream Satellite
Bitcoin development company Blockstream has launched a free satellite service that streams the Bitcoin blockchain from space, enabling worldwide connectivity even without a traditional ISP. You can even pay a small amount of BTC to broadcast your own message via the satellite network.