Ep 20. Rich people problems
Luxury gets on blockchain. Crypto mining subsidizes renewable energy.
Woohoo! This is my 20th edition! I started writing on a whim without a plan. I knew I wanted to learn more about crypto and share with others interested and so I just started. Thanks for coming along on this ride. Be sure to invite others who might get a kick out of this too. There is room at the table.
Quick rant: I intentionally do not spend a lot of time talking about the price of bitcoin or other cryptocurrencies. Developments in this ecosystem are going to transform our lives, the products we buy and build. Sometimes, I feel like the price is a distraction. #DollarCostAverage #BuyTheDip #StackSats #HODL
Luxury goods get on blockchain
Over $600B of fake goods are sold each year. How would you feel if you unknowingly bought a fake $5,000 Rolex watch or $50,000 Birkin bag?
LVMH (ex Louis Vuitton), Prada, and Richemont (ex Cartier) formed the Aura Blockchain Consortium to provide customers with proof of authenticity and ability to track ownership and post-sale repairs.
This is huge for the pre-owned market for luxury goods. Maybe one day you could whip out a phone and scan watches, bags, jewelry to find if its real.
Binance US names Brian Brooks as CEO
Binance US is the American arm of the world’s biggest crypto exchange. The company has a big vision with projects in payments and stocks.
For example, the US stock market is closed more hours than it is open, Binance has tokenized Tesla stock so that you can buy and sell it 24/7/365
However, Binance US needs a steady hand to navigate complex regulatory environment. Brian is the crypto-loving former head of a bank regulator. Sounds like a win-win!
Venmo goes crypto
Do you remember writing checks or using cash to pay your nanny? Person-to-person payment solutions like Venmo and CashApp have changed the game.
Venmo is owned by PayPal. Last year, PayPal announced it’s grand vision for digital assets like bitcoin and stablecoins.
Now Venmo enables users to buy, hold, and sell a few cryptocurrencies. They have over 52 million users in the US. This is a big advantage over crypto exchanges like OKCoin who have to work hard to acquire new users
Crypto mining to subsidize renewable energy
Electricity from wind and solar is now cheaper than natural gas. However, it is not consistent. The wind is variable and sun only shines during the day.
Building bitcoin mines at wind and solar facilities would enable them to gobble up any surplus electricity. It could subsidize these investments.
Square and Ark Investment partnered on a research project exploring this topic. If implemented, it would be a win for the climate and the bitcoin network. It would end the narrative that crypto is bad for the environment.
NYDIG acquires bitcoin mine financier
The supply of bitcoin mining machines has not kept up with the surging demand. The price of machines has more than doubled in the past year.
Time is of the essence if operators want to capture record high bitcoin mining revenue. Arctos Capital provides financing for bitcoin mine investments and leasing of mining equipment.
This week, NYDIG acquired Arctos Capital. NYDIG provides a range of services including custody for institutional investors like Mass Mutual.
Did you know you could passively earn bitcoin by shopping?
This week my Fold card arrived! Fold is a bitcoin rewards debit card. I’ve been using the app to buy Amazon gift cards which I use for my regular shopping. Now, I have the card so it’s easier than ever.
I’m excited to #StackSomeSats (FYI: sats are the subunit for bitcoin like cents is to dollar except 1 bitcoin = 100 million sats)
Check it out: Fold
Did you know there are also crypto credit cards too?
I used credit card points to pay for my honeymoon at a 5-star luxury island resort. It was amazing.
But wouldn’t it be cool to get rewards for an appreciating asset? Enter crypto credit cards.
BlockFi, Gemini, and Crypto.com have or are launching crypto credit cards. Check them out and get in line!