From Abra’s CEO – This Week in Crypto – August 20, 2020

Today’s Topics:

• Abra… Better than your Bank! (Now generate 10% interest on US dollars and 4% on crypto)
• Changing of the Crypto Guard!
• Tweet of the Week

This week on Money Talks, Friday at 9 AM PDT (noon EDT)

On this week’s episode of Money Talks: We’ll provide an update on the crypto markets and give more details on the Abra Interest Account product. As always, we answer all your burning Abra questions!

Note you may want to update or install your Abra app before the show starts to get a head start on the demos we’ll be doing!

Join us Friday at 9 AM PDT: https://youtu.be/j3BYLpH-DEM

 

Abra … Better than your Bank?

Banks and money are the last of the legacy businesses that haven’t been put out of business and disintermediated by software and the Internet. Their time has come. Good riddance.

Let’s do a quick mental exercise. Let’s pretend you have $100,000. Let’s also assume that inflation is 2% per year. What to do with this money? (Hint: don’t rent a yacht and throw a party.)

First, if we leave all of our money in cash in a bank, what happens? With price inflation of 2% and currency inflation even worse, your money will be on a slow march towards being worthless over many years. After 25 years your account will still show $100k (given most banks now pay zero interest) but your money will be worth only $60,900 in today’s dollars. A net loss of about $39,000 due to inflation. Inflation compounds just like interest does! Woah.

Now, let’s assume we’re able to invest our money in an interest-bearing account generating 10%. Of course, let’s assume the same rate of inflation of 2%. After 25 years your account would show a huge increase to $1,083,470 and you would have the purchasing power of a whopping $684,847 in today’s dollars accounting for inflation. Wow.

So which scenario do I prefer? I clearly prefer the latter. That’s why I’ve put my money where my mouth is and have invested in the Abra Interest Account and will continue to do so. With the Abra Interest Account, I’m generate 10% on my US Dollar deposits and 4% on my Bitcoin and Ethereum deposits. I love getting my Monday morning messages on my iPhone that I have free cash or free crypto waiting for me in my Abra app. Of course, I just keep that money in the Abra Interest Account so the interest can continue to compound automatically.

It’s so easy. Just start your Abra app and click on the Interest account tab to get started.

Funds can be deposited via bank wire, ACH (US), cash at retail (where supported), transferred via external crypto wallets, or transferred from an existing Abra trading balance.

Here’s a video showing how it works:

Changing of the Crypto Guard

Up until now, it’s been the Crypto-OG’s that have led the charge. Many of these people are my friends and we should all be grateful for their efforts. However, if crypto investing is to become mainstream this needs to change. This change is now clearly underway.

While I personally cringe every time I see a David Portnoy Barstool Sports video there is no denying his impact on his audience. Now he’s moved his cringe-worthy videos to focus on Bitcoin and certain altcoins. Clearly he’s having an effect on the awareness of crypto with his audience. That’s good. Hopefully, he does this in a responsible way and not create pump and dump schemes that will land him and his company in unnecessary trouble.

Maybe you remember a few weeks ago when I hammered Goldman Sachs for their ridiculous commentary on Bitcoin. I even did an episode of What Bitcoin Did with Peter McCormack on this.

Well, it appears that it was all a clever ruse under the guise of “ignore what I say and watch what I do!” To that end, Goldman just announced that they have hired a Global Head of Digital Assets to build out their crypto team in Europe and Asia. This is big news and clearly, Goldman’s clients have demanded crypto product coverage and exposure. Goldman would risk losing clients by failing to meet new product demand and that’s something they simply can’t do. As I’ve said many times before banks and institutional investors will be the last to join the party.

Then of course there was this interesting ad from Galaxy Digital.  “In uncertain times, bitcoin is a hedge independent of the hegemony.” Not bad.

While print ads (or bus ads or even subway ads) are archaic and probably not the best place for marketing dollars in 2020 we certainly don’t mind if others in the crypto space are willing to spend money on this to help create awareness for all of us!

My favorite line: “…if you’re looking to capitalize on trends shaping “the new normal,” then consider investing in an asset that’s global, generational, and digital.”

In the meantime, this has been another exciting week for Bitcoin and crypto. Bitcoin briefly broke out of its ascending triangle to $12,500 before falling back to $11,860 and is up about 27% for the month. Another awesome run. If Bitcoin is going to meet my 2021 price prediction of $100K then clearly we’re in for quite a ride over the next 16 months.

Bitcoin is now re-consolidating higher around the $11,800 mark in what appears to be preparations for another attempt at $12k and then $13k.Ethereum also continues to ride the DeFi wave higher, re-consolidating near $415 in what could also be a preparation for another attempt at $450. The biggest risk to $500 ethereum is clearly network congestion as many exchanges are dramatically increasing withdrawal fees to address the super high gas fees for ethereum network transactions. Ironically, this is exactly what Ethereum 2.0 is meant to address. Apparently, proof of stake can’t come soon enough!

Altcoins on Abra continue to see some incredible gains. For the week ZRX is up 37%, BAT is up 37%, WAVES is up another 29%, and is now up 135% for the month, and SLS is up 19%.  At least ten other cryptos on Abra are up over 10% for the week

 

Tweet of the Week

Looking at #Bitcoin balances on exchanges: the last time exchanges saw this fast a decline in BTC holdings, was before Bitcoin’s bull run during the course of 2017.

This metric indicates growing confidence amongst #BTC Hodlers.

Find out more of my thoughts ⬇️
✒️@KevinSvenson_ pic.twitter.com/5j19Syw0Id

— Cryptowatch (@cryptowat_ch) August 20, 2020

Great thread from Kevin Svenson today on the correlation between exchange Bitcoin holdings and price run ups in Bitcoin. Kevin also tweets in the same thread on the 1 year hodl wave theory which describes the percentage of bitcoin holders that haven’t moved any bitcoin in the last 12 months. The higher the number the higher the chances for a bull run according to Kevin. We like that analysis!

See you all Friday on the next Money Talks. The Revolution has begun!

Don’t forget to follow us on Youtube, Twitter and Facebook to stay updated with the latest from the crypto world. 

 

Peace and Love,

Bill

 

Disclaimer: Abra Interest Accounts are issued by Prime Trust a Nevada Chartered Trust Company. Rates for Abra Interest Accounts are subject to change. Digital currencies are not legal tender, are not backed by any government, and Abra Interest Accounts are not subject to FDIC or SIPC insurance protections. Any opinions, news, research, analyses, prices, or other information provided here is a general market commentary and does not constitute investment advice. Abra does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions. Abra will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

 

 

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