- The Eighth Wonder of the World – Compounding
- Building a base for the price of Bitcoin above $10k
- Cardano (ADA) Update
- Tweet of the Week (Monero making waves!)
This week on Money Talks, Friday at 9 AM PDT (noon EDT)
On this week’s episode of Money Talks, we’ll discuss the latest in the crypto markets and everything happening at Abra. Don’t forget to leave us a comment on Twitter to tell us what you’d like us to talk about. As always, we’ll 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/cQ8ntY-9Qc4
The Eighth Wonder of the World – Compounding
Our industry leading interest rate of 4.5% remains unchanged for Bitcoin and Ethereum. Our US Dollar rate is also an industry leading 10%. As always the dollar rate includes all supported stablecoin deposits as well as bank and wire deposits.
I created a chart here to show the impact of a 10% interest rate on my savings if I start with $50k and hold it for 10 years – or 120 months. As you can see my holdings increase over $85k to reach $135k total. That’s the power of compounding which Einstein supposedly referred to as the Eighth Wonder of the World!
As a reminder funds can be deposited into the Abra Interest Account via bank wire, ACH (US), cash at retail (where supported), transferred via external crypto wallets, or transferred from an existing Abra trading balance.
Some of you in the US may have noticed that we have a new wire service for making deposits into your Abra wallet. This new service allows for deposits of unlimited size. Withdrawals are available the moment the funds arrive in your Abra wallet with no delay. And of course, you can deposit funds directly into your Abra Interest Account to earn 10% on your cash.
We’ll be expanding this new wire service to all users globally in the coming weeks!
Building a base for the price of Bitcoin above $10k
Bitcoin has been around for almost 11 years or about 3,920 days. You might be surprised to know that it has now closed above $10k for the past 65 days for the first time in its history. Yes, that is a record for Bitcoin. Furthermore, Bitcoin has only been above $13k for about 40 days total, not consecutive of course. So this is all new territory for Bitcoin. As the supply has increased its market cap continues to climb, now sitting at about $200 billion. Bitcoin has been above $200 billion in market cap at some point in each of the past three years.
Consolidating above $10k is extremely bullish for Bitcoin. Honestly, I was expecting a bit more of a short term sell-off from the recent highs but my fellow HODL’ers just don’t want to sell. There is clear evidence that Bitcoin is being put into long term investment vehicles at the same rate that it’s being produced by miners. We’ve also seen evidence of declines in the amount of Bitcoin held on exchanges as investors move their Bitcoin to either interest bearing accounts like Abra or into cold storage. All of this is very bullish for the price of Bitcoin as the available supply will continue to dwindle along with this trend.
There has been some public pushback this week on the infamous stock to flow model that we’ve talked about here in prior newsletters and on my Money Talks show. Please remember that no model is perfect, most are garbage and some are useful until a better one comes along. For now, I’d say the stock to flow model is extremely useful and maybe a better one will come along at some point. For now, it’s one of the best I’ve seen. But we should always be willing to consider it with a critical eye.
Adding more fuel to the bullish fire is the fact that Bitcoin has still never come close to closing below its long term 200 week moving average shown here (see above courtesy of lookintobitcoin.com.) Each time it’s come close the trend line it has bounced relatively hard off that line. Time will tell whether this matters or not but it’s certainly interesting.
Cardano (ADA) Update
I’m thrilled to announce that Abra is now able to support ADA for trading, deposits, and withdrawals via the recent 2.0 Shelley upgrade amid a 40% price rise for ADA this past week. I’m pretty bullish on Cardano and its future utility and I believe that the competition with Ethereum is going to be fantastic for the entire smart contract industry in all of its use cases.
Upcoming developments promise to bring even more interesting features to Cardano. Where the Shelley upgrade was about decentralization, the upcoming Goguen upgrade adds the ability to build decentralized applications (DApps.) Clearly, they have some catching up to do and the question is whether they can ever catch Ethereum given the strong network effects they already have. Exciting to say the least!
Tweet of the Week (Monero making waves!)
Reported today: The IRS awards two $625,000 contracts to Chainalysis and Integra FEC to crack Monero. $XMR price today: Up 7% in 24hrs, volume ~$125M, highest trending coin on https://t.co/kvuCxSzBiq 📈
— LiveCoinWatch • Live Crypto Analytics (@LiveCoinWatch) September 30, 2020
How to drive up the price of a privacy protecting crypto? Leave it to the IRS to drive Monero (XMR) up 12.5% in 24 hours! Here’s one for the pure insanity files. The IRS is now in the hacking business. Good luck cracking Monero. The stealth signature system that enables private transactions in Monero has proven reliably unhackable to date. But hey good luck wasting more of my tax dollars on another exercise in futility.
See you all tomorrow (Friday) on the next Money Talks. The Revolution has begun!
Peace and Love,
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.