Author: Linda Mckinney

Billionaire Stan Druckenmiller Prefers Bitcoin Over Gold in ‘Inflationary Bull Market’

Stanley Druckenmiller, the billionaire hedge fund manager, says that bitcoin is more valuable than gold in an inflationary bullish market. However, he said that gold would be better in a bearish market.

Stanley Druckenmiller: Crypto, Bitcoin, Blockchain

Stan Druckenmiller spoke out about cryptocurrency and bitcoin investing in a Saturday interview with the Sohn Conference Foundation.

Druckenmiller is the chairman and CEO at Duquesne Family Office LLC. Druckenmiller was previously a managing Director at Soros Fund Management, where he was responsible for funds with a peak assets value of $22 trillion. Forbes lists his net worth at $6.8 billion.

He stated, “If you think we will have an irresponsible monetary policy and inflation going forward,” adding that bitcoin is a good investment. However, gold should be avoided if it’s in the bear phase for other assets.

He stressed that he believes it to be true because he has been watching the markets for a long time. Druckenmiller stated, “I’m beginning to believe what I see.”

If we have an inflationary bullmarket, then I will definitely want bitcoin to be my primary investment.

He stated, “If I believed we will have a bear-market — you know, stagflation-type stuff — I would like to own gold.”

The billionaire said, “That’s my assumption going forward from here,” noting that his assumption of 85% is based on what he had observed.

The famous hedge fund manager, who spoke out about cryptocurrency investing, said that he uses “high-frequency signals” to make his decisions.

It seems that crypto and the Nasdaq have a strong connection.

He said that cryptocurrency’s future was uncertain. “It will surprise me if it isn’t a real force within our economy, say five years from now to ten years from now. And not a major disruptor.”

Druckenmiller said: “So, crypto is interesting.” But, the billionaire noted that Druckenmiller’s 69th birthday will be in a few weeks.

Although I am probably too old to be intellectually competitive with the young people in this area, I am certainly keeping an eye on it.

Goldman Sachs Reportedly In Talks With FTX For Bitcoin, Crypto Derivatives

According to a report by, Goldman Sachs is looking into derivatives trading using bitcoin and other cryptocurrencies as part of a possible partnership.

In an interview with Barron’s, Brett Harrison, president of FTX’s U.S. Division, stated that’multiple FCMs [futures Commission Merchants] have already committed to integrating technologically,’. “There are many large ones that you can probably name.

FTX is reportedly seeking a modification to its license from the Commodities Futures Trading Commission, which would permit the exchange to operate as both a cryptocurrency exchange (CryptoX) and as an intermediary for leveraged derivatives trade (FCM). This role is currently held, interestingly enough, by institutions like Goldman Sachs.

This is a clear sign of a dramatic wind change in institutions that would normally handle counterparty transactions with leverage. They are now switching to more experienced services. The report stated that FTX appears to be absorbing some market share from those who were historically considered direct competitors on Wall Street.

If FTX succeeds in this endeavor, it could threaten the removal of intermediaries like Goldman. FTX will provide derivatives in-house and not require the cooperation of any other financial institution. The Futures Industry Association has been a source of friction as it represents many intermediaries that would be affected by FTX. They fear that FTX will expand beyond cryptocurrencies to other markets.

According to reports, the FTX integration might include direct trading of futures contracts, intermingling clientele, a possible on ramp being provided to Goldman for access to the exchange or capital topping ups (stock options that increase equity positions for clients).

 

El Salvador Debt Risk Looms as Bitcoin Bond Has Yet to Launch

According to Moody’s, El Salvador is the nation that first tried Bitcoin as a national currency. It may not be able to pay the debt due to the country’s anticipated ‘Bitcoin Bond,’ which is still in development.

There are many sources that contradict each other regarding the number of investors who are interested in this bond. It has received no support while it is 50% oversubscribed by the nation’s finance minister. The clock is ticking, even though the government has yet to pass legislation that would allow the bond to be approved.

The bond was announced by Nayib Bukele, El Salvador’s President, in November. This comes just two months after Bitcoin became legal tender throughout the country. It is intended to raise $1billion: $500m in Bitcoin to finance the Treasury and $500m to support development of a ‘Bitcoin City,’ which will be powered by geothermal Bitcoin miner technology. The country currently holds just over 1,800 bitcoin, which is worth approximately $70 million.

The bond was originally supposed to go live in March but it has been delayed until September. It was the inopportune moment to launch the product because Russia’s war against Ukraine had already affected the price of Bitcoin. This was the nation’s finance minister at that time. Bukele suggested that the delay could be attributed to internal pension reform.

The delay, regardless of the reason, means that the Salvadoran government cannot access the much-needed funds they need. The worst national drop was in Ukraine, when the prices for its debt fell by 15.1%. Its benchmark bond 2032 yields 24%, a level that raises concerns about buyers defaulting.

It’s not surprising that El Salvador has a very strained relationship with the International Monetary Fund. It lends money to member countries that have balance-of-payment problems. The country ended talks with the IMF. They disapproved of El Salvador’s and the Central African Republic adoptions of Bitcoin. The former president of El Salvador’s central bank has stated that El Salvador’s relationship to the IMF is now ‘practically dead’.

According to, the president and the finance minister both maintain that there is no risk of default. These words are in direct contradiction to the views of Fitch and other institutions, who have both reduced El Salvador’s credit rating over recent months. Bukele for his part isn’t listening. The president has been well-versed in both the IMF and Fitch opinions.

Microbt Reveals Latest Bitcoin Mining Rigs – Machines Produce up to 126 TH/s With Custom 5nm Chip Design

The latest machines from Bitmain and Microbt show that Bitcoin miners are becoming more sophisticated. Bitcoin.com News previously reported on Bitmain’s new mining machines, which offer hashrate speeds of up to 255 TH/s.

The first was the S19 XP, which was revealed in November 2021. It boasts a hashrate rate of 140 TH/s and the second was S19 Pro+ Hyd., with up to 198 THP of computing power. Bitmain also revealed the Antminer XP Hyd. hydro ASIC unit. This unit produces a staggering 255 TH/s, according to the company.

The company has revealed new Microbt-brand Howsminer ASIC Bitcoin mining rigs. It expects to ship its latest series in the third quarter 2022. Although the devices aren’t as powerful as Bitmains new mining machines, Microbt’s rigs are still more powerful than those currently in production.

Microbt’s latest Whatsminer M50 series was unveiled at the Bitcoin 22 conference. The top-of-the-line machine features a fully custom chip design and 126 T/s computational processing power. Further, the Whatsminer M50S boasts a power efficiency rating (26 joules per trillion hash (J/TH)) and runs on 3,276 Watts (W).

This full-custom chip design was made using a 5nm process. It is an improvement on the M30S++’s 110 TH/s. Microbt announced a hydro-cooling mining system that can produce ‘240 THP of computing power at 29 J/TH power efficiency’. The Whatsminer M53 machine has not been shown or is not available for purchase on the Whatsminer website.

The M50S (126 T/s) rig currently costs $10.924.20 per unit, while the M50 (114 T/s rig) is $8,857.80. Referring to today’s BTC exchange rates, $0.12 per kilowatt hour (kWh) in electricity, a 110-TH/s mining machine will generate an estimated $10.48 per daily in BTC profits.

According to current data, the Whatsminer M50 series machines are more profitable at today’s Bitcoin prices. Microbt stated that it is available to support new bitcoin mining areas like North America. According to Microbt’s press release, “Microbt can produce and ship more than 30,000 pieces per months from its production site in Southeast Asia this fiscal year,” the company states.

Microbt’s COO Jianbing Chen stated that the M50 series will allow customers to enter the 2X J/T mining age and remain in power for ESG-friendly mining. Microbt’s machines will start shipping in Q3 2022, while Bitmain’s Antminer S19 XP Series is expected to be available to the public by July 2022.

Regulatory Uncertainty Is a Barrier for Wider Bitcoin Adoption

MIAMI BEACH (Fla.) – Uncertainty over how cryptocurrency regulation will be implemented in the future, especially in the U.S. remains a major barrier to wider adoption of digital assets like bitcoin, according to panelists Wednesday at one the biggest bitcoin conferences of the year.

However, speakers at the Bitcoin 2022 conference held in Miami Beach, Fla. were optimistic that regulators and policy makers would be more interested in understanding the technology and supporting innovation in the sector.

Many in the industry see consumers being able pay for services and products with crypto as a way to increase acceptance of digital currencies. According to a Checkout.com report, regulatory uncertainty is the main reason merchants have not started offering crypto as a payment option. Based on a survey of more than 3,000 businesses in 10 countries, most of which are online marketplaces and financial technology, the report found that regulatory uncertainty will continue as national legal frameworks have been slow and inconsistent in creating crypto regulations.

Mike Novogratz is the chief executive of investment company Galaxy Digital. He stated that Washington’s attitude towards cryptocurrency crackdowns has changed.

“The tone of the president’s executive orders has changed recently.” It was a shift in tone from being negative towards being balanced,” Mr. Novogratz stated Wednesday.

Last month, President Biden signed an executive directive directing federal agencies to report on digital currency and consider new regulations. The order highlighted the potential risks that cryptocurrencies pose for the economy, climate and national security, but it also pointed out the economic benefits of the currency, which is not the case with previous government pronouncements.

Bitcoin prices surged after the announcement of the executive order, indicating that the industry welcomed the government’s change of tone.

Novogratz is a former manager at Fortress Investment Group and an early investor of bitcoin. He said that he doesn’t expect any new crypto legislation to be released this year. He stated that despite the fact that politics is set up in a way that makes it seem like we will be in gridlock, the likelihood of them actually damaging things has decreased.

He stated that the shift in Washington’s tone was due to when the crypto community mobilized for the infrastructure bill, which was passed last year and aimed to increase tax enforcement on crypto transactions. Although the crypto industry was unable to amend the legislation, the united effort showed Washington’s growing influence and financial industry.

According to Mr. Novogratz, he called every senator he knew at that time. He said that it was a wake-up call because of the number of calls made against the provision by cryptocurrency advocates. They realize that this is a powerful voting bloc and often a single-issue bloc. Don’t mess with my bitcode.

Panelists also emphasized the importance regulators providing standards for cryptocurrency asset custodians. Henson Orser is the president of Komainu Holdings Ltd. He said that there has not yet been a framework for issues such as data entry and segregation fees.

Michael Shaulov is the chief executive officer of Fireblocks Inc., which builds tools to secure the storage and transfer bitcoins and other cryptocurrencies. He also stated that the industry was using best practices despite a lack standard regulations.

“I believe that most regulators…they are somewhat behind getting the point where they’ll actually create a standardization around it,” Mr. Shaulov stated.

Bank of England Says Crypto Assets ‘Present Financial Stability Risks,’ Bank Begins Sketching Regulatory Framework

The Bank of England (BOE), told the media on Thursday that it is preparing a regulatory framework to regulate digital currencies. The statements of the Bank of England (BOE) are derived from the Financial Policy Committee (FPC), which mentioned sanctions related to the ongoing Russia-Ukraine conflict. Financial regulators and bureaucrats around the world have been concerned in recent years that Russia could bypass economic sanctions through crypto assets.

The BOE statement on Thursday stated that while crypto assets may not be able to circumvent current sanctions at scale, such behavior highlights the need to ensure innovation in crypto assets is accompanied with effective public policy frameworks to…maintain broader trust in the financial system.

BOE says crypto assets could ‘Present Financial Stability Risks.’ Central Bank is Concerned about Stablecoins

The cryptocurrency economy has been criticized by members of the BOE for a long time. Andrew Bailey, the governor of Bank of England, raised concerns in mid-November about El Salvador legalizing bitcoin as a currency in South America. In December 2013, Sir Jon Cunliffe (the BOE’s deputy Governor for Financial Stability) stated that crypto assets could fall to zero.

Financial stability was mentioned in the FPC report that was released on Thursday. “The FPC continues its assessment that crypto assets pose no direct threat to the stability and health of the UK’s financial system. This is due to their small size and interconnectedness to the wider financial system,” the central bank committee stated. Further, the FPC added:

Crypto assets could pose financial stability risks if they continue to grow at the same pace as in the past.

Since the beginning of the Russia-Ukraine conflict in 2014, politicians around the world have either discussed, proposed or even implemented legislation to regulate and research digital currencies. The BOE also wants crypto assets to be under the same regulatory umbrella that traditional financial assets, according to statements from the FPC meeting.

The FPC also discussed stablecoins and how a major crypto asset without a reliable deposit guarantee might pose a threat. The FPC stated that a systemic stability coin that is backed with a deposit from a commercial bank would pose a risk to financial stability.

Warner Bros. to Launch Hybrid Physical and Digital DC Comics-Themed NFT Trading Cards

Warner Bros. plans to release millions upon millions of DC Comics-themed cards created by Cartamundi Group. These cards can also be tethered for redeemable non-fungible tokens (NFT), collectibles. Cartamundi, a manufacturer of board and card games, owns Ace playing cards. The announcement was published March 10th. It states that Warner Bros. will release hybrid collectibles through a new platform called Hro App. Further details are provided in the announcement that hybrid packs will be available for purchase starting at $5 and ending at $120.

Redeemable NFTs with DC Comics themes will be issued using Ethereum-based layer 2 (L2) protocol Immutable X. The DC Comics Hybrid Trading Cards will be available on shelves and digital wallets starting March 2022. Additional and limited-edition content will be added throughout the year. Warner Bros. noted that the DC Comics-themed trading cards will include the action movie ‘The Batman’.

This is not the first time DC Comics have released NFTs. The company released what DC Comics described as the ‘largest NFT drop’ ever during last year’s Fandome conference. In the past 12 months, Marvel, DC Comics’ competitor, has also been dropping Marvel supervillain and superhero NFTs.

Warner Bros. Executive: NFTs Give Fans a “New Way to Engage with Their Favorite Characters from the DC Multiverse.”

DC Comics also collaborated with Veve Collectibles to release NFT collectibles featuring some well-known comic book characters. Warner Bros. has been dropping NFT collection from various movies, such as the Matrix NFTs of the film “The Matrix Resurrections.” After Warner Bros. launched space jam NFTs in Miami, the Matrix NFTs have been issued.

“Trading cards has been a beloved hobby for many decades. Combining this enthusiasm for collecting and a custom NFT, is just brilliant. This program brings DC to fans in an way that’s never before done,’ Pam Lifford from Warnermedia’s Global Brands and Experiences division said during the announcement. This platform will allow fans to connect with their favorite DC characters and expand their interaction with other collectors.

Cryptocurrencies slide as investors seek out safe-havens like gold in the face of mounting Russia/Ukraine tensions

On Monday, cryptocurrencies were all in the red as investors turned to traditional investments such as bonds and gold due to rising tensions between Russia & Ukraine.

In the last 24 hours, more than $65 billion has been wiped out of global crypto. Investor risk appetite was reduced by tensions in Eastern Europe. Bitcoin and Ethereum were both lower on Monday.

Bitcoin fell 0.8% to $42,000 while ether fell 2.2% to $2,877. Etherhas has lost approximately 7% in the past seven days, as compared to bitcoin which fell by 1.1%.

Altcoins led the decline, with cardano and solana all falling more than 3% Monday. Cardano lost 3.45% within 24 hours, while solana lost 4% and 5.26 respectively.

Elsewhere in the world, US Stock futures fell while Europe’s Stoxx 600 was down 98%. Investors rushed to invest in gold and Swiss Franc during this uncertainty.

All this despite crypto advocates claiming that bitcoin and other cryptocurrencies are safe stores of value. As Michael Saylor stated last week: If investors aren’t ready to hold Bitcoin for a decade, they shouldn’t keep it for 10 minutes.

GlobalBlock analyst Marcus Sotiriou said that risk assets such as crypto and tech stocks are suffering from the uncertainty of war. He stated that President Joe Biden’s threat to shut down the Nord Stream 2 pipeline (which transports Russian natural gas from Germany to Russia in case of an invasion by Russia) had added a layer of nervousness.

Sotiriou stated that the pipeline supplies a large portion of Europe’s natural gasoline. If it were to be shut down, this could lead to higher oil prices and increase inflation.

He stated that high inflation was the reason for the Federal Reserve raising rate and could lead to a, due slow growth from aggressive monetary policy.

Crude oil prices rose Monday to $100 per barrel. European natural gas prices rose 5% on Monday, raising concerns about consumer inflation.

Some crypto analysts are more concerned about the market for 2022 than others, and claim it could be a bearish years. In an interview with Stansberry Research, Lyn Alden , investment strategist, stated that bitcoin is not expected to do well in the coming year due to its tendency to perform poorly following major bull runs. However, she pointed out that there isn’t much historical data to support this claim.

“Bitcoin’s major bull run historically – there is only a small sample of about four: 2011, 2017, 2017 and 2020. These occurred in rising PMI environments, which means that economic acceleration. She said that bitcoin’s price action has not been as strong in recent times because of the current period.

Goldman’s Bitcoin Skepticism Is Warning To Asian Banks

The huge FOMO trend emanating from crypto circles will make 2022 a difficult year for Asian banks.

Many institutions are making the leap, whether it’s because they fear missing out on the opportunity or make business-smart decisions. This is especially true in Southeast Asia where DBS has established a crypto Digital Exchange Platform.

Siam Commercial Bank has a 51% share of cryptocurrency trader BitKub in Thailand. Union Bank of the Philippines has plans to offer crypto trading as well as custodial services. So on and so forth.

Fitch Ratings and Goldman Sachs, investment giants, are both worried by all this. It’s not a good idea to wave the red “danger” flag, as the money’s trajectory is moving away from old-school payment methods like coins and notes. It’s more of a be-careful-what-you-wish-for vibe.

Fitch analyst Tamma Februaryrian notes that the upside to getting on board with crypto could be increased trading and custodial costs over time. As science fiction turns into financial reality, banks could gain competitive advantages and build new customer bases in the nascent field of service. It is not likely that the competition threats posed in wholesale clearing, settlement, and cross-border payment by fintech startups and crypto technologies will diminish.

There are risks as regulatory responses and crypto disruptions move faster than executive offices can adapt. Moreover, market infrastructure and safeguards may not be moving fast enough.

Febrian states that changes could increase compliance costs, or reduce existing/planned business activities, while tighter regulation helps contain financial and operational risks, giving potential cryptocurrency investors greater assurance. There may be greater risk for crypto engagement in areas where banks have less stringent risk controls. This could include money laundering or terrorism financing.

Febrian says that reputational risks can also stem from legal activity, such as if customers believe banks have implicitly supported crypto trades that go sour.

Another thing to think about is the widespread belief that increasing adoption of cryptocurrency will lead to rising prices. According to Goldman strategists Zach Pandl, Isabella Rosenberg, mainstream adoption of crypto assets can be a double-edged weapon. It can increase valuations but it will also likely increase correlations with other financial markets variables, decreasing the diversification benefit of the asset class.

This warning is contrary to the common wisdom that cryptocurrencies can be used for diversification. It’s worse than Jamie Dimon CEO of JP Morgan Chase calling cryptocurrency a ‘fraud and ‘worthless’. Warren Buffett called Bitcoin a “mirage” that doesn’t pass the currency test.

It has been easy for crypto people to dismiss such naysaying like the protestations made by analog-age thinkers. Goldman’s criticism makes mockery of crypto bulls who tee off any happening in El Salvador which made Bitcoin legal tender. Or whether Microsoft, Paypal, or Starbucks will accept it.

Other important changes are happening at the top monetary authorities around the world, from the People’s Bank of China (Beijing) to the Federal Reserve (Washington). The PBOC is the leader in introducing a digital currency for central banks, which the crypto-crazed crowd calls CBDC’s. Fed Chairman Jerome Powell is also moving in this direction.

Powell’s team had announced ten days ago that it is seriously considering a digital currency, or a Fedcoin. Markets were realizing that the long-held belief that crypto was a hedge against inflation was false, and the news came at the exact same time as the announcement.

The debate is raging over whether an Fedcoin or an e-yuan would be able to fortify or ban private crypto assets. China’s President Xi Jinping has effectively banned crypto mining and trading.

What about the Fed? Powell’s team is being cryptic about their intentions. Bitcoin enthusiasts know that the team of the Securities and Exchange Commission Chairman Gary Gensler could soon decide the future for crypto assets.

It’s difficult not to see the connection between what North Korea is doing and this. The biggest concern about crypto is its ability to make life easier for terrorist financiers, money launderers and tax evaders. Chainalysis, an advisory firm, stunned everyone when it revealed that Kim Jong Un’s hacker Army accumulated $400 million in cryptocurrency last year. This is a 40% increase over 2020.

The real number is likely to be much greater. It allows Kim to finance his nuclear ambitions and to slap the United Nations sanctions. Gensler’s phone must be ringing with panicked calls from the Treasury Department and top national security officials.

Goldman’s doubts about the normal supply and demand dynamics of cryptocurrencies should serve as a warning to Asia banks. The predictability that they usually apply to assets or services may also be lost.

Analyst Febrian says that, as of right now, “we believe recent crypto activity will not have major near-term ratings repercussions on Fitch-rated banks from Southeast Asia,” but continues to monitor developments as they occur.

However, we are still learning a lot about compliance to reduce risks and regulatory controls. This includes know-your-customer procedures. Credit rating agencies’ ability to assess a bank’s digital assets risks is also uncertain. New ones will emerge as innovation accelerates.

This is why Asia banks need to be very cautious about Goldman’s concern that crypto assets may not follow the same laws of financial gravity as other stores value.

Bitcoin could rise to $75,000 this year to top record high, bank CEO predicts

According to Seba, the CEO of a Swiss bank, Bitcoin’s value could almost double to $75,000 in 2017 as more institutional investors embrace the most popular cryptocurrency on the planet.

Guido Buehler stated that he believes the price will rise at the Crypto Finance Conference held in St. Moritz (Switzerland) on Wednesday.

The boss of the Swiss bank, which is regulated and focuses on cryptocurrency, stated that ‘our internal valuation models indicate an price right now between $50,000 to $75,000’. “I am quite certain we will see that level. Timing is everything.

Bitcoin’s value has fallen after it reached an all-time high of $69,000 in November. Its price fell below $40,000 Monday. This means that bitcoin is at a low point not seen since September.

Buehler was asked if bitcoin would surpass the record-breaking levels of last year. However, he said that he thinks so but stressed that volatility will continue to be high.

This week’s price drop was caused by rising Treasury yields and the possibility of higher central banks interest rates. Investors continued to sell risky, growth-oriented assets as a result.

According to Coin Metrics, Bitcoin dropped as much as 6% Monday and touched a low of $39771.91, At 5 a.m., it traded at $42,921.55. ET on Wednesday

After a week of poor trading, the cryptocurrency market has seen a decline. This was especially true for momentum stocks. Investors have begun to shift into more value and cyclical names as the U.S. Treasury 10-year yield spiked at 2022’s start. The 10-year U.S. Treasury yield rose to 1.8% Monday after closing at 1.5% in 2021.

Noelle Acheson from Genesis, head of market insight, said that bitcoin has behaved like a risk asset “on numerous occasions”

“When the market is jittery bitcoin falls. There are many signs that the market sentiment has been affected by the rise in the 10-year. This is bad news for any asset with high volatility cash flows. Bitcoin is liquid, unlike many other assets that have been contaminated by this brush and can therefore take more selling pressure without taking a big hit.

Buehler stated that he believes institutional investors will boost bitcoin’s price in 2022.

He stated that institutional money would likely drive up the price. “We work as a fully regulated banking institution. Asset pools are available that are ready to invest at the right time.

Buehler stated that Seba Bank had examined the technology behind cryptocurrency and determined that it was going to’redefine finance’ before seeking regulatory approval.

CNBC reported Wednesday that Bill Tai, a venture capitalist from California, said that the crypto market is experiencing a ‘yet other wobble’.

He said, “I don’t know when it will go back up but it’s coming back up,”

He said that cryptocurrency is at the core of institutional acceptance.