You. Been keeping on top of this story. Looks like SBF was robbing Peter to pay Paul. He used client deposits to cover his losses in his trading firm Alemeda Research. Not a good thing. Crypto will continue to go through these growing pains. Just like regular finance did in this country through the 1800’s to 1900’s. The more bad actors which get washed out the better for those that are left. That’s why I use Coinbase. It’s a US based company, trading on the markets, and they specifically do not lend or borrow against their customer deposits.
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Anyone paying attention here?
These stories may be of interest to those in this trading space:
Coinbase Global, Inc. (COIN) shares are moving higher Thursday, alongside several of crypto-related stocks, after a U.S. judge ruled that Ripple (XRP/USD) sales do not constitute an offer of investment contracts.
SEC Has No Jurisdiction Over Cryptos on Coinbase, Exchange Says in Lawsuit Response
Coinbase filed an answer to the SEC’s lawsuit early Thursday, arguing the regulator violated its due process and is reaching beyond its jurisdiction.
How long will the dollar last as the world’s default currency? The BRICS nations are gathering in South Africa this August with it on the agenda
If anyone has news relevant to the changes taking place in global currencies, POG, BRICS please post on the “FWIW - Focus on Global Economy” thread. Events taking place are all interrelated.
EZ
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Yes. I have been following those stories, and others too.
RE XRP, it’s being touted as a victory for XRP, however, it’s only a partial victory. The summary judgement order states for retail purposes, XRP is not a security. This decision should help Coinbase and other exchanges under attack from the SEC via enforcement versus regulation. They can argue the same for their exchanges and customers.
However, the order did not grant XRP relief on institutional investors due to institutional investors different status as to retail investors. The judge did not rule against XRP, but just denied their request for summary judgement. This fact means the SEC can proceed forward with its claims against XRP regarding institutional investors. XRP could still succeed at trial too. So it’s still up in the air.
More importantly, large financial institutions have embraced crypto and are pressing the SEC to allow certain ETF’s relating to cypto. https://www.cnbc.com/2023/06/15/blackrock-files-for-spot-bitcoin-etf-with-coinbase-as-a-crypto-custodian.html?&qsearchterm=crypto%20etf (just one example)
Since large institutions have embraced it, if anyone can force the SEC to back off and allow proper regulation to allow crypto to flourish, it’s these large financial institutions.
Then you add in BRICS action as well.
The dollar, IMO, at some point will lose its global standing and other options will take its place. IMO crypto has the best chance of making the jump to global acceptance due to its decentralized nature, the inability of gov’t to manipulate it, the universal acceptance (no currency conversions), and it’s ease of use. The blockchain is already embedded in multiple financial transactions we now use regularly. It’s not going to be difficult to add a BTC symbol to everyone’s accounts.
Our currency is already virtual right now. Not many people walk around with wads of 100’s in their pocket or store them in safes. Our currency is digital.
IMO if you are not a making crypto part of your portfolio, you will miss out.
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Thanks jak,
I don’t understand crypto enough to be comfortable with it, so I haven’t embraced it yet. Your explanations make it much easier to see it as a reasonable trading vehicle, but not as a tangible equity. Blockchain is crypto’s most attractive feature. I do feel apprehensive of how the IRS will treat it on 1040 filings.
EZ
Currently, the IRS treats is like any other capital gain or loss. If you trade it and earn a profit, you are subject to short term and long term capital gain/loss. If you mine it, like I do, you pay taxes on it as if it was straight income. The price at the time you received your mining reward now acts as your basis. It would be like someone paying you for your regular job in stock. The day you get it, sets your basis.
It’s funny because if I do end up selling some in the future for a profit (almost all of mine is profit), I will just tax a huge tax loss on my MDMN to offset the gain. 
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Jak your text reminds me of some of my early years in MDMN.
The stock that helped offset some of my capital gains along the way. My accountant and financial adviser remind me every year, “you know you still have some of that MDMN on the books”… “yea” “yea” yea" …“we just won’t talk about that”
is my standard reply… Maybe we bring it up next year…
And I agree with your earlier comment. : The dollar, IMO, at some point will lose its global standing and other options will take its place. IMO crypto has the best chance of making the jump to global acceptance due to its decentralized nature, the inability of gov’t to manipulate it, the universal acceptance (no currency conversions), and it’s ease of use. The blockchain is already embedded in multiple financial transactions we now use regularly. It’s not going to be difficult to add a BTC symbol to everyone’s accounts.
And On the BRICs subject of a gold backed currency.
One can read where India one of the main players, is getting cold feet.
(most likely pressure from its Anglo-Saxon hegemony, arms deals, computer chip deals, and other bones throw to her.) Something to keep a eye on in this fast changing world we ride upon.
C.s.
Are readers here aware that some states have recognized gold as legal tender for a very specific reason?:
23 US states move to reclaim gold and silver as legal tender
The shift is rooted in Article 1, Section 10 of the U.S Constitution, stating that “No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts.”
The state laws declaring the shift of gold and silver currency would eliminate capital gains taxes on sales of gold and silver in states that accept the two metals as legal tender.
The article cited above explains in detail the reasoning behind this move. Anyone that has physical gold and silver may want to redeem it for spendable fiat money at some point in the future when/if hyperinflation occurs. The desire and reason for this lawful recognition is easy to see. If POG goes 10X or more at sometime in the future a ready media of exchange is needed, i.e. fiat currency. Everyone should realize at this point that inflation in reality is a hidden undeclared tax, disguised and explained away as a monetary failure resulting in devaluation of the currency, i.e. US dollar.
India has been an interesting focus of discussions on this and other threads for some time. Does anyone remember Why India wiped out 86% of its cash overnight?
On 8 November, Prime Minister Narendra Modi gave only four hours’ notice that virtually all the cash in the world’s seventh-largest economy would be effectively worthless.The Indian government likes to use the technical term “demonetization” to describe the move, which makes it sound rather dull. It isn’t. This is the economic equivalent of “shock and awe”.(India scraps 500 and 1,000 rupee bank notes overnight - BBC News)
The Indian government likes to use the technical term “demonetization” to describe the move, which makes it sound rather dull. It isn’t. This is the economic equivalent of “shock and awe”.
India’s demonetization was an experiment as explained in the citied article above. Could a similar move be declared to recall large denomination fiat currency to implement a CBDC? I certainly hope not, but is it a possibility? I think it would be extremely difficult to recall and reissue demonetized currency; But as part of an excuse for declaring an experimental guaranteed minimum income for some disadvantaged segment of society it may happen. Will there be an experiment to reform our means of exchange domestically? Could making BTC the equivalent of gold and exempt from capital gains tax as some states have done for gold and silver be a solution? I’d like to imagine that someday it could. It would be a welcome change for many cryptocurrency traders/miners and “stackers”. We do need simplified tax reforms implimented.
Back in March 2021 Fed Chairman said, “Bitcoin is lacking key ingredients that would make it a useful currency. As a result, the crypto currency is essentially more of a substitute for gold than the dollar, Fed Chairman Jerome Powell said Monday.” Of course that sentiment has changed since then as the FED and Treasury continues working on instituting CBCD.
In the link provided by CS a couple of interesting comments were made ( a couple of interesting excerpts) .
(BRICS Summit sees new role for the bloc in a changing world — MercoPress 1)
Strategic autonomy is important for India. As is friendship with the United States, the West more broadly, for both economic and strategic reasons.
(Ashok)What we need is a neutral Currency, which nobody controls. Gold was such a currency. But unfortunately it is too hard to move, which makes it practically useless for international commerce.
… Gold standard was basically paper gold.The only practical solution is Bitcoin. But that is too young and immature today to take up that mantle. It needs to grow and become more stable. It needs the stability of Gold, for which it needs at least 10x marketcap and preferably 100x marketcap.(anand srivastava)
Did anyone notice when I posted this back in January?
In August 1971, when the Bretton Woods agreement was abandoned, crude oil was priced at $3.56 a barrel and the market price for gold was $42.85. Converting this into ounces of gold per barrel gives us a value of 0.0831 ounces. Today, the gold price of oil is 0.0417 ounces per barrel, roughly half. In other words, using gold Glazyev can demonstrate that the true cost to OPEC+ of dollarisation has been to halve the value of their export revenues since the Bretton Woods agreement was suspended. By accepting a new trade settlement medium tied to gold, this US enforced erosion of oil values will cease. And to compensate for the loss of oil’s value from the ending of Bretton Woods, the gold price in dollars would have to be double that of today at over $3,800…
(Auryn/Medinah - 2023 1st Half General Discussion - #141 by easymillion)
CS had posted a link on FWIW - Focus on Global Economy mentioned earlier, and here’s another article discussing what CS had just commented on.
BRICS nations forge a path towards a gold-backed currency, challenging the US Dollar’s dominance
India is the only country that has not shown interest in the plans to launch a new currency.
According to Ms Vazquez
In her opinion the move suggests that the BRICS nations are actively engaging in the restructuring of the international financial system, seeking greater autonomy and influence.
It is clear there are global changes in the reserve currencies used in international trade. Will CBCD move forward with BRICS creating its own International Trading rival to the IMF? The political conflict between the forces of Globalization and National self interest is unavoidable as the move to dedollarization from BRICS countries moves forward.
Some interesting news. https://www.cnbc.com/2023/08/29/first-bitcoin-etf-could-be-coming-soon-as-court-rules-in-favor-of-grayscale-over-sec.html
What about Glint and and Kinesis gold (KAU) as digital currencies? Will they gain traction?
Also, Kevin Freeman’s book - Pirate Money:
“The book is about money, the wealth gap, the Great Reset, Central Bank Digital Currency, and Chinese efforts to displace the American dollar. More importantly, though, it is about implementing a solution to provide Economic Justice for real people facing the severe challenges headed straight toward us all.”
Glint MasterCard -“With its mission to offer gold as a reliable form of money, Glint runs the world’s first gold-based savings and payments digital platform while offering multi-currency capabilities.”
IDK, I’d have to look into it. There is so much which occurs in the realms of finance, both traditional and new, that I’d need a few extra clones to wade through it all!
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If you haven’t found time to wade through it all, here are a couple of videos that may help gain a new perspective on all of it. I think everyone could gain from looking at the changes taking place with a new perspective.
I found both videos quite interesting & informative, even if overly simplified. Presented are lessons learned firsthand during Dalio’s lifetime. It’s much more than a simple history lesson. The world we know is changing. There can be no doubt to anyone with their eyes open and listening not to the legacy news, but listening to what people are experiencing. The world is awakening … again! It’s not the 1st time. The 4th turning is a recurring theme throughout history. Learn from history that what we are experiencing is new to us, but the pattern is clear throughout recorded time. New insights and vibrations become quite clear. Learn from others, lessons are being taught.
“Ray Dalio’s “Principles for Dealing with the Changing World Order” is a set of guidelines and insights for navigating the shifting global landscape.”
Perhaps you are familiar with the general theory of the 4th turning. (If not, you can look it up.) The general concept is that cycles reoccur at regular intervals at intervals of roughly a human lifetime. According to this theory we are in the 4th turning, again. There are larger cycles that govern the rise and fall of empires.
Dalio’s video is a simplification what is apparently occurring today in a greatly simplified fashion. Watch and learn as we are experiencing history in the making, Principles for Dealing with the Changing World Order:
(https://www.youtube.com/watch?v=xguam0TKMw8)
Key Sections:
1:33 - How I Learned to Anticipate the Future by Studying the Past
8:00 - Changing Orders
11:38 - The Big Cycle
18:26 - 500 Years of Big Cycles
18:45 - The Rise
26:16 – The Top
32:01- The Decline
39:39 - The Future
As an adjunct, be sure to view Principles for Success by Ray Dalio:
(https://youtu.be/B9XGUpQZY38)
I sincerely hope everyone on all our forum threads will take time to view these two lessons presented by Ray Dalio.
GLTA
EZ
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Jak, I don’t know either, but this discussion on reddit did provide some useful information:
(https://www.reddit.com/r/Wallstreetsilver/comments/p30wmu/kinesis_vs_glint_comparison/?rdt=41853)
How do you think these new Chinese indexes in today’s Reuters news will affect Bitcoin and Ethereum? I don’t own either one presently, but I have confidence these new indexes will have a positive influence in the large producing miners over time. Gold in US dollars may experience a retrace shortly as major Precious Metal Mining Funds are forced to sell off some of their more profitable holdings.
China firm launches stock indices to tap into rush for safe-haven gold
BY Reuters
— 4:23 AM ET 11/01/2023
SHANGHAI (Reuters) - China’s biggest index provider launched on Wednesday two gold-linked stock indices to cash in on surging demand for exposure to the safe-haven metal amid a slump in the local real estate market and volatile global markets.
The new indexes, launched by the China Securities Index Co, include shares of global gold miners such as Newmont Corporation (NEM) and Barrick Gold (GOLD).
“The indexes offer a new method beyond traditional strategies,” the government-backed index company said in a statement. “It provides the market with more tools to invest in the gold business, and can help households better manage their wealth.”
Spot gold has gained more than 8% so far this year, rising to an almost six-month high of $2,009 an ounce last week. In yuan terms, it is up more than 15% for the year so far.
Miners, which typically pay dividends, have also seen their shares rise, with an index tracking China-listed gold miners up nearly 15%, compared with an 8% drop in the benchmark CSI300 Index so far this year.
“Gold is the brightest asset at the moment… promising much better returns than Chinese property or the broad stock market,” said Shihua Duan, general manager of Shanghai Changer Invest. “Gold shines as a safe haven against the backdrop of the Ukraine war, economic woes and the Middle East conflict.”
The indices follow the launch of other Chinese gold-related investment products that offer exposure in a country where gold consumption in the first three quarters of 2023 climbed 7.32%. China Asset Management Co and Maxwealth Fund Management Co last month launched China’s first exchange-traded funds (ETFs) that invest in gold stocks. Another seven mutual fund companies have applied to launch similar products.
“Buying the gold bar is the safest among so many investment choices,” said gold investor Jack Liu, who spent 230,000 yuan ($31,425) on a gold bar in September.
($1 = 7.3190 Chinese yuan renminbi)
(Reporting by Jason Xue and Samuel Shen, in Shanghai and Summer Zhen in Hong Kong, and Beijing Newsroom; editing by Miral Fahmy)