Newsletter Issue #26

September 2nd 2022

GM. This is Ponder Crypto.

Where we like our cryptos like our coffee.. Strong, black and decentralized.

This week's topics

🚔 FED Playing Thelma and Louise

💱 Crypto Stock Exchange

⛏️ When Bitcoin Rewards Run Out

📰 Month in Review

😂 Meme of the Week

🚔 FED Playing Thelma and Louise

There goes the FED back in our newsfeed...

If I had a nickel every time I read "don't fight the FED", I'd have a pocketful of nickels and would need to deposit them so that I could buy around 0.000074 Bitcoin.

Jerome Powell spoke at Jackson Hole and basically doubled down saying that the FED will be bringing the pain in order to bring down inflation.

They are still shooting for a 2% inflation target but I don't see how we can get back to that low of a level.

Now, that doesn't mean they wont REPORT a 2% inflation target has been reached at some point, but not before some wizardry has been done to their CPI formulas.

The FED is notorious for relaying their core message in between the lines but Powell started his eight minute speech by saying, “my remarks will be shorter, my focus narrower, and my message more direct.”..

Translated to, "buckle up people. Shit is about to get real around here."

Not financial advise but if you wanna dance with the devil, I'm predicting some significant pull backs over the next few months. Sell just about everything and be ready to buy it all back for cheaper when the FED signals a back pedal.

As they attempt to drive the economy off a cliff, we'll have to see if they reach their federal funds target or if they get pressured to slam on the brakes.

FTX is an easy to use crypto exchange where you can buy, sell, and store Bitcoin, Ethereum and other cryptocurrencies and digital assets such as NFTs.

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Create a NEW account using coupon code PONDER and receive a 5% fee discount on ALL your trades! 🙏

This is not financial advice. I am merely stating my own opinion on how I am perceiving the current market structure and conditions. Consult with a legal investment advisor and all the other good legal stuff that needs to be said.

💱 Crypto Stock Exchange

You know who loves crypto? Indonesians!

They love crypto so much they spent over 55 billion dollars in 2021 along in crypto transactions stemming from about 15 million unique users.

In a surprising move, the Indonesian government announced plans to open up the first all crypto stock exchange.

We've seen, crypto indexes, ETFs, trusts, but this is the first ALL crypto stock exchange.

This is just another bullet point on the side of global adoption and how crypto is not only leading the Fin Tech ("financial technology") revolution, but also pulling Trad Fi ("traditional finance") along with it whether they like it or not.

Go team crypto!

⛏️ When Bitcoin Rewards Run Out

A great question on the longevity of Bitcoin's model.

If there will only ever be so many Bitcoin and miners are rewarded new Bitcoin for maintaining the network, what happens when there are no more new Bitcoin to reward the miners with?

This was an early question I had as well and recently stumbled upon it again in the /r/Bitcoin subreddit.

Miners receive two types of rewards

1. Newly issued Bitcoin based on the current block reward.
2. Transaction fees.

Sometime around year 2140, the final NEW Bitcoin reward will be distributed to the miners.

However, miners will ALWAYS receive transaction fees for processing blocks every ten minutes.

What we're seeing is that as the block reward shrinks with every halving, the value of the transaction fees offset the reduction in newly minted rewards.

Image Posted by u/heypauet

There is no code maintaining this synergy but I believe that market forces will keep rewards near equilibrium because of the permanent scarcity and static deflationary fiscal model.

I almost confused even myself there.. Let me try again.

Basically, Bitcoin will be forever deflationary which will naturally drive up Bitcoin prices making the total transaction fees greater.

All this assuming adoption stays the same or goes up. and Bitcoin adoption is increasing in nearly every significant metric.

TL;DR - Bitcoin is number go up technology.

📰 Month in Review

Let's look at some top stories this month..

1. Asteroid found with enough gold, iron and nickel that would make every person on earth a billionaire.

Ponder Crypto's take:  We now know what Elon's launched Space car is likely flying to survey. As silly as this story is, the fact that this gigantic ball of shiny rock is out there is a constant threat to the fundamentals of gold as sound money. A threat that Bitcoin does not need to contend with.

2. Crypto platform Celsius files to return 100% of custodial money to users as it was not deposited with any return in mind.

Ponder Crypto's take: That would be dope. They have a small portion of my crypto in custody and I would love it back. Let's hope the bankruptcy judge bangs the gavel down on this request with a nod! All joking aside, the result of this request will be very interesting. If funds are fully awarded, that would make custodial solutions arguably that much safer as this will set a full distribution precedent moving forward even in the event of a bankruptcy.

3. The global cost to mine 1 Bitcoin currently ranges from about $4,000 to $142,000.

Ponder Crypto's take: That is a much larger range than I would have guessed. HOT TAKE INCOMING: There will be future invasions with Nations that have a plethora of natural energy sources. Might wanna lay low for a while Algeria...

Here are a couple more stories to wet your whistle.

• Paying with the Bitcoin Lightning Network is faster than the Visa Network
• Former President of the New York Stock Exchange, Thomas Farley explains that "in crypto, there is Bitcoin and then there is everything else"
• Crypto Exchange Founder Fled With $2 Billion Busted, Faces 40,000 Years in Jail
• Netherlands Arrests Suspected Tornado Cash Developer
• Michael Saylor and MicroStrategy are being sued for alleged tax fraud

😂 Meme of the Week

Image Posted by u/_CypherIO

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Disclosure: All content shared in the Ponder Crypto website, newsletters, video channels or any other medium are for entertainment purposes only and should not be received as legal or financial advice. We are not legal experts or financial planners so please, exercise proper due diligence and do your own research.