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Monday, April 12, 2021

If Crypto was a country's GDP

If Crypto was a country's GDP

BTC/USD COINBASE:BTCUSD

Did you know?

The current "Crypto" market cap as around $2TN - there's a chart of @TradingView for this.

snapshot

What's interesting is - that if you look at Global GDP stats as per image above. You will see that if Crypto was an economy it would sit in between Italy and Brazil for size.

What Is Gross Domestic Product (GDP)?
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.

Look at the stochastic on the crypto market - shown here on a weekly timeframe .
snapshot

This indicator shows the strengths of : Total (Orange Histogram) and then Bitcoin in a lighter orange, finally alts in blue.
snapshot

Take a look at the larger Regression channel. There are a few warning signs here.

Let's go deeper...

You should probably get to know the Bank Secrecy Act, a nearly 50-year-old law that requires financial institutions in the US to help law enforcement agencies police money laundering.

The government could someday try to use the law to impose strict controls on how—and whether—certain blockchain-based currencies can be used. I know people will scream "They can't, Bitcoin , Crypto - it's de-centralized" and all the other good stuff! However, it's the government and they have several ways to make it work in their favour.

David Murray's argument
To tighten its grip on cryptocurrency, Murray said, the Treasury Department should broaden the BSA’s definition of a “financial institution” to include certain cryptocurrency “service providers” as well. While cryptocurrency exchanges and crypto-asset storage providers are already covered by the BSA, other important participants in blockchain systems remain outside the law’s scope , and that should change, Murray argued.


How The US Government Handles Its Massive Stash Of Bitcoin
The federal government's relationship with bitcoin has generated numerous headlines over the years, which is surprising, considering that the U.S. government is one of the largest holders of bitcoin .

The Forfeiture. gov site, which records Justice department administrative, civil and criminal forfeiture actions, should typically be the place to find out more about the total number of bitcoins held by the government. But, according to the Fortune report, there is a lag between the publication date of an online report and the date of seizure. Reports are also not archived online and paper copies are not made. Bitcoin addresses linking wallets to owners are also not available.

This is just some food for thought.


Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.

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