Inflation is Coming! Pay Me in Bitcoin!
BTC slides on dovish stance from the Fed.
I feel like I’ve learned more about market dynamics writing these articles than I did throughout my 4 year commerce degree (sorry, Windsor). It seems like the market was looking for an indication from Fed Chair Powell that he would implement yield control measures to keep the party going. Instead, Powell predicted an increase in consumer prices this summer — something investors fear will force interest rates up sooner than expected. I dug into the implications of higher interest rates, inflation and the adverse effects it might have on the stock market and other risk-on assets like Bitcoin in my last article so check it out if interested.
We’re not so concerned about short term Bitcoin price fluctuations and are happy to hodl an asset that has continued to make everything around us a lot cheaper over the years. In fact, Bitcoin weathered yesterday’s storm well relative to equities. I believe this is the difference between the backdrop today vs. in the past. The institutions who bought billions in Bitcoin this year have a long-term view vs. the retail flood we’ve seen in the past who were easily shaken out.
What we saw at the desk
We were happy to see that Bitcoin found a great deal of support in the mid-$40s last week and spent a lot of time above $50k this week. The feeling was reciprocated by our clients as we had another big week on the buy-side. The majority of the flow went to BTC followed by ETH and trailed off to other alts to a lesser extent.
An update on Bitcoin miners: No one is selling!
Pay me in Bitcoin.
We had the opportunity to play a small part in Bitcoin history this week! Our good friends over at Argo Blockchain — one of the most efficient Bitcoin miners in the world — gave us a call letting us know that they are going to start paying their CEO in Bitcoin; brilliant. Thankfully, we’ve quietly been offering our Bitcoin Savings program to clients for a few months now and it has been great.
Why is this a big deal? As far as we know, Argo’s Peter Wall is the first publicly-traded company CEO to be paid in Bitcoin. Argo has also allowed any of its employees to opt-in for receiving their salaries in Bitcoin. Hopefully this initiative by Argo will open the door for other companies to follow suit and offer employees the same.
There is a war on talent in the markets right now — every company is trying to attract and retain the best and brightest. This is why you’ve seen benefit companies like League excel — making benefits less boring. It’s why you’ve seen companies provide free lunches, drinks on Friday, ping pong tables, etc.. This trend is especially prominent in tech as the supply for talented engineers is especially desolate.
You can find a lot of early adopters at tech companies, thus Bitcoin is typically well understood. I think that there is an arbitrage opportunity for tech companies. I think that if candidates in the recruitment process learned that the prospective company offers them the ability to earn a certain percentage of their salary in BTC, that company would stand out. I also think that the company’s culture would propel and turnover would decrease. I believe it would be a prudent step forward and it’s just a matter of time — at least it’s no longer a “who will be first?”
We’ve noticed that Canadians’ are starting to take inflation a lot more seriously — think about the average person who feels like the opportunity to buy their first home is slipping away… We strongly believe that every company and individual can benefit by opting for better money.
Learn more/sign up for the Satstreet Bitcoin Savings Plan here and…
In case you missed it…
- $1M Bitcoin is coming https://www.coindesk.com/why-1-million-bitcoin-is-coming
- Satstreet Facilitates Argo CEO Salary Payments in Bitcoin https://www.financemagnates.com/cryptocurrency/news/argo-blockchain-ceo-starts-receiving-salary-in-bitcoin/
- PayPal To Buy Crypto Custody Firm https://finance.yahoo.com/news/paypal-buy-crypto-custody-firm-155527930.html
- Bitcoin to $Infinity https://markets.businessinsider.com/currencies/news/bitcoin-price-target-going-to-moon-world-currency-million-kraken-2021-3-1030149146
- 40% of Goldman Sachs clients reported exposure to crypto https://www.coindesk.com/40-of-goldman-sachs-clients-reported-exposure-to-crypto-survey
- The Bitcoin Bubble Myth https://www.forbes.com/sites/peterizzo/2021/03/04/the-bitcoin-bubble-myth/?sh=692de3be37c1
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Satstreet serves private Canadian clients including some of the largest Bitcoin mining operations, institutions, and high net worth individuals. Satstreet has raised initial funding from Round13 Capital and several prominent investors.