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- PayPal reflects crypto’s powerful potential & inevitable impact
PayPal reflects crypto’s powerful potential & inevitable impact
PayPal reflects crypto’s powerful potential & inevitable impact 🙌
PayPal's stablecoin (PYUSD) is a major step in integration between crypto and traditional financial markets. This move not only underscores the potential of crypto but also hints at a possible pendulum shift in the landscape of US crypto regulation that we have been warning of. While the crypto market experienced a period of relative calm in June with falling volatility, it's crucial to examine the broader context and long-term trends that define Bitcoin's remarkable performance and its unique characteristics as an asset class. Bitcoin remains the asset allocation panacea. It might take higher prices until some are willing to admit as much.
1) Bitcoin stands alone vs traditional asset-class peers
2) Bitcoin has decoupled vs equities
3) Bitcoin is the asset allocation panacea
Sound Money Capital is an actively managed fund for HNWs & family offices. Fund specific commentary and factsheet available on request
4) Stronger USD and Binance present price risks in H2 2023
5) PayPal’s PYUSD is a major vote of confidence for technology
6) PayPal could signal a pendulum shift towards more constructive US regulation
7) Price and reputational risks are easing ahead of 2024 halving
The simple reality is that crypto presents a technological upgrade on traditional finance. Sure, it is new, innovative and imperfect, but a truly scarce digital token like bitcoin is profound. As is the ability to open a USD bank account anywhere in the world and execute 24/7 peer-to-peer USD payments on stablecoin rails. The incumbents have a choice to adopt and innovate, like PayPal, or be left behind. The same goes for regulators who face competition abroad. We continue to expect a bitcoin spot ETF in the US over the coming year and a continued shift towards more constructive regulation that will pave the way for further adoption and integration with the traditional financial system. Crypto prices might have been in a relative lull in June but this will not last over the coming 12-24 months as we head towards bitcoin’s halving.
On the personal front, we have been enjoying the Californian summer on the beach. Spending an hour swimming every Saturday away from the noise is one of my favourite rituals of the week. Last weekend was the 60th Dwight-Crum Pier to Pier from Hermosa Pier to Manhattan Beach with 1200 swimmers
Have a great month ahead
Rob Price, CFA
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