The Hoot #23

Scatt's Seeds for Thought:

🌱 2 Pizzas for 10,000 BTC ($270m) 🍕

🌱 Desantis, The White House & Bitcoin 🇺🇸

🌱 Can Bitcoin Replace The Bond Market? 📊

🌱 Stocks & Bonds On The Blockchain 🧐

Meme of The Week

Year-to-date Market Performance:

• S&P 500: 9.53%

• Dow: 0.16%

• Nasdaq Comp: 23.97%

• Bitcoin: 61.70%

• Ethereum: 53.03%

• Scatt Capital’s Fortune Strategy: 21.07% (Since Inception: 16.73%)

• 7-Day Change in Crypto Market Cap: -$1bn

• Mortgage Rates officially hit 7%

• New Home Sales surged past expectations in April as builders slashed prices.

• Minutes of Fed’s May FOMC Meeting showed a continued forecast of mild recession later this year, followed by mild recovery. Officials also split on decision for more rate hikes.

• Pending Home Sales disappoint in April driven by higher mortgage rates

• The spread (difference) between the cost to buy and cost to rent in the USA is the widest it’s ever been, driven by higher rates & lack of housing supply

• PCE Inflation came in hot at 4.4%, much higher than the expected 3.9%

• Data for the Week Ahead: Memorial Day (Markets Closed); May Unemployment Figures; April Job Openings

2 Pizzas for 10,000 BTC ($270m) 🍕

Last week marked 13 years since the event.

In 2010, Laszlo Hayecz (below) offered to pay someone 10,000 bitcoin if they delivered 2 large pizzas to his house. At the time, 1 BTC was worth $0.0041, so 10,000 BTC was worth $41.

Who stepped up? 19-year old college student Jeremy 🙋🏻‍♂️ who bought & made the delivery himself. You’re now thinking ‘WOW.. well done Jeremy!’ Wrong ❌

Jeremy - who would’ve been worth $270m today - spent it on ‘Travel’. But that isn’t even the worst part…

Laszlo said he spent a total of 100,000 BTC ($2.7 billion) just on pizza in 2010 🥲

Ron Desantis, The White House & Bitcoin 🇺🇸

Ron Desantis (the governor of Florida) recently launched his 2024 presidential bid on Twitter, co-hosted by Elon Musk.

The cool part? Desantis promised to protect bitcoin should he be elected ⚔️

Lately, crypto has become a focal point in politics with senators & house members forming campaigns & strong opinions on the subject.

It’s definitely something to monitor as we get closer to the elections, and with the US being so far behind in the ‘crypto race’ 🏃🏻‍♂️

Can Bitcoin Replace The Bond Market? 📊

In 2022, the global bond market was said to be worth $133 trillion.

In portfolio management, bonds & gold are generally used as the ‘safer’ assets, with increased risk coming from stocks/equities.

As time has gone on, bitcoin’s volatility has dropped significantly & will continue to do so as supply levels flatten out at 21 million.

So, can Bitcoin eventually replace bonds?

Well, if it does then we’ve got a long way to go…

Bitcoin obviously doesn’t pay a yield the same way a bond does, but soon it might offer a similar level of stability & might be able to compensate for this through higher asset appreciation.

Stocks & Bonds On The Blockchain 🧐

The market cap of tokenized stocks & bonds has hit a new record: $225m 🤑

So what are these? It’s exactly how it sounds… stocks, bonds, etfs etc. except ON-chain (on the blockchain). We call them RWA or real-world-assets.

So instead of buying the tangible assets like gold or real estate, you buy a tokenized receipt that sits on an immutable and fully-auditable open-source ledger.

But why should we tokenize all these assets?

Using the blockchain allows for increased transparency; increased access; and increased efficiency through faster settlements & lower costs.

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See you next week 🦉

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.