KPMG released a report describing bitcoin’s role in the ESG imperative representing a major narrative shift.
Tailwinds
We acknowledged the energy industry beginning to embrace bitcoin and ESG validation as a critical step on the path towards more institutional adoption in our B34RM4RK3T memo a year ago.
It’s refreshing to see BTC finally taken seriously through an ESG lens:
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Energy: renewable energy, demand response, recycled heat, and methane reduction
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Social: Payments, financial inclusion, Ukraine fundraising, and access to energy in rural Africa
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Governance: Bitcoin is a decentralized system that cannot be abused or misused by those in power or even individuals with ulterior motives.
Tyler Cowen concluded in a 2020 follow-up to his book on the Great Stagnation with an observation: “The gains from truly mobilizing the internet may in fact right now be swamping all the accumulated obstacles we have put in the way of progress”.
According to this chart from Raoul, Crypto adoption is increasing at a similar rate as the internet was during a comparable phase in its adoption cycle -- and even relative to web2 companies which launched the gig economy, crypto protocols are superior for trustless, incentive aligned coordination of pseudonymous people online.
But it’s not all sunshine and rainbows.
Headwinds
Fitch downgrades US debt. Could be nothing …until it’s something.
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US debt to GDP ratio expected to reach 118% by 2025 more than 2.5x the median for AAA rated companies
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Fitch also cites an “erosion of governance” which was a factor in its rating
The fallout of a reentrancy exploit could devalue CRV and threaten solvency of top Defi protocols as Egorov races to find buyers for his bags.
US DOJ still has Binance in its crosshairs. Allegedly hasnt filed charges due to concerns of a run on the exchange. Crypto split in two camps on this one: Binance is either fine OR it’s totally insolvent.
Macro
Earnings exceed expectations
…and fund managers lever up to chase rally
Treasury to borrow $1.85 trillion in Q3 and Q4 2023
Crypto
Bloomberg ETF analysts increase Bitcoin ETF approval odds
…and 6 issuers filed Ethereum Futures ETFs
MKR and COMP led rally in top Defi tokens prior to CRV exploit
Crypto x Culture
Pixar, Adobe, Apple, Autodesk, and Nvidia form Open Alliance for 3d content
Skulls of Luci on NG
Museum of Mahomes partners with D-O-M for on chain sports collectibles
Lvcidia staking season 2
Pudgy Penguin international endcaps