A term from the commodity business comes to mind, washout. The washout price is the price paid for a shipment of spoiled grain or other commodity that no longer has value based on its original purpose (like being a food that can be eaten). The term is also applied when a producer or trader cannot make delivery of a commodity, so their delivery does not happen and is of no value. So, if worse comes to worst, what will be the washout price of Bitcoin?
During the 14 years since Bitcoin was invented, we have seen a system evolve into various types of cryptocurrencies and by mid-2022 there were more than 20,000 different crypto tokens. Meanwhile traditional markets took notice and the CME offered Bitcoin futures and then even options on these futures. In 2021 they added the latest wrinkle, mini Bitcoin futures. Amidst the current crypto winter, an overwhelming number of crypto token choices, are mini Bitcoin futures a good idea?
The crypto world is structured atop blockchain technology and for successful crypto ventures like Ethereum, a point has come where bigger has become less efficient and more costly. The issue is maintaining efficiency by scaling as Ethereum grows.
Turn back the clock and remember that last spring President Biden issued an executive order telling government agencies to figure out how to efficiently regulate cryptocurrencies. Yesterday we asked would crypto regulation have prevented FTX collapse. The question we pose today is would crypto regulation have prevented FTX fraud?
Crypto regulation is coming but would crypto regulation have prevented the FTX collapse and, for that matter, would crypto regulation have prevented fraud allegedly committed by Sam Bankman-Fried and others with client assets?
As noted in an article in Bloomberg, Tesla stock has never been so cheap when viewed from the perspective of its PE ratio and seems to have the potential to keep falling in value. Ever since the company went public in 2010 its shares have gone up and down but mostly up, based on investors’ belief that Tesla will dominate the electric vehicle niche long into the future. What is going on with Tesla and why and is Tesla a buy or a sell going into 2023?
Mr. Madoff came to mind this morning when we heard that Sam Bankman-Fried of FTX fame was taken into custody by Federal Agents. The SEC has issued a statement in a parallel civil complaint saying that there was massive fraud for years. So, was FTX just another Madoff Ponzi scheme or simply a business mismanaged by its owner?