INSANE NEWS: You Will NEVER EVER Guess Who Just Purchased A LOT OF Bitcoin, I Told You So

The Modern Investor
10 Mar 202430:08

TLDRThe video discusses the recurring patterns in cryptocurrency news, highlighting the recent news of Stanford University's endowment fund allocating 7% to Bitcoin. It also touches on the historical trend of wealthy individuals and institutions initially criticizing Bitcoin, only to later invest in it. The video further delves into the SEC's delay in approving Ethereum ETFs, the surge in MetaMask's user base due to partnerships with traditional financial platforms, and the Indonesian government's reconsideration of cryptocurrency taxation due to a significant drop in tax revenue.

Takeaways

  • 📰 Stanford University's BLYth Foundation has allocated 7% of its portfolio to Bitcoin, a significant move in the cryptocurrency space.
  • 🤔 History repeats itself in the crypto market, with news cycles often reporting on past events as if they are new.
  • 💰 Wealthy individuals and institutions have been known to publicly criticize Bitcoin while privately investing in it.
  • 🏦 Universities in the United States, due to their large endowments, have been investing in Bitcoin and other cryptocurrencies.
  • 🏦 Harvard, Yale, and Brown universities have been buying Bitcoin since at least 2018, indicating a trend among educational institutions.
  • 📈 The SEC has delayed decisions on Ethereum ETF applications from Black Rock and Fidelity, a common occurrence in the regulatory process.
  • 📈 The delay in ETF decisions is expected to continue, with a new deadline set for May 23rd, maintaining optimism for potential approval.
  • 📈 MetaMask, a popular crypto wallet, has seen a surge in new users, growing from 19 million to over 30 million monthly active users.
  • 🔄 The Indonesian government is reassessing cryptocurrency taxation due to a significant drop in crypto tax revenue.
  • 🌐 Countries around the world have varying approaches to cryptocurrency regulation, with some imposing high taxes to discourage usage or attract investment.
  • 🔄 The cryptocurrency market continues to evolve, with institutions and governments adapting their strategies and policies in response to market dynamics.

Q & A

  • What is the main theme of the video regarding cryptocurrency news?

    -The main theme is that history tends to repeat itself in the cryptocurrency space, with news outlets reporting on events that have happened before as if they are new, and the influence of wealthy individuals and institutions on the market.

  • What did the BL yth Foundation at Stanford University announce recently?

    -The BL yth Foundation announced that they have begun to invest in Bitcoin, allocating 7% of their portfolio to it.

  • How does the speaker feel about the repetition of certain cryptocurrency news themes?

    -The speaker finds it annoying that the same events are reported as new when they have happened before, and people tend to forget the past occurrences.

  • What is the significance of the news that universities are buying Bitcoin?

    -The significance is that it indicates a growing acceptance and investment in Bitcoin by established and influential institutions, which can impact the market and perception of cryptocurrencies.

  • Why did the SEC delay making a decision on the Ethereum ETF applications from Black Rock and Fidelity?

    -The SEC delayed the decision to allow more time for review and to seek public comment, which is a common practice in the regulatory process.

  • What is the impact of high taxation on cryptocurrency transactions in a country like Indonesia?

    -High taxation on cryptocurrency transactions can lead to a decrease in transaction volume and revenue, as well as discourage people from participating in the cryptocurrency market within the country.

  • How has the number of monthly active users for MetaMask changed recently?

    -MetaMask's monthly active users grew from 19 million to over 30 million between the end of September 2023 and January 2024, representing an increase of over 55%.

  • What factors contributed to the growth in MetaMask's user base?

    -MetaMask's growth can be attributed to partnerships with major financial platforms like PayPal and Robin Hood, as well as the introduction of features that allow users to convert digital assets into fiat currency.

  • What is the current stance of the Indonesian government on cryptocurrency taxation?

    -The Indonesian government is reassessing cryptocurrency taxation due to a significant decrease in crypto tax revenue, indicating a potential shift in policy to attract more participants in the cryptocurrency market.

  • What is the speaker's opinion on the ideal cryptocurrency tax rate?

    -The speaker believes that many people would not have a problem with a 10 to 15% tax on crypto, as long as the tax regime is fair and does not discourage participation in the market.

Outlines

00:00

📰 Cryptocurrency News and University Investments

The video discusses the repetitive nature of cryptocurrency news, highlighting how history often repeats itself within the space. It mentions Stanford University's Ble Foundation's recent announcement of allocating 7% of their portfolio to Bitcoin, a move that echoes similar actions by other universities in the past. The speaker expresses frustration with the lack of awareness among people about these recurring events and the hypocrisy of wealthy individuals who publicly criticize cryptocurrencies while privately investing in them.

05:00

🏦 University Endowments and Bitcoin Investments

The video delves into the financial practices of American universities, particularly their endowments, which are often used to invest in various assets, including Bitcoin. It points out the irony of universities charging high tuition fees while simultaneously investing in properties and cryptocurrencies, which contributes to the high cost of living for students. The speaker also references a documentary about a New York university's real estate investments and the broader issue of university endowments investing in Bitcoin and other cryptocurrencies.

10:02

🔄 SEC Delays on Ethereum ETFs

The speaker addresses the US Securities and Exchange Commission's (SEC) delay in making a decision on Ethereum exchange-traded fund (ETF) applications from Black Rock and Fidelity. The video suggests that the SEC's pattern of delaying decisions and seeking public comments is a tactic to buy time, despite the public's overwhelming support for such ETFs. The speaker also discusses the influence of large financial institutions like Black Rock on the SEC's decisions and speculates on the likely approval of the Ethereum ETFs.

15:03

📈 MetaMask's Growth and Partnerships

The video highlights the surge in new users for the popular cryptocurrency wallet, MetaMask, which has seen a 55% increase in monthly active users. The growth is attributed to MetaMask's partnerships with major financial platforms like PayPal, Visa, and Robin Hood, making it easier for users to acquire various cryptocurrencies. The speaker acknowledges the convenience of MetaMask but also cautions about the potential for tracking by these platforms, emphasizing the importance of privacy in cryptocurrency transactions.

20:06

💰 Crypto Taxation and Its Impact

The video discusses the Indonesian government's request to reassess cryptocurrency taxation, which has led to a significant decrease in crypto tax revenue due to the punitive tax rates imposed on transactions. The speaker criticizes the government's approach, suggesting that fairer tax policies could encourage more business and investment in the cryptocurrency space. The video also touches on the broader issue of countries trying to accumulate cryptocurrencies while discouraging their use through high taxes and regulations.

25:07

🌐 Global Crypto Policies and Their Consequences

The video concludes with a reflection on the global policies surrounding cryptocurrencies, highlighting the contrast between countries with favorable policies that attract business and those with restrictive policies that drive investors away. The speaker advocates for fair and reasonable tax rates on crypto transactions and suggests that countries could significantly increase their tax revenue by adopting more supportive legislation.

Mindmap

Keywords

💡Cryptocurrency

Cryptocurrency refers to digital or virtual currencies that use cryptography for security and operate independently of a central bank. In the video, the term is central to the discussion of various news events, such as universities investing in Bitcoin and the SEC's decisions on ETFs.

💡Bitcoin

Bitcoin is the first and most well-known cryptocurrency, often used as a benchmark in the crypto market. The video mentions Bitcoin's popularity and the historical context of its adoption by various entities, including Stanford University's endowment fund allocating a portion of its portfolio to Bitcoin.

💡Endowment Fund

An endowment fund is a financial arrangement where the principal amount is invested, and only the income or earnings are used. In the context of the video, it's highlighted that universities like Stanford have endowment funds that are investing in Bitcoin, indicating a growing institutional interest in cryptocurrencies.

💡ETF (Exchange-Traded Fund)

An ETF is a type of investment fund and exchange-traded product, traded on stock exchanges much like individual stocks. The video discusses the anticipation and delay surrounding the approval of Bitcoin and Ethereum ETFs by the US SEC, which would allow more mainstream investment in these cryptocurrencies.

💡SEC (Securities and Exchange Commission)

The SEC is a U.S. regulatory body responsible for enforcing federal securities laws, proposing securities rules, and regulating the securities industry. The video addresses the SEC's role in reviewing and potentially approving cryptocurrency ETFs, which is a significant event for crypto adoption.

💡Blockchain

Blockchain is a distributed ledger technology that records transactions across multiple computers in a secure and transparent manner. The video touches on blockchain venture capitals and the broader theme of blockchain technology in relation to cryptocurrency investments.

💡Staking

Staking in the context of cryptocurrencies refers to the process of participating in the proof-of-stake (PoS) consensus mechanism of a blockchain network by holding a certain amount of the cryptocurrency in a wallet to support the network operations. The video mentions the increase in Ethereum staking, which affects the supply and demand dynamics of the cryptocurrency.

💡MetaMask

MetaMask is a popular browser extension and mobile wallet that allows users to interact with the Ethereum blockchain and use decentralized applications (dApps). The video discusses MetaMask's surge in new users, highlighting the growth of interest in cryptocurrencies and decentralized finance (DeFi).

💡Taxation

Taxation in the context of the video refers to the policies and regulations imposed by governments on cryptocurrency transactions. The video criticizes excessive taxation on crypto transactions in some countries, such as Indonesia, which has led to a decrease in crypto tax revenue due to reduced activity.

💡Regulation

Regulation in the video pertains to the rules and guidelines set by authorities, such as the SEC, to govern the behavior of entities within a particular sector, like the cryptocurrency market. The discussion includes the impact of regulatory decisions on the crypto market and the importance of fair and clear regulations for fostering growth and adoption.

Highlights

Stanford University's BLYTH Foundation has announced the purchase of Bitcoin, allocating 7% of their portfolio to it.

This move by Stanford echoes similar actions by other universities in the past, indicating a trend of educational institutions investing in cryptocurrency.

The cryptocurrency space often sees history repeat itself, with news cycles reporting on recurring events as if they are new.

Wealthy individuals and entities have been known to publicly criticize Bitcoin while privately investing in it.

US universities, due to high tuition fees, have excess funds that they invest, including in cryptocurrencies.

Harvard, Yale, and Brown universities have been reported to be buying Bitcoin since at least 2018.

The SEC has delayed decisions on Ethereum ETF applications from Black Rock and Fidelity, extending the comment period.

MetaMask, a popular crypto wallet, has seen a surge in new users, growing from 19 million to over 30 million monthly active users.

MetaMask's growth is attributed to partnerships with traditional financial platforms like PayPal and Robin Hood.

Indonesia's crypto tax revenue saw a 62% decrease in 2023, prompting a reassessment of cryptocurrency taxation by the government.

High taxation on cryptocurrency transactions has led to a decrease in crypto activity in countries like Indonesia and New York City.

The idea that Bitcoin and crypto are too decentralized for governments and institutions is debunked by their investment and regulatory actions.

The speaker suggests that fair and reasonable taxation on crypto could lead to increased revenue for governments without driving away investors.

The video discusses the importance of understanding the significance of institutional investment in Bitcoin and the broader implications for the crypto market.

The speaker emphasizes the need for governments to create a welcoming environment for crypto businesses to thrive and contribute to the economy.

The video highlights the potential for countries with favorable crypto policies to attract investment and talent, leading to economic growth.

The speaker reflects on the cyclical nature of news in the crypto space and the importance of learning from past events to avoid repetition.

The video concludes with a call to action for viewers to stay informed and engaged with the evolving crypto landscape.