Howdy Crypto Prospectors!

You’ve struck gold with the Hodl Report, where we sift through the noise like a seasoned prospector and strike it rich with nuggets of pure, 24 karat crypto insights! ⛏️💰

In this week’s issue:

• Macro outlook and review 🌍

• Important crypto news from the week 📰

• Bitcoin vs. Gold Debate 🏆

• Trades & Portfolio 📊

• Meme Time 🤣

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Alright Hodlers, grab your popcorn, because the macro economy is flipping faster than a meme coin after an Elon Musk tweet! 🎢

After months of whispers, hints and finger-crossing, the US Fed finally did it - they cut interest rates by 0.5%. Sure, everyone was expecting some sort of rate cut, but the real debate? Was 0.5% the right move? Would 0.25% have been more cautious? Is anyone ever happy?

Well, whether you’re team “that’s too much!” or “cut faster, Jerome!” - the good news is, it’s happening. Lower interest rates and a big ol’ liquidity faucet signal a shift to the risk-on mentality we crypto enthusiasts love.

The Return of the Risk-Takers

With US Treasury yields falling, DeFi yields are primed to step up as the new shiny thing - again. But the real question remains: what’s the new narrative going to be this cycle? Will we see the rise of real-world asset tokenization (RWA)? Maybe decentralized physical infrastructure (DePIN)? Or perhaps the hottest buzzwords in the room: AI compute distribution networks? But also, it’s crypto, so something even we haven’t dreamed of yet might pop up and take the stage.

Short-Term Prediction: Don’t Get Too Excited About September…

Ah yes, September - the month where your portfolio tends to feel like it’s on a juice cleanse. Historically, it’s been a downer for Bitcoin and the wider market. But keep the faith! October is right around the corner, and it’s historically been the month that turns things around. It’s that classic last-minute twist where you realize the hero isn’t dead, and neither is your portfolio.

Mid-Term: The 4-Year Cycle Strikes Again

Look, we know the drill. US elections, Bitcoin halving, and a predictable bull-and-bear market rhythm have given us a fairly consistent four-year cycle. And, barring any major curveballs from the universe, it looks like we’re heading toward the up only portion of the ride.

Long-Term: The Big Picture

Now, if you’re still sweating the small stuff - remember, you’re in this for the long haul. Bitcoin and crypto have already proven their staying power. We’re early in this game, folks, so don’t get distracted by the short-term noise. Hold on tight - this asset class is just getting started. 🚀

1. Trump Buys Burgers with Bitcoin: Donald Trump made headlines by purchasing burgers with Bitcoin at PubKey, a crypto-themed bar in New York City, marking the first time a former U.S. president publicly used Bitcoin. When told by the event organizers that they had some gifts for him, Trump replied “Good, I want Bitcoin”.

2. MicroStrategy Continues to Buy More Bitcoin: Michael Saylor’s MicroStrategy has bought another 7,420 BTC for $458.2 million and is continually looking to acquire more. As of September 19, 2024, MicroStrategy holds 252,220 Bitcoin (currently worth about $15.9 billion), acquired at $39,266 per BTC

3. Bhutan Revealed They Hold Bitcoin: Bhutan has quietly amassed 13,011 Bitcoin, valued at $780 million, placing it as the fourth-largest government holder of BTC. The country’s Bitcoin comes primarily from sustainable mining operations powered by its abundant hydroelectric resources, a unique approach compared to other nations, which typically acquire Bitcoin through asset seizures.

4. Bitcoin Mine Closure Raises Local Electricity Costs by 20%: A Bitcoin mining facility in Norway, was shut down after ongoing noise complaints by residents, but its closure has left residents to shoulder the expenses, causing electricity prices to spike by 20%.

5. Ray Dalio Names Five Key Forces Shaping the Global Economy: At a recent Milken Asia Summit, billionaire investor Ray Dalio identified five interrelated forces shaping the global economy: rising debt levels, internal political conflicts, geopolitical tensions, climate change, and technological advancements. He emphasized that U.S.-China relations, Fed policy, and the economic impact of climate change are crucial to understanding future economic shifts.

6. Trump Family Enters DeFi Space with World Liberty Financial: Trump’s family, including Donald Jr., Eric, and Barron, have launched a DeFi venture called World Liberty Financial featuring a new token, WLFI. With the aim to distribute 63% of its tokens to the public, regulatory scrutiny is expected, especially due to Trump's involvement.

7. Binance Founder CZ to Be Released from Prison: Changpeng Zhao (CZ) is set to be released from U.S. prison on September 29 after serving a four-month sentence for failing to implement proper anti-money laundering controls at Binance. His return is expected to have major positive implications for the crypto world.

Bitcoin vs. Gold

The Showdown of the Century

You might’ve caught the recent Bitcoin-gold debate where Jack Mallers (Bitcoin’s hype man) went head-to-head with Peter Schiff (the ultimate gold bug). It was like watching someone try to explain to their grandpa why Netflix is better than VHS. 🤣

Peter’s two main points? Gold has history and intrinsic value as a component in things like electronics and jewelry. But is that enough to claim the crown, or is Bitcoin the new shiny champion in town? Let's break it down!

Bitcoin: From Digital Cash to Digital Gold

Bitcoin started as the future of digital transactions - a shiny new digital currency, designed to be used for everyday payments. But as the reality of slow transaction speeds and high fees set in, Bitcoin pivoted from “digital cash” to a digital store of value, much like gold. Taking a quick look at the top 4 convincing arguments from each side…

Why Bitcoin IS Digital Gold

1. Limited Supply: Like gold, Bitcoin has a capped supply (21 million), making it scarce and valuable.

2. Store of Value: Both globally recognized assets act as a hedge to protect wealth during economic instability or uncertainty.

3. Decentralization: Neither Bitcoin nor gold is controlled by any government, ensuring independent value.

4. Mining Parallels: Both assets are mined, though Bitcoin’s is digital and resource-intensive in a different way.

Why Bitcoin is NOT Digital Gold

1. Volatility: Bitcoin’s wild price swings make it less stable than gold.

2. No Track Record: Gold has proven its value for thousands of years; Bitcoin’s history is still too brief.

3. No Intrinsic Value: Gold has practical uses in industries, while Bitcoin is purely speculative.

4. Regulatory Risk: Bitcoin faces uncertain regulations, while gold is universally accepted.

Now, imagine we’re a few years into the future. Bitcoin has smoothed out its volatility, has a strong track record, and the regulators have come around. Here’s why Bitcoin might just be better than gold:

• Energy Conversion: One of Bitcoin’s coolest use cases? Unused solar or wind energy can power Bitcoin mining, preventing waste while helping stabilize electricity grids by absorbing excess energy.

• Efficiency: Easier to store, transfer, and secure.

• Programmability: Bitcoin offers programmability, unlocking even more potential use cases.

Still not convinced? Let’s talk logistics. Let’s make it simple. To store $1 billion in gold, you’d need a massive vault, armed security, and more insurance than you can imagine. Now picture $1 billion in Bitcoin - it fits neatly on a USB drive and you can secure it with a password. Talk about efficiency and portability!

So, is Bitcoin the new digital gold? The answer is leaning more toward yes with each passing year. And with all that energy conversion potential, Bitcoin might just become the currency of the future - one kilowatt at a time.

While the debate rages on, one thing’s for sure: the Bitcoin train is moving ahead, with or without Peter and the gold bugs.🚂

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The Hodl Report 10-10-10 Crypto Sprint 🚀

Exciting news, Hodlers!

We’re shaking things up here at the Hodl Report by taking our portfolio section and creating the 10-10-10 Crypto Sprint Challenge!

Starting next week, we’re going to take our current $10K portfolio and attempt (key word) to 10x it over the next 10 months. Sounds ambitious? Absolutely. But hey, crypto wasn’t built on playing it safe.

Where Are We Now?

As expected, the market’s making a solid comeback after the Fed’s rate cuts (yup, called it). Our portfolio is sitting comfortably in Solana, Render, and USDC, all waiting for the right moment to make our next moves and lock in some gains.

Why the Change?

Instead of just sharing updates on trades, we’re launching the 10-10-10 Crypto Sprint, because who doesn’t love a good challenge? Over the next 10 months, we’ll attempt to turn $10K into $100K by tracking our trades, strategies, and - let’s be real - probably a few mistakes.

Follow our moves in real time and see for yourself. Will we beat the market with smart trades, or would we have been better off just buying Bitcoin and hodling from the start? Either way, you’ll have a front-row seat to the action.

What’s Next?

Next week, we’ll be back with a more organized breakdown so you can follow our trades, strategies, and portfolio performance with ease. Get ready for the Hodl Report 10-10-10 sprint, and let’s see if we can make some magic happen!

Stay tuned, and let the sprint begin! 🏃‍➡️💰

Big thanks for making it to the end of this week’s Hodl Report! 👊

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Happy Friday!

Disclaimer: The content from Hodl Report should not be taken as trading, investment or financial advice or solicitation to buy or sell any assets. This newsletter is for informational and educational purposes only. Please be careful out there and DYOR (do your own research).