Today’s edition is brought to you by Bitcoin Depot - the largest Bitcoin ATM network in North America, operating ~6,500 kiosks.
GM. This is Milk Road, the crypto newsletter that's more exciting than finding a matching sock pair on laundry day.
Here’s what we got for ya today:
- Interest rates get hiked (again) 👀
- Billionaire VC talks about Bitcoin 🗣️
- Meta lost $3.7B+ on its metaverse project in Q2 🍪
Prices as of 10:00 AM ET
INTEREST RATES HIKED BY 25 BPS 👀
Yesterday was FOMC Meeting Day.
The FOMC is a group of (old white) people in charge of controlling inflation and deflation. They do this by adjusting interest rates, and deciding what assets to buy with the treasury.
They meet, talk about monetary policy, decide whether they’ll raise or lower rates, and then the head of the Fed (Jerome Powell, aka “JMoney”) makes a speech afterward.
And I'll be honest, I used to never pay attention to FOMC meetings. (didn’t even know they existed until about 12 months ago)
But now, I stay glued to the T.V. and watch them like I used to watch the news at 6 a.m. on a snow day to see if school was canceled or not.
Here’s everything you need to know about the latest FOMC meeting:
- It was a unanimous decision to raise interest rates by 25 bps. Rates now sit at 5.25%-5.50%; the highest level in 22 years.
- It’s “certainly possible” that the Fed will raise rates again in the upcoming months. The pace of rate increases will depend on how inflation evolves. (Btw - FedWatch predicts there’s a 24% chance rates get hiked again during the next meeting in September)
- The FOMC is no longer forecasting a recession. They’ve gone from “we need a recession to lower inflation” —> “we no longer forecast a recession” in the span of a few months.
So what? Interest rates haven’t been this high since February 2001.
Higher interest rates = more expensive to borrow money = less money being invested into assets like stocks and crypto.
And although the FOMC staff isn’t forecasting a recession, I trust them as much as my dentist whenever he says it’s going to be “painless”.
Next up, all eyes will be on the Q2 GDP report being released today.
*gulp*
LOCATE YOUR NEAREST BITCOIN ATM
When the Milk Man thinks of mass adoption, here’s what comes to mind:
- Seamless use of dApps📱
- Institutions diving in 🏦
- Bitcoin at your local grocery and convenience store 🏪
While dApps and institutions will take time, the Milk Man was able to stack some satoshis during his last trip to the local shop. And it’s all thanks to Bitcoin Depot.
They provide you with access to digital currency wherever you are. It’s as easy as depositing cash into the machine and having Bitcoin transferred to your wallet in no time.
And Bitcoin Depot has been making moves:
- They have over 6,500 kiosks throughout the U.S. and Canada, more than any other provider
- Fast transactions, live customer support, and an emphasis on helping customers avoid scams and fraud
- They went public earlier this month on the NASDAQ as the first crypto ATM operator on a U.S. market under ticker BTM
Find your nearest Bitcoin Depot ATM and see what all the hype is about!
BILLIONAIRE INVESTOR: “BITCOIN WILL RISE ABOVE FIAT”
Tim Draper is a legend in the investment world.
- He’s a billionaire VC who invested in companies like Coinbase, Twitch, Tesla, and Twitter. (we ain’t callin’ it “X” around here)
- He purchased 30,000 BTC from the U.S. government after it had been seized from Silk Road back in 2014.
- He started his own school, Draper University.
He’s the cool, rich uncle everyone wishes they had.
Well, Tim just did an interview on Fox and had a few interesting things to say:
1/ Bitcoin is going through the same curve the internet did.
Tim says the early days of the internet were a battle.
The government thought about taxing internet usage. Others wanted to ban it altogether.
Users were also very skeptical about using the internet. Some were scared of putting their credit card info on it while other people just struggled to get their internet to work in the first place.
(if you’re old enough to remember dial-up internet, you know the pain and can probably hear this picture…)
Fast forward to today, the internet isn’t banned or taxed and instead, it’s become an important part of our everyday lives.
Tim thinks the same thing will be true of Bitcoin.
2/ “Bitcoin will not only rise above other cryptos, but it will also rise above fiat”
Tim believes Bitcoin is just a better & safer technology than the current fiat systems in the world.
He says having a centralized government in charge of currency is inefficient and eventually the rest of the world will realize this.
Once they do, they’ll wanna hop on the Bitcoin Bus.
Tim ended the interview by saying he believes this is the most exciting decade we'll ever see in our lifetimes. (and he’s seen a lot of decades)
Bitcoin and crypto are transforming the way currency and commerce are done.
While other tech like A.I. is transforming how jobs and education are being done.
We’ll cheers to that, T-Dog.
*queue What A Time To Be Alive by Drake*
BITE-SIZED COOKIES 🍪
Backers dropped the Little Legends charitable NFT project this week. Partnered with Shoes That Fit, holders benefit from unique NFTs, private events, and rewards and get to help provide sneakers to those in need.**
Facebook’s metaverse division recorded $3.74B in losses during Q2. Losses this year now total $7.7B. Ouch.
A multi-billion dollar private banking firm in Spain launched a new crypto fund. A&G has $14B in assets under management and says its new fund will be open to professional investors.
Deloitte and Chainalysis are teaming up to help other crypto companies handle compliance challenges. They’ll combine blockchain tech and data analytics software to develop risk management technology solutions and services for crypto companies.
Lacoste is launching a new virtual store for its NFT-based loyalty program. NFT holders will be able to shop exclusive apparel and can participate in a scavenger hunt for weekly prizes.
**This is sponsored content.
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ROADER REVIEW OF THE DAY
VITALIK PIC OF THE DAY
— Milk Road Images (@MilkRoadImages)1:55 PM • Jul 27, 2023
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.
