Daily Digest 12/28
Insight on the biggest stories of the day. “Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.”
American trend forecaster G. Celente urges to prepare for ‘financial disaster’ in 2022
We have had a rough end of the year with the current resurgence of Covid in America and the rising cost of goods due to inflation. According to trend forecaster, G. Celente thinks that we should prepare for a “financial disaster” coming in 2022.
During an interview with Stansberry Research, Celente touched on a scenario where the current inflation rates may be higher than we know and rising interest rates will be the cause of the crash. He also mentioned that the covid relief stimulus checks and constant money printing laid the base for a looming crash.
“When you look at inflation, the only reason the markets have gone up is the cheap money. All the cheap money artificially threw this thing up. All the cheap money is coming in from governments to prop it up artificially. So the whole thing has been artificial. My belief is when the Fed rate hits 1.5%, this thing goes down hard, big, and the biggest crash in world history.”
On the positive side of Celentes interview, he also said that gold, silver, and Bitcoin is the ideal asset class to dodge the current inflationary environment. Celente highlighted silver as well for its industrial use cases as well in the metaverse concepts.
Aave's Newest Market: Real World Assets
Aave is one the most popular and most used dapps built on Ethereum. They are an open-source and non-custodial liquidity protocol for earning interest on deposits and borrowing assets. The protocol currently has $26.8 billion in liquidity.
Now they have released a new market using real-world assets and not just cryptocurrencies. This will be done in partnership with Centrifuge, a company thats lets businesses tokenize aspects of their operations such as invoices that can now be used as collateral to borrow cash.
This partnership will bring 7 more markets to Aave which already supports 30 markets on its platform. The new markets will include New Silver (real estate bridge loans), Fortunafi (revenue-based financing), and ConsolFreight (cargo and freight forwarding invoices) for example.
"Knocking down barriers of entry and making DeFi accessible to all is part of the Aave Companies' vision, and we are excited to be fulfilling this through the collateralization of real-world assets, made possible by Centrifuge.” said Stani Kulechov, CEO of Aave.
Hong Kong: over $380 million laundered using crypto exchange, 2 arrested
Cryptocurrencies have been ridiculed endlessly for their part in money laundering whether it be from drug cartels or wealthy people trying to avoid paying taxes. It is always something that is possible if people know what they are doing it can be hard to crack down on.
On Dec. 28th the government of Hong Kong Special Administrative Region announced they had arrested two people for laundering $384 million. The brother and sister duo used bank accounts and exchanges to move around various cryptos. They were both in their twenties.
“A further investigation revealed that the two arrested persons had opened personal accounts between May to November last year at various banks in Hong Kong (including virtual banks) and a cryptocurrency exchange trading platform, and engaged in suspected money laundering by dealing with money from unknown sources through bank transfers, cash deposits, and cryptocurrency.”
Hong Kong is still working on its crypto regulation as opposed to China who has outright banned cryptocurrencies. They have promised regulations are coming and are also working on their own CBDC.
Another rough day for BTC as the price has dropped 3k so far today and the last few weeks as a whole as the world is still in shambles from Covid.
Once we saw the candles coming close to the line of support three times, as it did here, and based on the current market sentiment we could have assumed that the price may break downward again. If it breaks through that next line of resistance around $45k it will probably not be good news.