Racehorses are an expensive vocational pursuit. But it is also a pretty good business for all those involved, such as the owners, the trainers, the jockeys/riders, the breeders and the various sportive federations.
Successful racehorses not only make a lot of money in prize wins - Winx an Australian thoroughbred was the highest all time earner with over US$ 14.5 million in 43 races - but they are even bigger money-machines after they retire.
There is clearly a combination of opportunistic reasons, greed, quest for power and cronyism as to why the bullshit economics behind the trickle down narrative - despite its historical failure and well documented criticism - was sold to the masses by liberal lobbies and special interest groups, in bed with the politicians, during the last decades.
It is a fact that from 2018, institutional money has started to flow into the crypto sector at an increasing pace. I wrote about it here and this was recently confirmed by Coinbase CEO. To remain bullish on the sector though, it is vital to understand whether this money inflow will continue in the short to medium term and what are the main reasons driving the inflow.
There are different reasons. I have analyzed in this article why bitcoin is by all means a digital version of gold and the reasons why the whole crypto sector is worth investing into. But the fact that an asset class is a good investment opportunity for any number of reasons, does not necessarily mean that that investors will buy it. There must be a catalyst to drive money into that assets class. Then we must understand why the big money, which is on the verge of what Ray Dalio defines a paradigm shift in investing, will be inevitably driven into precious metals and - my take - into the crypto sector as well.
Libra - Facebook´s digital currency project - has been a very popular talk lately. Even US President Trump tweeted about it. But few have looked at what may be the hidden implications of Facebook´s project.
Libra´s whitepaper is far from exhaustive. It is the first published version and what in the end may be left after the regulators have looked into it may be very different indeed.
All in all the whitepaper is well written and has been put together by a competent team of people, the Libra protocol describes a distributed blockchain which components are open source and can be
permissionless built. It is a very "politically correct" whitepaper with mandatory and comforting statements about "banking the unbanked" ...
Ray Dalio´s recent post on economic cycles and the coming paradigm shift is very well written. His usual capability of putting into simple terms complex concepts (if you are interested in understanding how the economic machine works have a look at his video here), coupled with his knowledge of economic and monetary history are very rare even among the most accomplished and successful macro investors. Even rarer - unfortunately - among policy makers, central bankers and politicians. Personally, when Dalio speaks, I always listen carefully and - more often than not - I agree.
But not this time, at least not entirely. Even Dalio´s flawless macro-analysis misses something. And it is something big, something very important. Possibly the biggest paradigm shift since the early ´90s and the internet.
The FATF (Financial Action Task Force) has recently issued a new set of guidelines which are applicable to the crypto sector, mainly with regard to Virtual Assets (VA) and Virtual Assets Service Providers (VASPs). But let´s bring some order into something that might otherwise be slightly confusing and which implications have generated some degree of alarm in the crypto community.
What is FATF
This financial task force was created back in 1989 by the then G7 ministries to set standards and promote the implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF is not a legislative body...
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