75bps on the table
Thanks for all the emails and DMs about crypto. I recently spoke at at an event in Queensland (mainly real estate) where I was asked dozens of questions about various coins and NFTs, but it's not my thing, so I don't blog anything about it here.
All I could venture at the event was that if I was 25 I'd probably be balls deep in the space, but since I'm 45 with kids and doing OK without it, it's basically not for me.
A significant part of the pitch was crypto was a hedge against irresponsible central banking and money printing, and you can't really argue with that.
However, the US Federal Funds rate going from 0 to 1 per cent has taken the global market cap in the space down from US$3 trillion to US$1 trillion this year.
Fair warning, there's a decent chance of a 75 basis points hike this month, and the Funds rate may reach 3 per cent next year (which is important because risk-free returns are much easier to come by).
Be careful out there.
