On this day eight years ago the first ever real-world cryptocurrency transaction took place. Wherever he is, Laszlo Hanyecz is probably kicking himself for parting with 10,000 BTC for two Papa John's pizzas.
On the other hand, had that transaction never happened, Bitcoin may have forever remained a cryptographic hobby. By realizing the first ever transaction, Laszlo was able to transcend what was then considered possible and change everyone's perspective on money.
Everyone, that is, except for a few elite holdouts. Professor Robert Shiller is one no-coiner who's opinion is widely respected. So his any-crypto blog post yesterday really stung the community.
Of course, if you read carefully, he isn't really bashing Bitcoin. He makes some valid points about the ICO market but I do believe that even the most hardcore crypto-zealots can agree with 93% of what Shiller is saying and possibly learn something from it.
Creating a new currency is not something that should be taken lightly. Give a monkey a choice between a $100 bill and a banana and he'll take the banana every time, not that anybody here is a monkey. Bitcoin, Litecoin, and Dash have already challenged the perception of money in the minds of many.
Over the next few years, we'll likely see attempts from more corporate institutions. Telegram and Kik are already working on their own prototypes but who knows, we could be looking at similar implementations from Facebook (NASDAQ:FB) or Amazon (NASDAQ:AMZN) really soon.
At the end of the day, it might not really matter as long as we don't lose sight of what's really important... are we able to get as much pizza as we need?
Today's Highlights
Mixed Stocks
Whole lotta Politics
Zuckerberg in Europe
Please note: All data, figures & graphs are valid as of May 22nd. All trading carries risk. Only risk capital you can afford to lose.
Traditional Markets
By the looks of it, the relief rally from the pause in the trade war may be over by now. If markets want to carry these incredible gains, they may need to find a new narrative. Perhaps, just the fact that they're still well under all time highs might be enough.
Still, despite the apparent buying mood in the United States yesterday, stocks are rather mixed in Asia and Europe this morning.
Geopolitics in Focus
The Inflation Report hearings in front of the Treasury Select Committee in the UK seemed to have given the Pound a nice sugar rush and managed to take the GBP/USD off the lows. It will be interesting to see if momentum carries on.
Other than that, the economic calendar is rather quiet today. So focus will likely be on world leaders. Many of whom are moving around quite a bit.
We have the President of South Korea visiting the United States today. Presumably, Moon Jae-in and Donald Trump will discuss the upcoming meeting with Kim Jong Un.
Emmanuel Macron will be visiting Vladimir Putin as well this week. Their topic of discussion will likely revolve around Trump's new policy towards Iran. A policy that Secretary of State Mike Pompeo laid out in a speech yesterday that some are calling silly.
Silly or not, Mike Pompeo's airtime (purple circle) seems to have sent Oil to fresh highs.
Over in Italy, things seem to be progressing as well, though it's not clear to what end. The Five Star Party and the League now agree that the Prime Minister should be a little-known professor named Giuseppe Conte, but he still needs to get the blessing of President Mattarella, who may or may not confirm the position.
Either way, this Italian thing is far from over. The two parties who are now joining in coalition seem likely to try and play hardball with Europe and we've seen these type of things have large impacts on markets before.
What Else?
Also, watch out for Mark Zuckerberg's testimony to the European parliament. This is likely to be a lot more fast-paced and in-depth than the American version. EU lawmakers are arguably more comfortable with technology than their American counterparts and have less time for evasion.
Also, as Zuckerberg denied the opportunity to appear in front of the UK's House of Commons, UK politicians have reportedly passed on a list of 50 questions they'd like to have answered by the tech giant billionaire.
The entire event will be streamed live on the internet from 18:15 to 19:30 Brussels time. This should be fun.
Dash = Digital Cash
ICYMI: Here is our latest crypto research paper: eToro.tw/Research-Dash (Spoiler alert: According to our estimation, and given the high use and network value of Dash, this coin is notably undervalued compared to other cryptocurrencies.)
Wishing you an amazing day ahead!
eToro, Senior Market Analyst
Disclosure: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.