Odd Lots
The Contradiction That May Explain Why Bitcoin Isn’t Doing Better These days
Factors that might be bullish for Bitcoin are also factors that would invite more regulatory scrutiny.
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At the end of his latest note, Credit Suisse Group AG strategist Zoltan Pozsar ended on a tantalizing conclusion.
The increased role for Bitcoin follows naturally from his framework of inside vs. outside money, which he discussed extensively on a recent episode of the Odd Lots podcast. Inside money is someone else’s liability. And as the Russian government recently learned with its foreign FX reserves — and the Canadian truckers recently learned with their money in the bank — access to that money can go away. Outside money exists independent of that web. Gold is outside money. And of course Bitcoin is outside money as well.