Weekly Newsletter- Week of 6.13.2021
Inflation Burns Hotter
This week, all anyone could talk about was inflation, and why not? We’ve been experiencing the massive year over year jump in prices, reaching levels not seen since 2008. Even more, we’re on pace for inflation numbers to get as high as they’ve been in 25 years. For context, the Consumer Price Index (CPI) rose by 5% in May alone. We’ve seen prices increase across the board. Highlighted below, are some of the industries that have been hit the hardest:
Used Car Prices: +10%
Airfare: +8%
Clothing and Apparel: +3%
Food: +1%
We’ve been talking extensively about CPI on our social media, make sure you check out our post that breaks down CPI and why it’s an important number to follow for investors.
El Salvador Makes Bitcoin Legal Tender!
Announced during the Bitcoin summit in Miami, El Salvador voted to pass a bill that will make Bitcoin legal tender in the country going forward. Additionally, their president has already noted that Bitcoin miners will have access to their country’s natural resources, which includes geothermal power. Geothermal power is a form of energy stored in the Earth. Why is it relevant to Bitcoin? There’s a growing enthusiasm that geothermal power may be used to help mine a greener, more eco-friendly, Bitcoin. This move could potentially put El Salvador on the frontline for a more environmentally friendly type of cryptocurrency.
In an article a few weeks back, we noted the growing concerns over the environmental impacts of mining Bitcoin. Elon Musk cited environmental concerns as the main reason he would no longer accept Bitcoin as a form of payment for his flagship car.
Bitcoin, Coming to a 401k Plan Near You?
A small 401k provided known as “ForUsAll” will start offering cryptocurrency as an option in their 401k retirement plans. ForUsAll will be partnering with crypto exchange leader Coinbase, to allow its workers to invest up to 5% of their retirement into Bitcoin, Ethereum, Litecoin and other options.
This is a very small company making huge headlines with this game changing decision. Currently, there are virtually no cryptocurrency options available for retirement accounts. This news comes as more banks are adding crypto investing to their businesses. Despite the recent volatility, crypto is still on the mind of institutions and heavy hitters (Goldman Sachs, JP Morgan, Morgan Stanley are all showing increasing involvement in the space).