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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Bitcoin’s hit $100,000. Congrats on the money, everyone!
It’s challenging to discern what’s on the horizon for crypto after this big round number, given the well-known and glaring problems with trying to figure out how much a bitcoin should be worth.
The CFA Institute has a guide through four valuation options: Total Addressable Market (what if every money user switches to bitcoin); Stock-to-Flow method (pretend scarcity always creates value); Metcalfe’s law (bitcoin is a social network); and the Cost of Production model (bitcoin is a derivative of electricity and computing-power costs).
They’re all boring, though. And they fail to capture the spirits animated when any number climbs to six figures from five.
This bitcoin milestone calls for a different method of analysis. One that’s more arcane, and probably equally reliable.
It was first developed in Renaissance Europe, saw a resurgence — or even a revolution — during the 18th century that created many esoteric offshoots still used today. After some diligent reporting, we chose to use the original Rider-Waite method, because it has withstood the test of time (and also is no longer under copyright).
That’s right: It’s cartomancy.
We went to a free online tarot site and hit a button, and picked the second set of results because they were funny. Here we go!
Draw one, representing Bitcoin’s past: The Three of Wands
The three of wands can mean expansion, progress, adventure and “overseas opportunities”.
Draw two, representing Bitcoin’s present: The Ten of Swords, reversed
This is a tricky one! On one hand, whatever is the opposite of getting stabbed with 10 swords should be good, right?
On the other: We found descriptions including “short-term gains”, “gullibility”, and “resisting an inevitable end”.
Science.HowStuffWorks.com, which for unknown reasons has a robust tarot card section, says it addresses the “danger of denial” and the “allure of the victim mentality”.
Draw three, representing bitcoin’s future: The Knight of Pentacles
One take on this card: “Hard work, productivity, routine, conservatism.”
Another: “Hardworking young man with a traditional, orthodox outlook. Utility. An honest, responsible person. Solid progress. Methodical approach to large goals. Financial consultant. Commitment, perseverance, and stamina. A dependable man, if considered a little dull.”
Looks like institutionalisation is in the cards!