Markets

Aug 19th 2023 - ₹2,308,537.00

Year to Date - 61.12%%

Since Jan 1st 2022 - 38.24%

Aug 19th 2023 - ₹149,144.00

Year to Date - 44.39%

Since Jan 1st 2022 - 49.40%

Market Summary

Macro

• Crypto prices experienced a notable downward trend throughout the week, with the largest digital assets - Bitcoin (BTC) and Ethereum (ETH) - witnessing a decline of approximately 10%. Numerous altcoins registered even more substantial losses. This decline in crypto prices mirrored the broader downturn observed in global stock markets and other high-risk investment assets.

• China's central bank - PBOC- has unexpectedly cut policy rates, responding to credit problems and concerns about the property market. This move aims to keep the economy stable by injecting cash into the system. However, this is the second cut in three months and opens the door for a cut in lending rates this week.

• Foreign investors (FPIs) have put around Rs 3,200 crore into Indian stocks this month because of global worries and issues in China's economy. Positive corporate earnings and India's stable rates have boosted their confidence in India.

Digital Assets

• Tether Discontinues Bitcoin Omni Layer Stablecoin: Tether is discontinuing its Bitcoin Omni Layer stablecoin due to low user interest. No new tokens will be issued on this platform, but redemptions will continue for a year. Tether may reconsider if Omni usage increases and is also working on an RGB version for the Bitcoin blockchain. Competition in the stablecoin market has been intensifying, with PayPal and Binance launching their versions.

• Revolutionizing Bitcoin Mining: UK-based Quantum Blockchain Technologies (QBT) has developed AI-powered algorithms that can significantly boost the success rates of certain ASIC Bitcoin miners. In two years, they created "Method A" to improve miner efficiency by 10% and "Method B" to increase the probability of finding a winning hash by 260%. QBT plans to enhance existing ASIC chips with software AI, redesign ASIC chip architecture for Bitcoin mining optimization, and explore quantum computing for mining.

Interesting Finds

• Discover a World Rethought with Vitalik Buterin: On episode 342 of The Seen and the Unseen, Amit Varma and guest co-host Ajay Shah engage in a captivating conversation with the brilliant mind behind Ethereum, Vitalik Buterin, exploring a wide range of topics, from currencies to political philosophy, freedom to aging, and even why we need not fear those with power. This thought-provoking discussion is rich with insights that challenge your fundamental assumptions about the world. Listen here!

• Lux Ventures Q2 2023 LP Letter: On how human ingenuity & the combinatorial probability of ideas will ensure continued progress and is a cause for optimism - here.

Regards,

The BrownRice Capital Team

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.