Are you tracking this thing in real time? In the last 24 hours, the thing has moved south by close to $2,000. Bitcoin is quickly losing what made it amazing to many: decentralization. Yes, even though it is decentralized technically, it has been centralized at causing pain to many! Lol.

Any prediction on how low it could get? $10,000 is now possible when you expect some margin calls and forced sales to be put(!) at $15,000. If that happens, expect massive dump and sell-off, and that will quickly push it below $10,000.

The problem with BTC is that it has nobody to speak for it since it is “decentralized”. Other currencies would have seen a governor of the central bank issue a statement. The biggest fear now is the exchanges: if some begin to go under, some assets will go.

With liquidity crises hitting, expect many ecosystems to pause withdrawals. Typically, when that happens, they fold since the legal cost at post-withdrawal becomes challenging.

From many angles, a global recession is coming. Russia is now reducing gas supplies to Germany. If they sustain that, the German economy will freeze and that will rattle the European Union economies. This time is not normal; be watching the Nigerian currency. With higher interest rates evolving on some of our loans, our total revenue may not even service our debts. #Prepare

While many economists agree a recession is likely coming in 2023, Wall Street veteran and Bitcoin bull Mike Novogratz has just given one of the most dire outlooks yet.

“The economy is going to collapse,” Novogratz told MarketWatch on Wednesday, adding, “We are going to go into a really fast recession, and you can see that in lots of ways.”

Novogratz, chief executive of crypto merchant bank Galaxy Digital, gave the interview just before the Federal Reserve raised rates by 0.75 percentage points—the largest rate hike seen since 1994. The rate hike came five days after U.S. consumer price increase unexpectedly surged in May to a 40-year high of 8.6%.

Novogratz pointed to the housing market, which is finally cooling down after a two-year hot streak, and inventories piling up as signs of a recession looming on the horizon.

“There are layoffs in multiple industries, and the Fed is stuck,” he said, adding that the central bank is in a position where it has to “hike [interest rates] until inflation rolls over.”

Novogratz accurately predicted in the interview that the central bank would lift rates by 75 points and that the market would rally on the news. After Fed chair Jerome Powell announced the rate hike, the Dow Jones Industrial Average rose by 1%, while the S&P 500 advanced 1.5% and the Nasdaq rose 2.5%.

Novogratz also predicted there would be a stock selloff in the next coming days, which happened right on cue. At 8 a.m. ET, S&P 500 futures were trading 2.2% lower, wiping out yesterday’s gains and plunging the benchmark further into a bear market.

“They are hiking into the popping of a bubble,” Novogratz said.

Comment on In and FB feeds

Comment: .” centralised at causing pain to many” lol. Sir I have a feeling you are very happy at this price range. Its a good entry point for a long term HODL if you ask me.

My Response: Not really – I am neutral. We receive many Bitcoin payments mainly from customers that cannot pay via USD or Naira. So, we have exposure but that is money we can afford to lose. People register for Tekedia Mini-MBA via it and I have used it as hedge in case BTC becomes $1,000. But if it falls, since it is money I can afford to forget, it has no impact. Fundamentally, I will not invest in BTC as I have explained here: it has no fundamental productive value. For example, no balance sheet and that makes it vulnerable.

Comment 2: I think only those who lack basic knowledge of economics will be shocked. At some point, few months ago, crude oil traded negative which means seller would pay for anyone offering storage but today, the same commodity is scarce and charging inflation. Crypto is no exemption to this push and pull factors. Remember it went from 30 to 3k in 2020 and then 68k+ just over a year and few months later.

My Response: Good point- But crude oil slump was not random or overly stochastic as the real source could be pointed out. Without Covid-19, that would not have happened. The problem with BTC is that its behavior is uncorrelated, unaligned and ambivalent to the fundamental construct of demand and supply in the real economy. Why is it falling on Saturday?  There is nothing you can do to prevent that. 

So, I do not think that BTC follows the basic elements of economics except in that niche area of irrational exuberance where people buy some crazy asset classes and hope that others will believe and buy. The crude oil price issue was fixed by opening up the economy. Right now, what can somebody do to help BTC except to ask more to buy! Buying and reselling software-currency while a fair capitalist framework may not advance society when you compare the value crude oil brings.

Comment 3: Ndubuisi Ekekwe , although you mentioned a little about it, but the questions in my head are these: what’s casusing the current downward spiral in BTC value? Is BTC value being affected by the current rising global inflation? What are the other fundamental factors that drives BTC movement, upward or downward? Because if truly blockchain has come to stay and with the upsurge in BTC acceptance as a means of payment transaction globally, then the future might be bright for BTC, regardless of the present situation. Lastly, when experts talk about presence of adequate structure to back BTC payment system up, aside a monetary institution like Fed. Reserve or central bank, what other things are they referring to? Thanks.

My Response: institutional investors are dumping it.… There are better assets. With interest rates high, you can invest in treasury bills, etc and have a good night sleep. Also, when rates go up, if not well managed, recession can kick in. BTC believers could lose their jobs and start offloading, pushing the value down. That cascade is why smart investors are getting out now. During recession, poor asset classes fade, BTC is considered a risky poor asset. I do not like writing much technically on this as it depresses many.

Good People, join us and welcome ShopAHome team to Tekedia Mini-MBA. ShopAHome.com is an ecommerce & emarketplace company, making it possible for people to shop great products right from their homes, offices and digital ecosystems: “Ours is a pure multi-vendor marketplace where customers make orders on our website, we will process, ship/ release products through our appointed courier partners (currently we have APIs with Fedex and DHL). We went live in August 2020 and already have almost all the big and known brands in the country in our books.” We invite you to explore this startup for your next purchase.

—Press release from the firm ——–

SHOPAHOME.COM – Nigerian Next Big Online Market Place, Serving Globally

Shopahome is a Global E-commerce company by structure and target operations as well as in startup activities. Shopahome’s desire is to help increase wallet shares in the growing market with increased online sales, by encroaching into the untapped corners of developing countries like Nigeria, especially as developing countries begin to accept the new norm and the general population begin to realize the benefit of shopping from the comfort of our homes; a culture the rest of the world has adopted with attendant values. Shopahome is poised to grow as people begin to imbibe this culture, while it hopes to match and sustain International standards and best practices as well as position for global business.

This will involve competing with the global giants. It’s a feat and a vision birthed by an astute Banker who has grown businesses from zero to Billions, Augusta O. Anyanwu-Egbom, though manned by Industry giant brains fetched from among the current leaders in the market. This makes the startup an interesting business to watch closely. The E- Commerce business is operating under a trade name – Shopahome …My Errand Gurus, approved by the Federal Ministry of Trade and Investment in 2020.

The uniqueness of this company is in their errand license which makes them commit to fetch for their customers anything at all even when it is not yet on display on their website. AUSTOLA INT’L LTD is the corporate owner of the Shopahome trademark. Austola Intl’ is a company incorporated in Nigeria and in the United States as AUSTOLA INTERNATIONAL LLC being one of the defining factors of any global business. The company has both Nigerian and the US Government approvals to carry on the business of general contracts, supply of all kinds of goods and services, general merchandise, procurement of all sorts of goods, export and import trading, marketing, sales and distribution of general goods and services, commission agents, manufacturer’s representatives, E-Commerce, export promotion, advertising and logistics services etc.

Explaining further on the readiness of the business to serve global customers, the Group Head and Company’s Managing Director, Jubril Ahmadu said the company is poised to use the opportunity to project vendors’ products for increased patronage and in collaboration with some institutions who do bulk purchases which could add more value to sales turnover / patronage of vendors’ products while giving special attention to the B2B / B2C sales windows.

“Ours is a pure multi-vendor market place where customers make orders on our website, we will process, ship/ release products through our appointed courier partners (currently we have APIs with Fedex and DHL). We went live in August 2020 and already have almost all the big and known brands in the country in our books. The rest of the work would be to keep the path of strong foundation through our Management and staff support, create publicity about us using the necessary tools. We already have Social Media / Marketing Team in place to enshrine our brands in the minds of the public as well as Call Center Agents dedicated to excellent service delivery, who follow through on our customers and prospects while building trust which is vital in the online market place”.

Shopahome has built a strong technology base that would optimally serve their growing community in Nigeria and in Diaspora.

Shopahome.com is that market place calling for our watch. Visit Shopahome.com or call 01888SHOP for more.

Edekee makes it possible for you to buy what you see on video without a need to leave the frame. See it, pause and buy. Those shoes, books, laptops, etc. Tekedia Capital was the first institutional investor in Edekee.  The company will attend the IOT West Africa conference and exhibition taking place on the 21st- 23rd of June in Lagos, Nigeria as it gets ready for full launch.

Business owners, manufacturers, and content creators: connect with Paul Onaodowan, and Mavino Michael and see how Edekee can help your business mission. They are building a native video-shopping system which will make it possible for Nollywood movies to include your products, so that as people watch the movies, they can pause them, and buy your products.  How many times have you seen those nice products, in videos, and you wish you could buy them right away? Edekee will fix that friction using their US-patent pending technology.

Tekedia Capital >> making friends with the best innovators. Join our syndicate and help to support the companies of the future.

It is official: Peter Obi and Rabiu Kwankwaso are exploring a potential coalition which will make their two parties – Labour Party and New Nigeria People Party (NNPP) – come together. Apart from Buhari and maybe two other people in the North, Kwankwaso has unrivaled electoral value. When he moves, political battalion follows: “It is true we are in talks with Peter Obi and a committee is working to look into how to form a merger between us. Friends and family are being up and doing talking about the merger arrangement,” Mr Kwankwaso.

If this happens, this will become an offensive playbook, not just defensive. The implication will be that NorthWest opens up for the duo. They already have the largest geopolitical zone in Nigeria – the YOUTH.

A real merger is not possible due to  timing; it is too late to dissolve or form a new party now for the 2023 elections. But they can have a coalition where the two parties decide on who to vote for in each contest.

If INEC keeps this game free and fair, Nigeria can have a great 2023. APC is strategizing. PDP is doing the same thing. NNPP/LP combo are possibly coming together. May the best vision win for Nigeria!

(Meanwhile, Obi and Tinubu have selected, respectively, Doyin Okupe and Kabiru Masari as vice presidential placeholders. PDP, we believe, has actually made the final decision on Delta State’s governor, Okowa)

The presidential candidate of the New Nigeria People Party (NNPP), Rabiu Kwankwaso, on Saturday, said his party is discussing with the Labour Party and its presidential candidate, Peter Obi, on the possibility of forming a coalition for next year’s general election.

“It is true we are in talks with Peter Obi and a committee is working to look into how to form a merger between us.

“Friends and family are being up and doing talking about the merger arrangement,” Mr Kwankwaso added.

The merger is important because as you can see both the ruling All Progressives Congress (APC) and the opposition Peoples Democratic Party (PDP) did not pick their running mates from the South-east, Mr Kwankwaso said.

Mr Kwankwaso’s NNPP has a large following in the north of the country, particularly the north-west while Mr Obi recently defected from the PDP and joined the Labour Party. He has endeared himself to large youth following in the south of the country.