One way to look at crypto from a macro investor perspective

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Stocks rallied last week, with the S&P 500 surging 5.9%. The index is now up 11.6% from its October 12 closing low of 3,577.03 and down 16.8% from its January 3 closing high of 4,796.56.

A big driver of the recent market move was Thursday’s cooler-than-expected consumer price index (CPI) report, which was followed by one of the biggest single-day stock market rallies in history. (More on the CPI report below.)

But with last week’s sudden and spectacular implosion of crypto exchange FTX, I thought I’d share some thoughts on cryptocurrencies and blockchain.

Ever since Bitcoin made mainstream news about a decade ago, I’ve done my best to read up on cryptos and blockchain technology. Unfortunately, I’m not sure I totally understand what the big deal is.

Arley Lozano talks during the launch of the Latin American Bitcoin and Blockchain Conference (LABITCONF) in El Salvador, in San Salvador, El Salvador November 17, 2021. REUTERS/ Jose Cabezas REFILE – QUALITY REPEAT

I believe blockchain represents a technological breakthrough, and I’m convinced there’s some value in being able to own and exchange digital objects that can’t be copied.

I’m just not convinced there’s an urgent need for any of this. If there were, I’d think there’d be much wider adoption. But the individuals and entities going all-in on cryptos and blockchain are largely detached from anything that matters to me.

That said, I’m also not convinced that…

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