📉 Banks are collapsing. Here's what's next 👀

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GM everyone. This is 2036, the crypto newsletter that pays you 💸

Today is Wallet Wednesday.

Yesterday, the US government announced they’re looking into securing $18 trillion of US banking deposits.

That’s a lotta money printing. So today, we’re rolling out our biggest prize to date: $100 in BTC to open a bitcoin wallet.

🤌 Our Top Picks

Stories to read if you’ve only got 1 minute

1/ Moody’s downgrades the US banking system as a whole

2/ As Western banks are failing, Chinese banks are soaring

3/ Indians are moving their funds from the US back to India

💡 Learn

Get smarter on crypto in 2 minutes

We don’t like it any more than the next guy. But the picture is pretty clear by now: banks in the West are not having the greatest of times.

The second and third largest bank failures in US history both happened in the last two weeks.

Hundreds more banks hold over $600 billion of unrealized losses on their balance sheets.

And the dominos are starting to fall.

You already know about Silicon Valley Bank. Over the weekend, Credit Suisse was acquired because $10bn of deposits were leaving the bank each day.

Yesterday, First Republic Bank was in freefall:

Banks are collapsing because they used customer deposits to buy government bonds that tanked in value as US interest rates went up 47x in 2 years.

Look at this chart. When it’s above the line, all good. When it’s below the line, not good.

Or as the Economist put it yesterday - the banks don’t actually have your money anymore.

The US central bank knows this, and as a result, is finding ways to secure $18 trillion of US bank deposits.

But it knows foreign banks are in deep shit too - because they also bought US bonds.

So it set up special deals (called ‘swap lines’) with the European, Canadian, Swiss, Japanese, and British central banks to keep their banks from dumping US bonds on the market.

At the same time, the Federal Reserve is saying that the US banking system is ‘robust’, a day after Moody’s, a rating agency, downgraded the entire sector.

Now, what happens if the US actually prints $18 trillion to secure deposits?

Probably inflation. And a lot of it.

Ray Dalio has talked about this at length in the past. That’s how great powers get out of debt - though they usually don’t survive the process.

Instead, those who win own hard assets.

And those who lose own currency, like dollars.

That’s why bitcoin is picking up steam. It crossed a 9-month high this week.

People increasingly see bitcoin as an alternative to the centralized financial system.

As banks faced bank runs over the weekend, bitcoin:

• settled $33 billion in 600k transactions

• issued 2,037 new BTC at a steady and predictable 1.8% inflation rate

• attracted 1 million new users

• generated $43 million for miners securing the network

Bitcoin is like a Swiss bank account in the cloud that can't lend out, invest, gamble, dilute, debase, freeze, or seize your assets.

It works all the time, everywhere in the world, and is unstoppable.

💎 We wrote a report on the top buys, sells and holdings of crypto wallets worth between $1.5 and $32 million. Refer 1 friend using this link and we’ll send over the report.

📝 Task

Earn $100 in BTC for creating a bitcoin wallet

If you don’t have a bitcoin wallet yet - a quick look at the headlines tells us that today is probably a good day to get one.

The task is simple: open a bitcoin wallet and send us your address to enter a raffle to win $100 in BTC (bitcoin).

If you already have a wallet, you can submit that too.

And if you’re looking for wallet recommendations, here are the best options out there:

• For offline security backup: Ledger combined with Cryptotag 

• For simplicity and security: Coinbase

• For desktop: Electrum

• For Android: Samourai

• For iPhone: Blockstream Green

• For a web wallet: BitGo

• For privacy nerds: Joinmarket 

• For security nerds: Casa

We’ll tally all the participants in a google sheet and mathematically choose a winner at random who’ll receive $100 in BTC.

For transparency, the sheet will be viewable by all and sent out to you in Friday’s email.

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Send this email to 1 friend and receive the top buys, sells and holdings of crypto wallets worth between $1.5 and $32 million. Use this link