This week, Coinbits launched Send Money, a new feature allowing instant, free cash or bitcoin transfers to anyone. The best way to orange pill people is to simply send them some sats as a gift. If you use Coinbits, you ensure they get a user-friendly first experience with bitcoin. Give it a try now!

BITCOIN BOX SCORE

Exchange Rate: $62,260
Market Capitalization: $1.23T
Hash Rate (90 days): 598.6 EH/s
Transactions (30 days): 15,777,503
Network Fees (day): 14 sat/vB
Bitcoin Dominance: 54.73%

What do these numbers mean?

If bitcoin has already won, why are people still using other blockchains, and even creating new ones?

The reason is that one of the innovations behind bitcoin is a new data structure which has become known as a “blockchain”. Theoretically, this data structure could have other use cases besides serving as a decentralized ledger of monetary transactions.

This is misguided, however. First, the reason for the invention of the blockchain data structure was to solve the problem of creating a digital bearer asset. For other forms of record- keeping, other data structures are superior.

Secondly, any application that requires a permissionless, decentralized money network can use bitcoin itself as its mechanism of value exchange.

Advancements in “layered solutions” like the Lightning Network, Ark, and Fedimints enable bitcoin to be applied to wide range of applications beyond simple transactions. 

This includes complex systems that challenge the notion that bitcoin is only suited for financial tasks. 

To unlock this potential, developers will need a broader understanding of how bitcoin works. Investors will need to adopt some of bitcoin’s foundational tenets like decentralization, neutrality, and predictability, which are integral not just for creating a new form of money but for the potential re-architecting of various digital and social structures.

To dive deeper into bitcoin's design methodology and why building on bitcoin is better than alternative protocols, check out this excellent new paper by Axiom called The Bitcoin Stack.

NEWS

📈 Inflation still top concern for Americans

President Joe Biden attempted to highlight positive economic trends in his State of the Union address, claiming that inflation has gone down and wages have gone up, suggesting that Americans should feel optimistic. However, despite these improvements, a new Gallup poll indicates that inflation remains the top economic concern for Americans, suggesting that public perception has not aligned with the administration's positive messaging.

Who are you going to believe, the President, or your own lyin’ eyes?

March's annual inflation rate of 3.5 percent is higher than the average rate in every single year between 1991 and 2021, except for 2008.

🚨 SEC sets its sights on Robinhood

Robinhood's cryptocurrency division received a Wells notice from the SEC, signaling potential enforcement action for alleged securities violations related to its crypto operations. This follows similar actions against large platforms like Coinbase and Kraken, indicating a possible long legal battle for Robinhood as it contests the SEC's claims.

Is there anyone in the industry the SEC isn't targeting right now?

In addition to Coinbase, Kraken, Consensys, and others, it seems the SEC is going against any "crypto" firm besides those that are bitcoin only. Jake Chervinsky concurs:

🗳️ House votes to overturn SAB 121

House lawmakers voted to overturn an SEC bulletin on digital asset custody, with significant Democratic support despite a veto threat from the Biden administration. The resolution, arguing against SAB 121, which critics say impedes banks from expanding bitcoin and crypto businesses, now heads to the Senate with strong Republican backing.

What would happen if the ruling were overturned?

Rolling back SAB 121 would likely result in banks offering bitcoin custody services for institutions and introducing additional bitcoin and crypto services over time. At present, the rule presents such onerous capital requirements for banks seeking to offer bitcoin and crypto services that none have done so.

🪑 FDIC chair in the hot seat after report exposes agency misconduct

A report by Cleary Gottlieb Steen & Hamilton exposed years of harassment and abuse under FDIC head Martin Gruenberg's watch, raising questions about his ability to lead and implement necessary reforms. The scandal presents a challenge for Democratic Senator Elizabeth Warren and President Joe Biden, who have relied on Gruenberg to carry out part of their anti-fintech and crypto agenda, which has been dubbed "Operation Chokepoint 2.0."

Hypocrites everywhere.

Gruenberg is unlikely to step down unless Biden and Warren give the word. Per Caitlin Long:

BITCOIN ADOPTION CONTINUES

Jack Dorsey announced that his company, Block, will allocate 10% of its gross profit from bitcoin products to buy bitcoin monthly.

Joltz launches the first non-custodial wallet supporting Taproot Assets, facilitating easier integration and use of bitcoin-based assets, including loyalty programs and stablecoins.

Susquehanna International Group reported holding over $1.8 billion in bitcoin ETFs, detailing its extensive investments in various bitcoin-related funds.

Recent SEC filings reveal that BNP Paribas has invested in BlackRock's iShares Bitcoin Trust ETF, marking its first bitcoin investment and highlighting increased traditional finance acceptance of bitcoin.

Genesis Digital Assets is launching a new bitcoin mining center in Argentina using flared gas, marking its expansion into South America. 

Metaplanet, a Japanese company, is pivoting to bitcoin as a core treasury asset, hiring Dylan LeClair to lead its strategy and mimicking MicroStrategy's approach to boost its balance sheet.

HOW BITCOIN WORKS

Learn one key idea about bitcoin each week. This week:

Bitcoin’s value is subjective.

The theory of subjective value asserts that an individual's perception of worth determines the value of a good or service. According to the Austrian school of economics, which developed the theory, the value of a good or service is based on an individual's subjective perception of it, rather than its intrinsic qualities. This means that its value can vary from person to person and even change for the same individual over time. For example, a bottle of water can be precious for a person lost in the desert but holds little to no value for someone with easy access to clean water.

Intrinsic theory of value

In economics, 'intrinsic value' refers to the inherent worth of a product or service, independent of external factors like supply and demand or individual preferences. For instance, some investors believe gold is valuable because of its intrinsic value.

Classical theory of value

The Austrian school's theory of subjective value differs from the classical theory of value, which states that the value of a good or service is based on the amount of labor involved in its production. The Marxian school also proposes a labor theory of value, which suggests that labor determines value, but this value is often not reflected in the price paid. Marx believed the capitalist system exploits workers, leading to a gap between value and price.

Bitcoin's high price is explained by subjective value

The Austrian school's theory of subjective value focuses on individuals' preferences and needs in an ever-changing environment, allowing a nuanced understanding of economic behavior and highlighting the importance of market forces. People are complex, and their motivations are often unknown, even to themselves. Intrinsic, classical, or Marxian theories of value cannot explain bitcoin's rise. However, those who understand the subjective theory of value accept that people assign value to it since they are willing to trade other valuable goods to obtain it.

The Bitcoin Adviser simplifies the process of moving your coins off exchanges safely and securely. Get one month free when you sign up with this link!

COIN CHECK

What year did the first bitcoin transaction in space take place?

1. 2014

2. 2016

3. 2018

4. 2011

Check your answer at the end of the page.

FROM THE MEME POOL

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ANSWER

2. 2016. In 2016, Genesis Mining, a cloud mining provider, sent a bitcoin to space using a weather balloon equipped with a 3D model of a bitcoin and a bitcoin paper wallet. The balloon reached an altitude of 34 kilometers before the transaction was executed, making it the first bitcoin transaction in space.

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