BITCOIN BOX SCORE
Exchange Rate: $29,175
Market Capitalization: $567.2B
Hash Rate (90 days): 368.6 EH/s
Transactions (30 days): 13,354,707
Bitcoin Dominance: 49.75%
Some predicted the dollar's imminent demise when other nations announced that they want to create a new gold-backed currency. For now, that threat has subsided.
However, concerns about the viability of the U.S. dollar as the world reserve currency will inevitably persist.
It’s been a long time coming, but it all started back to 1971, when the U.S. decoupled its currency from the gold standard. Since then, the dollar has lost the key monetary property of scarcity – and this has allowed temporary politicians and technocrats to print as much as they want to pay off their cronies, who in turn keep them in power. Rinse and repeat.
Fifty years later, banks, bonds, and currencies are under stress. Trust in the international order is low. The dollar, which used to be viewed as financial bedrock, now looks more like a dangerous single point of failure.
The dollar system will come to an end eventually, as have all fiat currencies in history once the treasury is raided and the money debased. It’s impossible to predict exactly when this will happen. But we do have control over what comes next.
If we choose bitcoin, the most reliable money ever created, a new era will begin, in which control and privacy is returned to individuals as opposed to centralized, unaccountable institutions. There’s no need to wait for dollar collapse to begin this transition. Individuals all over the world have the power to get started now.
With that, let's dive into the news.
Putin approves Russian CBDC
Russian President Vladimir Putin has signed a bill to launch Russia's central bank digital currency (CBDC), the digital ruble, set to be piloted in August 2023. Under the new legislation, the central bank will manage the digital ruble infrastructure and safeguard the stored assets. The digital ruble is intended for payments and money transfers rather than investments.
Will other nations follow suit?
Governments worldwide are exploring CBDCs, which promise more surveillance and control of citizens’ financial lives. Business and individuals alike need to understand the dangers posed by CBDCs and make a plan for how to protect themselves.
OpenAI founder Sam Altman launched Worldcoin, a crypto project. Worldcoin's main product is the World ID, a "digital passport" that is derived from an iris scan using a proprietary device called “The Orb.” People are incentivized to use the Orb by the promise of receiving 25 “WLD” crypto tokens. The concept behind the project is to verify every human on earth in order to distinguish them from AI bots.
If it sounds dystopian, it probably is.
Worldcoin carries significant privacy risk. The iris scanning devices could be compromised, and the centralized issuance and custody of the World IDs expose sensitive biometric data to potential hacking or seizure.
Beyond that, the project’s token issuance schedule is questionable and early funding from investors like Three Arrows Capital and Sam Bankman-Fried should raise eyebrows.
Worldcoin investors received a significant portion of today's circulating WLD supply (1% of total supply), which they can unload on retail investors once their lockups and more WLD tokens are released.
House stalemate on stablecoin bill
Bipartisan discussions on stablecoin legislation in the House have reached a standstill, with Financial Services Committee Chair Patrick McHenry blaming White House resistance, while Democrats attribute the stalemate to McHenry. The stalemate occurred a day after the committee advanced three crypto-focused bills.
Unpacking the controversy
The bill has been criticized by Democrats for encouraging a "race to the bottom.” Republicans maintain it creates a fair regulatory framework for stablecoins, which are cryptocurrencies tied to the value of fiat currency.
The bill's proposed lack of oversight from the Federal Reserve and the absence of diversity and inclusion provisions have also been points of contention.
BITCOIN ADOPTION CONTINUES
In a new report on bitcoin, TD Ameritrade analysts wrote, "A bullish view is warranted, in our opinion, because we believe bitcoin could ultimately represent a superior store of value relative to all other forms of money, whether fiat, metal-based, or digital."
The Human Rights Foundation (HRF) has announced a 20 BTC bounty program, running until the end of 2024, for open-source developers working on tools enhancing bitcoin's functionality, privacy, and resistance to censorship.
HOW BITCOIN WORKS
Learn one key idea about bitcoin each week. This week:
Bitcoin is mythology
As bitcoin has become interwoven with culture, its creation story has taken on the characteristics of a modern myth.
Reminiscent of George Washington's role in America's founding, Satoshi Nakamoto, Bitcoin’s mysterious creator, represents an origin marked by principles, vision, and an enigmatic allure.
In American lore, George Washington, the first President of the United States, has transcended human existence to become a symbol of national identity and core democratic values. Stories of his honesty, leadership, and selflessness have been passed down for generations.
Perhaps the most enduring is the cherry tree tale, where a young Washington confesses to chopping down his father's tree, reinforcing the virtue of truthfulness.
Narratives about Washington serve a purpose – they convey the ideals upon which he built America.
Today, Satoshi Nakamoto also holds a mythical status. As the pseudonymous creator of bitcoin, his or her identity remains unknown.
Yet the vision for Bitcoin was to build a decentralized, peer-to-peer electronic cash system free from central authority.
Just as Washington's relinquishment of power – refusing a third presidential term – cemented the American value that institutions hold power as opposed to personalities, Nakamoto's disappearance from public view after launching Bitcoin is viewed as an act of selfless dedication.
By remaining anonymous and disappearing once Bitcoin achieved sustainability, Nakamoto ensured that Bitcoin’s creator would not unduly influence its future, for better or for worse – even though he or she had everything to gain by taking credit.
Washington and Satoshi are pivotal figures in their respective mythologies. They represent not just historical facts, but embody the ethos and vision of their projects, proving the power of founding narratives in shaping collective identity.
That’s all for this week, folks! When you signed up for this newsletter, we promised to act as your personal guide and help you understand what’s happening in the world of bitcoin. What did you think of today’s newsletter? Reply to this email and let us know what you’d like to see more of.