BITCOIN BOX SCORE
Exchange Rate: $29,720
Market Capitalization: $577.6B
Hash Rate (90 days): 366.2 EH/s
Transactions (30 days): 13,030,962
Bitcoin Dominance: 49.85%
Government censorship of speech and finance threatens our ability to live freely in the modern age.
As we've seen, digitizing everything has brought new opportunities and challenges for those seeking privacy and freedom.
For example, implementing Central Bank Digital Currencies (CBDCs) would allow governments to decide what people can (and can’t) purchase. Officials could also track purchases and even expire the money's validity at will.
In other words, programmable money (CBDC) means programmable citizens.
Yet, there is a positive phenomenon emerging tangential to modern censorship regimes and technologies: bitcoin.
Bitcoin offers anyone access to a money network that is censorship resistant and cannot be shut down or controlled by the government. It also operates continuously, ensuring that individuals and institutions can transact as they please.
So, while some developments and trends point toward a darker future, bitcoin is a bright light.
With that, let's dive into the news.
Inflation update: shrinkflation, anyone?
The Personal Consumption Expenditures (PCE) Price Index rose at an annualized rate of 3.8% in June, with the "core" figure, excluding food and energy prices, reaching 4.6%, indicating some improvement in inflation.
However, like all price "baskets," the PCE doesn't capture the entire picture. "Shrinkflation," where businesses reduce the quantity and quality of food products to avoid raising prices, is hitting American families nationwide. And it's not just the weight or volume of various food products; restaurants are also changing aspects of their services.
Monetary inflation cuts deep
Since everyone consumes goods and services differently, purported inflation measurements fail to capture the full extent of the pain consumers experience under monetary inflation. "Shrinkflation" is just another example.
SEC accepts spot bitcoin ETF application for review
The United States Securities and Exchange Commission (SEC) has officially accepted BlackRock's spot Bitcoin exchange-traded fund (ETF) application for review, following a similar acknowledgment of Bitwise's filing. It is also reviewing applications from other funds, such as Wise Origin Bitcoin Trust, WisdomTree, VanEck, and Invesco Galaxy.
Will a spot ETF be approved?
The acceptance suggests the SEC's openness after previously rejecting BlackRock and others' applications, forcing them to refile. That said, the approval process is not immediate, and could take months of back and forth between the filers and the regulatory agency.
How will the commercial real estate bust impact banks?
Though it might take a few months, the impending commercial real estate crash in the U.S. could severely impact small banks. Rising interest rates and declining revenues are contributing to a fall in the value of commercial properties such as office and apartment buildings.
This is a significant concern for small banks, which hold a substantial $1.9 trillion in commercial real estate (CRE) debt.
How things might play out:
As property values decline and these loans default, banks may have to book losses on their income statements and balance sheets, deepening the current credit crunch. This could also create fear among depositors, leading to more widespread economic consequences.
BITCOIN ADOPTION CONTINUES
Bitcoin grant organization Geyser launched its fifth grant to support worldwide educational initiatives and community programs focused on bitcoin.
“Bitcoin is among the hardest currencies, and the Kennedy administration is going to encourage its proliferation and propagation,” stated presidential candidate Robert F. Kennedy Jr. (RFK Jr.), who also claimed his administration would exempt bitcoin holders from capital gains tax and back the dollar with bitcoin and other hard assets.
HOW BITCOIN WORKS
Learn one key idea about bitcoin each week. This week:
Bitcoin is social
Central to bitcoin's innovation is how it changes the way we interact. It is not just a technical marvel but also a social technology: bringing people together via shared values and peer-to-peer commerce.
Money and finance have become increasingly detached from their social layer. Today, bureaucrats print money in Washington, D.C., that we use to pay for things by swiping plastic cards requiring bank approval.
Bitcoin couldn't be more different. Satoshi Nakamoto's invention is decentralized, meaning users can exchange value peer-to-peer absent intermediaries. No banks or permission is required.
With bitcoin, each person is their own bank. Individuals worldwide are empowered to collaborate commercially in ways previously constrained by traditional financial systems.
In addition to the sovereignty and innovation this unlocks, the social aspect is significant.
Bringing commerce back to the individual level, where people exchange directly for various goods and services, recreates a bond lost over previous decades.
Beyond commerce, bitcoin has brought together thousands through shared values of freedom and hard work. Across conferences, meetups, social media, and companies, bitcoiners of all backgrounds work to drive adoption forward.
This sense of community stimulates bitcoin’s progress on a global scale. The ethos of freedom and collaboration comprising the social layer of bitcoin brings more people in daily. 💪
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.