Sometimes life hits you fast. In 1989, Nobel Prize-winning economists Paul Samuelson and William Nordhaus included the following in their Economics: An Introductory Analysis, the most popular economics textbook of the day:‍

"The Soviet economy is proof that, contrary to what many skeptics had earlier believed, a socialist command economy can function and even thrive."‍

Two years later, while students were learning economics from the textbook worldwide, the Soviet economy collapsed.

The lesson speaks volumes. Experts, governments, and the media get things wrong. Look no further than this week's protests in China. The unrest caught nearly all off guard, and the CCP's tight grip over the Chinese people is now at risk.

The problem with centralized institutions is their uncertainty. We never know when they will blow up. Contra the ultra-centralized USSR, CCP, and Federal Reserve, bitcoin is decentralized. Its network is antifragile and secure.

NEWS

⫚ Mass unrest in China

Protests and riots erupted in China's biggest cities over the country's "zero-covid" policies. The catalyst was an apartment fire where ten citizens died, unable to escape because government workers welded doors shut to prevent covid transmission. After implementing zero-covid lockdowns, digital IDs, CBDCs, and social credit scores, the Communist Party is getting pushback from a fed-up citizenry. Unfortunately, dissent in China is typically met with brutal government force.

You may recall China banning bitcoin multiple times. As a beacon of freedom, it is clear why bitcoin's values don't align with the CCP.

🚔 BlockFi bankruptcy

Another one drops. The popular cryptocurrency exchange has officially filed for bankruptcy. Taking a page out of FTX's book, BlockFi reportedly has anywhere from $1-10 billion in liabilities, with only $256 million in cash. In related news, users withdrew $3.5 billion in bitcoin from Coinbase in 4 days. People are rightfully losing trust in crypto exchanges and prioritizing self-custody.

📉 Fidelity opens (paper) bitcoin trading

Fidelity officially opened bitcoin and digital asset services to its 40 million retail customers. The company announced "the wait is over" in an email to customers. However, as the firm embraces digital assets, bitcoiners quickly asked the right questions regarding Fidelity customers' ability to withdraw bitcoin from the platform. The answer is no. The company said they are exploring withdrawals in the future but currently do not allow them.

While we appreciate large institutions entering the market, bitcoin that users can't withdraw is nothing more than an IOU.

😂 European Central Bank announces Bitcoin's "last stand"

Central bankers can't keep bitcoin off their minds. This week, the ECB released a blog post attacking bitcoin, claiming (read: hoping) it's on the road to irrelevance. The blog mentioned price stabilization as an "artificially induced last gasp," cautioning readers that regulation has been funded by "crypto lobbyists." The article stated that banks would bear reputational risks for supporting bitcoin- although many already do.

As bitcoin continues to survive absent central bank bailouts with money created out of thin air, it's no wonder central bankers are rooting for its demise. Bitcoin, fortunately, puts them on the road to irrelevance, not the other way around.

BITCOIN ADOPTION CONTINUES

Texas Governor Greg Abbot spoke about how he plans to make Texas "bitcoin country" and continue promoting favorable legislation and infrastructure.

As of Monday, $3.5 billion worth of bitcoin was withdrawn from Coinbase in just four days. See Coinbits Director of Product Dave Birnbaum's article on why you should do the same if you have any bitcoin with them.

Brazilian lawmakers have approved a bill establishing Bitcoin and other digital assets as legitimate payment mechanisms.

A giant bitcoin billboard is on display at Zurich Airport in Switzerland.

Small to medium size bitcoin investors have been accumulating bitcoin at record amounts following the FTX-driven market collapse.

HOW BITCOIN WORKS

Learn one key idea about bitcoin each week. This week: Bitcoin is your secret tunnel.

When discussing bitcoin, European Central Bank President Christine Lagarde stated, "There has to be regulation… At a global level because if there is an escape that escape will be used."

What does Legarde mean? Escape from what?

As we watch the unrest unfold across China, a nation with severe consequences for dissent, it's clear: people need a way out.

But let's give credit where it is due. Lagarde is correct about one thing.

Bitcoin is the escape hatch.

One of the main benefits of using Bitcoin is that it allows users to store their funds securely without having to trust third parties like banks or governments.

It also offers more privacy than traditional banking systems, allowing users to make purchases without providing personal information.

Additionally, because bitcoin is digital, it can be quickly and easily transferred anywhere in the world without worrying about exchange rates or international fees.

Finally, because Bitcoin does not rely on any central authority, its value cannot be devalued or manipulated like traditional currencies.

Bitcoin is your secret tunnel because it is money that you completely own and control. Not Lagarde, not the central bank, not politicians, you. And that's a reason for incredible optimism.

Ready to get started with bitcoin? Coinbits is the best option. It's fast, safe, and free to create your account.

COIN CHECK

What would be a more accurate name for a bitcoin hardware wallet?

1. Signing device

2. Bitcoin holder

3. Crypto storage device

4. Bitcoin brokerage

Check your answer at the end of the page.

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BITCOIN ROUNDUP PODCAST

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ANSWER

1. Signing device

   As all bitcoin are recorded on the blockchain, wallets don't actually hold your bitcoin as they would otherwise imply. Instead, bitcoin wallets store your private keys, allowing you to spend your bitcoin by "signing" a transaction.

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