BITCOIN BOX SCORE
Market Capitalization: $833.7B
Hash Rate (90 days): 471.6 EH/s
Transactions (30 days): 16,209,037
Network Fees (day): 68 sat/vB
Bitcoin Dominance: 51.31%
2023 was a year marked by bank failures, new geopolitical conflicts, and declining trust in traditional institutions. What can we expect in 2024?
One key thing to note is that there will be more national elections in 2024 than in any other year in history. The primary goal of incumbents (of which there are many) will be to get re-elected. As a result, it is reasonable to anticipate the opening of fiscal and monetary floodgates in 2024 to satiate an electorate that remains dissatisfied with economic conditions.
Expect more fiscal stimulus, debt monetization, and new Federal Reserve programs like the BTFP in response to crises that may arise. Politicians might even deliver a fiscal injection via a Universal Basic Income (UBI), which the Canadian government is currently considering.
However, just like the COVID-era stimulus, the inflationary impact of these actions will take time and likely emerge after the 2025 elections.
That's why part of the strategy for surviving and thriving in 2024 may be to front-run politically motivated debasement with hard assets outside sovereign control.
With that, let's dive into the news.
Will Gary Gensler’s tenure survive 2024? 🏳️
Today House Majority Whip Tom Emmer posted his support for a bill that would advocate for Gensler’s removal as SEC chair.
Gensler's reign at the SEC has been wrought with strife and clashes with lawmakers and the courts. Two weeks ago, the agency apologized after a district court chastised it for failing to be "accurate and candid" in a crypto-related case. A less hostile and unpredictable SEC would be in everyone's best interest – except the likes of Elizabeth Warren and the big finance lobby.
Amboss introduces Ghost Addresses 👻
Ghost Addresses on the Lightning Network allow users to run their own lightning node and have a wallet address without requiring a custodial third party or a publicly accessible server. This innovation, combining Phantom Payments with the convenience of a Lightning Address, enhances user experience by facilitating direct receipt of transactions in self-custody, thereby eliminating the need for trusted intermediaries.
More bitcoin-native innovation expected in 2024
One of bitcoin’s strengths is its open-source nature, allowing entrepreneurs and developers to consistently ship new ways to make it more powerful and accessible. Expect more of this in 2024 and beyond.
Milei looks to bitcoin and crypto for tax revenue 🧾
The administration of Argentina’s new President Javier Milei drafted a bill proposing a favorable tax rate for Argentines who declare their domestic and foreign crypto holdings, irrespective of origin or location. The proposed bill forms part of Milei's broader economic reforms and has faced significant backlash. The bill offers reduced taxes for early declarations, with rates as low as 5% for disclosures made before March 31, which gradually increase to 15% by November 30.
A massive "grey" economy exists in Argentina, where citizens engage in commerce outside the government's purview. Milei's tax reform is likely an attempt to change that and generate additional tax revenue.
This move could lead to greater acceptance and use of bitcoin in daily economic activities, but it may also increase taxes on the middle class – a mixed bag.
“Crypto” enters the political arena. ⚔️
Cryptocurrency executives and investors have raised $78 million through three Super PACs to influence the 2024 U.S. elections. The campaign is being backed by Andreessen Horowitz, Coinbase, and the Winklevoss twins, and its focus is on supporting crypto-friendly candidates and legitimizing digital assets in the face of regulatory hostility. The campaign plans to make substantial political contributions and engage in advocacy efforts to counter traditional financial lobbies.
Does the "crypto" voting bloc have leverage?
The Super PACs are expected to focus on election campaigns that involve vulnerable U.S. senators like Sherrod Brown, who have a negative stance on bitcoin and crypto. What remains to be seen is the extent to which crypto policy affects voter behavior.
BITCOIN ADOPTION CONTINUES
HOW BITCOIN WORKS
Learn one key idea about bitcoin each week. This week:
Bitcoin is a resilient.
One of the core innovations Bitcoin offers is an immutable and constrained monetary policy. Technology improves, new products like IRAs and ETFs are brought to market, and even controversial new use cases like ordinals are passionately debated – and Bitcoin continues on issuing new coins to miners on a perfectly predictable schedule.
This unwavering monetary policy is the cornerstone of Bitcoin's success and distinguishes it from earlier attempts to invent sustainable digital currency like b-money and hashcash.
The inventors of Bitcoin understood why hard assets like gold are honest money. Honest money must be scarce, because money represents human time and labor – and these are finite.
If money can be created arbitrarily, those with the power to create it will inevitably be subject to political forces. Power corrupts – and the power to print money surpasses almost all others.
Bitcoin brilliantly combines decentralized computing and cryptography to set up a perfectly reliable – and verifiable – system for creating new units of money.
Passing fads like ordinals and BRC tokens do not detract from its foundational strength. Bitcoin's core protocol, centered around its fixed supply and decentralized ledger, remains untouched and robust.
This sets it apart from previous digital currencies, as well as fiat currencies, and ensures its continued functionality and relevance in a world increasingly recognizing the value of digital scarcity.
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.