BITCOIN BOX SCORE
Exchange Rate: $26,225
Market Capitalization: $510.7B
Hash Rate (90 days): 380.1 EH/s
Transactions (30 days): 14,390,293
Network Fees (day): 6 sat/vB
Bitcoin Dominance: 49.44%
Mighty empires have risen and fallen through history, beholden to changes in military power, political maneuvering, natural resources, and technological advancement.
Often overlooked is what always comes along with the fall: currency manipulation and debt.
From Ancient Rome, to Medieval Spain, to -ahem- present examples, empires eventually succumb to the temptation to squander wealth on endless wars, accumulate massive debt, debase their currencies, and lose their influence in the economy.
When will future historians pinpoint the peak of the American regime? Perhaps our best days are ahead. However, it becomes harder and harder to believe that when economic data seems like a parade of horribles.
No regime lasts forever. On the other hand, technologies, especially the fundamental ones, stick around.
Will end users be able to boot up Bitcoin Core in 1,000 years and transact?
It might sound fanciful to imagine they will, but bitcoin’s network effects and wide adoption mean that it’s already a foregone conclusion that it will outlast today's world powers.
In fact, the invention of bitcoin in the early 21st century might be seen as one of the most salient historical events of the late American republic.
With that, let's dive into the news.
New FASB rules favor corporate bitcoin adoption 🌇
The U.S. Financial Accounting Standards Board (FASB) has unanimously approved new accounting rules set to take effect in 2025, requiring companies to report their bitcoin assets at "fair value" and make separate line entries on balance sheets.
The move aims to improve transparency and resolve ambiguities like those faced by Michael Saylor's MicroStrategy in 2022.
Opening the doors to corporate adoption
Silicon Valley Bank's failure highlighted the need for many companies to include a liquid asset on their balance sheets that is untethered from the banking system. The new FASB rules make it much easier for them to use bitcoin for this purpose. Expect more companies to explore the use of bitcoin treasuries in the coming months and years.
Drivechains spark fresh bitcoin drama ❌
Whenever there is a moment of peace in the bitcoin community, a new issue becomes a focal point for fierce online flame wars. The past few weeks have been no different.
Drivechain advocates and their detractors went back and forth on the dynamics of the proposal, which is included in BIPs (Bitcoin Improvement Proposals) 300 and 301.
There is too much to summarize, so we recommend reading this article (and this one) by Shinobi, and watching this video interview with Drivechain creator Paul Sztorc for those who want the inside scoop.
Economic growth… and increased deficits? 🤔
The Federal Reserve released its latest GDP growth estimates, which look high, at 5.9% growth for Q3 2023. And yet, deficit spending, a component of GDP, is also rising, which is unusual during a time of supposed prosperity.
Though deficit spending can give the illusion of prosperity in the short term, the government is setting itself up for long-term pain.
Rising yields on the 10-year U.S. Treasury note should serve as a red flag that indicates increasing debt service costs could eventually trigger a crisis.
Is anyone paying attention?
Even mainstream experts are noticing the problem. “A debt growing much faster than the economy will drive up interest rates, reduce economic investment, and over time make interest payments the largest federal expenditure — risking a federal debt crisis,” Brian Riedl told Washington Post reporter Jeff Stein.
BITCOIN ADOPTION CONTINUES
The price of bitcoin is up 365,999% since Paul Krugman's 2011 New York Times article was released, where the erstwhile economist dismissed bitcoin and deflationary money.
HOW BITCOIN WORKS
Learn one key idea about bitcoin each week. This week:
Bitcoin is out of the bag.
Like the printing press that revolutionized the dissemination of knowledge or the internet that connected the globe, bitcoin is an invention that is "out of the bag" – it cannot be returned to the genie (Satoshi)’s bottle.
It's a technological marvel that has established itself as a groundbreaking new form of money, defying early skepticism and regulatory hurdles.
Though governments and financial institutions initially viewed it with suspicion or outright disdain, bitcoin has continued on a relentless trajectory, growing both in value and acceptance.
Over the past decade, it has evolved from a fringe asset into a serious contender, with El Salvador recognizing it as legal tender and large corporations holding it on their balance sheets.
Despite volatility and regulatory challenges, bitcoin’s core infrastructure and decentralized nature have only grown stronger, much like the irreversible impacts of other seminal inventions.
Borders, laws, or empires do not confine bitcoin; its distributed ledger is immutable, its codebase is open-source, and its ethos inspires freedom.
There's an increasing acknowledgment that bitcoin is here to stay, outlasting the current geopolitical entities trying to control it.
It continues to grow, adapt, and innovate, much like previous innovations, transforming societies in ways we are only beginning to understand.
The genie is out of the bottle, and bitcoin is fundamentally changing the world at the rate of one block every 10 minutes.
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.