BITCOIN BOX SCORE
Market Capitalization: $781.2
Hash Rate (90 days): 497.1 EH/s
Transactions (30 days): 14,366,305
Network Fees (day): 31 sat/vB
Bitcoin Dominance: 51.80%
Inflation under the Federal Reserve since its inception is over 3000%. What does that mean for individuals who have lived under the central bank monetary regime?
Understanding the beast and its consequences is necessary to move forward. Simply put, inflation is theft. It steals your resources, distorts market signals, and encourages unchecked government growth at the expense of the people.
Inflation as a Hidden Form of Taxation: Inflationary monetary and fiscal policies are covert taxation. They diminish the value of money individuals hold, reducing their purchasing power.
Ultimately, inflation is a theft of your time. Will you do what's necessary to take it back?
With that, let's dive into the news.
Are federally funded state government jobs “juicing" economic growth? 🤑
The $350 billion SLFRF in the American Rescue Plan Act was intended to help governments facing pandemic-related revenue losses. However, many state and local governments have used the funds for other purposes, including infrastructure, despite not experiencing the expected revenue shortfall. This has led to a significant increase in government employment.
In other words – federal tax dollars are subsidizing the increases in state and local government jobs.
Putting it into perspective
As we hear reports about "good" economic growth in the news, it is essential to remember that the economy is, for lack of a better word, "juiced" by government spending. See Paul Winfrees' post below. 👇
Fed gears up to force banks to borrow money 🏦
Why would banks be forced to borrow?
This action, in light of warning signs similar to those preceding the 2007 financial crisis, contradicts officials' public claims of a strong economy. As Tho Bishop recently noted,
With the 2024 election in full swing, Americans will be consistently bombarded with political lies and false promises, not just from politicians but from government agencies and the central bank. While we can expect another ten months of being told how strong the economy is, the actions being taken behind the scenes tell a very different story.
FTX bankruptcy estate liquidates GBTC holdings 📉
Bitcoin's dollar exchange rate recently fell below $40,000, opposite what many onlookers had anticipated following the SEC's approval of spot bitcoin ETF products. As Coindesk reported earlier this week, however, much of that selling pressure can be attributed to the FTX bankruptcy estate selling off the majority of its GBTC holdings (22 million shares), exerting sell pressure on the market even though other spot ETFs have seen significant inflows.
Sam's trail of wreckage coming to an end
Most have moved on from the story of Sam Bankman-Fried, the criminal "crypto" kingpin. However, the consequences of his fraud are still playing out in the market via the FTX bankruptcy estate process. Nevertheless, it's unlikely that we'll see any significant selling pressure on bitcoin from the estate in the future, as most of its BTC exposure was in GBTC holdings.
Chinese citizens turn to “banned” bitcoin 🇨🇳
Facing an economic downturn and limited options, more Chinese citizens are turning to bitcoin as an alternative to stocks and real estate, using creative methods to circumvent mainland bans and capital controls. This trend has led to a thriving underground market in China and increased bitcoin and crypto activities in Hong Kong, with financial institutions also exploring bitcoin and crypto opportunities in response to stagnant domestic markets.
Did someone say safe haven?
Bitcoin allows individuals to safeguard their wealth from the negative consequences of out-of-control government policies. China is just the latest example of citizens turning to bitcoin as their local options deteriorate.
BITCOIN ADOPTION CONTINUES
HOW BITCOIN WORKS
Learn one key idea about bitcoin each week. This week:
Bitcoin is accelerating.
The "effective accelerationist" movement has gained popularity in tech circles. However, one specific technology (not AI) is rapidly advancing and has significant implications.
Bitcoin is transforming money and banking. Its relentless adoption marks a significant shift in how we perceive and interact with money in the digital age. One side effect of rising adoption is that bitcoin's blockchain, which enables final settlement of transactions with no third parties, now commands relatively high transaction fees. This development has sparked a surge in “layer 2” volume, demonstrating that the bitcoin ecosystem is vibrant and adaptive.
Two of the most notable innovations in bitcoin's infrastructure are Lightning and Liquid. These networks facilitate faster, more efficient transactions off-chain, marking a leap forward from traditional banking systems. Developing solutions for dollar and bitcoin payments across the Lightning Network highlights bitcoin's role as the definitive solution for internet-native money. We are rapidly advancing toward a world where, no matter what asset you have, you can use the Bitcoin Network to transfer its ownership.
Bitcoin offers a decentralized, internet-native alternative to money printed by central banks or physical assets like gold. As we transition from an era of banking dominated by traditional fiat currencies to a system dominated by bitcoin, layer 2 networks, and beyond, we are witnessing a historic shift. Bitcoin will become not just an alternative currency, but a primary one.
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.