The year 2022 has yielded no bright spots in geopolitics and financial markets as we endure high inflation, currency devaluations, recession, war, energy crises, and political uncertainty.

Further still, rising interest rates in response to inflation create fiscal stress for indebted governments everywhere, portending yet another crisis. Even bitcoin has not emerged unscathed. The value of each unit in dollars dropped over 50 percent this year.

With so much negativity in the air, where is the silver lining?

Fortunately, while the current system fractures, bitcoiners are building a better future. Bitcoin is an open-source project, allowing anyone to create something great on top of it.

While the price of bitcoin plummeted, entrepreneurial conviction has not. This year alone, venture capitalists invested hundreds of millions in bitcoin-only companies. Innovative teams launched exciting projects, such as Fedimint and Stablesats, and Lightning Labs released Taro, a highly anticipated software enabling developers to test issuing, sending, and receiving different digital assets on Bitcoin.

Where does this leave us? Unfortunately, economic progress is messy. Replacing our current financial system will not be a clean, straightforward process. The bright spot, however, is bitcoin. Building a sound money economy won’t happen without significant effort from brave entrepreneurs, individuals, and institutions. But thankfully, bitcoin allows us to answer the clarion call and build a better financial future for everyone.

News

🚨 Major investment bank on the brink, risk of contagion

Cause for concern over the financial stability of one of the world's largest investment banks spread over the weekend and into this week. Credit Suisse's stock plummeted as the insurance cost against its default, otherwise known as credit default swaps (CDSs), soared. Fears of contagion are spreading as other institutions' solvency also come into question, such as Deutsche Bank and UBS. Markets currently indicate a 23% chance that Credit Suisse will declare bankruptcy in the next five years.

🛑 Solana network stops due to outage (again)

The Solana network, also known as the "Ethereum killer," shut down again after nodes "failed to process blocks due to a misconfigured node within the system." The blockchain didn't restart until 6 hours later, and the outage marked the 8th time Solana has shut down in the past year. We don't want to throw salt in a wound: However, we've said it before, and we'll repeat it: bitcoin never stops. Tick Tock.

👮🏻‍♂️ Kardashian under crypto fire with the SEC

Kim Kardashian drew the SEC's ire this week after failing to disclose compensation for peddling a cryptocurrency on social media. The specific security she promoted was "EthereumMax" on her Instagram feed, which the SEC Chair labeled a "crypto asset security." Friendly reminder that bitcoin is the only definite non-crypto asset security, money for everyone, controlled by no one. ;)

⛽️ OPEC announces massive cut in oil production

The oil conglomerate slashed its output by two million barrels per day in response to declining prices. Prices have fallen from $120 a barrel to $80 amid a slowing economy that has turned into a recession. The decision comes despite pressure from the White House to increase production. Markets fell in response after a two-day rally.

BITCOIN ADOPTION CONTINUES

President Nayib Bukele of El Salvador wrote an excellent article titled "Stop Drinking the Elite's Kool-Aid" where he describes why governments and institutions are fighting against his country's adoption of bitcoin and why others will soon follow.  ‍

Video shows the ease of paying with bitcoin at McDonald's in Lugano, Switzerland, which has been made "de facto legal tender" by the Mayor.‍

Eight of the world's largest banks have pushed back on a 1% allocation limit for bitcoin and crypto assets proposed by the Bank of International Settlements and asked for 5% instead. ‍

NYDIG raises over $700 million to buy bitcoin after raising capital from 59 investors. ‍

Popular messaging service Telegram has launched an in-app bitcoin purchasing and sending feature.‍

Investors are selling Euros and Pounds at record numbers to purchase bitcoin, Messari reports.

HOW BITCOIN WORKS

Learn one key idea about bitcoin each week. This week: Bitcoin is de-financialization.

Our economy has enough financial instruments to make anyone's head spin.

The list goes on: stocks, bonds, CDs, ETFs, REITs, Futures, Forwards, Swaps, and CDOs.

Are all of these necessary? And do they add real value to our lives?

There's an argument that each serves its purpose, operating as checks and balances for the others.

However, many of these instruments arise from our credit-based fiat system of ever-depreciating money. Investment firms must overcome inflation using complex tools not typically accessible to the public.

Financial markets become fragile as credit and leverage spur malinvestment and boom and bust cycles.

Yet, much of this would disappear if we fixed our money. Instead of speculating in shorts and swaps, we could once again protect our wealth simply by saving.

Thankfully, bitcoin allows us to reform the system. With bitcoin, we can build a financial system around an asset with a fixed supply, designed to appreciate rather than inflate away. Absent persistent inflation, prices would go down as we get wiser, innovate, and become more efficient.

There would be no fancy financial instruments or advisors with three degrees and four licenses speaking to you in a different language.

By fixing our money with bitcoin, we gain access to healthy wealth preservation and a simple system that grows with time.

Are you ready to begin your bitcoin journey?

When it comes to getting started with bitcoin quickly and safely, Coinbits is the best option. It's free to create your Coinbits account. Withdrawing or selling your bitcoin is free of charge, too.

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

COIN CHECK

What does the US government consider bitcoin to be?

1. A currency

2. A commodity

3. Digital real estate

4. A security

Check your answer at the end of the page.

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ANSWER

2. A commodity

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