First gold bugs, now Fed bugs?

"No nation in history has ever survived fiat money..."

BITCOIN BOX SCORE

Exchange Rate: $67,900
Market Capitalization: $1.33T
Hash Rate (90 days): 542.4 EH/s
Transactions (30 days): 10,953,682
Network Fees (day): 13 sat/vB
Bitcoin Dominance: 53.52%

"People call me a gold bug, and I think, well, what does that make them? A Fed bug," said economist Judy Shelton in 2019.

People who are skeptical of unelected bureaucrats' ability to effectively manage the money supply are sometimes labeled "gold bugs." 

There isn't an equivalent term of slander for bitcoiners yet.

As Shelton points out, central bankers and their media allies are unrelenting Fed bugs – they firmly believe in the almighty technocrats' managerial role regarding money and banking. And today, the Fed bugs are facing the music. 

Government debt is out of control, and anyone who looks closely at economic conditions can see they are getting worse, not better.

Equity markets are the bright spot that Fed bugs can point to, but in reality, only a few tech stocks drive growth – and they are massively overpriced.

Once markets correct and economic conditions deteriorate further, central bank proponents will have nothing left to lean on besides printing more money.

As Ronald Reagan stated in 1980, "No nation in history has ever survived fiat money..."

Try as they might to push a narrative that everything is okay, reality will catch up with them.

In fact, foreign central banks are already pivoting out of U.S. treasuries and buying gold (and likely bitcoin, too), driving gold prices to all-time highs even as gold ETFs are seeing outflows. 

Bitcoin is reaching all-time highs as investors see it as an off-ramp from a system that simply isn't working.

Meanwhile, the Fed bugs scramble to develop new narratives for why “everything is under control." Will you believe them or your own eyes?

NEWS

⛏️ Bitcoin miners notch a win against the Department of Energy

Bitcoin supporters successfully challenged the U.S. Department of Energy's (DOE) "emergency" order demanding data from miners, leading the Energy Information Administration (EIA) to withdraw its mandatory survey in favor of a legal notice and comment period. This victory came after the DOE was hit with a lawsuit asserting that the order violates constitutional rights, forcing the EIA to reconsider its approach and destroy previously collected data.

The rule of law tilts in bitcoin's favor.

This significant win demonstrates the power of the bitcoin community to protect its interests from undue government overreach. It also underscores the role of the law and the constitution in guaranteeing your access to bitcoin, which involves private property, free speech, and other natural rights.

At the same time, awareness is growing that bitcoin mining stabilizes energy grids, positioning bitcoin mining as a key 21st century technology.

💸 Bitcoin breaks all-time high dollar exchange rate

Bitcoin's dollar exchange rate soared to a record high above $69,000 fueled by U.S.-based spot bitcoin ETFs. The historic rally began at about $45,000 when the ETFs began to be offered to the market only a few weeks ago. That event signaled that bitcoin is becoming accepted as an institutional-grade asset suitable for traditional portfolios.

Macroeconomic tailwinds and anticipation of the bitcoin halving are contributing to robust bull market.

Remember when they said it was dead?

The rally is a testament to bitcoin's enduring appeal and its maturation. For an in-depth analysis, see this excellent post by Dylan LeClair. 

🏦 New York Community Bank announces equity infusion in rescue attempt

In an urgent response to avert collapse, New York Community Bank announced a comprehensive overhaul involving an infusion of over $1 billion in emergency funding, alongside high-profile leadership changes, including appointing former Treasury Secretary Steven Mnuchin to its board and introducing Joseph Otting as the new CEO. The drama comes amid the bank's struggle with financial setbacks as it fights for survival.

Jerome Powell said he isn't worried about the impact of commercial real estate on banks and the economy, but the Fed clearly is.

😱 MicroStrategy wants more bitcoin

MicroStrategy increased its convertible debt offering to $700 million, up from $600 million, with plans to use the proceeds to purchase more bitcoin. Ending March 8, this offering will allow initial purchasers an option to buy up to an additional $100 million in notes. Issued with a 0.625% interest rate and a 2030 maturity date, the company anticipates between $684 million and $782 million raised. This move coincides with a surge in MicroStrategy's stock price which has increased over 444% over the past year. MicroStrategy holds 193,000 bitcoins.

Even CNBC is taking notice.

BITCOIN ADOPTION CONTINUES

The Arizona State Senate is reviewing a bill to incorporate bitcoin ETFs into state retirement pension portfolios.

The second annual Bitcoin Policy Summit in Washington, D.C. will gather economists and politicians together. Topics will include countering digital tyranny, energy policy, and national security.

Brave has updated its desktop browser to support Native SegWit bitcoin wallets in its integrated Brave Wallet, highlighting its commitment to security and privacy. 

A new group called the Bitcoin Students Network (BSN) aims to educate and integrate students into the bitcoin community by fostering global connections and supporting the creation of bitcoin-focused student clubs.

HOW BITCOIN WORKS

Learn one key idea about bitcoin each week. This week:

Bitcoin is discipline.

In a world deeply in debt, bitcoin is a force of discipline. Reckless central planners in the U.S. have pushed national debt past $34 trillion, and the rate of indebtedness is accelerating. These eye-popping numbers are the catastrophic fallout of unchecked government expansion. Using pseudo-economic theories like Modern Monetary Theory (MMT) as cover, central planners have obfuscated the grim reality of negative real wage growth, monetary debasement, and the hollowing out of the middle class.

When you set aside the academic jargon, MMT boils down to the idea that infinite government spending has no negative consequences. This obviously sounds seductive to politicians, who get elected by pledging to plunder the economy on behalf of their constituent voter groups. Decades of this nonsense has now led to a cycle of inflation and debt with no escape.

Unlike fiat currencies, which suffer from the whims of governmental overreach and mismanagement, bitcoin sits upon a rock-solid, incorruptible foundation of math and thermodynamics.

Central bankers and policymakers, ensconced in their echo chambers, vilify bitcoin because they rightly see it as a threat to their way of life. When the dollar inevitably dies, we will see an all-out information war waged on bitcoin unlike any that has come before.

The truth is that, even though people may turn to bitcoin as trust in the dollar evaporates, it’s not bitcoin that is undermining that trust. Instead, it’s the monetary properties of the dollar, when compared to bitcoin, that are seen as clearly inferior by anyone who takes the time to look. Bitcoin merely holds up the mirror.

Bitcoin will not dethrone the dollar by force, it will do so through individuals making choices in a free market.

The Bitcoin Adviser simplifies the process of moving your coins off exchanges safely and securely. Get one month free when you sign up with this link!

COIN CHECK

One of the first known "bitcoin faucets" was created in 2010 by Gavin Andresen to give away free bitcoin. How much bitcoin did it dispense to each visitor?

  1. 5 bitcoins

  2. 1,000,000 satoshis

  3. 0.5 bitcoins

  4. 100,000 satoshis

Check your answer at the end of the page.

FROM THE MEME POOL

ANSWER

  1. 5 bitcoins. Visitors received 5 bitcoins, worth over $300,000 today, for solving a captcha. Over 19,000 bitcoins were distributed via the site. Below is a screenshot of what it looked like.

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.

Until next week!

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