Welcome to Bitcoin Roundup #3.

A lot is going on. Where to start? A good bet is to follow the money, because money transmits information free of propaganda and serves as a window on human motivation.

This week, following the money leads into a gloomy cloud of fear, uncertainty, and doubt.

You may be familiar with the acronym FUD in its meaning as an information warfare tool, but there is no better way to represent current market sentiment than those three words.

Nuclear war is possible. China finds itself on a dangerous geopolitical borderline, while talks between Ukraine and Russia pop and fizzle every few days. Official statements about soaring inflation are clearly crafted to protect power interests, not to inform the public.

Which brings us to this week's theme: inflation. According to official numbers, which are obviously chosen to paint the rosiest possible picture while still remaining somewhat believable, inflation is at its highest in four decades.

The Fed might try to reduce it by raising interest rates, but that would trigger a recession – while a food crisis looms.

In less than 60 years since the dollar was taken off of the gold standard, unconstrained money printing has destabilized the world order.

Through all this, bitcoin offers hope as it lights a path to a saner world.

NEWS

War in Europe raises the specter of hunger 🏴

It was a safe bet that the war in Ukraine would have devastating consequences. Now, some say we may experience a food shortage this year. Fuel shortages lead to fertilizer shortfalls and high food prices. Destruction of farms in Ukraine, a bread basket of the world, will dramatically reduce the wheat harvest this fall. We hope for the best.

2020 called, they want their crisis back 🦠

While the Twitterverse kept it locked on Ukraine, Asian markets showed pessimism. Not only are markets spooked by China's alignment with Russia in an unpopular war, but a fresh COVID outbreak prompted Chinese authorities to lock down Shenzhen and consider closing the port of Shanghai. If this comes to pass, new supply chain disruptions will hit consumer markets at the same time as the effects of war in Europe, pushing inflation yet higher.

🌎 🚫🔑🚫🧀 Central bankers learn "Not your keys, not your cheese."

As a bitcoiner, you already know that the bitcoin you entrust to someone else isn't really yours. Could central bankers, with all their credentials and wisdom, fail to grasp this concept? Apparently so. This week they learned that their gold reserves, sitting in a building in New York, can be confiscated by the United States at any time.

U.S. and European regulators narrowly avoid huge mistakes 🏛

The Biden administration released a highly-anticipated executive order on cryptocurrency. It recognizes that digital assets are here to stay. Fun fact: the United States government owns over 90,000 bitcoin.

In other good news, threatening language about proof-of-work (PoW) mining has been removed from new EU Parliament regulation. Proof-of-work is the foundation of the value of all sound money, bitcoin included. Small wins like this bode well for bitcoin adoption in the near term.

HOW BITCOIN WORKS

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

Bitcoin is saving.

The average interest rate for savings accounts is a meager .06%. Meanwhile, inflation is, nominally, at a 40-year high of 7.9%. This leads to a startling conclusion: saving in dollars is impossible. Imagine that your dollars are ice cubes, sitting in a bowl at room temperature, slowly melting. Now, imagine the Federal Reserve putting the bowl in a microwave and hitting the "+30 seconds" button every time they print more money.

Bitcoin is deflationary. Unlike dollars, its purchasing power has increased exponentially since it was invented. This can be explained by bitcoin's fixed issuance schedule combined with its limited supply. We know that there are 19 million bitcoin in existence today. We also know there will only be 21 million total, ever, when all bitcoin is mined. Bitcoin is the most transparent and reliable money ever created, making it a savings vehicle for the long term.

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

COIN CHECK

What is a private key?

1. A bitcoin wallet password

2. Your bitcoin username

3. A sequence of letters and numbers that let you spend your bitcoin

4. A unique code used by bitcoin miners to access the pending transactions

Check your answer at the end of the page.

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ANSWER

3. A sequence of letters and numbers that let you spend your bitcoin

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