🪦 In Retrospect, It Was Inevitable

Fiat is outdated and obsolete, and the hour is late.

August 29, 2025

BITCOIN BOX SCORE

Exchange Rate: $112,140
Market Capitalization: $2.23T
Hash Rate (90 days): 906.0 EH/s
Transactions (30 days): 12,982,350
Network Fees (economy): 1 sat/vB
Bitcoin Dominance: 58.37%

Money has remained unchanged for decades, becoming so familiar that most people never question its fundamental nature. Like breathing, we use money instinctively without questioning how it works. This unconscious acceptance creates a collective blindness to monetary innovation.

Bitcoin is a reconceptualization of money, and it contains several seeming contradictions. It is physical, yet digital; decentralized, yet trustworthy; programmable, yet stable. As extraordinary as each of these statements is, each one is supported by bitcoin’s open source, readily readable code.

Society lacks a conceptual framework for such a radical disruption of what money means. Most people are pretty good at integrating incremental change into their worldviews, but it is those special few who can recognize paradigm shifts that come out far ahead of the rest.

In the past two years, bitcoin treasury companies and traditional financial products based on bitcoin have proliferated. Some will win, and some will lose – but it is not a stretch to assume that the entities that successfully integrate bitcoin into their financial operations will turn out to be more resilient and faster growing than the rest.

In retrospect, it was inevitable.

NEWS

Bitwise forecasts bitcoin to hit $1.3 million by 2035 in new institutional report

Investment firm Bitwise Asset Management released its inaugural Long-Term Capital Market Assumptions report for bitcoin, projecting the asset will reach $1.306 million by 2035. The forecast represents a compound annual growth rate of 28.3% from current levels and positions bitcoin as the best-performing institutional asset over the next decade.

The "bull" case explained

The report's bullish (though one could consider it bearish) outlook is driven by three key factors: rising institutional demand as investors allocate 1% to 5% of portfolios to bitcoin, limited supply with only 0.8% annual inflation, and increasing concerns about government debt and fiat currency debasement. Bitwise expects institutional investors controlling roughly $100 trillion in assets to need $1-5 trillion worth of bitcoin over the coming decade, creating sustained buying pressure against bitcoin's fixed 21 million supply cap.

Powell signals rate cuts despite rising inflation, critics blast Fed "independence" claims

Federal Reserve Chair Jerome Powell indicated the central bank may cut interest rates at its September meeting despite inflation running above the Fed's 2 percent target for over four years. Speaking at Jackson Hole, Powell acknowledged a "challenging situation" where inflation risks are "tilted to the upside" while employment faces "downside risks," but suggested the Fed's "restrictive" policy stance may need adjustment.

Central planning under fire as stagflation looms

Austrian economist Jon Wolfenbarger criticized Powell's speech as typical bureaucratic blame-shifting, noting the Fed chair attributed recent inflation to post-pandemic reopening rather than the Fed's 40 percent money supply increase in 2020. Powell admitted that tariffs are now "clearly visible" in consumer prices and warned of potential "adverse wage-price dynamics," yet signaled openness to rate cuts that would inject more liquidity into an already inflated economy.

Critics argue Powell lacks the backbone to resist political pressure for easier money despite failing to hit the Fed's inflation target for 52 consecutive months. Remember:

Institutions pour $33.6 billion into bitcoin ETFs as advisors lead adoption

Investment advisors drove institutional bitcoin ETF holdings to $33.6 billion during Q2 2025, nearly doubling the $9 billion exposure of hedge fund managers. Brevan Howard Capital Management increased its BlackRock bitcoin Trust holdings by 71% to $2.3 billion, while Harvard Management Company entered the space with a $117 million position.

Harvard now holds more bitcoin than gold

The university endowment's bitcoin allocation exceeds its $102 million gold position and represents 8% of Harvard's reported portfolio, ranking alongside major holdings like Microsoft and Amazon. Bloomberg data shows institutions added 57,375 bitcoin across all categories, with advisors emerging as the dominant institutional holders at $17.4 billion in total positions.

CFTC opens doors for bitcoin firms that fled U.S.

Acting Chairman Caroline Pham announced that bitcoin & altcoin trading firms that left the U.S. due to regulatory uncertainty can now return as "foreign boards of trade" (FBOTs) and directly serve American customers. The Commodity Futures Trading Commission's advisory serves as a reminder of existing pathways for firms that are rigorously regulated in their home jurisdictions.

The prodigal exchanges return

This represents a major policy shift from the Biden-era hostility that drove innovation offshore. As companies explore returning under FBOT status, American investors will regain access to more liquid and sophisticated bitcoin trading venues, potentially reducing costs and increasing competition in domestic markets.

BITCOIN ADOPTION CONTINUES

Japanese investment company Metaplanet approved raising $880 million through share issuance, allocating $835 million for bitcoin purchases to expand its treasury holdings.

Analyst Timothy Peterson predicts bitcoin could reach $160,000 by Christmas based on historical Q4 performance showing average 44% gains during the final four months of the year.

French chipmaker Sequans Communications plans to sell $200 million in shares to buy bitcoin, targeting 100,000 BTC by 2030 as part of its aggressive treasury strategy.

HOW BITCOIN WORKS

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

Self-custody: It's not "just 12 words" and that's okay

Shinobi recently published a powerful essay challenging what he perceives as an oversimplified messaging around self-custody. His central point deserves our attention: telling people self-custody is "just writing down 12 words" is as misleading as saying "shooting a gun is just pointing and pulling a trigger."

Both statements are technically true but dangerously incomplete. Just as firearms require respect, training, and safety protocols, bitcoin self-custody demands understanding, preparation, and ongoing vigilance. Those 12 words represent complete control over your money – they must be kept secret, physically secured, and protected from con artists, hackers, and social engineers.

The reality is more complex than we admit. Can you physically secure a seed phrase? Do you live with trustworthy people? Can you verify software integrity? Do you understand long-term wallet compatibility?

Anyone can do these things – as long as they understand the gravity of the undertaking and really apply themselves during the learning process.

Multisignature schemes allow key rotation and mistake recovery. Better user interfaces can defeat scammers. Improved compatibility between wallets can eliminate vendor lock-in. But these solutions need refinement, testing, and widespread adoption.

The goal isn't to scare people away from self-custody – bitcoin's decentralization depends on it. The goal is honest education. Just as millions of people safely drive cars and handle firearms after proper training, millions can learn to secure their bitcoin with the right tools, knowledge, and support systems.

Self-custody is learnable, doable, and essential. But it isn’t trivial, and those who begin the process with eyes open are more likely to successfully complete it.

If you need help getting started, speak with a Coinbits specialist today.

COIN CHECK

Roughly what percentage of all bitcoin in circulation is estimated to be held in self-custody wallets (not on exchanges or custodial platforms)?

A. About 20%
B. About 40%
C. About 60%
D. About 80%

Check your answer at the end of the page.

FROM THE MEME POOL

ANSWER

Correct Answer: B. About 40%

On-chain analysis shows that about 40% of bitcoin is kept in self-custody rather than on exchanges, reinforcing the importance of the bitcoin ethos: “Not your keys, not your coins.”

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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