BITCOIN BOX SCORE

Exchange Rate: $51,600

Market Capitalization: $1.01T

Hash Rate (90 days): 526.1 EH/s

Transactions (30 days): 11,341,655

Network Fees (day): 11 sat/vB

Bitcoin Dominance: 52.95%

What do these numbers mean?

They say bear markets are for building.

During the last bear market, bitcoin developers and entrepreneurs built a lot. 

Macro conditions and the overall narrative surrounding bitcoin have shifted, too. 

On the macro side, the price level remains permanently elevated, and global debt levels hit a new record – $313 trillion. For bitcoin, spot ETF approvals have generated new institutional interest and legitimized its role as a long-term store of value.

Even regulatory scrutiny has abated.

The SEC's court losses have diminished its appetite for regulation by enforcement, and though anti-bitcoin bills are circulating through Congress, they are unlikely to be passed.

SBF and other crypto exchange shenanigans are mainly in the rear-view. Google search trends for bitcoin have risen in recent months.

All factors indicate a sustained adoption period as entrepreneurs push the industry forward and deliver useful bitcoin-centric financial products to consumers.

Old habits die hard.

On the other hand, old issues will likely continue to plague the broader "crypto" landscape.

We've already seen the rise in claims that the "tokenization" of real-world assets (RWA) is the next big thing. Does that sound like the security tokens of previous cycles? It should – because it's basically the same thing.

Expect more hyped-up vaporware followed by rug pulls. Bitcoin will continue to rise above the rest, but vigilance is essential.

With that, let's dive into the news.

NEWS

Crypto attorney launches senate bid to unseat Elizabeth Warren

John Deaton, a cryptocurrency advocate and attorney, launched a Senate campaign as a Republican to challenge Senator Elizabeth Warren. Deaton is the first serious contender Warren has faced in years, and he offers on alternative on a broad set of issues, including crypto policy.

Pay attention to this race.

Contrary to what Senator Warren has been suggesting in her fundraising emails, Deaton is not an out-of-touch "crypto lawyer." Instead, he is a marine veteran hailing from a rough Detroit background, which he details in his memoir, "Food Stamp Warrior." Deaton could pose a serious challenge on critical issues. This will be one to watch.

MicroStrategy now defines itself as a bitcoin development company

Per its Q4 earnings presentation, MicroStrategy now calls itself a bitcoin development company that focuses on the growth and success of the bitcoin network through market activities, advocacy, innovation, and bitcoin technologies like Lightning. 

"MicroStrategy (Nasdaq: MSTR) considers itself the world's first Bitcoin development company," the company stated in a press release.

Skating to where the puck is going.

The official pivot comes on the heels of asset appreciation of the company's bitcoin holdings and significant gains in its stock price over the past year. It is approaching the necessary market capitalization for inclusion in the S&P 500, which would bring bitcoin exposure to millions more investment portfolios.

With the upcoming changes in accounting standards for digital assets, MicroStrategy encourages broader adoption of bitcoin as a business treasury asset.

Circle and Coinbase testimony

During a House Financial Services Committee hearing titled "Crypto Crime in Context," U.S. Representative French Hill (R-Little Rock) criticized exaggerated claims linking bitcoin and crypto to terrorism, emphasizing the excessive nature of such accusations.

Witnesses spoke about the pros and cons of regulating bitcoin and crypto, including its use in sanctions evasion and the supposed need to improve compliance and international cooperation.

"I don't know why illicit actors turn to certain offshore stablecoins, but I believe it's because they have publicly taken a viewpoint that they are above anti-money laundering and counter-terrorism financing standards," stated Caroline Hill, a former treasury official and current policy employee at Circle, a U.S.-based stablecoin issuer.

Hill later called for additional OFAC and FinCEN regulations on any U.S.-dollar-linked stablecoin, regardless of its issuer's location.

Coinbase's director of financial crimes, Grant Rabenn, also asked for greater adoption of existing legal tools to "police those offshore actors."

The least surprising thing ever.

Given that Circle and Coinbase are major firms based in the U.S., such pronouncements are expected. Both of them hire former government employees in order to strengthen their political connections in a bid for regulatory capture.

Another way of interpreting their testimony is as a job interview for winning the contract to build a CBDC for the Federal Reserve.

🍎 Andrew Ross Sorkin gets schooled

During an interview with Fundstrat's Tom Lee, who predicted bitcoin's dollar exchange rate would hit $150,000 this year, CNBC's Andrew Ross Sorkin got into a debate with his Squawk Box co-host Joe Kernen over bitcoin's utility and its role as a store of value. 

The viral interview section features Ross Sorkin claiming that "a store of value will stay one price." This doesn’t make any sense because if an asset stays the same price, that means it is losing purchasing power as the currency inflates.

The entire interview is worth watching, and if you're curious to dig into why bitcoin commands such a lofty dollar exchange rate, see our new Forbes article on this topic.  

BITCOIN ADOPTION CONTINUES

Ahead of South Korea's 2024 legislative election, both major parties have committed to pro-bitcoin measures, such as approving a bitcoin ETF, aiming to win over young voters.

Marathon Digital Holdings, a leading U.S. bitcoin mining firm, is acquiring mining plants and companies to expand operations and capitalize on potential market growth.

The approval of spot bitcoin ETFs in the U.S. has increased Australian retail interest and investment in bitcoin, as revealed by a recent survey.

Crystal Intelligence CEO Navin Gupta predicts significant bitcoin adoption in 2024 driven by institutional investment and the improvement of technology.

HOW BITCOIN WORKS

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

Bitcoin is not vaporware.

Since bitcoin's inception, each bull market "cycle" has generated its unique flavor of short-sighted projects that attempt to ride its coattails.

Initially, the mantra "blockchain, not bitcoin" captivated the imaginations of technologists and entrepreneurs alike. This period was marked by an enthusiastic rush to apply blockchain technology across various sectors, underpinned by the belief that it could revolutionize data management.

Many attempted to "put things on the blockchain" without an understanding of blockchain technology's limitations and strengths, leading to projects that failed to deliver.

The ICO boom ran in parallel to the blockchain craze. This phenomenon saw startups and projects raising funds by issuing their own tokens, often promising future utility or shares in company profits. It was rife with scams and projects that failed to materialize, muddying the waters of the bitcoin and crypto space and leading to significant financial losses for uninformed investors.

When the dust settled after the ICO explosion, attention shifted towards new crypto networks like Ethereum, Solana, and Luna, each promising to overcome the "limitations" of bitcoin's blockchain by offering faster speeds and greater scalability. These networks, particularly Ethereum, became the backbone for “decentralized finance,” or DeFi.

However, despite their supposed technical advancements, many of these networks and their associated tokens have yet to find use cases outside of niche, highly technical financial engineering applications. Other alternative blockchains were (and remain) rife with scams.

Through these cycles of hype and disillusionment, bitcoin has stood its ground, offering something more than just vaporware – digital money used by millions.

Bitcoin is already a global, permissionless payment network that offers final settlement every 10 minutes, and its utility as a long-term store of value attracts investors and users alike.

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

What will bitcoin’s inflation rate become following the halving this April?

1. 1.8%

2. 2%

3. 9%

4. .85%

Check your answer at the end of the page.

FROM THE MEME POOL

Follow us on Twitter for more fresh content

ANSWER

4. .85%. The inflation rate, both current and predicted, can be viewed at BiTBO.

Was this email forwarded to you? Sign up here.