Bitcoiners,

This week marks our 50th bitcoin Roundup. What has changed since we started writing this newsletter? On the positive side, bitcoin is ticking along as expected. On the negative, the timeless virtue of thrift, or saving, remains under attack by central banks worldwide.

Recent headlines depict saving as “hoarding,” and policymakers in the UK have gone so far as to declare that saving a significant amount of digital currency will be banned in Britain once officials implement a CBDC.

Beyond the headlines, the effects of central bankers playing politics with our money via monetary policy are very real. The personal savings rate is at a 60-year low, credit card balances are up, and defaults are trending upward.

Fortunately, bitcoin gives people a way out. Its unique monetary qualities make it the greatest savings vehicle ever known. And good bitcoin companies are working hard to make saving in bitcoin easy and accessible for everyone. :)

Now let’s dig deeper.

INSIGHTS

🚨 Alarming: Majority of Americans are using savings for regular expenses

According to recent research from CNBC, 54% of Americans are using their savings to pay for everyday expenses. Groceries, rent, and healthcare were the main expenses cited in the report, highlighting the unfortunate reality that many Americans are struggling to make ends meet amid persistent inflation.

Inflation is a hidden tax that reduces the purchasing power of money over time. With its limited supply and deflationary nature, bitcoin instead preserves wealth over time and protects against monetary manipulation by centralized entities.

🤦🏻‍♂️ Munger praises the CCP while attacking bitcoin again

After advocating for a "crypto ban" in the Wall Street Journal, Berkshire Hathaway Vice Chairman Charlie Munger once again disparaged digital assets, stating, "I'm ashamed of my country that so many people believe in this crap and the government allows it to exist." Munger then pointed toward China's bitcoin ban as a regulatory model.

Two problems: Munger is correct regarding much of the "crypto" industry's malpractice, but government bans are not a panacea. Further, the financier's inability to distinguish bitcoin from other digital assets reveals an ignorance that undercuts the rest of his commentary.

👏🏼 Bloomberg praises El Salvador's bitcoin journey

Last fall, Bloomberg headlines read, "El Salvador's $300 Million Bitcoin 'Revolution' Is Failing Miserably." This week marks a shift in the media giant's coverage. In "How El Salvador's Bitcoin-Loving President Won Over Wall Street," Bloomberg reporters describe how President Nayib Bukele repaid bonds, repurchased debt, and cracked down on regional crime while spurning the IMF and promoting bitcoin.

Bukele deserves props for this. For months, western pundits derided his rejection of strings-attached IMF debt and embrace of bitcoin. Yet, like bitcoin itself, he is doing fine.

👀 States begin to focus on sound money amidst rampant inflation

The Missouri Senate passed a bill to eliminate state income taxes on gold and silver. If it passes the state House, individuals could use gold and silver coins issued by the US government as legal tender. The state would also be required to hold gold and silver in reserve as monetary metals. More than a dozen states are proceeding with sound money legislation this year.

A renewed focus on sound money in light of sustained government spending and resulting inflation paves the way for similar treatment for bitcoin - the "soundest" of them all.

BITCOIN ADOPTION CONTINUES

Global payments leader Ingenico has launched bitcoin payments for users in France, with many more countries to come. The company has 40 million terminals in 37 different countries.

DZ Bank, Germany's second-largest financial services provider, now offers bitcoin to their institutional clients.  

Bitcoin miners HUT8 and US Bitcoin have announced a merger, which, if successful, would be the largest bitcoin mining M&A deal in history.

BitPolito, a project started by University students in Italy, brings 30 hours of bitcoin training and education to public high school students that will count towards their formal education.

The Human Rights Foundation announced a donation of 2 billion satoshis (20 bitcoin), worth roughly $500k, to 10 global bitcoin projects.

HOW BITCOIN WORKS

Learn one key idea about bitcoin each week. This week: Bitcoin is savings.

CNBC reported some troubling data this week regarding the state of the average American's personal finances.

The report revealed that over a quarter of Americans have dipped into their savings to cover expenses - an alarming 54% of those using those savings to pay for necessities, such as food and rent.

Commenting on the current state of affairs, CPA and Chairman of debt.com Howard Dvorkin stated, "There's a great deal of economic risk right now, and if you're borrowing from your future or someone else to cover expenses, an economic slowdown could be worse for you than it has to be."

Though directed towards individuals, Dvorkin's advice is better suited for those controlling the country's finances.

A government that constantly deficit spends and borrows from our future got us into this mess, not individual citizens.

One look at the massive increase in the M2 money supply in 2020 reveals why 64% of Americans live paycheck to paycheck.

Individuals can't cover the increased cost of living (inflation) generated by central bankers expanding the money supply at whim.

The data speaks volumes about the character and intelligence of those running our monetary institutions.

If you haven't already realized, central banking works only for those in charge.

Thankfully, there's another option: a decentralized money system like bitcoin stores and transfers value without relying on traditional banking systems subject to inflation and government intervention.

Bitcoin's fixed supply and deflationary nature allow individuals to protect their savings and invest in the future.

As the world becomes increasingly interconnected, having a financial system that puts individuals in control of their own money is more important than ever.

Bitcoin offers a path to financial freedom and security in a way that no other asset can.

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 one advantage of bitcoin as a savings instrument compared to traditional savings accounts?

1. Unlimited supply

2. Decentralization

3. Physical storage

4. High fees

Check your answer at the end of the page.

FROM THE MEME POOL

BITCOIN ROUNDUP PODCAST

If you love our newsletter, you’ll love our podcast, too.

ANSWER

2. Decentralization

   Bitcoin's decentralized nature means that it is not subject to the same risks as traditional savings accounts, such as government intervention or inflation.

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