2021W34 - WTF has happened in bitcoin this week?
Bitcoin is a tool for empowerment.
TLDR: Bitcoin empowering Afghan people, Cuba recognizes and accepts bitcoin, Funds entering Bitcoin Mining Space..
Hey there niblings, it’s uncle Bam again, with a summary of the most insightful events in the Bitcoin space. Back at it again digesting all the important news for you.
This week has bitcoin price has finally touched $50,000 again. With less than 10 days before bitcoin becoming legal tender in El Salvador, the price has sustain itself oscillating over $47,000, showing some wild but healthy appreciation.
The Lightning Network continues to be growing exponentially, but also empowering people in need. This week I stumbled with a beautiful example of the bitcoin community bringing someone up to their feet again. The story about a homeless person in Amsterdam, who has been struggling to get back up, and living the hardships of being unbanked in the first world, where the usage of cash is systematically decreasing, while everything becomes digitalized.
The community got together, and sent this person around 350,000 sats. People form all over the world joined and help without HomlessAmsterdam having to have a bank account, and no one needing to make an “International Wire Transfer”. This is the how bitcoin empowers individuals.
Bitcoin is hope for the people.
And this is how the week started.
1. Michael Saylor has announced that MicroStrategy has purchased an additional 3,907 bitcoins for ~$177 million in cash, at an average price of ~$45,294 bitcoin. The company currently holds 108,992 bitcoins acquired at an average price of $26,769 per bitcoin.
Michael Saylor is simply not stopping, starting a year ago, the company holds now over 0.5% of the entire bitcoin network.
2. United Wholesale Mortgage, the second-largest U.S. mortgage lender, announced that they will accept payment in bitcoin.
“We’ve evaluated the feasibility, and we’re looking forward to being the first mortgage company in America to accept cryptocurrency to satisfy mortgage payments,” - CEO Mat Ishbia
3. BlackRock, the world largest asset manager, invests in Bitcoin Mining. The company allocated over $383 million to shares of Marathon Digital Hodlings & Riot Blockchain.
4. The Cuban government said it would “recognize and regulate” Bitcoin and other cryptocurrencies on the island.
The country is banned from Visa & MasterCard, Western Union has also suspended dollar transfers to Cuba. United States’ sanctions make it difficult for Cuba to use the dollar, open monetary networks is their best way to go forward.
"Because of tough embargo rules in Cuba it has become difficult to use dollars, and as a result the popularity of Bitcoin has grown among Cuba’s technologically savvy." - Alex McShane.
5. Venezuelan Turpial Airlines has announced it will accept bitcoin as payment as a hedge against the country’s hyperinflation.
6. Substack, with over half a million subscribers, announced it has integrated Bitcoin Lightning payments in collaboration with OpenNode, a payment processor offering Bitcoin and Lightning optimized API solutions for businesses.
Or you can always tip me, your boy Bam, a few sats.
7. PayPal, Payments giant, launched new services allowing customers in the U.K. to buy, hold and sell Bitcoin. On this same day Bitcoin touched $50,000 for the first time since May.
8. Gary Gensler, the new SEC Chair, declares 'Nakamoto Invention Is Real' while warning exchanges about trading digital asset securities.
9. Bitcoin infrastructure firm Blockstream is now valued at $3.2 billion after a $210 million Series B raise, which with it will play a big role in North American ASIC production and manufacturing.
The company has been pushing the boundaries of innovation, allowing bitcoin to transact without internet with their recent release, the Blockstream Satellite Base Station.
"With Blockstream Satellite Base Station, users can connect up to 8 nodes to our network of satellites and access the Bitcoin blockchain without internet or any additional hardware."
10. SIMON partners with NYDIG to bring institutional quality custody to their 100,000 wealth managers and launches an education platform.
11. Bitcoin adoption in Afghanistan has increased as citizens seek stability in the face of cash shortages and rising prices after the Taliban takeover. The country holds 20th place in peer-to-peer bitcoin adoption according to Chainalysis bitcoin adoption index for 2021.
12. Billionaire Sami Sawiris has begun accepting bitcoin at his Swiss luxury hotel.
13. Billionaire Bill Miller’s fund just reported owning 1.5 million shares of Grayscale Bitcoin Trust as of June 30.
FUNDAMENTALS
Don’t Trust Verify. Famous phrase you’ll encounter when joining the bitcoin space. The news about the growing adoption of bitcoin sound rather bullish. But how can we verify this? Looking at On-chain data could help us. Long term holders, or parties who don’t move spend out of their wallets, have been steadily accumulating bitcoin.
There is only 21 million bitcoin. Act accordingly.
As a summary note..
Bitcoin empowers its holder. A great example is Gladstein’s recent article, where bitcoin serves as a medium of freedom and empowerment to women in Afghanistan.
A story about Roya Mahboob who in her childhood was denied the rights of formal education. Even though she was not allowed to enter internet cafes due to her gender, she found her passion in computers through a course hosted by the United Nations, later becoming the first female tech CEO in Afghanistan.
The essay walks us through different ventures that Roya was involved in, such as Citadel Software, where 85% of the employees were woman and this was their first job opportunity. WomanNX, which helped Afghan women work from home, offered women the opportunity to find financial independence by receiving compensation in bitcoin; since getting paid in cash, often was taken away by their fathers, husbands or brothers if they were to find out.
"It is more than just an investment. It is a revolution". - Roya Mahboob
Have a great weekend niblings.
Stay humble & stack sats.
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