TLDR: Inflation is here to stay, Bitcoin is the way out. Corporates and Retail keep buying the dip.
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.
Forbes just released an article titled: "It’s Official: Inflation Is Not Transitory”
"But there is no point moaning, here we are, in the new world of high inflation and we will have to adapt.” - Clem Chambers CEO of ADVFN
The government and mainstream media and economists have been telling us for years that the economy was great, and inflation was not something to worry about, while printing and printing and expanding the money supply, without advising to the listeners any methods of protections against the devastating consequences of diluting the value of the economy through monetary policy.
Now they share a sad and nihilistic view, when many people shared their concerns and the advantages of a digital and limited supply new kind of money which can’t be manipulated or confiscated through monetary debasement. But that is it, they tell us to adapt, that plans didn’t go as they thought, and now we all are to take the consequences, while we weren’t the ones having the benefits of the money issuance.
Preston Pysh explains in an excellent thread, how why everything feel like its falling apart, while we have a stock market looking like this:
Mayor stock indexes have recovered from 75%-638% since 2009. And while the chart would look optimistic..
The reality is a different one when we adjust all these different currencies to the USD.
But it still wouldn’t be fair, unless we adjust the chart according to the M2. In other words, even while all currencies were converted to USD at the real exchange rate according to history, are different ones as its value become diluted through money issuance and it would only be fair to compare them by dividing the stock indexes value by the existing money in that point in time.
Basically, even though it appears that the stock market has done pretty well in the last couple of years, the reality is that it has not.
The unprecedented monetary expansion is making cost of living more and more expensive as we have experienced in the last couple of months, but even years, while the tools we are given to “protect our selves”, such as investing in the stocks market, are not yielding enough given the risk we take.
And this is exactly why Bitcoin is important, since at least we know that it is the only thing that can’t be manipulated or controlled by central policies.
And this is how the week started.
1. Lemonade, a life insurance company, just bought $1 million worth of Bitcoin for its balance sheet.
2. 90% of all 21 million bitcoin have now been mined.
3. Paraguay passed a bitcoin bill to the senate. The legislation hinted at increased regulatory security from the country’s regulators regarding bitcoin mining and an overarching goal to offer investor protections from businesses offering bitcoin services.
4. NYDIG raised $1 billion at $7 billion valuation and aims to be the leading provider of Bitcoin services in “any industry,” according to its CEO.
5. Bitcoin Beach Wallet creator raises $3 million in a new seed round
6. Ledn customers will be able to purchase properties with their bitcoin holdings by early next year.
7. The Sparkassen, a German group of centuries-old regional financial institutions with about 370 branches and 50 million customers, is reportedly working on a trading feature that would allow their clients to buy and sell Bitcoin directly from their checking accounts,
8. CardCoins, a company that allows users to exchange prepaid gift cards for bitcoin, announced the integration of the Lightning Network into its operations.
9. John Warren, multimillionaire businessman and former South Carolina governor candidate, is now mining bitcoin through a new venture he formed with four other founding partners, GEM Mining.
“GEM Mining said it has over 9,000 fully operational machines and has mined more than 400 bitcoin in the past 9 months. In November its revenue amounted to $7.8 million, while its operations were 92% carbon neutral.”
10. Morgan Harper, a U.S. senate candidate for Ohio, has began researching opportunities that the decentralized monetary network can bring to her constituents, in an attempt for an overdue decentralization of power.
FUNDAMENTALS
It appears that the latest sell off has been driven by the Asian market, as Huobi needs to stop providing services to the Chinese Market.
At the same time, the last time retail has bought the dip this hard, was at the bottom of the Covid crash back in March 2020.
The scenery does not show a loss on conviction, but the opposite. Good times might be near.
As a summary note..
Bitcoin is on a never ending bull market, it is just a matter of perspective. If we group its history on two year candles, we would see that it has always displayed appreciation overtime. As a volatile asset, it could play with our emotions, as we often expect high returns as a reward for our exposure to this wild volatility, but bitcoin does not care.
As its been said before:
Don’t wait to buy bitcoin, buy bitcoin and wait.
Have a great weekend niblings.
Stay humble & stack sats.
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