2022W12 - WTF happened in Bitcoin this week?
Bitcoin can transact instant and cheap.
TLDR: Lightning Network Growth, Exxon begins Mining, Russia to accept bitcoin, Miners getting creative
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 I would like to make emphasis in The Lightning Network. As we know, it is a second layer solution on top of bitcoin, based on bilateral channels using bitcoin’s native multi-signature technology allowing its users to:
Make instant transactions
Pay little to no fees
Today, the lightning network’s capacity is currently hosting over 3,570 bitcoin, and it continues to break its record all time high every day.
The most amazing part of this, is that it all came from the self interest of the people, without the need of any central party dictating its use, on the contrary, the market decided that it was what was needed. As people realize that it is a good way of integrating into the financial system people who were underbanked, naturally adoption begins to follow.
The ecosystem grows day by day at an unprecedented rate. As the capacity increases together with the users, the incentive for businesses grow too, from implementations to wallets, rewards, gift cards and financial services.
The path is clear and has already been paved, examples from communities all around the world continuously pop up on twitter, allowing us to realize the palpability of the network’s growth. If we are not in a location where lightning is being normally used or accepted by businesses, it may be an opportunity for us to find the way.
Before we go to the news here is another example of someone buying surfing gear in Uruguay over lightning.
THE NEWS
1. Exxon, the fourth-largest oil company in the world, is now considering taking its gas-to-bitcoin pilot to four countries.
2. Russia is open to selling natural gas in national currencies or bitcoin.
3. Malaysia discusses legalizing bitcoin.
4. The Government of El Salvador is now running a Bitcoin Core full node.
5. Luna Foundation bought $503 million worth of bitcoin this week to back its UST stablecoin.
First purchase was $250 million
Second was $125 million
Third was $128 million
They presumably will attempt to purchase a total of ~$10 billion in the near future. As of now, they do not have the funds to complete this purchase, but have above $2 billion according to Do Kwon.
Just before finish writing I found that apparently they bought more, but uncle Bam has a limited scope and will have to confirm further.
6. Synonym made the first Tether stable-coin transaction in a Lightning Channel.
7. Swiss Startup Relai earns Broker License, Raises at $40M valuation.
8. Goldman Sachs, facilitated by Galaxy Digital, purchased an over-the-counter options contract to be cash-settled, that is tied to the price of bitcoin.
9. Wall Street bank Cowen, to offer spot bitcoin trading instead of futures trading.
10. Avenue Securities now allows its over 500,000 Brazilian customers to buy, sell, and hold bitcoin in an integration with a third-party trading platform.
11. Trammell Venture Partners is pooling Bitcoin-focused institutional investors into a feeder-fund focused on Bitcoin and Lightning network development.
“We are trying to see how we can legalize [Bitcoin and other cryptocurrencies] so that we can develop youth participation in crypto and assist them” - Malaysia deputy minister
12. Crypto.com is officially the exclusive cryptocurrency trading platform sponsor for FIFA World Cup Qatar 2022.
13. Matheus Nicolau, UFC fighter, has signed an agreement to be paid in bitcoin moving forward.
As a summary note..
Bitcoin Mining has been criticized and unfairly judged as a massive waste of energy. Even it is true that bitcoin indeed needs vast amounts of energy, the comparisons are often unfair, and it’s positive externalities often ignored. We know that bitcoin is the energy buyer of last resort, and have already talked here about how it helps regulate the grid and incentivise the production of renewable energies.
Now we have found a new way miners are utilizing the heat issuance from the bitcoin miner, and this is the complete opposite of destroying the planet.
It is beautiful right? Who would have thought..
Have a great weekend niblings.
Stay humble & stack sats.
Supported by:
How to buy bitcoin? (With Relai through Revolut)
If you are in Europe, I made a pretty simple guide with 3 steps, which avoids you having to set up an account on an exchange, give them all of your personal information, plus custody of your funds.
Did you find value on this? You want to contribute to Uncle Bam?
Then feel free to donate, a cup of coffee would be highly appreciated.
But more importantly, share this with your friends and family..
Lightning Address:
cherryskate01@walletofsatoshi.com