2022W16 - WTF happened in Bitcoin this week?
Bitcoin can save us.
TLDR: Inflation Ramping Up, Ukraine Stops Bitcoin Purchases, Luxury Brands, Luxury Cars & Football Clubs Accepting Bitcoin As Payment, IMF Admits They Might Have Take Part On Inflation’s Cause.
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.
Inflation is running high, and eve when it used to be denied by some, or justified as it is only 2%, 4%, or whatever the government was saying, well now the “official numbers”, while they could still be underrepresenting it, are getting overwhelming.
Bitcoiners, and Goldbugs have been saying it for some time now, while the leaders, or in this case Central Banks, blatantly denied that the issuance of currency could lead to inflation. Well now it seems they are changing the narrative:
Everybody expects to be provided a solution, but at this point we can only create it, or be part of an existing one.
Bitcoin is volatile, we can agree on that, but people dismissing its monetary properties only due to volatility are about to get a real awakening when they find out themselves thinking “it is too late”, as the price eventually goes parabolic with people seeing it raise and trying to escape their doomed local currency.
We have seen now the IMF admitting the potential it has as a way around the traditional financial system, as it isn’t controlled by any central authority, and even countries attempting to cut on-ramps as people find it as a solution to move from place to place with a safe place to store wealth digitally.
The truth is, it is not too late, and sure the price could drop even lower, in the short term. But the more demand there is, the more people begin using it as savings technology and consistently accumulating on a frequent basis, there will come a time where the buyers exceed the sellers, and we know that regardless of the amount of new miners coming into the system, there is a fixed supply and a programmed schedule for its issuance which today amounts to about 900 new bitcoin to be mined per day, and soon to be reduce to 450 until we arrive to the total amount of 21 million units ever to be issued.
“It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy." - Satoshi Nakamoto
THE NEWS!
1. IMF recognizes the bitcoin mining industry as a method for nation-states to monetize energy sources which cannot be otherwise exported due to sanctions.
2. Morgan Stanley says Bitcoin is close to being a currency.
3. In an interview with CNBC, the CEO of Grayscale Investments argued that his company sees the approval of a spot bitcoin ETF as only a matter of time.
4. Luxury jewelry reseller SFLMaven announced they plan to accept bitcoin as payment and have added BTC as a line item on their balance sheet.
5. 21Shares is set to become the first issuer to launch a spot bitcoin ETF in Australia after Cosmos announced its de-facto fund of funds.
6. Tigres’, a Mexican footbol team, supporters can purchase match tickets with bitcoin through a partnership between cryptocurrency exchange Bitso and ticketing platform Boletomovil.
7. BitPay announced that a Porsche dealer in the Baltimore region is now accepting bitcoin and other cryptocurrencies as payment for its vehicles.
8. Brazilian wine club known as Wine is accepting bitcoin as payment on its mobile application and hopes to extend functionality to desktop and mobile sites.
9. Russia’s Federal Tax Service proposed a change to the “On Digital Currency” legislation allowing entities to accept bitcoin as payment in foreign trade.
10. Crusoe Energy raised $505 million in a series C round led by G2 Venture Partners to help the miner expand and diversify its energy sources.
11. Two Ukranian NBA stars, Svi Mykhailiuk of the Toronto Raptors and Alex Len from the Sacramento Kings, have partnered with Bitcoin Magazine to help support humanitarian relief efforts in Ukraine by enabling anyone to donate bitcoin by simply scanning a QR code on the front of the player's shoe.
FUNDAMENTALS
Bitcoin might be boring, but boring is good if what it is expected is institutional adoption, according to Jurrien Timmer, director of global macro at Fidelity.
According to his S2F and mobile phone S-curve, the price reaches a consensus between them in about a year where bitcoin could be somewhere around $100,000. Let us remind ourselves that these sort of models offer no guarantee but a perspective of what could happen if adoption continues to move forward, or in a way of confirming our own biases, the direction we are headed is clear, in a long term frame, bitcoin succeeds.
As a summary note..
Not your keys, not your coins. Not your hash, not your miners.
An expensive lesson just happened for everyone who had hosted miners in Russia through Compass Mining, who after US sanctions, they are force to cancel the service happening in Russia, with no way of shipping the equipment to their owners, but only a slightly possibility of liquidating the hardware and paying the legitimate owners.
It is nevertheless a reminder, an expensive one, that in this growing industry, custody matters, and in general, an eye opening into any sort of investments where there is a different jurisdiction coming into the picture. If we have learnt anything from the last couple of months, is that sanctions hit the normal people hard, more than the few people they intend to punish.
Have a great weekend niblings.
Stay humble & stack sats.
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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.
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