2022W31 - WTF happened in Bitcoin this week?
Bitcoin properties incentivises adoption
TLDR: Countries & Corporations might benefit from adopting bitcoin, Miners share production update, BlackRock to adopt Bitcoin, Banks offering Bitcoin cards.
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 am truly mesmerised by the incentives of adopting Bitcoin from States & Corporations perspective. The benefits of joining the bitcoin network are not limited the the asset’s appreciation only. It is true, that it is indeed the hardest asset, with the greatest appreciation potential in the long term, but even though it designed to appreciate forever, it does have a short-term volatility and often some of its additional benefits go by unseen:
Making your country more interesting to visit & invest in.
Making your company more interesting to collaborate & invest in.
This is what we have seen in the last couple of years with MicroStrategy & El Salvador gradually moving into a Bitcoin Standard.
MicroStrategy enterprise value is up 730% and stock 123% since adopting bitcoin.
El Salvador tourism is up more than 80%, as its world class surfing, and the optionality to pay with bitcoin becomes popular.
Eventually, competing States & Corporations, will attempt to copy the model of success, generating an unstoppable network effect, where Bitcoin will act as a black hole, absorbing everything around it.
THE NEWS!
1. Galoy Inc. the team behind the wallet of El Salvador's bitcoin circular economy Bitcoin Beach released two announcements:
Introducing Stablesats: a bitcoin-backed synthetic U.S. dollars.
Raising $4 million to further develop GaloyMoney, its open source Bitcoin banking platform.
“Stablesats offers a stable dollar balance backed by bitcoin through inverse perpetual swaps. The idea behind Stablesats is simple: the user will now be able to hold U.S. dollar in their wallet application, while the technology under the hood will be enabling a short or long trade in order to keep the value of dollar's stable for the user.”
2. BlackRock, the world's largest asset manager with over $10 trillion in assets under management (AUM), is launching bitcoin trading services for institutional clients through a partnership with Coinbase.
3. Oxford City Football Club to accept bitcoin in partnership with CoinCorner.
4. Foundry Digital donates 1 BTC to developer working on a sub-protocol of Stratum V2, a communications protocol meant to improve miner collaboration, increasing global hash rate.
5. ZEBEDEE launches cross-platform money transfers on the Lightning Network. The new feature will enable any business or app to transfer funds with participating businesses and to instantly pay its users leveraging the Lightning Network.
6. RoboSats increased their max trade limit to 4 million sats, and expanded to Czech Republic.
7. Binance and Mastercard to launch bitcoin reward card in Argentina. Users of Binance card can earn up to 8% cashback on purchases and bill payments through Mastercard’s vast network of over 90 million merchants worldwide.
8. CoinJar, Australia's longest-running crypto exchange, has launched a card backed by Mastercard allowing users to buy, sell and spend digital assets directly from its platform using local dollars.
9. Roman Catholic Archdiocese of Washington, DC will accept bitcoin & crypto donations
10. Santander, to offer bitcoin, crypto services in Brazil, by or before the release of its quarterly results.
11. Bitwage, a bitcoin payroll provider, is parterning with Bitcoin security company Casa and Edge Wallet, to ease the onboarding of businesses to a Bitcoin standard.
12. River Financial, a Bitcoin-only technology and financial services company, has launched zero-fee recurring bitcoin purchase orders, incentivising customers to adopt bitcoin as a savings technology.
13. FTX exchange will build a headquarters in Dubai to operate exchange and clearing house services for bitcoin and cryptocurrencies through a subsidiary.
14. Michael Saylor, the current CEO of MicroStrategy will soon become executive chairman to better focus on the company’s Bitcoin strategy.
MINING
15. Canaan, a global leader in bitcoin mining rig manufacturing based in China, piloted a successful mining operation in Kazakhstan, and shared that they are planning to launch self- or joint-mining operations in the U.S.
16. Many of the Public Bitcoin Miners released their production update for month of July 2022. Some examples and interesting statistics are:
Core Scientific being the company which produced the most bitcoin (1,221 btc) in a single month.
Riot earning about $9.5 million or 439 worth of power credits by curtailing energy, earning more by powering off their machines than what they would have mined.
Marathon hasn’t reported their numbers yet, but still takes the lead owning 10,055 bitcoin, if they haven’t sold more than produce since June.
POLITICS
17. England’s Law Commission proposal outlines a new form of property for digital assets, custodial operations and a framework for legal proceedings.
18. US Senate introduced a new bill seeking to empower the CFTC to regulate bitcoin as a digital commodity while excluding securities from also falling under the same category.
As a summary note..
Bitcoin adoption doesn’t stop to surprise me, and I am sure you would agree with this statement. More than the institutional adoption I am more interesting in seeing retail thrive. We are now seeing Black Rock enabling capabilities to their wealthy investors to get exposure to Bitcoin, a move which could do wonders in terms of price. Just a 5% of their 10 trillion in assets under management is worth more than the entire network as of today.
But honestly, I am excited and really looking forward to be able to spend some sats in my bars & restaurants of my local area. The Isle of Man have been thriving in this regard, allowing bitcoin to integrate in the circular economy, as more business owners become ‘orange pilled’. It makes me want to go out there and reach the entrepreneurs in my area. I guess this is why bitcoin’s network effect can’t be stopped.
Have a great weekend niblings.
Stay humble & stack sats.
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