August 21, 2022

🏁 Bitcoin quietly catching speed

Bitcoiners see bear markets as opportunities to save and invest without the usual hype. When the next cycle begins, much wealth will be created for those in the know.

Joe Lupo
Joe Lupo

Reserve Client Manager

🏁  Bitcoin quietly catching speed

Table of contents

🏁  Bitcoin quietly catching speed

Block by block, bitcoin continues its meteoric rise. We call it a block height for a reason.

On the one hand, it's amazing that the bitcoin network remains unfazed by macroeconomic storm clouds and relentless media attacks. On the other hand, it's not amazing at all. Even after the recent sell-off, bitcoin is massive, with a market cap of $775 billion.

Is there anything that could stop a decentralized, cryptographically secure revolutionary movement with that much momentum?

Bitcoin hodlers win in a bear market. When sats are cheap, as they are now, we are given the opportunity to buy more than we otherwise could.

Bitcoin developers building the technologies that will run the future worldwide economy are given the space to work quietly behind the scenes, getting ready for the next cycle.

All the while, bitcoin is quietly adopted by more people and businesses, and block height continues to rise.

News

👑 Deutsche Bank: Bitcoin is 21st century gold

Deutsche Bank Research analyst Marion Laboure believes bitcoin could replace gold as the world's store-of-value. She contrasted bitcoin's fixed supply to fiat and noted that "people have always sought assets that were not controlled by governments."

🏡  JP Morgan sees bitcoin as alternative to real estate

JP Morgan sees "significant upside" for digital assets, viewing bitcoin as an alternative to real estate. Strategists at the banking giant believe bitcoin has been oversold amidst the wider market sell-off, and should be valued at $38,000 today.

📺  Bitcoin reaches primetime TV audiences

Appearing on Fox News and CNBC, Michael Saylor described bitcoin as "the most certain thing in an uncertain world." He praised bitcoin as a long-term safe haven, noting that over the past two years it has outperformed other major asset classes. When asked if he's buying or selling, he said, "Whenever I have some spare cash we buy more bitcoin."

💀  U.S. personal savings rate drops to lowest since 2008

Despite unprecedented fiscal stimulus over the past two years, U.S. consumers are saving less. In fact, personal savings haven't been this low since the 2008 crisis. The drop coincides with a surge in credit card debt.

Many are forced to save less by increased living costs and inflation. This may be a good time to make saving in bitcoin a habit - regardless of the amount. History has a shown that a small bitcoin nest egg can have a big effect on financial health.

🐡  Global inflation surging, but small sign of hope for US

Eurozone inflation hit another record high, reaching 8.1%. Unsurprisingly, the main culprit was energy costs, which increased by 39.2% since last year. In the U.S., the PCE index, a measure of inflation affecting businesses, rose 4.9%. This is slightly lower than the 5.2% rate from March, and a small step in the right direction.

Bitcoin adoption continues

Bitcoin Roundup Live

Join us for a fun weekly Q&A where you can hang out with other bitcoiners and talk about current events. It takes place every Thursday from 8pm to 9pm Eastern Time. Register here.

How bitcoin works

Learn one key idea about bitcoin each week. This week: Bitcoin is Austrian.

While bitcoin's pseudonymous inventor took the Japanese name Satoshi Nakamoto, and the cypherpunk movement included contributors from around the world, the economic theories that inspired bitcoin can trace their roots to a school of thought called Austrian Economics.

Economic theory is heavily debated. This is because economics is not a science that allows for controlled, repeatable experiments. Today, there are two prominent schools of economics, and each school thinks they understand how economies really work. Keynesian economics was put into practice by central banks after World War Two. Austrian economics is an older intellectual tradition that originates from the invention of market capitalism in the 19th century.

Bitcoin can be viewed as a software implementation of the Austrian school.

Austrian economists believe the market is self-regulating and best left alone, allowing participants to determine their needs and wants through price signals. Austrians also believe deflation is good. Lower prices allow consumers to benefit from increases in efficiencies in the broader economy.

In contrast, Keynesians believe markets left to their own accord will inevitably fail and require government intervention. They measure an economy's health based on consumption. Because inflation causes consumption, Keynesians believe inflation – within limits – is healthy. When the economy slows, the government can print money and “stimulate” it to increase consumption. But, because the supply of money is always changing, the prices of goods and services change in unpredictable and artificial ways.

Austrian economists – and bitcoiners – generally believe this arbitrary injection of capital leads to poor investments and price confusion.

Austrian economists prefer commodity money because it cannot be easily created. That is, there is a cost of production to money, just as there is a cost to production of  commodities such as gold.

Only a scare money that is costly to produce could allow consumers to reap the benefits of deflation. Bitcoin is a finite money that allows market participants to do what they do best – produce goods and services better, faster and cheaper for the rest of us.

Coin check

According to the principles of Austrian economics, why does bitcoin have value?

  1. It is deflationary
  2. People believe it does
  3. El Salvador recognizes it as legal tender
  4. Bitcoin mining uses electricity

Check your answer at the end of the page.

What to do next

➡️  Want bitcoin? Sign up for Coinbits.

➡️  Was this newsletter forwarded to you? Sign up here.

➡️  Follow us on Twitter

➡️  Need coffee? Shop Queen City Coffee Roasters and get 15% OFF your order with promo code BITCOINROUNDUP

➡️  Want to work with us? Explore careers at Coinbits.

Answer: 2. People believe it does

June 2, 2022

🏁 Bitcoin quietly catching speed

Bitcoiners see bear markets as opportunities to save and invest without the usual hype. When the next cycle begins, much wealth will be created for those in the know.

Joe Lupo
Joe Lupo

Investor Relations

🏁  Bitcoin quietly catching speed

Block by block, bitcoin continues its meteoric rise. We call it a block height for a reason.

On the one hand, it's amazing that the bitcoin network remains unfazed by macroeconomic storm clouds and relentless media attacks. On the other hand, it's not amazing at all. Even after the recent sell-off, bitcoin is massive, with a market cap of $775 billion.

Is there anything that could stop a decentralized, cryptographically secure revolutionary movement with that much momentum?

Bitcoin hodlers win in a bear market. When sats are cheap, as they are now, we are given the opportunity to buy more than we otherwise could.

Bitcoin developers building the technologies that will run the future worldwide economy are given the space to work quietly behind the scenes, getting ready for the next cycle.

All the while, bitcoin is quietly adopted by more people and businesses, and block height continues to rise.

News

👑 Deutsche Bank: Bitcoin is 21st century gold

Deutsche Bank Research analyst Marion Laboure believes bitcoin could replace gold as the world's store-of-value. She contrasted bitcoin's fixed supply to fiat and noted that "people have always sought assets that were not controlled by governments."

🏡  JP Morgan sees bitcoin as alternative to real estate

JP Morgan sees "significant upside" for digital assets, viewing bitcoin as an alternative to real estate. Strategists at the banking giant believe bitcoin has been oversold amidst the wider market sell-off, and should be valued at $38,000 today.

📺  Bitcoin reaches primetime TV audiences

Appearing on Fox News and CNBC, Michael Saylor described bitcoin as "the most certain thing in an uncertain world." He praised bitcoin as a long-term safe haven, noting that over the past two years it has outperformed other major asset classes. When asked if he's buying or selling, he said, "Whenever I have some spare cash we buy more bitcoin."

💀  U.S. personal savings rate drops to lowest since 2008

Despite unprecedented fiscal stimulus over the past two years, U.S. consumers are saving less. In fact, personal savings haven't been this low since the 2008 crisis. The drop coincides with a surge in credit card debt.

Many are forced to save less by increased living costs and inflation. This may be a good time to make saving in bitcoin a habit - regardless of the amount. History has a shown that a small bitcoin nest egg can have a big effect on financial health.

🐡  Global inflation surging, but small sign of hope for US

Eurozone inflation hit another record high, reaching 8.1%. Unsurprisingly, the main culprit was energy costs, which increased by 39.2% since last year. In the U.S., the PCE index, a measure of inflation affecting businesses, rose 4.9%. This is slightly lower than the 5.2% rate from March, and a small step in the right direction.

Bitcoin adoption continues

Bitcoin Roundup Live

Join us for a fun weekly Q&A where you can hang out with other bitcoiners and talk about current events. It takes place every Thursday from 8pm to 9pm Eastern Time. Register here.

How bitcoin works

Learn one key idea about bitcoin each week. This week: Bitcoin is Austrian.

While bitcoin's pseudonymous inventor took the Japanese name Satoshi Nakamoto, and the cypherpunk movement included contributors from around the world, the economic theories that inspired bitcoin can trace their roots to a school of thought called Austrian Economics.

Economic theory is heavily debated. This is because economics is not a science that allows for controlled, repeatable experiments. Today, there are two prominent schools of economics, and each school thinks they understand how economies really work. Keynesian economics was put into practice by central banks after World War Two. Austrian economics is an older intellectual tradition that originates from the invention of market capitalism in the 19th century.

Bitcoin can be viewed as a software implementation of the Austrian school.

Austrian economists believe the market is self-regulating and best left alone, allowing participants to determine their needs and wants through price signals. Austrians also believe deflation is good. Lower prices allow consumers to benefit from increases in efficiencies in the broader economy.

In contrast, Keynesians believe markets left to their own accord will inevitably fail and require government intervention. They measure an economy's health based on consumption. Because inflation causes consumption, Keynesians believe inflation – within limits – is healthy. When the economy slows, the government can print money and “stimulate” it to increase consumption. But, because the supply of money is always changing, the prices of goods and services change in unpredictable and artificial ways.

Austrian economists – and bitcoiners – generally believe this arbitrary injection of capital leads to poor investments and price confusion.

Austrian economists prefer commodity money because it cannot be easily created. That is, there is a cost of production to money, just as there is a cost to production of  commodities such as gold.

Only a scare money that is costly to produce could allow consumers to reap the benefits of deflation. Bitcoin is a finite money that allows market participants to do what they do best – produce goods and services better, faster and cheaper for the rest of us.

Coin check

According to the principles of Austrian economics, why does bitcoin have value?

  1. It is deflationary
  2. People believe it does
  3. El Salvador recognizes it as legal tender
  4. Bitcoin mining uses electricity

Check your answer at the end of the page.

What to do next

➡️  Want bitcoin? Sign up for Coinbits.

➡️  Was this newsletter forwarded to you? Sign up here.

➡️  Follow us on Twitter

➡️  Need coffee? Shop Queen City Coffee Roasters and get 15% OFF your order with promo code BITCOINROUNDUP

➡️  Want to work with us? Explore careers at Coinbits.

Answer: 2. People believe it does