June 15, 2022

🌪️ A harsh lesson about money

Money is collapsing in Ukraine and Russia. What would you do if you suddenly lost access to your bank account and credit cards?

Dave Birnbaum
Dave Birnbaum

Director of Product

🌪️ A harsh lesson about money

Table of contents

🌪️ A harsh lesson about money

Money is collapsing in Ukraine and Russia. What would you do if you suddenly lost access to your bank account and credit cards?

Welcome to Bitcoin Roundup #2.

A few weeks back, Canadians were rudely awakened to a new reality: Much political power rests on the control of money.

Now, people in Ukraine and Russia are learning the same lesson, with more intensity. Over 2 million Ukrainian refugees abandoned their homes and businesses, leaving behind their life savings in inaccessible bank accounts and immobile assets. At the same time, ordinary Russians, regardless of whether they support the war, are seeing their money collapse before their eyes, permanently.

This crisis highlights the profound injustice of our current money system for innocent people. We take no pleasure that this lesson is being taught through a humanitarian crisis. However, it is important to understand that bitcoin offers a solution. Bitcoin is unbiased money, accessible any time, any where, with no intermediary. Do not get distracted by politicians fretting that bitcoin could be used by rogue states to avoid sanctions. The real story is that bitcoin is helping regular people survive.

News

⚠️ Oil shortages expected

It's day 13 of the war and there is no end in sight. Today, the U.S. announced a ban on imports of Russian oil. Oil prices will spike, and supply will be limited. Fill your tanks now and avoid unnecessary car trips, unless you like waiting in long lines.

📈 Bitcoin briefly decouples from equity markets

Bitcoin trading volume has surged in the local currencies of Ukraine and Russia. Its price rose too, in stark contrast to traditional markets. This was short lived as energy concerns took precedence, but it was an early sign that bitcoin is coming of age as a risk-off asset.

🌍 Bitcoinization continues worldwide

The city of Lugano in Switzerland is the latest jurisdiction to recognize bitcoin as an official currency, as city leaders hope to attract crypto entrepreneurs and businesses. In other news, India's young investors prefer bitcoin over other investments.

🏛 Executive order on cryptocurrency expected this week

President Biden is expected to direct federal agencies to analyze regulatory changes for the crypto industry. While the consequences of regulation are hard to predict, it may actually increase the price of bitcoin.

Bitcoin Roundup Live

Join us for Bitcoin Roundup Live, a fun weekly Q&A where you can hang out with other bitcoiners and have an informal conversation about bitcoin and current events.

Bitcoin Roundup Live 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 digital gold.

A good store of value is something that retains its value over a long period of time.

Gold has been the most popular store of value for thousands of years, and for good reason. It is hard money, because it is hard to produce. Mining and refining gold is a labor and energy-intensive process. The supply of gold increases 1 to 2% per year. Gold is therefore a scarce asset – and because of that, it is a safe haven for wealth.

So how is bitcoin digital gold?

  • Bitcoin is even more scarce. The supply of gold is limited, but it can still respond to demand. When demand is high, miners can produce more. Bitcoin however, is created on a fixed schedule. It cannot respond to demand, which is part of the reason the price is volatile.
  • It's easy to verify that bitcoin is real, and easy to verify who owns it. Gold needs to be melted down to prove that it's real, and is easily stolen. Bitcoin is verifiable by anyone, but can only be moved or spent with a cryptographically-secure private key.
  • Bitcoin can be moved easily and cheaply. Bitcoin can be sent to anyone on the internet, just like a text message. Gold needs to be physically transported. In fact, when you want to move gold, some of its value must be spent to cover shipping and insurance.

Gold's market cap is over $10 trillion. If bitcoin had the same market cap, a single bitcoin would be worth over $500,000.

Coin Check

What year did the bitcoin blockchain start?

  1. 2005
  2. 2012
  3. 2008
  4. 2009

Check your answer at the end of the page.

\n What to do next\n

\n

Quiz Answer: 4) 2009

Written by Joe Lupo and Dave Birnbaum

March 9, 2022

🌪️ A harsh lesson about money

Money is collapsing in Ukraine and Russia. What would you do if you suddenly lost access to your bank account and credit cards?

Dave Birnbaum
Dave Birnbaum

Director of Product

🌪️ A harsh lesson about money

Money is collapsing in Ukraine and Russia. What would you do if you suddenly lost access to your bank account and credit cards?

Welcome to Bitcoin Roundup #2.

A few weeks back, Canadians were rudely awakened to a new reality: Much political power rests on the control of money.

Now, people in Ukraine and Russia are learning the same lesson, with more intensity. Over 2 million Ukrainian refugees abandoned their homes and businesses, leaving behind their life savings in inaccessible bank accounts and immobile assets. At the same time, ordinary Russians, regardless of whether they support the war, are seeing their money collapse before their eyes, permanently.

This crisis highlights the profound injustice of our current money system for innocent people. We take no pleasure that this lesson is being taught through a humanitarian crisis. However, it is important to understand that bitcoin offers a solution. Bitcoin is unbiased money, accessible any time, any where, with no intermediary. Do not get distracted by politicians fretting that bitcoin could be used by rogue states to avoid sanctions. The real story is that bitcoin is helping regular people survive.

News

⚠️ Oil shortages expected

It's day 13 of the war and there is no end in sight. Today, the U.S. announced a ban on imports of Russian oil. Oil prices will spike, and supply will be limited. Fill your tanks now and avoid unnecessary car trips, unless you like waiting in long lines.

📈 Bitcoin briefly decouples from equity markets

Bitcoin trading volume has surged in the local currencies of Ukraine and Russia. Its price rose too, in stark contrast to traditional markets. This was short lived as energy concerns took precedence, but it was an early sign that bitcoin is coming of age as a risk-off asset.

🌍 Bitcoinization continues worldwide

The city of Lugano in Switzerland is the latest jurisdiction to recognize bitcoin as an official currency, as city leaders hope to attract crypto entrepreneurs and businesses. In other news, India's young investors prefer bitcoin over other investments.

🏛 Executive order on cryptocurrency expected this week

President Biden is expected to direct federal agencies to analyze regulatory changes for the crypto industry. While the consequences of regulation are hard to predict, it may actually increase the price of bitcoin.

Bitcoin Roundup Live

Join us for Bitcoin Roundup Live, a fun weekly Q&A where you can hang out with other bitcoiners and have an informal conversation about bitcoin and current events.

Bitcoin Roundup Live 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 digital gold.

A good store of value is something that retains its value over a long period of time.

Gold has been the most popular store of value for thousands of years, and for good reason. It is hard money, because it is hard to produce. Mining and refining gold is a labor and energy-intensive process. The supply of gold increases 1 to 2% per year. Gold is therefore a scarce asset – and because of that, it is a safe haven for wealth.

So how is bitcoin digital gold?

  • Bitcoin is even more scarce. The supply of gold is limited, but it can still respond to demand. When demand is high, miners can produce more. Bitcoin however, is created on a fixed schedule. It cannot respond to demand, which is part of the reason the price is volatile.
  • It's easy to verify that bitcoin is real, and easy to verify who owns it. Gold needs to be melted down to prove that it's real, and is easily stolen. Bitcoin is verifiable by anyone, but can only be moved or spent with a cryptographically-secure private key.
  • Bitcoin can be moved easily and cheaply. Bitcoin can be sent to anyone on the internet, just like a text message. Gold needs to be physically transported. In fact, when you want to move gold, some of its value must be spent to cover shipping and insurance.

Gold's market cap is over $10 trillion. If bitcoin had the same market cap, a single bitcoin would be worth over $500,000.

Coin Check

What year did the bitcoin blockchain start?

  1. 2005
  2. 2012
  3. 2008
  4. 2009

Check your answer at the end of the page.

\n What to do next\n

\n

Quiz Answer: 4) 2009

Written by Joe Lupo and Dave Birnbaum