February 10, 2023
π Not natural, not necessary
Businesses are cutting jobs because the fiat system is inherently unstable. A bitcoin standard would offer a predictable system without booms and busts.

February 10, 2023
Businesses are cutting jobs because the fiat system is inherently unstable. A bitcoin standard would offer a predictable system without booms and busts.
Politicians, pundits, and even some economists blame economic crises on deregulation, greed, or "animal spirits." In doing so, they miss the root cause of most economic busts: Errant monetary policy set by central banks.
Central banks claim to operate independently of politics, but they are in fact precarious political institutions. Mandates constrain some but do not effectively limit what central banks can do.
Central banks view their powers as "levers" that they wield for the greater good. They increase the number of monetary units in the economy (i.e., they print money) and manipulate interest rates in response to political and economic events or to inflate away debt. These actions lower the cost of credit (borrowing), distorting the market signals that business owners and consumers normally use to make rational decisions.
Easy money lets entrepreneurs take foolhardy risks using business models that don't work when the money dries up (cf. FTX). The companies built during this period will inevitably collapse, leading to an economic bust. When the consequences of the bust affect the financial portfolios of too many wealthy and well connected elites, central banks step in with monetary policies to contain or reverse the damage.
This process is called the boom and bust cycle, and it is one symptom of the permanent chaos sustained by central banks.
The boom and bust cycle's economic effects are pernicious. A free market for money must be reinstated to break free of the cycle, and monetary central planning via central banking must end. Fortunately, there's a solution called bitcoin.
β
β
In a tale of two economies, leisure and hospitality jobs came in strong this week while tech and Wall Street continued massive layoffs. This renewed fears that the Fed would raise interest rates to try to tame inflation. However, the continued carnage in tech implies the economy is losing momentum.
Lebanon's central bank devalued its exchange rate, which is now set to 3,900 Lebanese pounds per one U.S. dollar, down from 1,507. However, while these are the official rates, the unofficial rate on the ground is estimated to be 57,000. This sad story exemplifies how mismanagement and corruption can affect entire societies. The devaluation will likely lead to higher inflation and increased costs of imported goods.
The world's largest cryptocurrency exchange will suspend U.S. dollar transfers on February 22, citing regulatory challenges. Binance users in the U.S. will be able to trade cryptocurrencies but will not be able to deposit or withdraw U.S. dollars.
β
Insight from bitcoin thought leaders about what itβs like to use bitcoin every day in business, relationships, and life.
Bitcoin Lightning Network capacity reached a new all time high this week. Bitcoin is consistently growing.
Mayor of Lugano, Switzerland used bitcoin to buy coffee and other items at shops all around the city.
LevelField is set to become the first FDIC-insured retail bank to offer bitcoin custody, purchases, and rewards.
Microstrategy announces Bitcoin & Lightning for Corporations, a conference to help companies integrate bitcoin for payments.
12 years ago this week bitcoin reached a price of $1 for the first time, offering perspective on how the network has continually grown year after year at a rapid pace.
β
Join the conversation on Twitter Spaces tomorrow at 2:00pm.
No registration required but make sure you follow @CoinbitsAppand set reminder to get notified when we're live.
β
Learn one key idea about bitcoin each week. This week: Bitcoin is predictable.
In a downturn, tech sector layoffs tend to happen quickly because these companies often rely on debt financing, making them especially vulnerable to interest rate increases.
And unfortunately, they are happening.
As job losses mount, executives and employees are asking pointed questions.
Google CEO Sundar Pichai explained the layoffs with a short but telling quote: "We hired for a different economic reality than the one we face today."
The explanation may appear shallow at first. But if you stop and think about it, Pichai points to a problem all business leaders face.
Google's picture of economic reality was distorted by loose monetary policy β one that was ended with the stroke of a pen.
Years after the pandemic died down, the federal government continued expensive "emergency" stimulus, and the Federal Reserve fueled the irresponsible spending binge with record low interest rates. This left businesses and investors flush with cash they suddenly needed to put somewhere, which drove up the price of tech stocks.
Everything changed once the consequences set in. Prices began to skyrocket, with inflation reaching its highest levels in 40 years, hurting consumers everywhere.
So the Federal Reserve reversed course, changing loose monetary policy to tight, raising interest rates faster than we've seen in decades.
Suddenly, the money spigot ran dry, and everything changed on a dimeβa new economic reality set in.
Such volatility is no longer necessary if it ever was. Β
Rather than continually asking a small group of fallible people with imperfect information β central bankers β to perform impossible balancing acts, we can transition to a superior system:
A system that's completely transparent and predictable.
On a bitcoin standard, CEOs like Pichai would know the amount of money in circulation and the cost of capital. In fact, anyone could audit the money supply at any time on any computer connected to the internet.
Business leaders would then be able to make financial projections with much better data, leading to better business decisions.
And that's good for everyone β CEOs, employees, and the many people who benefit from the goods and services they produce.
Are you ready to get started with bitcoin quickly and safely? Coinbits is the best option. It's free to create your account β sign up now.
β
Can bitcoin transactions be reversed?
Check your answer at the end of the page.
β
Follow us on Twitter for more fresh bitcoin content
β
β‘οΈ Want bitcoin? Sign up for Coinbits.
β‘οΈ Show your support for Bitcoin wearing our maximalist apparel & accessories! Shop at YGMI shop.
β‘οΈ Orange pill the whole family. Get the βBitcoin for Kiddosβ book. 10% off your order with code: Coinbits
β‘οΈ Need coffee? Shop Queen City Coffee Roasters and get 15% OFF your order with promo code BITCOINROUNDUP
β‘οΈ Want to work with us? Explore careers at Coinbits.
β
Answer: B. No
β
February 9, 2023
Businesses are cutting jobs because the fiat system is inherently unstable. A bitcoin standard would offer a predictable system without booms and busts.
Politicians, pundits, and even some economists blame economic crises on deregulation, greed, or "animal spirits." In doing so, they miss the root cause of most economic busts: Errant monetary policy set by central banks.
Central banks claim to operate independently of politics, but they are in fact precarious political institutions. Mandates constrain some but do not effectively limit what central banks can do.
Central banks view their powers as "levers" that they wield for the greater good. They increase the number of monetary units in the economy (i.e., they print money) and manipulate interest rates in response to political and economic events or to inflate away debt. These actions lower the cost of credit (borrowing), distorting the market signals that business owners and consumers normally use to make rational decisions.
Easy money lets entrepreneurs take foolhardy risks using business models that don't work when the money dries up (cf. FTX). The companies built during this period will inevitably collapse, leading to an economic bust. When the consequences of the bust affect the financial portfolios of too many wealthy and well connected elites, central banks step in with monetary policies to contain or reverse the damage.
This process is called the boom and bust cycle, and it is one symptom of the permanent chaos sustained by central banks.
The boom and bust cycle's economic effects are pernicious. A free market for money must be reinstated to break free of the cycle, and monetary central planning via central banking must end. Fortunately, there's a solution called bitcoin.
β
β
In a tale of two economies, leisure and hospitality jobs came in strong this week while tech and Wall Street continued massive layoffs. This renewed fears that the Fed would raise interest rates to try to tame inflation. However, the continued carnage in tech implies the economy is losing momentum.
Lebanon's central bank devalued its exchange rate, which is now set to 3,900 Lebanese pounds per one U.S. dollar, down from 1,507. However, while these are the official rates, the unofficial rate on the ground is estimated to be 57,000. This sad story exemplifies how mismanagement and corruption can affect entire societies. The devaluation will likely lead to higher inflation and increased costs of imported goods.
The world's largest cryptocurrency exchange will suspend U.S. dollar transfers on February 22, citing regulatory challenges. Binance users in the U.S. will be able to trade cryptocurrencies but will not be able to deposit or withdraw U.S. dollars.
β
Insight from bitcoin thought leaders about what itβs like to use bitcoin every day in business, relationships, and life.
Bitcoin Lightning Network capacity reached a new all time high this week. Bitcoin is consistently growing.
Mayor of Lugano, Switzerland used bitcoin to buy coffee and other items at shops all around the city.
LevelField is set to become the first FDIC-insured retail bank to offer bitcoin custody, purchases, and rewards.
Microstrategy announces Bitcoin & Lightning for Corporations, a conference to help companies integrate bitcoin for payments.
12 years ago this week bitcoin reached a price of $1 for the first time, offering perspective on how the network has continually grown year after year at a rapid pace.
β
Join the conversation on Twitter Spaces tomorrow at 2:00pm.
No registration required but make sure you follow @CoinbitsAppand set reminder to get notified when we're live.
β
Learn one key idea about bitcoin each week. This week: Bitcoin is predictable.
In a downturn, tech sector layoffs tend to happen quickly because these companies often rely on debt financing, making them especially vulnerable to interest rate increases.
And unfortunately, they are happening.
As job losses mount, executives and employees are asking pointed questions.
Google CEO Sundar Pichai explained the layoffs with a short but telling quote: "We hired for a different economic reality than the one we face today."
The explanation may appear shallow at first. But if you stop and think about it, Pichai points to a problem all business leaders face.
Google's picture of economic reality was distorted by loose monetary policy β one that was ended with the stroke of a pen.
Years after the pandemic died down, the federal government continued expensive "emergency" stimulus, and the Federal Reserve fueled the irresponsible spending binge with record low interest rates. This left businesses and investors flush with cash they suddenly needed to put somewhere, which drove up the price of tech stocks.
Everything changed once the consequences set in. Prices began to skyrocket, with inflation reaching its highest levels in 40 years, hurting consumers everywhere.
So the Federal Reserve reversed course, changing loose monetary policy to tight, raising interest rates faster than we've seen in decades.
Suddenly, the money spigot ran dry, and everything changed on a dimeβa new economic reality set in.
Such volatility is no longer necessary if it ever was. Β
Rather than continually asking a small group of fallible people with imperfect information β central bankers β to perform impossible balancing acts, we can transition to a superior system:
A system that's completely transparent and predictable.
On a bitcoin standard, CEOs like Pichai would know the amount of money in circulation and the cost of capital. In fact, anyone could audit the money supply at any time on any computer connected to the internet.
Business leaders would then be able to make financial projections with much better data, leading to better business decisions.
And that's good for everyone β CEOs, employees, and the many people who benefit from the goods and services they produce.
Are you ready to get started with bitcoin quickly and safely? Coinbits is the best option. It's free to create your account β sign up now.
β
Can bitcoin transactions be reversed?
Check your answer at the end of the page.
β
Follow us on Twitter for more fresh bitcoin content
β
β‘οΈ Want bitcoin? Sign up for Coinbits.
β‘οΈ Show your support for Bitcoin wearing our maximalist apparel & accessories! Shop at YGMI shop.
β‘οΈ Orange pill the whole family. Get the βBitcoin for Kiddosβ book. 10% off your order with code: Coinbits
β‘οΈ Need coffee? Shop Queen City Coffee Roasters and get 15% OFF your order with promo code BITCOINROUNDUP
β‘οΈ Want to work with us? Explore careers at Coinbits.
β
Answer: B. No
β