November 29, 2022

🗡️ There can be only one

Why trust third parties like FTX or the Fed when bitcoin gives you complete control?

Joe Lupo
Joe Lupo

Reserve Client Manager

🗡️ There can be only one

Table of contents

🗡️ There can be only one

As crypto casinos continue to collapse, bitcoin's path forward is crystallizing. Once the dust settles, only bitcoin will remain.

Here's the roadmap:

  1. The casinos
  2. The alt-coins
  3. Fiat currencies

First, as we are currently witnessing, exchanges must reform or crumble. Regardless, their tokens (digital poker chips) will go to zero.

Next, altcoin networks, primarily Ethereum (as other altcoins are irrelevant), will cave once users can withdraw their staked tokens or government actors overtake the network. By switching to Proof of Stake, Ethereum dug its own grave, discarding decentralization and network security. We already see the effects: Ethereum enforces OFAC compliance on most of its blocks.

After altcoins, bitcoin will face the final boss, fiat currencies. Few realize that the US Government's balance sheet, with trillions in national debt and hundreds of trillions in unfunded liabilities, makes FTX look healthy. Over time, fiat currencies will resemble even riskier versions of the altcoins journalists decry today.

There will only be one post-fiat: Bitcoin, the best form of money we've ever seen.

The path is clear. What's unknown is how we react as individuals: stack sats or go down with the ship?

BITCOIN ROUNDUP PODCAST

Insight from bitcoin thought leaders about what it’s like to use bitcoin every day in business, relationships, and life.

News

☠️ BlockFi joins FTX and prepares for bankruptcy; FTX fallout continues...

The contagion continues as crypto firms tied to FTX suffer. BlockFi, a popular crypto lender and exchange, is now on the brink of bankruptcy. The firm lost millions in the Terra/Luna debacle months ago and relied on a line of credit from FTX to stay in business. That line of credit is now gone. In addition to BlockFi, the Ontario teachers' pension fund lost nearly $100 million to FTX, and retail investors collectively lost billions.

🌟 Shell joins Exxon, enters bitcoin mining

Shell announced they are moving into the bitcoin mining industry. The oil giant will offer its lubricant and cooling solutions to bitcoin miners. The company will also sponsor the 2023 and 2024 Bitcoin Conferences, with representatives speaking about improving mining energy costs and how they plan to contribute to the industry. Bitcoin magazine CEO David Bailey described the move as "a big win for bitcoin."

💲 Global banking giants and NY Fed to begin digital dollar pilot

Some of the largest banks in the world announced the launch of a digital money platform partnership with the Federal Reserve Bank of New York to test a digital dollar. They will reportedly use blockchain technology "to create opportunities to improve financial settlements." While the existing payments ecosystem could undoubtedly use an upgrade, many outlets, including this newsletter, have warned about the repercussions of central bank digital currencies.

🚔 FTX had over $1 billion in BTC liabilities, $0 in assets

The bankruptcy documents for FTX revealed the company held significantly less bitcoin than it previously claimed. The exchange's balance sheet displayed $1.4 billion in bitcoin liabilities, with $0 in assets. Let this serve as another reminder to:

  1. Not trust "crypto" exchanges.
  2. Withdraw and take self-custody of your bitcoin to prevent risk from third parties that don't have your best interest in mind.

📉 US Inflation report comes out "favorable."

The Consumer Price Index dropped to 7.7% late last week. The decrease was more than expected and marked a print under 8% for the first time in months. Markets responded positively, as the number may signify a potential slowdown in interest rate hikes. Unfortunately, Europe received other news. Inflation jumped to 11.1% in the UK and 11.6% in Germany. While the US rate is hopeful, inflation is still well above expectations as the world deals with high energy prices heading into the winter months.

Bitcoin adoption continues

Nearly $4 billion worth of bitcoin has been taken off exchanges in the last week as people safely store their bitcoin in personal wallets instead of third parties.

Natalie Brunell appeared on Fox News this week to discuss how bitcoin is the antidote to corrupt money systems like other crypto tokens and fiat money.

FASB Chair announces it will issue a proposal on measuring assets like bitcoin at fair market value during the first half of 2023.

Binance has received approval to offer bitcoin and digital assets to customers in Abu Dhabi.

Subway is piloting bitcoin payments at three locations in Berlin, utilizing the Bitcoin Lightning Network.

Jack Mallers appeared on CNBC this week to discuss the FTX fallout and how "the world is finally starting to realize that there's bitcoin and there's everything else."

How bitcoin works

Learn one key idea about bitcoin each week. This week: Your bitcoin belongs to you.

There are 13 bank holidays in a year.

In addition to holidays, there are 105 weekend days where banks are either fully or partially closed.

Coupling holidays and weekends with daily limited banking hours demonstrates how restricted your access is to your own money.

That's not to mention what happens when third parties control your funds.

So let us pose the uncomfortable yet vital question:

Are they even your funds if you cannot access them all the time, and third parties debase them at will?

This year, thanks to inflation, your funds are only 92% yours. And inflation continues yearly thanks to the never-ending fiat cycle.

So in fiat, we have:

  1. Restricted access
  2. Continuous value erosion

Bitcoin offers a solution to both.

The Bitcoin Network operates 24/7, 365. Your monetary system is always open and always accessible to you.

It also offers self-custody. Bitcoin is a bearer asset, giving you complete control over your funds at all times. No limits, bank hours, or restrictions on who you transact with: you have unfettered access to your money.

And finally, no one can debase bitcoin. Because no single entity controls it, bitcoin cannot be tampered with in ways that benefit a controlling party. Incentives align everyone to play by the rules.

Bitcoin's rule set is fixed and secured by the largest computing network in the world.

That is why bitcoin is money's only future. It is superior to every other option on the market, bringing property rights, financial inclusion, and prosperity to all rather than just a privileged few.

JP Morgan once said, "Bitcoin is money. everything else is credit." Or maybe it was gold. Times have changed. Bitcoin doesn't.

Are you ready to begin your bitcoin journey?

When it comes to getting started with bitcoin quickly and safely, Coinbits is the best option. It's free to create your Coinbits account. Withdrawing or selling your bitcoin is free of charge, too.

Sign up for Coinbits

Coin check

What is a private key?

  1. A string of letters and numbers that lets only you spend your bitcoin
  2. Your protection against third party debasement and confiscation
  3. A symbol of property rights
  4. All of the above

Check your answer at the end of the page.

From the meme pool

What to do next

➡️ Want bitcoin? Sign up for Coinbits.

➡️ Orange pill the whole family. Get the “Bitcoin for Kiddos” book. 10% off your order with code: Coinbits

➡️ 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: D. All of the above

November 17, 2022

🗡️ There can be only one

Why trust third parties like FTX or the Fed when bitcoin gives you complete control?

Joe Lupo
Joe Lupo

Investor Relations

🗡️ There can be only one

As crypto casinos continue to collapse, bitcoin's path forward is crystallizing. Once the dust settles, only bitcoin will remain.

Here's the roadmap:

  1. The casinos
  2. The alt-coins
  3. Fiat currencies

First, as we are currently witnessing, exchanges must reform or crumble. Regardless, their tokens (digital poker chips) will go to zero.

Next, altcoin networks, primarily Ethereum (as other altcoins are irrelevant), will cave once users can withdraw their staked tokens or government actors overtake the network. By switching to Proof of Stake, Ethereum dug its own grave, discarding decentralization and network security. We already see the effects: Ethereum enforces OFAC compliance on most of its blocks.

After altcoins, bitcoin will face the final boss, fiat currencies. Few realize that the US Government's balance sheet, with trillions in national debt and hundreds of trillions in unfunded liabilities, makes FTX look healthy. Over time, fiat currencies will resemble even riskier versions of the altcoins journalists decry today.

There will only be one post-fiat: Bitcoin, the best form of money we've ever seen.

The path is clear. What's unknown is how we react as individuals: stack sats or go down with the ship?

BITCOIN ROUNDUP PODCAST

Insight from bitcoin thought leaders about what it’s like to use bitcoin every day in business, relationships, and life.

News

☠️ BlockFi joins FTX and prepares for bankruptcy; FTX fallout continues...

The contagion continues as crypto firms tied to FTX suffer. BlockFi, a popular crypto lender and exchange, is now on the brink of bankruptcy. The firm lost millions in the Terra/Luna debacle months ago and relied on a line of credit from FTX to stay in business. That line of credit is now gone. In addition to BlockFi, the Ontario teachers' pension fund lost nearly $100 million to FTX, and retail investors collectively lost billions.

🌟 Shell joins Exxon, enters bitcoin mining

Shell announced they are moving into the bitcoin mining industry. The oil giant will offer its lubricant and cooling solutions to bitcoin miners. The company will also sponsor the 2023 and 2024 Bitcoin Conferences, with representatives speaking about improving mining energy costs and how they plan to contribute to the industry. Bitcoin magazine CEO David Bailey described the move as "a big win for bitcoin."

💲 Global banking giants and NY Fed to begin digital dollar pilot

Some of the largest banks in the world announced the launch of a digital money platform partnership with the Federal Reserve Bank of New York to test a digital dollar. They will reportedly use blockchain technology "to create opportunities to improve financial settlements." While the existing payments ecosystem could undoubtedly use an upgrade, many outlets, including this newsletter, have warned about the repercussions of central bank digital currencies.

🚔 FTX had over $1 billion in BTC liabilities, $0 in assets

The bankruptcy documents for FTX revealed the company held significantly less bitcoin than it previously claimed. The exchange's balance sheet displayed $1.4 billion in bitcoin liabilities, with $0 in assets. Let this serve as another reminder to:

  1. Not trust "crypto" exchanges.
  2. Withdraw and take self-custody of your bitcoin to prevent risk from third parties that don't have your best interest in mind.

📉 US Inflation report comes out "favorable."

The Consumer Price Index dropped to 7.7% late last week. The decrease was more than expected and marked a print under 8% for the first time in months. Markets responded positively, as the number may signify a potential slowdown in interest rate hikes. Unfortunately, Europe received other news. Inflation jumped to 11.1% in the UK and 11.6% in Germany. While the US rate is hopeful, inflation is still well above expectations as the world deals with high energy prices heading into the winter months.

Bitcoin adoption continues

Nearly $4 billion worth of bitcoin has been taken off exchanges in the last week as people safely store their bitcoin in personal wallets instead of third parties.

Natalie Brunell appeared on Fox News this week to discuss how bitcoin is the antidote to corrupt money systems like other crypto tokens and fiat money.

FASB Chair announces it will issue a proposal on measuring assets like bitcoin at fair market value during the first half of 2023.

Binance has received approval to offer bitcoin and digital assets to customers in Abu Dhabi.

Subway is piloting bitcoin payments at three locations in Berlin, utilizing the Bitcoin Lightning Network.

Jack Mallers appeared on CNBC this week to discuss the FTX fallout and how "the world is finally starting to realize that there's bitcoin and there's everything else."

How bitcoin works

Learn one key idea about bitcoin each week. This week: Your bitcoin belongs to you.

There are 13 bank holidays in a year.

In addition to holidays, there are 105 weekend days where banks are either fully or partially closed.

Coupling holidays and weekends with daily limited banking hours demonstrates how restricted your access is to your own money.

That's not to mention what happens when third parties control your funds.

So let us pose the uncomfortable yet vital question:

Are they even your funds if you cannot access them all the time, and third parties debase them at will?

This year, thanks to inflation, your funds are only 92% yours. And inflation continues yearly thanks to the never-ending fiat cycle.

So in fiat, we have:

  1. Restricted access
  2. Continuous value erosion

Bitcoin offers a solution to both.

The Bitcoin Network operates 24/7, 365. Your monetary system is always open and always accessible to you.

It also offers self-custody. Bitcoin is a bearer asset, giving you complete control over your funds at all times. No limits, bank hours, or restrictions on who you transact with: you have unfettered access to your money.

And finally, no one can debase bitcoin. Because no single entity controls it, bitcoin cannot be tampered with in ways that benefit a controlling party. Incentives align everyone to play by the rules.

Bitcoin's rule set is fixed and secured by the largest computing network in the world.

That is why bitcoin is money's only future. It is superior to every other option on the market, bringing property rights, financial inclusion, and prosperity to all rather than just a privileged few.

JP Morgan once said, "Bitcoin is money. everything else is credit." Or maybe it was gold. Times have changed. Bitcoin doesn't.

Are you ready to begin your bitcoin journey?

When it comes to getting started with bitcoin quickly and safely, Coinbits is the best option. It's free to create your Coinbits account. Withdrawing or selling your bitcoin is free of charge, too.

Sign up for Coinbits

Coin check

What is a private key?

  1. A string of letters and numbers that lets only you spend your bitcoin
  2. Your protection against third party debasement and confiscation
  3. A symbol of property rights
  4. All of the above

Check your answer at the end of the page.

From the meme pool

What to do next

➡️ Want bitcoin? Sign up for Coinbits.

➡️ Orange pill the whole family. Get the “Bitcoin for Kiddos” book. 10% off your order with code: Coinbits

➡️ 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: D. All of the above