September — Week #3

🤑 Markets

1. Bitcoin Rises Above $62K After Fed Cuts Rate: Bitcoin has risen above $62,000 following the Federal Reserve's decision to cut interest rates for the first time in four years. This rate cut has led to a bullish surge in the crypto market, with Bitcoin experiencing significant price gains.
2. Bitcoin Drops Below $60K Ahead of Fed Cut: Bitcoin's price dropped below $60,000 ahead of the expected Federal Reserve interest rate cut, reflecting market uncertainty and potential selling pressure from Mt Gox token distributions. The Fed's decision on interest rates is anticipated to influence Bitcoin's price, with lower rates potentially creating a positive environment for speculative assets like cryptocurrencies.
3. Bhutan Holds Over $780M in Bitcoin: Bhutan, a small Himalayan nation with a GDP of approximately $3 billion, has accumulated over $780 million in Bitcoin, which is nearly a third of its GDP. This significant investment highlights the country's notable engagement with cryptocurrency despite its relatively small economy and population of fewer than 1 million people.
4. Bitcoin Surges Past $62K After Fed Cuts: Bitcoin surged past $62,000 following the Federal Reserve's first interest rate cut in four years, leading to a bullish surge in the crypto market. Traders are now speculating on the potential future movements of Bitcoin in response to this economic shift.
5. Bitcoin Holds Above $60K Amid Volatility: Bitcoin is currently trading above $60,000. Traders are cautious, anticipating a potential sell-off if the Federal Reserve implements a 50 basis point interest rate cut.

🧑‍⚖️ Policy & Regulation

1. Nigeria Regulates Bitcoin Amid Financial Freedom Debate: In Nigeria, the regulation of Bitcoin is at a crossroads between capital control and financial freedom, with the Central Bank of Nigeria (CBN) oscillating between restrictive measures and cautious acceptance, highlighting the need for a nuanced regulatory approach that respects Bitcoin's decentralized nature. The current regulatory landscape threatens the rights of Nigerians to participate in the financial revolution offered by Bitcoin, prompting calls for sensible and measured regulation.
2. Encouraging Bitcoin Use with Tax Reform: The article argues that the current tax treatment of Bitcoin, subjecting it to capital gains tax, is a significant disincentive for its everyday use in commerce, and proposes reforms such as making transactions under $200 subject to sales tax instead. This change could help integrate Bitcoin more seamlessly into the financial system and foster greater financial inclusivity and innovation.
3. Coinbase CEO Refutes 'Paper Bitcoin' Claims: Coinbase CEO Brian Armstrong refuted allegations that the company sold "paper Bitcoin" to BlackRock without proper backing, emphasizing that Deloitte audits Coinbase annually and that client privacy prevents the disclosure of wallet addresses. Armstrong also addressed concerns about Coinbase's new wrapped Bitcoin product, cbBTC, acknowledging it is backed by a centralized custodian but failing to provide proof of reserves, which has raised transparency concerns within the crypto community.

⚙️ Technology

1. Fractal Bitcoin: A Misleading Affinity: Fractal Bitcoin is a project that misleadingly claims to be a native scaling solution and sidechain for Bitcoin, but it lacks a peg mechanism to move actual Bitcoin between the mainchain and the sidechain, and it operates independently with its own token and pre-mine. The system is criticized for its incoherent technical details, lack of interoperability, and potential security issues, making it more akin to a token scheme rather than a legitimate sidechain or layer two solution for Bitcoin.
2. River Secures $800M in Bitcoin, Launches Proof of Reserves: River, a U.S. Bitcoin exchange, has launched "River Proof of Reserves," a transparency tool that allows clients to verify over $800 million in Bitcoin held in full reserve custody, aiming to restore trust in the industry after failures like FTX. This feature ensures Bitcoin is held in multi-signature cold storage and will be verified monthly to confirm the accuracy of holdings.
3. USD to BTC Conversion Trends Evolve: The article discusses the increasing importance of USD to BTC conversions, highlighting tools that simplify and secure these transactions, and the role of stablecoins in minimizing volatility between traditional and cryptocurrencies. These conversions are crucial as they act as a bridge between fiat currencies and the crypto market, facilitating investments and transactions in the expanding digital currency space.

🌈 Adoption

1. Bitcoin Lightning Powers Louisiana's First Crypto Payment: Louisiana has initiated its first cryptocurrency payment system, allowing residents to pay for state services using Bitcoin via the Bitcoin Lightning Network, which enhances transaction speed and reduces fees. This move includes the option to use stablecoins like USDC to mitigate volatility, marking a significant step in normalizing digital currencies for everyday financial operations.
2. Human Rights Foundation Grants 10 Bitcoin: The Human Rights Foundation has awarded 10 Bitcoin, valued at approximately $590,000, to 20 global projects focused on advancing financial privacy, Bitcoin education, and decentralized mining, particularly in regions with authoritarian regimes. These grants support initiatives such as educational programs, privacy-enhancing wallets, and censorship-resistant social media platforms to empower human rights defenders and promote financial freedom.
3. BlackRock Highlights Bitcoin as Unique Diversifier: BlackRock's new report positions Bitcoin as a "unique diversifier" for portfolios, highlighting its detachment from traditional asset classes due to its decentralized, non-sovereign nature and fixed supply, despite acknowledging its volatility and risks. The report suggests that Bitcoin can serve as a hedge against global financial and political instability, and its long-term value may be driven by concerns over monetary and geopolitical stability.
4. Bhutan Surpasses El Salvador in BTC Holdings: Bhutan holds over 13,000 BTC, more than double El Salvador's Bitcoin reserves, reflecting a discreet strategy of leveraging Bitcoin as a store of value and investment tool, unlike El Salvador's public policy-driven approach. Bhutan's holdings, managed by Druk Holdings, indicate a broader trend of national institutions quietly entering the crypto market for long-term value preservation and diversification.
5. Companies Maximize Bitcoin Holdings Per Share: Companies like MicroStrategy, Cathedra Bitcoin, and Metaplanet are adopting a "maximize Bitcoin per share" strategy, focusing on increasing their Bitcoin reserves to enhance shareholder value and hedge against inflation. This approach involves innovative financial strategies, such as offering Bitcoin-backed bonds, to leverage Bitcoin's long-term growth potential and manage economic uncertainty.

📅 Bitcoin Events Coming Up

Bitcoin Amsterdam 2024

🗓️ When: October 9-10, 2024
📍 Where: Amsterdam, Netherlands
Bitcoin Amsterdam 2024 is a prominent event in Europe, bringing together Bitcoin enthusiasts, investors, developers, and industry leaders. The conference will cover a wide range of topics, including the technical aspects of Bitcoin, its economic impact, and regulatory discussions. It provides a platform for attendees to learn from experts, network with peers, and explore the latest trends and innovations in the Bitcoin ecosystem.

Bitcoin MENA 2024

🗓️ When: October 9-10, 2024
📍 Where: Abu Dhabi, United Arab Emirates
Bitcoin MENA 2024 is a regional conference focused on the Middle East and North Africa, aiming to foster the growth of the Bitcoin community in these regions. The event will feature discussions on Bitcoin adoption, regulatory frameworks, and the potential for Bitcoin in emerging markets. It is an important gathering for those interested in the regional development of Bitcoin and its applications.

Permissionless III

🗓️ When: October 10-11, 2024
📍 Where: Salt Lake City, UT, USA
Permissionless III is a conference that delves into the decentralized and permissionless nature of Bitcoin. The event will include talks from industry experts, workshops, and networking opportunities. It is designed to explore the technical, social, and economic aspects of Bitcoin, making it a valuable experience for both newcomers and seasoned Bitcoiners.

🤔🤔 Wanna learn more? Check out the BLOCKTALK!