Bitcoin News For the Week
$100 Trillion, Inflation, IPO, 8/21 Day, more!
Bitcoin Transactions Cross Milestone
This week, the volume of transactions that have been completed on the Bitcoin network passed $100 trillion. Trillion, with a T. That’s mainly in the last ten years or so. By comparison, Visa transacted $13 trillion in 2021, and American express did only $1.2 trillion. That’s pretty good company, and it’s more evidence that Bitcoin has arrived. And is here to stay.
This lends more credence to the theory that the longer something stays around, the more likely it is to stick around permanently. It’s known as “The Lindy Effect,” named for New York City’s famous Lindy’s Delicatessen. Link to my previous story about The Lindy Effect:
Student Loan Forgiveness and Inflation: “Bitcoin Fixes This”
Undoubtedly the biggest story in the news this week was President Biden’s announcement that the federal government would be forgiving up to $20,000 of student loan debt per borrower. Despite assurances from the administration that such a move would require an act of Congress, the president issued the executive order this week.
When pressed, the administration could not say how the forgiveness will be paid for. Thus, the $300-500 billion giveaway will be printed from thin air. Whether you agree with the move or not, you must realize that this will just be paid for by devaluing or currency a bit more. Inflation. We all pay.
Bitcoiners say “Bitcoin fixes this” to just about everything. You’ve probably heard the expression. But imagine a currency with a fixed hard cap, where money cannot be printed, ever. It obviously solves the inflation problem.
Better yet, fiat currency can continue to devalue, and you can buy Bitcoin.
Happy 8/21 Day!
We Bitcoiners have our special holidays.
May 22 is Bitcoin Pizza Day. The day that someone paid 10,000 Bitcoins for two pizzas. That’s right. Of course, that was back in 2010. Those coins would be worth over $21,000,000 right now. No word on what toppings he ordered.
October 31, 2008. The Bitcoin whitepaper was released. That’s no trick-or-treat. Just a treat for those who prefer hard, sound money.
And then we have August 21. 8/21. Infinity Day. Why?
21 million is the cap of Bitcoins that will be mined, of course. So what’s the 8 for?
Flip it sideways. It’s the symbol for infinity. As in:
Supply of Bitcoin is limited to 21 million + Demand is unlimited = Value goes up forever to infinity. Brilliant. Thanks, Satoshi.
Bitcoin ATM Company Goes Public
In another sign of Bitcoin’s growth and mainstream adoption, Bitcoin Depot plans to go public with an estimated value of $885 million. If you were wondering if this Bitcoin thing is here to stay, this is a strong indicator. That it is.
The company is becoming a publicly-traded NASDAQ company through a SPAC, or special purpose acquisition company. Bitcoin Depot has over 7,000 Bitcoin ATMs in the US and Canada. Look for one in your neighborhood. There are a couple in my neighborhood, from various providers.
The Fiat Standard by Saifedean Ammous: required reading.
I’m half way through the book, The Fiat Standard, by noted economist and Bitcoin maximalist Saifedean Ammous. I previously read his best-seller, The Bitcoin Standard. It’s considered the “bible” of Bitcoin tomes.
Here are a few amazing snippets from The Fiat Standard, which really make you think about the US fiat currency:
On fiat currencies:
“Joining the fiat network is not voluntary; it can best be likened to mandatory malware.”
“Permanent feature of fiat currency - surreptitiously trading long-term prosperity for the illusion of short-term stability.” Hmmm, sounds familiar.
“Throughout human history, competition … has reduced the value of easier money and increased the value of harder money … a continual progression to harder alternatives.” What could be harder money than a currency with a fixed cap?
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Recommended Bitcoin Tools, Platforms, Podcasts:
Gemini - My choice for buying and HODLing Bitcoin, rated tops for safety and security. User-friendly platform and phone app. Earn Bitcoin rewards as well with the Gemini Credit Card.
Arculus - The crypto hardware wallet from Arculus is one of the best products on the market for storing your coins. Very easy to set up and to use, and very affordable.
Lolli - The Lolli shopping app lets you earn great Bitcoin rewards on practically everything you buy, whether you’re shopping on your phone, computer, or in-person.
Twitter - Follow The Bitcoin Files on Twitter at @BitcoinNewslet1 for all of my articles, commentary and links to my contributions to Bitcoin Magazine.
Medium - Check out my writings on Medium, including articles not featured in the newsletter. Join my 500 other followers who read and write about crypto. medium.com/@rickmulvey
Podcasts - To hear the top names in Bitcoin, and learn more than you could imagine, check out The Pomp Podcast with Anthony Pompliano, What Bitcoin Did with Peter McCormack, and The Wolf of All Streets Podcast with Scott Melker.
Issue No. 71, August 26, 2022
Rick Mulvey is a CPA, crypto consultant, and frequent contributor to Bitcoin Magazine. He writes about all things Bitcoin, and yells at the Yankees and Giants. He also runs marathons and makes wine, neither professionally.