🐻 Bitcoin Is Under Pressure
Hey everyone,
After an amazing start into 2023 with positive news left and right and a surprisingly bullish February, this week’s newsletter might be a little downer. On top of the still ongoing crypto collapse, things are now also heating up for Bitcoin—at least in the US. The government around Joe Biden seems to want to do everything it can to undermine their current attractiveness for Bitcoin miners. In Nigeria, the government also doesn’t like Bitcoin, but Nigerians love it. Meanwhile, former Twitter CEO Jack Dorsey is still bullish as hell. Enjoy this week’s newsletter!
By the way: This weekly newsletter is also available in German; you can sign up here.
Quote of the Week:
“Bitcoin adoption will get faster and steeper than other networked technology S-curves, as people only buy one iPhone, internet connection, laptop (or a small number). And while fun, they lack the rabbit hole viral mind-virus effect, where many can only talk about Bitcoin after.”
🐻 Bitcoin Under Pressure: Mt Gox, Silvergate, and the U.S. Government
After bitcoin went up quite significantly since the start of the year, this run seems to have come to an end. For the past weeks already, the price has been sliding as headlines around Silvergate, a bank that specialized in serving crypto companies, including FTX, hit the news. But Silverate winding down is not the only thing happening: a possible payout of Mt. Gox creditors has just been postponed; non-other than the U.S. government moved $1bn worth of bitcoin recovered from the defunct ‘dark web’ site ‘Silk Road’ to Coinbase with the possible intention to sell it. Plus, the Biden administration just proposed a 30% tax on electricity used for Bitcoin mining. And then there are central banks like the ECB and FED, who both announced that interest rates will likely go higher for longer than anticipated.
My take: The best strategy is and will always be to stack sats no matter what. Short-term price action is only stressful when you pay attention. I recommend that you don’t.
🇳🇬 Nigeria's Government and Naira Crisis Is Fueling Bitcoin Adoption
Nigeria is currently facing severe political and economic challenges. This includes a high inflation rate of around 21 percent, as well as a cash shortage of recently introduced new naira notes, the local currency. As a way out, Nigerians are now turning to bitcoin (and USD stablecoins) to protect their wealth and navigate online transactions. For many Nigerians, bitcoin has become a lifeline in times of economic and political instability, and even for those living abroad, it offers a more affordable option for remittance compared to traditional methods like Western Union. Join us as we explore Nigeria's growing relationship with bitcoin and how it is shaping the country's financial landscape.
My take: Bitcoin is just getting started in this regard and will play a similar role in other countries with high inflation and a loss of trust in the local currency and government.
⛏️ Jack Dorsey's Block Reveals Plans for Bitcoin 'Mining Development Kit'
Former Twitter CEO Jack Dorsey has dedicated his life to pushing Bitcoin toward mainstream adoption. According to his company Block, Inc., easily accessible Bitcoin mining will play a crucial role in this task. Dorsey and his company announced a ‘Mining Development Kit’ (MDK), which will include parts for Bitcoin mining rigs. According to the official blog post, these MDKs will be “useful for development projects focused on integrating Bitcoin mining into various novel use cases—such as heating solutions, off-grid mining, home mining or intermittent power applications—as well as optimization of Bitcoin mining hardware for traditional commercial mining operations.”
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My take: It’s still too early to judge how impactful this kit will be. The ambition, especially when it comes to the integration of Bitcoin mining in heating solutions, is stunning nonetheless.
Short news:
We Raised $4.5 Million To Make Relai Even Better
We’re on a mission to let you take control of your future. In other words: Making buying bitcoin as easy as possible—real BTC, no bullshit. Stacked directly in your own non-custodial wallet.
Now we’re excited to announce that we’ve found great partners like Jeff Booth’s ego death capital and others to turbocharge our growth.
Disclaimer: None of this content constitutes investment advice. Always conduct your own research before investing in any digital asset.
Thank you for reading once again; we hope you enjoyed this news.
See you next week!
Your Relai Team
P.S. It would be amazing if you could leave a positive review in the Google Play Store or Apple App Store. Also, consider recommending Relai to your friends; we even have a referral program where you can earn some extra sats!