🔥 Bitcoin Shines While Banks Fail
Bitcoin appreciates while bank stocks slump, Gary Gensler still doesn’t like Proof-Of-Stake, and African Bitcoin adoption is on the rise.
Welcome to This Week In Bitcoin here on Substack! This newsletter is curated and written by the team at Relai, the best place to buy bitcoin instantly.
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Hey everyone,
What a week! We are in the middle of another banking crisis that may spiral out of control into a full-blown financial crisis. But don’t worry: Bitcoiners who hold their own keys can sit back, relax, and know that the best savings technology ever invented keeps doing its thing.
In this issue, we delve into the latest developments that put Bitcoin in the spotlight. From its role as a safe haven amidst the turmoil of failing banks to the clarity of its regulatory status compared to other cryptocurrencies and even its growing adoption in Africa without the need for internet access, Bitcoin is gaining momentum.
By the way: This weekly newsletter is also available in German; you can sign up here.
Quote of the Week:
“As an alternative money and payment system that has no central vulnerability, no opening hours, no CEO, no one to block an account, and is always available to everyone around the globe, Bitcoin has more relevance than ever.”
🔥 Bitcoin Shines While Another Banking Crisis Looms
As investor concern over the stability of traditional banks grows, Bitcoin's price has risen significantly this week. The failures of Silicon Valley Bank and Signature Bank, as well as financial issues at Credit Suisse, have prompted many to view Bitcoin as a more reliable alternative to the banking system. Credit Suisse revealed “material weaknesses” in its finances, leading the Saudi National Bank to decide against providing additional capital to support the Swiss lender. To alleviate immediate liquidity concerns, the Swiss National Bank allowed Credit Suisse to borrow up to $54 billion. In response to these events, Bitcoin's price briefly touched $25,000, signaling growing interest in the cryptocurrency as a potential safe haven during times of economic uncertainty. It's worth noting that Bitcoin was created by the anonymous figure Satoshi Nakamoto in the wake of the 2008 financial crisis, specifically critiquing government bailouts for banks in Bitcoin's genesis block.
My take: Bitcoin's recent surge highlights its safe haven potential. Its unique features, such as no counter-party risk and no central point of failure, set it apart. This could boost Bitcoin's popularity as an alternative investment in uncertain times.
⚖️ Gary Gensler Still Thinks PoS Tokens Are Securities
SEC Chairman Gary Gensler firmly believes that proof-of-stake tokens, such as Ether, might be classified as securities, which would subject them to SEC oversight. On the other hand, CFTC Chairman Rostin Behnam argues that Ether is a commodity and should fall under the jurisdiction of the CFTC. This disagreement between the two regulatory agencies has led to an ongoing debate over who should have authority over the ever-evolving crypto landscape. While Ether remains at the center of this regulatory tug-of-war, Bitcoin has managed to steer clear of the contention. Gensler has previously confirmed that Bitcoin is not a security and even praised Nakamoto's innovative contribution to the financial world. As the debate continues, the recent lawsuit filed by the New York Attorney General's Office against crypto exchange KuCoin adds another layer of complexity to the situation, as it claims that Ether meets the definition of a security and should be registered accordingly.
My take: The current debate definitely creates uncertainty for Ether and other proof-of-stake tokens. Meanwhile, Bitcoin enjoys a clearer regulatory status. This clarity may bolster Bitcoin's growth and adoption.
🌍 African Bitcoin Adoption Grows Without The Internet
Machankura, a text-based tool created by software developer Kgothatso Ngako, has enabled nearly 3,000 Africans to adopt Bitcoin without requiring internet access. The innovative tool utilizes the Unstructured Supplementary Service Data (USSD) protocol to send short text messages, allowing users to send and receive Bitcoin, check their balances, and even barter goods and services on Bitrefill using only a feature phone. Machankura also interacts with the Lightning Network, a layer-2 payment system that enables instantaneous and virtually free Bitcoin transactions. Machankura operates in eight African countries—Ghana, Kenya, Malawi, Namibia, Nigeria, South Africa, Uganda, and Zambia—with its user base experiencing a tenfold increase since August.
My take: As Bitcoin adoption continues to grow, tools like Machankura have the potential to serve the approximately 2.9 billion people worldwide who still lack internet access, increasing financial inclusion and fostering the expansion of Bitcoin.
Short news:
Highlights from Relai:
Bank Runs Are The Reason Why Bitcoin Exists
Relai CEO Julian Liniger commented in 'Bitcoin Magazine' on the current banking crisis and what it means for Bitcoin.
Julian delves into the shortcomings of the traditional banking system and emphasizes how Bitcoin could serve as a game-changing alternative.
Read the article on Bitcoin Magazine.
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
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