The Bitcoin Business Newsletter | Trump’s Win: A Turning Point for Bitcoin

Key insight

‍

This weeks key insight is written by Adrian Guilleux, and looks at the recent momentum around bitcoin in politics.

‍

A long shot from the abyss of irrelevance

‍

It appears the sudden in "slowly then suddenly” always turns out surprising, even for veterans of the space. The long-awaited US election resulting in Trump’s reelection into presidency sparked sidelined investors to deploy capital into bitcoin and that was just a start, but what now?

While the national strategic reserve is a considerably bold statement, Congress must still approve the creation of a strategic reserve. At this early stage, Trump is still unable to unilaterally order the federal government to start accumulating bitcoin.

And even if Congress were to miraculously adopt such legislation, would there be more upside than downside? Is it reasonable to celebrate this move, or should small businesses and individuals have more time to stack?

The government's acquisition of bitcoin likely will help little in rendering it more private, scalable, or immune to intervention and overreach by the government. On the contrary, additional privacy attacks and further crippling regulations on AML (anti-money laundering) and KYC (know your customer) might not be out of the realm of possibilities just yet.

But let’s not be overly pessimistic. After all, all advertising is good advertising. It seems the US as a country has shifted 180°, and it would now seem far riskier to speak against Bitcoin than to openly support it.

Nevertheless, as bitcoin continues to rise to prominence on the international political scene, more education is required and especially more bitcoin-only content must be pushed forward, less crypto, which as you know, is our core mission at Sovreign. For that, the fight is far from over as crypto still makes for 99% of all headlines in the space.

Moreover, the stablecoin industry still largely backs itself with US treasuries, which poses a direct threat not to the collapse of bitcoin but to the continued exportation of US debt across the world. The ability to print the world's reserve currency comes with the price tag of often imposing undesired inflation, which is known for having dramatic consequences and long-lasting repercussions.

Although the weekly catalyst was bullish, bitcoin was always going to do this, as bitcoin is the monetary black hole. Trump's election sure helped some hesitant, sidelined investors push the buy button, but bitcoin's first principles are the real reason behind the price increase. Bitcoin is mathematically, logically, and thermodynamically superior to the current debt-based fiat global monetary system and is, therefore, bound to rise at least at the rate of monetary debasement.

One of the most promisingly redefining aspect of bitcoin remains its collateralizable nature. Bitcoin making its way into politics is indeed a trojan-horse for banking accountability, a milestone that the people affected by the US-dollar’s devaluation have desperately longed for.

Over time, bitcoin distributes wealth from value hoarders to value producers, thus reducing the growth of wealth inequalities along the way.

Instead of a cantillion-effect distribution of wealth issued through monetary debasement, bitcoin distributes wealth to a greater number of users over time as the average amount of bitcoin held per user diminishes over time.

It's worth noting that this wealth distribution effect is unique to bitcoin, not USD stablecoins—which are merely digital representations of the tangible USD. This distinction highlights the key challenge we face moving forward.

As argued on February 18, 2009, by Satoshi Nakamoto: “There is nobody to act as central bank or federal reserve to adjust the money supply as the population of users grows. (…) Instead of the supply changing to keep the value the same, the supply is predetermined and the value changes. As the number of users grows, the value per coin increases. It has the potential for a positive feedback loop; as users increase, the value goes up, which could attract more users to take advantage of the increasing value.” (Nakamoto, 2009)

Yet, even at this stage of world hyperbitcoinization, researchers are still arguing that the bubble will eventually collapse…

It would be wise not to fall for the preachers of doomsday and even wiser not to wait for a market dip to implement the bitcoin strategy your business is secretly waiting to adopt. Bitcoin’s price is not the key metric for your business’ success. But the stack of bitcoin on your balance sheet will determine your business’s monetary sovereignty for the years to come. Consider constituting your business as a strategic reserve. Consider doing it while bitcoin still has a price, for one day, it may not be for sale anymore.

“Remember in the Big Short when Burry and the other traders could see the bonds failing but the CDOs stayed at the same price for weeks because they were being manipulated by the banks? That's where we are now. It’s just a matter of time. Know what you own and be patient.” (Mike Alfred, 11/13/24)

‍

‍

‍

Top News Stories

‍

Genius Group Announces Bitcoin as Its Primary Treasury Reserve Asset

Genius Group is shifting to a Bitcoin-first strategy, allocating 90% of reserves and $150 million to Bitcoin.

‍

Bitcoin surpasses Silver market cap, becomes world's 8th largest asset

Bitcoin surpasses silver in market cap, becoming the 8th largest asset with $1.736 trillion, driven by strong institutional interest.

‍

U.S. Inflation Data in Line With Forecasts, Bitcoin Reaches $92.9K – Bitbo

U.S. CPI data met October forecasts, propelling Bitcoin to $92,900 as rate cut expectations rise.

‍

Odell Beckham Jr. Embraces Bitcoin Paycheck Decision Amid Record Highs – Bitbo

Odell Beckham Jr. dismissed criticism of his 2021 decision to take his Rams salary in Bitcoin as its value hits new highs.

‍

MicroStrategy Buy 27,200 More BTC, Sees $11B Profit – Bitbo

MicroStrategy has expanded its Bitcoin holdings with a $2 billion purchase of 27,200 BTC, boosting its total profits from Bitcoin holdings to around $11 billion.

‍

Elon Musk Supports Senator's Call to End Federal Reserve – Bitbo

Elon Musk reposted Senator Mike Lee's call for abolishing the Federal Reserve, reflecting a rising interest in decentralized currency systems among Bitcoin advocates.

‍

MicroStrategy Increases Bitcoin Holdings With $2 Billion Purchase

MicroStrategy bought 27,200 Bitcoin for $2.03 billion, increasing its total to 279,420 Bitcoin.

‍

Leak: BlackRock Quietly Doubles Down on Bitcoin As Price Increases – Bitbo

BlackRock is reportedly increasing its investment in bitcoin, with substantial inflows into its IBIT bitcoin fund amid rising bitcoin prices following Trump's election victory.

‍

Trump Victory Sparks Surge in Bitcoin Interest Among Retail Investors – Bitbo

After Donald Trump's election win, Google searches for 'Bitcoin' spiked, signaling renewed retail investor interest amid hopes for a more favorable regulatory climate.

‍

Blockstream Launches R&D Hub in Switzerland To Drive Fintech Innovation on Bitcoin’s Liquid & Lightning Networks

Blockstream opens an R&D hub in Lugano, Switzerland, to support Bitcoin innovation on Liquid and Lightning networks.

‍

BlackRock’s Bitcoin ETF Surpasses Gold Fund

BlackRock’s Bitcoin ETF (IBIT) hit $33 billion in assets, surpassing its gold ETF within 10 months.

‍

Other Noteworthy News

🪨BlackRock's Bitcoin ETF Hits $4 Billion in Daily Volume After Trump Win

🔖Tether Launches WDK for Non-Custodial USD₮ and Bitcoin Integration

🔵Two Whales Buy $142M in Bitcoin Following Trump’s Election Victory

📈'Volmageddon' — Bitcoin ETFs, Coinbase, MicroStrategy trading vol hits $38B

💳Revolut Expands Crypto Exchange to 30 European Markets

‍

‍

‍

Recommended Articles

‍

What Trump’s historic election victory means for the global economy

The former president's litany of pledges include steep tariffs, tax cuts, deregulation and a push to withdraw from key global agreements.

This article examines the global economic impact of Donald Trump’s return to the White House, highlighting potential effects on trade, financial markets, and international relations, especially with China and the EU.

‍

Bitcoin Businesses Feel Safe In The U.S. In Wake Of Trump Victory

The Bitcoin industry breathes a collective exhale as Trump’s Bitcoin-related rhetoric and policy proposals should be a boon for the industry.

This article highlights MARA's plans to open three new U.S. data centers, emphasizing “Made in USA” Bitcoin. Trump’s election has sparked optimism in the Bitcoin industry, with stocks surging and leaders expecting supportive policies for Bitcoin businesses and self-custody rights.

‍

‍

‍

Recommended Podcasts

‍

Bitcoin and the Dark History of Central Banking with Chris Sullivan (WiM527)

The "What is Money?" Show · Chris Sullivan joins me to discuss the Constitution and the history of central banking, the Rothschild’s and the battle of Waterloo, the Weimar Republic and the Treaty of Versailles, the WEF’s statement that “you will own nothing and be happy,” and why Bitcoin is the ultimate tool for freeing humanity.

‍

‍

#551: Why Inflation Is Higher Than You Think with Ed Butowsky

TFTC: A Bitcoin Podcast · Today, Marty sat down with Ed Butowsky to discuss the real inflation numbers the Fed is hiding from Americans. They cover the cost-of-living increases that the CPI falsely shows by analyzing the Chapwood index. This ranges from higher food prices to higher energy costs. True Inflation data is much higher than most think, affecting all economic data, including real GDP growth.

‍

‍

‍

Chart of the Week

Bitcoin Node Map

These charts shows the distribution of reachable bitcoin nodes across countries worldwide.

The data shows that the United States has the most active Bitcoin nodes, with 1,855 nodes, representing 9.88% of the total.

‍

‍

‍

“You either have to work 10 times harder than a Bitcoin holder, or you just hold Bitcoin.”

– Jack Mallers

‍

Stay Informed — Join Our Newsletter Here