Greetings, Earthling.

You might notice some changes in this week’s issue.

I have upgraded to a new email newsletter service provider and would really appreciate your feedback in a poll near the end of the email.

📰 HEADLINES

Traditional finance (TradFi) mania is in full swing following BlackRock's application for a Bitcoin trust, triggering a FOMO-driven domino effect and a corresponding rise in the BTC price above $31,000. Major players are scrambling to capitalize on a perceived first-mover advantage. These include Fidelity, with $4.3 trillion under management, who together with Charles Schwab and Citadel Securities are launching a non-custodial exchange, EDX. Deutsche Bank, which has $1.4 trillion in assets, is applying for a digital assets license in Germany. Meanwhile, WisdomTree and Invesco, two of BlackRock’s rivals, are also applying for Bitcoin exchange-traded products. In addition, Valkyrie Investment is filing for a spot Bitcoin ETF, with their ticker being BRRR.

Binance.US has Bitcoin momentarily reaching $138,000 on the platform, a fluctuation that was attributed to limited liquidity and decreasing market depth, which have been deterring investors following recent regulatory challenges. Binance.US also countered the allegations made by the SEC in their ongoing legal dispute by filing a motion. They denied the mishandling of user funds and criticized the regulator for its inconsistent statements.

Jerome Powell, the Chair of the US Federal Reserve, affirmed that Bitcoin has staying power as an asset class during a testimony before lawmakers. He added that they view stablecoins as a form of money. Powell also mentioned that inflation has a significant distance to cover before reaching the Fed’s target of 2 percent, but he also indicated that the central bank's policy would likely adjust as inflation begins to decrease.

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🏆 TOP STORIES

Integrating Payjoin into Bitcoin Services now Easier with Release of Payjoin Development Kit (6 min read)

Bitcoin developer Dan Gould has recently introduced the Payjoin Development Kit (PDK), which is designed to simplify the integration of Payjoin, a privacy-enhancing transaction protocol, into Bitcoin services. Payjoin, a type of CoinJoin, obfuscates transactions by requiring both the sender and receiver to provide unique transaction inputs, thus thwarting blockchain surveillance techniques based on the common-input ownership heuristic. Although the adoption of Payjoin has been historically limited due to the necessity for receivers to maintain well-funded, always-on hot wallets, Gould suggests that serverless Payjoins, which use TURN relays to manage partially signed Bitcoin transactions (PSBTs), could address this issue. This solution would improve the user experience and promote wider adoption of Payjoin. The PDK is regarded as a crucial tool for enhancing Bitcoin's privacy standards. It enables the development of native privacy tools in wallet software, making it harder for surveillance entities to track transactions, thereby reinforcing Bitcoin's role as a tool for digital freedom.

Glassnode: How Many Bitcoin are for Sale? (8 minute read)

This Glassnode analysis of fund flows across top exchanges in the US and Asia suggests strong Bitcoin accumulation during Asia's trading hours and weaker demand in the US markets in 2023. The analysis of short-term holder behavior in 2023 implies a shift in market psychology from the bearish environment of 2022. [If you're interested in more specialized Glassnode products and services, you can get a 10% discount on your first purchase if you sign up through this link].

Bitcoin as a Nonviolent Tool Against State Financial Censorship (73 min read)

This Master's thesis by Ville M. Kokkomäki delves into the role of Bitcoin in nonviolent campaigns, highlighting its utility as a tool against financial censorship and a vehicle for funding and private donations. By evaluating a global dataset of 93 financial censorship events from 1981-2023, the study underscores the significant role Bitcoin plays in ensuring monetary autonomy and resistance. It draws attention to instances such as the Feminist Coalition's EndSARS protest and the Freedom Convoy's Covid-19 mandate protest, where Bitcoin was used following financial censorship events, resulting in notable increases in campaign funds. The findings suggest Bitcoin's value to human rights activists and NGOs, calling for a reevaluation of the misconceptions linking it to illegal activities.

The Multi-Billion Dollar Question Posed by BlackRock's Bitcoin ETF Move (7 minute read)

Sui Chung, CEO of CF Benchmarks (a subsidiary of Kraken that provides the index to be used by the proposed spot Bitcoin ETFs from BlackRock, Valkyrie, and WisdomTree), suggests that approval from the US Securities and Exchange Commission could take up to 230 days. He adds that a robust surveillance sharing approach is being implemented to address concerns about potential manipulation of the ETF shares. If approved, these ETFs could significantly influence the broader Bitcoin market by opening it to a wider investing public.

Bitcoin is Actually a Store of Energy, and that Changes Everything (9 min read)

In this article, Shane Neagle, Editor-in-Chief of 'The Tokenist', contests the negative perception of Bitcoin's energy consumption, suggesting that it is in fact a positive feature. Neagle posits that Bitcoin serves as a 'store of energy', presenting a superior alternative to conventional monetary systems. He contends that a narrow focus on energy consumption fails to recognize the potential benefits of an energy-backed currency. Neagle concludes by emphasizing that Bitcoin's capacity to store and transfer energy uniquely positions it as a promising form of money for individuals and society at large.

BITCOIN BOOK SPOTLIGHT

Ioni Appelberg’s first book, “Abundance through Scarcity”, was released at BTC Prague earlier this month, and it sold out! Here is a sneak peek of the foreword written by Knut Svanholm to discover why you need to read this book and discover bitcoin.

Grab a copy of “Abundance Through Scarcity” and get 10% off if you use the coupon code: bitcoinbreakdown at checkout.

📖 GUIDES & EXPLAINERS

Digging Into EDX Markets (4 minute read)

EDX Markets, a noncustodial crypto exchange backed by Citadel Securities, Fidelity Investments, and Charles Schwab, made headlines as it recently started settling trades. This exchange operates a bit differently than others, enabling firms to negotiate prices and execute trades without holding customer assets directly, mitigating certain custodial risks. EDX targets institutions, providing API-based trading access rather than a traditional user interface. This thread goes in-depth and breaks down the background of this exchange and the different components of the system.

Unit Of Account: Definition, Examples & Its Huge Flaw (9 min read)

This article by Athena Alpha delves into the concept of a unit of account, underscoring how the US Dollar is currently widely utilized as such, despite its limitations due to inflation. Conversely, Bitcoin, with its divisibility and fungibility, holds the potential to surpass the Dollar as a superior unit of account in the future, providing accurate and predictable measurements of value. However, Bitcoin requires more time to solidify its position, even though the benefits of adopting a Bitcoin Standard and measuring value with precision—akin to the metric system—are virtually limitless.

6 Strategies To Protect Bitcoin Privacy and Enjoy True Financial Freedom (3 min read)

In this piece, Prasad Prabhakaran, co-founder of BitHyve and organizer of Bitcoin4India, discusses the crucial role of privacy in Bitcoin transactions. He outlines the six strategies he has implemented to regain control over his financial privacy and protect personal information. First, he uses privacy-enhancing technologies like VPNs and Tor to encrypt his internet traffic and shield his identity from prying eyes. Second, he employs CoinJoin and Whirlpool to mix his Bitcoin transactions with others, making his activities harder to trace. Third, Prabhakaran meticulously manages his unspent transaction outputs (UTXOs) to disconnect his transaction history, exercise coin control, and bolster his privacy. Fourth, he is committed to avoiding address reuse, choosing unique addresses for each transaction to minimize tracking. Fifth, he has transitioned to peer-to-peer transactions, minimizing exposure of personal information and dependence on exchanges. Lastly, he practices cautious information sharing, using pseudonyms and aliases to protect his identity and financial activities from exploitation.

📎 ICYMI

Allen Farrington Lays Out 8 Reasons To Worry About BlackRock’s Intentions (15 min read)

First, BlackRock has a history of being anti-Bitcoin, and its sudden interest in it raises suspicion. Second, BlackRock's filing for a 33 Act Trust, which is being referred to as a 'spot ETF', is worrying, as it could potentially create a 'black hole' from which Bitcoin may never emerge. Third, if BlackRock were to control a substantial amount of Bitcoin, it could give rise to harmful economic incentives. Fourth, BlackRock's admission that it might have to pull a NYA 2.0 is troubling, suggesting the company is not committed to Bitcoin in the long term. Fifth, BlackRock's purpose is to poorly solve a problem that Bitcoin already solves well. Sixth, with the US rapidly losing financial power, Bitcoin innovation could shift elsewhere. Seventh, self-custody is not a feasible solution for those with fiduciary responsibilities. Lastly, BlackRock's interest in Bitcoin may not necessarily benefit Bitcoin enthusiasts, and people should approach the company's intentions with caution.

⚡️ QUICK BITS

• FATF urges global adoption of controversial ‘Travel Rule’ amid rising financial crime risks.

• Binance reverses decision to delist privacy coins in Europe.

• Binance withdraws license application in Austria.

• Orange Pill App enables zapping.

• Bitcoin Miner Hut 8 borrows $50 million from Coinbase Credit to support its Bitcoin treasury management strategy.

• Riot secures 33,000 new Bitcoin mining rigs for $162 million.

• Cathie Wood’s ARK reportedly ‘first in line’ for a spot Bitcoin ETF.

• Magic Eden dives deeper into Bitcoin with BRC-20 tokens.

• Santander, one of the largest banks in the world, features an article on the Lightning Network.

• Venmo now allows its users to withdraw their Bitcoin.

• African Bitcoiners is paying you 5000 sats for taking their Bitcoin for Beginners course sponsored by Lightning Roulette.

• Bitcoin Isaiah uploaded a smashing YouTube short called “Bears vs. Bulls - Anticipation of the 4th Bitcoin Halving” (3:21 watch).

• Ministry of Nodes announces their Bitcoin Nodebox - a plug & play Bitcoin node.

• Anita Posch releases short YouTube video on how Bitcoin fixes corruption (2:26 min watch).

• BitGo cancels acquisition of rival Prime Trust.

• Legal documents filed in Nevada show Prime Trust owes customers $85,670,000, in fiat currency, but only has $2,904,000.

• GrapheneOS now available on Pixel Tablet.

• Damus v1.5 now with removed note zaps approved on App Store.

• Bitcoin Dominance surges to over 50% as sh!tcoins bleed.

• Coinmetrics’ Datonomy™: BTC’s dominance (excluding stablecoins) jumps to 58%, the highest since April 2021.

• Arsen and The BTC Therapist team up to form the Bitcoin Therapy newsletter on beehiiv.

• TIP_NZ posted a great new short rap clip called “BANK” (2:20 min watch).

• IMF says countries banning Bitcoin outright may not be effective in the long run.

• Robert F Kennedy Jr. calls CBDCs “Instruments of Control and Oppression”.

• Belgium regulator orders Binance to stop services in country.

• CryptoCloaks introduces new affiliate program. [Hit me up if you want 5% off of any of their amazing products!]

• Ledn founder shares in short clip how his family had to flee from Venezuela and was able to bring their wealth with them in the form Bitcoin. [Check out Border Wallets for such extreme situations].

• Binance confirms they’re integrating the Lightning Network.

• Voltage introduces Surge, a tool designed to enhance the management of Lightning Network nodes.

• Bitcoin Miner CleanSpark buys 2 Georgia facilities for $9.3 million.

• US Federal Agencies form new US task force, the "Darknet Marketplace and Digital Currency Crimes Task Force”.

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