Bitcoin adopted by universities and public companies
Bitcoin's dollar exchange rate has been relatively stable following the halving. Yet, despite the doldrums, bullish indicators keep piling up, signaling that the money of the future still has a lot of upside left – especially when measured in rapidly-debasing fiat.
Publicly traded companies are diversifying their investments, from mining bitcoin using excess energy to holding bitcoin on corporate balance sheets.
For example, Block is dollar-cost averaging 10% of its profits into bitcoin. Metaplanet and Semler Scientific, also publicly traded companies, announced multimillion-dollar bitcoin buys as part of their strategy to use bitcoin as a primary treasury reserve asset.
Spot bitcoin ETFs have seen billions of dollars in inflows over the past few weeks from various buyers ranging from hedge funds to government pension funds. Governments are striking international partnerships with bitcoin miners.
The recent bitcoin halving, which reduced the block subsidy to 3.125 bitcoins, coupled with increasing demand from various sources, suggests there are more reasons to be bullish now than ever. At this point, not having bitcoin exposure may be riskier than the opposite.
NEWS
👨🎓University of Austin partners with Unchained to launch bitcoin endowment
In a groundbreaking partnership, Unchained Capital, Inc. and the University of Austin are launching the first long-term endowment fund held in bitcoin, aiming to invest $5 million in bitcoin for at least five years. The collaboration is a step toward integrating bitcoin into higher education.
Governments, corporations, pensions, and (now) universities.
By incorporating bitcoin into its endowment, the University of Austin will set a precedent for other academic institutions to explore similar moves.
❌ President Biden vetoes SAB 121
President Joe Biden vetoed a resolution to overturn the SEC's Staff Accounting Bulletin 121, which effectively prevents banks from offering bitcoin services. The veto faced immediate backlash, with critics arguing that it ignores the fact that support for bitcoin and crypto has become a bipartisan issue.
Biden can't have it both ways.
Last week, President Biden's campaign began "reaching out to cryptocurrency industry players," likely after campaign operatives learned that bitcoin and crypto voters comprise a significant portion of the electorate. In that context, the veto is a curious move. With his veto, Biden now risks alienating many American voters who support pro-bitcoin and crypto policies. Sam Callahan captures this well:
I’ve never met a person who hates Bitcoin as much as someone who loves it.
— Sam Callahan (@samcallah) May 23, 2024
This is why all the risk is on politicians who oppose it.
If a politician opposes it, they would really piss off some of their constituents and lose their votes.
If a politician supports it, they…
🇳🇬 Nigerian bitcoin demand remains in light of regulatory crackdown
Despite Nigerian President Tinubu's crackdown on peer-to-peer bitcoin and crypto trading, young Nigerians' enthusiasm for bitcoin remains strong. Interest is particularly strong in regions with low bank penetration and high numbers of millennials.
A global movement.
The persistent interest in bitcoin among Nigerians, despite government crackdowns, demonstrates the growing trust individuals worldwide place in bitcoin as a reliable means to store value and facilitate payments.
👨⚖️ Supreme Court kicks Cantero v. Bank of America back to Second Circuit
In Cantero v. Bank of America, the Supreme Court of the United States declined to decide whether the bank must pay interest on New York mortgage borrowers’ escrow accounts. Instead, it is sending the case back to the Second Circuit for reconsideration. The case highlights the ongoing conflicts between federal and state laws, particularly in the context of banking regulations.
Will dual banking continue in the United States?
There is a growing push in the U.S. to bring all banking regulations under federal control, which would end the dual banking system. The outcome of Cantero could set a precedent for how such conflicts are resolved in the future, impacting banks that operate in multiple jurisdictions. The current Supreme Court appears to favor the dual banking system. Caitlin Long had this to say:
THE SUPREME COURT UNANIMOUSLY SUPPORTS the dual banking system in the US🔥. The Fed wants to kill it though -- the Fed doesn't respect state bank chartering authorities. Guess who's going to win.💪https://t.co/gTJJipQ6zG pic.twitter.com/ZowwyBcPgG
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) May 30, 2024
BITCOIN ADOPTION CONTINUES
Donald Trump became the first President to accept bitcoin Lightning Network payments, partnering with OpenNode to facilitate fast and low-cost bitcoin donations.
Clams launched the open beta of its bitcoin accounting app, available for Mac. It integrates with Core Lightning and LND, with more wallet support coming soon.
The Human Rights Foundation donated 10 bitcoins to support 13 projects focusing on education, privacy, Lightning development, and decentralized communications.
Fold released its Direct to Bitcoin feature, allowing users to auto-convert 1% to 100% of fiat deposits to bitcoin from a checking account.
Thailand approved its first spot bitcoin ETF. The ETF will be launched by One Asset Management between May 31 and June 6.
HOW BITCOIN WORKS
Learn one key idea about bitcoin each week. This week:
Bitcoin is a push system.
Payment systems are categorized as either “push” or “pull.” A pull system allows the payee to initiate a transaction by requesting funds from the payer's account. This is common in traditional banking and credit card transactions, where the recipient (merchant or service provider) can pull money from the payer's account, often requiring authorization through a card swipe or a PIN.
Conversely, in a push system, the payer initiates the transaction, actively sending funds to the payee. This method ensures that the payer controls the transfer, directly pushing money from their account to the recipient's account. Common examples of push systems include wire transfers and direct bank transfers.
Bitcoin also operates as a push system. When a user wants to make a payment, they must initiate the transaction from their wallet, specifying an amount and the recipient's address. This ensures that only the owner of the bitcoin can authorize its transfer, providing a high level of security and control over the transaction process.
In a transaction, the payer signs the transaction with their private key, ensuring the transfer is authorized and secure. The transaction is then broadcast to the network, mined, and verified, completing the push payment process.
Bitcoin's push system offers considerable benefits to consumers and businesses. The requirement for payer authorization reduces the risk of unauthorized withdrawals and fraud. It eliminates the possibility of reversals or chargebacks, providing businesses with a more predictable financial flows. And, since every bitcoin transaction is recorded on a public blockchain, bitcoin transactions are transparent and traceable, which builds trust between parties.
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COIN CHECK
Which Bitcoin Improvement Proposal (BIP) introduced the concept of Segregated Witness (SegWit)?
BIP 210
BIP 141
BIP 39
BIP 125
Check your answer at the end of the page.
FROM THE MEME POOL
— Robert ₿reedlove (@Breedlove22) June 4, 2024
ANSWER
BIP 141. SegWit was an important upgrade that laid the foundation for the Lightning Network. Check out this Bitcoin Magazine article from 2017 for details.
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