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Director at Fidelity: Bitcoin is exponential gold.
Jurrien Timmer on Bitcoin as "exponential gold" Jurrien Timmer, Fidelity's Director of Global Macro, described Bitcoin as an emerging store of value, highlighting Bitcoin's scarcity and increasing adoption as key drivers of its potential as a long-term store of value, similar to gold. The growth of Bitcoin compared to other technologies Timmer compared Bitcoin's growth to the exponential spread of the internet and mobile technologies, highlighting accelerated adoption and network growth as key factors in Bitcoin's valuation. The increasing acceptance of Bitcoin Although Bitcoin is still in its infancy compared to traditional assets, adoption is increasing rapidly, which could make it a significant store of value in the future. Timmer pointed to Bitcoin's characteristic boom-bust cycles, noting that the number of non-zero addresses on its network follows a power curve, with the Bitcoin price oscillating around this curve like a pendulum. Bitcoin and institutional investors Timmer's view reflects a trend among institutional investors who recognize Bitcoin's potential, underpinning its growing legitimacy in the financial sector. He also noted that although Bitcoin's network growth has slowed recently, its price has continued to rise. To reach new highs, it may be necessary for network growth to pick up steam again.
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MicroStrategy plans to raise $500 million to buy Bitcoin.
MicroStrategy plans to raise capital for Bitcoin investment MicroStrategy, led by CEO Michael Saylor, plans to raise $500 million through a private offering of convertible senior notes to fund additional Bitcoin purchases. The company is already the largest public holder of Bitcoin, with over 214,400 BTC (Bitcoin), valued at $15 billion. Since 2020, MicroStrategy has adopted Bitcoin as its primary reserve asset. The company's average purchase price for Bitcoin is around $35,000, while Bitcoin is currently trading near $68,000. $500 million to finance Bitcoin purchases The $500 million will be raised through the sale of convertible senior notes to qualified institutional buyers. These bonds pay interest semi-annually and mature in 2032 unless converted or redeemed earlier. Although the funds raised could potentially be used for general corporate purposes, acquiring more Bitcoin remains the priority. Additionally, initial buyers will be given the option to purchase an additional $75 million worth of bonds. MicroStrategy as a proxy for Bitcoin MicroStrategy's deep commitment to Bitcoin has made the company a proxy for Bitcoin in the stock market. The company's share price often reflects Bitcoin's movements. This latest capital raise underscores the company's belief in Bitcoin's long-term appreciation, as Saylor looks to acquire more while prices are relatively low.
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Biden campaign explores bitcoin donations.
President Biden’s re-election campaign considers crypto donations President Biden's re-election campaign is reportedly considering accepting bitcoin and crypto donations through Coinbase Commerce, a well-known cryptocurrency payment system. This development follows Donald Trump's decision to enable bitcoin donations to his own campaign. Strategy to address crypto-affine voters Sources suggest that the Biden campaign is considering this option to appeal to Bitcoin and crypto-savvy voters ahead of the 2024 election. Despite opposition from some industry figures who point to the Biden administration's crypto-critical stance to date, the move aims to project a more crypto-friendly image. Mark Cuban warns of Trump's lead among crypto holders Mark Cuban, a well-known entrepreneur, suggested that Biden's perceived indifference to crypto could increase Trump's chances of winning the election. Recent polls show that Trump has a significant lead among crypto holders. Although the Biden campaign has not officially confirmed these reports, the growing importance of Bitcoin in political strategies is becoming clear. Both parties now recognize the need to attract Bitcoin supporters in the run-up to the election.
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Bitcoin trading protocol reaches milestone.
Civkit: Alpha version of a new peer-to-peer economy Civkit aims to revitalize the global peer-to-peer economy (direct exchange between users without intermediaries) and has released its first alpha version after over a year of development. The project focuses on decentralized peer-to-peer trading that does not require a centralized order book (a central list of buy and sell orders). It is based on Nostr (a decentralized communication protocol) and Lightning (a secondary network for Bitcoin transactions) and integrates a central reputation system. Funding and teams behind Civkit Anonymous developers led by Nicholas Gregory (known from Commerceblock and MercuryLayer) are driving this project forward. The project is funded by individuals from the global south (countries in Africa, Latin America and Asia) and is specifically tailored to their needs. Funding from Ray Youseff and Noones supports developers from these regions and ensures practical applicability. Civkit Node Features The Civkit node provides a user interface for creating peer-to-peer trade orders. Users can create buy/sell orders, pay invoices, chat with trading partners, confirm receipt of fiat money (traditional government currencies), file disputes, and view other trade transactions. Civkit uses a special Nostr event type to share orders across Nostr relays (network nodes for relaying messages), creating a global order book. The escrow system (a secure payment mechanism) locks 5% of the trade amount in a holding invoice that is released after the trade is completed. It also provides an encrypted chat URL for dispute resolution. Future plans and further development The team plans to release the alpha version of the reputation system in two weeks. After that, the focus will be on federating the order book and integrating the escrow system with Fedimint (a federated treasury protocol) as well as supporting eCash (electronic money). Gregory emphasizes the ambitious nature of the project and the importance of the first tangible results.
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Bitcoin Development Policy
Christian Decker's criticism of political complexities in Bitcoin development Christian Decker of Blockstream, a leading developer of the Lightning Network (a second-layer network for Bitcoin transactions), highlighted the political complexities in Bitcoin development. He criticized the current competitive environment in which developers often use political maneuvering. Decker emphasized that efforts to avoid discussions about "covenants" (contracts that specify certain conditions in the Bitcoin script) and "introspection" (reviewing and analyzing transactions within the Bitcoin protocol) have led to fragmented proposals that struggle to gain traction. The cooperative approach of Rusty Russell’s proposal A major problem is the combative environment in which developers attack other proposals to gain attention for their own, causing unnecessary tension. Rusty Russell's recent proposal, which aims to restore Bitcoin's original script functionality, offers a more collaborative approach. Decker advocates for involving the wider Bitcoin community in the discussions and believes this can foster a healthier ecosystem and encourage honest and transparent dialogues. The importance of balanced presentations for the Bitcoin community The proposal to restore the original script functionality allows developers to work without restrictions and demonstrate solutions that the community can then optimize. Both Decker and Shinobi (another well-known developer) highlighted the importance of having experts present balanced views of their proposals so as not to mislead the community. Decker pointed out that the current environment often rewards biased presentations, which hinders honest discussions. Prioritizing engineering over politicking for a collaborative future Rusty's proposal marks a shift toward prioritizing "engineering" over "politicking" and aims for a collaborative and innovative future. As Decker noted, to achieve meaningful improvements, the community should approach development as engineers, not propagandists. This discussion highlights the ongoing effort to improve Bitcoin's scripting capabilities, and the importance of cooperation and honest dialogue to achieve these goals.
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Itaú opens Bitcoin and crypto trading to all users.
Itaú Unibanco enables Bitcoin trading for customers via the Ion investment app Itaú Unibanco, the largest bank in Brazil and Latin America, has enabled trading in Bitcoin and other cryptocurrencies for its over 60 million customers through the Ion investment app. The service was initially offered to a select group of customers in December 2023, but due to high demand identified through weekly surveys, the service is now widely available. The Ion app, which has been downloaded more than 3.5 million times, shows a high interest in cryptocurrency trading in Brazil. Itaú develops its own custody solution for secure management of customer wallets Itaú has developed its own custody solution to securely manage customers' wallets. Unlike using third-party services, this ensures that each user has a separate wallet. This move by a conservatively regulated institution is a significant step forward towards mainstream Bitcoin adoption in Brazil and sets a benchmark for other banks in the region. Bank’s commitment simplifies buying and selling process for Bitcoin enthusiasts For Brazilian Bitcoin enthusiasts, the bank's involvement simplifies the buying and selling process and further integrates cryptocurrencies into the financial mainstream.
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Donald Trump supports Bitcoin mining in DC.
Donald Trump supports Bitcoin mining in the USA Donald Trump met with David Bailey, CEO of Bitcoin Magazine, and several leading Bitcoin miners in the US and pledged to support Bitcoin mining both in Washington DC and worldwide. This event marks a significant step towards "hyperbitcoinization" (the full acceptance and use of Bitcoin) in the US. Major participants in the meeting The meeting was attended by representatives of major Bitcoin mining companies such as CleanSpark, Riot Platforms and Marathon Digital, as well as industry experts such as Amanda Fabiano. Riot's Jason Les and Brian Morgenstern spoke with Trump about Bitcoin mining and energy. Trump promised to protect Bitcoin ownership, mining and transactions. Trump wants to mine all remaining Bitcoins in the USA Trump then expressed on Truth Social (his own social platform) his intention for all remaining Bitcoin to be mined in the US, which he aligned with energy dominance. This stance stands in stark contrast to the Joe Biden administration, which is less friendly to Bitcoin and more supportive of a Central Bank Digital Currency (CBDC). Trump advocates crypto operations in America Trump, who is now the first U.S. president to accept Bitcoin Lightning Network (a protocol that enables faster and cheaper Bitcoin transactions) donations, is committed to keeping crypto operations (businesses in the cryptocurrency sector) in America and supports self-custody (the self-storage of cryptocurrencies) for the country's 50 million crypto holders. His crypto-positive stance is gaining him significant support from the crypto community, which could be crucial to a victory in November.
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Metaplanet buys ¥250 million in Bitcoin.
Buying Bitcoin from Metaplanet Japanese company Metaplanet has announced the purchase of an additional ¥250 million (approximately $1.8 million) in Bitcoin, adding 23.35 Bitcoin to the company's holdings. As of June 11, Metaplanet holds approximately 141 Bitcoin, acquired for ¥1.45 billion at an average price of ¥10,278,391 (approximately $65,000) per Bitcoin. The company began using Bitcoin as a treasury reserve asset in April 2024, making an initial investment of ¥1 billion, followed by additional purchases. Share price and strategy Following this latest purchase, Metaplanet's share price rose 10%. This marks the third Bitcoin purchase in seven weeks and has led to a nearly fivefold increase in the share price since April. The strategy aims to hedge against Japan's national debt and the devaluation of the yen. It mirrors the approach of MicroStrategy, a US company that also uses Bitcoin as a corporate reserve. Benefits for Japanese investors Japanese investors benefit from owning Metaplanet shares as they offer indirect exposure to Bitcoin's potential without having to pay high crypto taxes on unrealized gains, while also avoiding regulatory hurdles as the shares are listed on the Tokyo Stock Exchange. Metaplanet's adoption of Bitcoin reinforces Bitcoin's legitimacy as a treasury asset and demonstrates its potential as an inflation hedge and store of value.
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Bitcoin ETFs recorded $1.8 billion inflows last week.
Bitcoin exchange-traded funds (ETFs) continue to see inflows in the US Spot Bitcoin exchange-traded funds (ETFs) in the U.S. saw $1.8 billion in inflows last week, marking the 18th consecutive day of record demand. Trading volumes in these Bitcoin ETFs increased 55% week-over-week to $12.8 billion. Last week, Bitcoin ETFs acquired about 25,700 BTC, which is almost the entire amount of newly mined Bitcoin during that period, thus tightening the market. Inflows exceed total volume of May The latest inflows surpassed May's total, fueled by regulatory approvals in the UK, Australia and Thailand, as well as favorable political developments. With assets under management now exceeding $70 billion, Bitcoin ETFs are legitimizing Bitcoin as an institutional asset (financial instrument used by institutional investors). They have now attracted 5% of the total Bitcoin supply. Investors see Bitcoin as a hedge against inflation and uncertainty The increasing inflows reflect investors' view of Bitcoin as a hedge against inflation and economic uncertainty, especially as interest rate cuts take place in Canada and Europe. Bitcoin ETFs, which launched just a few months ago, have grown rapidly and could continue to attract significant institutional investment if the current momentum continues.
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