Humble Bitcoiners!
It's Monday, so get your coffee ready, stack some sats and sit down for your daily dose of Bitcoin signal!
Uptober is not disappointing us so far. |
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| Today's Rundown: Lifeboat: Bitcoin is the best hedge in this debt spiral. Lifting Ban: Green light for bitcoin miners to come back online. Lightning Incentives: Why are Lightning Nodes participating? Coinbase Hacked: Hackers leveraged a vulnerability stealing funds from 6,000 customers. How to avoid it? Let's do this. |
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The Macroeconomic Implications Of Evergrande For Risk Assets And Bitcoin
By Greg Foss
As Evergrande collapses, China is close to becoming a high-yield borrower. In this debt spiral, bitcoin is the best hedge for investors.
The Evergrande situation in China has been widely spoken of lately, but it is complicated for the average person to understand. What are the implications of it on the global market? In this piece, the author use it as a scenario to explain why credit markets are the most important, most informed and usually the most misunderstood of the various risk asset silos.
In the article, Greg Foss, walks us through: The current Evergrande situation in China, and what it means for global risk assets. Potential effects of contagion in domestic credit markets in China. Potential contagion in risk assets globally. Potential macroeconomic concerns. As the world undergoes a debt spiral, the author concludes that credit contagion implications for sovereign credit is increasing and that bitcoin is a lifeboat, the perfect insurance against declining fiat credit quality.
"Don’t overthink this. BTC is sovereign credit insurance (long volatility) with no counterparty risk." - Greg Foss |
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Iran Lifts Bitcoin Mining Ban, Farms Get Back Online
By Namcios
After a 4 month ban, Iran has decided to lift the restrictions instituted in May on bitcoin mining, meaning licensed farms can come back online. The government had decided to ban it during the summer with the intention of restricting energy usage due to the high toll the hot temperatures and subsequent air conditioning take on the country's power grid.
It is said that the country hosts around 4.6% of the global miners, which likely has led to an influence on the recent spike in hash rate seen over the weekend.
The incentive of bitcoin miners is to find cheap electricity, which makes Iran a great attraction to host their rigs. |
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Click the links:
1. Art and design will flourish under a bitcoin standard as time preference extension happens on a mass scale.
2. Privacy advocates and Salvadorans discuss the rollout of El Salvador’s Bitcoin law, government wallet and more.
3. Bitcoin in Autum continues to experience increasingly bullish news from various parts of the Bitcoin community.
4. Cycling On Chain: A closer look at how the on-chain footprint of bitcoin investors changed in January and how that set a floor price for the recent market downturn.
5. Upon understanding it, Bitcoin fundamentally changes the way people see the future of money.
6. Economics demands that the dollar continue its long journey to a value of zero.
7. Fiat obstructs true price signals which convey economic reality, and bitcoin fixes this. |
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Two Different Ideas Of The Lightning Network
By Shinobi With the explosive growth in the last year of the Lightning Network, and more liquidity coming into the network, there seems to be two different kinds of ideologies emerging. During the last year: The network has grown from 33,000 or so channels to more than 65,000. The bitcoin capacity grew from around 1,000 BTC to almost 3,000. Nodes have grown exponentially. In the Lightning Network, a node has to spend resources in order to provide liquidity and open channels, helping decentralize the network. Usually, the normal incentive, like miners, would be to recoup the costs and make a profit out of the service of providing liquidity. Interestingly enough, a new ideology emerged — node operators running on a nonprofit-oriented thinking. These later group's objective seems counter intuitive as they lose money to subsidize other people's Layer 2 transactions.
Time will tell how the interaction of these two groups plays out in the market place as the network continues to grow. |
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Coinbase Multi-Factor Authentication Hacked, Users Lose Funds
By Namcios Coinbase, a major U.S. based bitcoin and cryptocurrency exchange, disclosed that hackers leveraged a vulnerability in the bitcoin exchange's Multi factor authentication SMS recovery system to steal cryptocurrency from 6,000 customers.
This seems to be a repercussion of the Anti Money Laundry regulations which require abundant personal information from users, making the service providers a honey pot to either steal funds, or personal information in order to execute strategic targeted attacks.
There are ways of avoiding this attacks: Use authentication Apps or physical hardware such as YubiKeys. Do not leave funds in exchanges. Avoid signing up for exchanges, as your personal information could be at risk. |
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By BabelHodl
Bitcoin started October by giving us a big green candle. In times where the traditional financial system seems to be experiencing fear, bitcoin is a lifeboat for those seeking to preserve their wealth.
Let us see how this month behaves. Keep stacking! |
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