Hello Humble Bitcoiners!
Get ready for your daily dose of Bitcoin signal! |
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📝 Today's Rundown - Is Panama Next?: Panama assembly passes bill regulating the use of Bitcoin and cryptocurrencies as payment.
- Scaling In Layers: Bitcoin enables "natural" scaling, including layered money à la Lightning, which fulfills this only because of the base layer’s functionality.
- Latest on Mining: The trend of falling hash price will force weaker miners to unplug, find more efficient energy sources and/or sell off machines or bitcoin holdings.
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Panama Assembly Passes Bill Regulating Bitcoin, Crypto
By Namcios Panama has unanimously approved a legislation to regulate Bitcoin and cryptocurrency markets in the country, a move that takes the industry out of the current grey zone in terms of regulations.
This new regulation encompasses the trading use of cryptocurrencies, the issuance of digital value, tokenization of precious metals and other assets, payments systems and dictates other provisions according to a tweet from the country's Legislative Assembly.
Despite creating a framework for the usage of bitcoin and cryptocurrencies as payment methods in the Panamanian economy, the country is not making bitcoin a legal tender in a similar fashion to El Salvador or the Central African Republic, but the country seems to have the right incentives to do so in the future.
Panama is another dollarized country with no own national currency, just like El Salvador. Additionally, over 50% of Panama's population does not have a bank account. This move will allow people to participate in the digital economy, and even receive payments from tourist visiting the nation.
"It helps in the financial inclusion of Panamanians". - Gabriel Silva, Congressman of Panama |
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| This is an article in a series of adapted excerpts from the book “Bitcoin Is Venice” by Allen Farrington and Sacha Meyers. In this chapter, the concepts of money, banking and capitalism are brought into discussion to demonstrate that every financial system ever used by humanity has always been layered. For example, a second layer (paper) was used on top of gold for decades and it worked pretty well.
This excerpt explains how, back in the realm of economics, layered money is simply good social and institutional engineering and that if it is well thought out, planned and executed, it can improve the benefits of the main layer tremendously, just like Lightning and Bitcoin are demonstrating in El Salvador and many other places where hyperbitcoinization is taking place. |
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The Current State Of Bitcoin Mining
By Sam Rule Not only has the Bitcoin price struggled from its November all-time high with a drop of over 40%, the performance of the entire Bitcoin mining industry is in a much worse situation with an average drawdown of 64% that, if compared against Bitcoin instead of USD, is currently sitting at a 12-month low.
The author of this article shares data and insightful information about the current state of the Bitcoin mining industry and explains how the recent trend of falling hash price could force weaker miners to unplug machines, find more efficient energy sources and/or sell off those machines or bitcoin holdings in the worst case.
Ultimately, it seems it all comes down to a competition of cheaper energy prices. |
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By Brekkie von Bitcoin
Bitcoin seems to be playing chess against all assets and nation's currencies, simultaneously. If we take a look back, one of the value propositions of bitcoin besides freedom money, is its scarcity, which people attribute it as a means of protecting against inflation.
All the warnings of inflation were there — excess money printing, loose monetary and fiscal policies. Bitcoiners were talking about this and using Bitcoin as a medium to protect their own wealth. Zooming out over the las two or three years, it has been working quite well.
Just remember, this is a marathon, not a sprint — volatility will likely continue, but let's lower our time preference and focus on the longer term.
With love,
Bam |
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Today's email was brought to you with ♥ by Bam.
Keep on reading, keep on stacking. |
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