State of Bitcoin: Bukele up for Re-Election & Saylor Buys more Bitcoin $BTC.X
Check out the full article here.

Top stories from the week:
  • President Nayib Bukele is up for re-election: Many in the Bitcoin community revere President Nayib Bukele of El Salvador of El Salvador for making Bitcoin legal tender. Has President Bukele abused his power? Will it be a net positive if Bukele is re-elected? Previously, it has been illegal to run for multiple presidencies in El Salvador but with at least ten signatures from the Legislative Assembly of El Salvador, more than 50% of the vote, and then the legislative assembly would ratify the vote with three-quarters majority vote. Although the odds seemed stacked against him, it seems many are rallying behind Bukele. Bukele has done a lot of positives in El Salvador outside of making Bitcoin legal tender, especially when it comes to crime. This will be something to monitor for Bitcoiners as the legislation around Bitcoin Country can drastically affect the success of Bitcoin as legal tender in El Salvador.

  • Saylor and MicroStrategy buy more Bitcoin: It is not a Bitcoin dip unless Michael Saylor and MicroStrategy buy more Bitcoin. MicroStrategy announced via Twitter that the company has bought 301 more Bitcoins at a cost basis of $19,851 bringing the company total to nearly 130,000 at an average cost basis of $30,639. Earlier this year Saylor was under heat earlier this year when MicroStrategy allegedly was going to default as the Bitcoin price fell lower. MicroStrategy does not seem to be doing too terribly as they continue to purchase Bitcoin and double, triple, quadruple down on their Bitcoin bet. Bukele and Saylor are the two biggest names in the Bitcoin space and it seems like positive things are going on for the two of them.

  • Powell raises interest rates by 75 bps: The Federal Reserve raised interest rates again by 75 bps with short term rates to rise to 4.25% by year's end. Powell has said that he will not stop until inflation is back to the 2% target rate. Phil Gibson has written an article about how this move is to destroy the offshore dollar market, if you have not read that it is outstanding and you should read it here. The dollar is becoming stronger as other fiat currencies are suffering, but this is not simply a monetary recession. In my opinion it is a supply issue recession and the monetary policy is a small cog in this puzzle. Bitcoin has been floating around the same price and has dipped slightly under $20k. This might be an opportunity to get cheap sats, so let's load up while we can (not financial advice though).

  • Royal Family of Dubai partners with CoinCorner for Bitcoin transactions: One of the leaders in the Bitcoin and Lightning transaction space, CoinCorner, has partnered with Seed Group to facilitate Bitcoin transactions in the United Arab Emirates (UAE). CoinCorner is going to make Bitcoin more accessible for businesses and people in the UAE. Strike seems to be focusing on Latin America which is leaving areas such as UAE open for other companies come in for the expansion of Bitcoin. It seems like a race for development of user friendly ways to buy goods and services with Bitcoin and CoinCorner is becoming one of the global leaders in the space.

  • Russian Ministry of Finance and Central Bank agree on a draft for use of Bitcoin for international trade: Another step forward for Russia to use Bitcoin and potentially other shitcoins for international trade. This seems like a response to the attempt by the US to place sanctions on Russian oil and Russia will now use Bitcoin to get around those sanctions and transact with the BRICS countries. Russia is seemingly holding the world hostage and potentially may start another Cold War but this time it's based on energy. Russia has drastically decreased its exports of oil to non-BRICS countries and seemingly looks to continue that. Russia is strategically moving around the US and sanctions that are not able to be enforced.

  • Coinbase to implement politician’s stance on crypto in app: Brian Armstrong announced via Twitter thread (see below or link) that politicians in your region will be linked in your Coinbase app with the politicians phone number and stance on Bitcoin and crypto. This will allow users to know (based on your KYC information) how Bitcoin and crypto will be at the forefront of policy makers in the US. Generally policy makers “encourage” you to call, but make it difficult to find their numbers or are on out-dated websites. I generally hate Coinbase because of the extremely high fees and overall mission of the company to push shitcoins, but I have to give credit where credit is due. This is an overall positive as many of their users will now have more information to vote based on crypto related policies.

A quick look on chain:
Current price: $18,536
Market Cap: $355.09B
Spent Output Profit Ratio: 0.9970
Current block height: 755151
Mean block interval: 10min. 14sec.

Check out the full article here.
State of Bitcoin $BTC.X: Ethereum $ETH.X, King of Shitcoins, goes through The Merge
For the full article here.

Top stories from the week:
  • mETH Merge: The king of all shitcoins, Ethereum has gone through its long awaited merge. For those who do not know, Ethereum has gone under a transition from the Proof of Work (PoW) which is a protocol used by Bitcoin, to Proof of Stake (PoS). mETH heads are using this as a positive saying it will consume 99.9% less energy, but many are neglecting the major tradeoffs. PoS allows people to have more ETH to obtain more ETH. This has already seemed to backfire. At the time of this writing, the top 7 addresses have over 67% of all ETH making it more centralized. Over 50% of the ETH miners are on AWS and now most of ETH is in a few hands. How is this better than the current system? This PoS is exactly what it stands for, piece of shit. It centralizes everything and to make it worse, this was the top article on the World Economic Forum’s website! If that is not a sign, I’m not sure what is.

  • Canada’s PM Trudeau attacks Bitcoin: Justin Trudeau has been at the forefront of limiting Canadians free reign since the start of the pandemic. The Canadian Truckers convoy started the battle of Canada vs Bitcoin and cryptocurrencies. Canada has since limited the amount Canadians can buy and now the current PM is tweeting negatively about Bitcoin and crypto as his main opponent Pierre Poilievre is a Bitcoin advocate. As this race heats up, it will be interesting to see the mudslinging and the efforts from the Trudeau camp to bring up more FUD surrounding Bitcoin.

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Telling people they can opt out of inflation by investing in cryptocurrencies is not responsible leadership. Fighting against life-saving vaccines is not responsible leadership. Opposing the pandemic supports that saved jobs and helped families is not responsible leadership.</p>— Justin Trudeau (@justintrudeau) <a href="https://twitter.com/JustinTrudeau/status/1569489034673815552?ref_src=twsrc%5Etfw">September 13, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

  • CPI at 8.3%: The general consensus in the “fintwit” community is that inflation has peaked and is starting to come down. I take the opposite side. Seeing the energy crisis, Russia lowering the amount of oil exported by a significant amount, the US attempting to put sanctions on China to try and prevent China from invading Taiwan and many more geopolitical factors, I feel we are not close to the peak. Some alarming numbers from the CPI print released Tuesday the 13th include fuel (oil) up 68.8%, energy up 19.8%, new vehicles up 10.1%, and food up 11.4%. I hope that I am wrong and we have seen the peak of inflation, but this is NOT strictly a monetary issue. This is a global supply chain and energy issue. As Bitcoiners we love to say “Bitcoin fixes this”, but in the end this is due to poor policy, something that Bitcoin cannot fix in the short term.

  • White House suggests Bitcoin Mining Standards to battle Climate Change: The Biden administration released a report known as the “Climate and Energy Implications of Crypto-assets in the United States.” This report claims that the US will attempt to tackle climate change due to the “environmental impact” of Proof-of-Work mining mechanisms, aka Bitcoin and now allegedly Ethereum after “the merge”. The Biden admin is fighting Bitcoin mining because of the carbon footprint of digital assets and the quantity of power utilized. There obviously has to be a cost-benefit analysis that seemingly no one in the White House attempted to do. If Bitcoin becomes the global reserve currency, medium of exchange, or even just the ability to replace banks with the ability to transact over the Lightning Network, the amount of power used is less than dryers and Christmas lights in the US. Sure Christmas lights are nice during the season, but saving people money over the long run seems like a viable solution to me.

  • Bitcoin Hashrate at ATH: Price remains mostly flat, but the Bitcoin mining hashrate is still increasing putting strain on Bitcoin miners trying to earn a profit. Bitcoin mining is a tough business and relies on getting cheap energy costs, but on the flip side is a necessity for the network to keep performing. Bitcoin mining was a $15 BILLION with a B, dollar industry in 2021 and when there is this much money behind an industry someone will find a way to make it profitable. Miners may have to sell more of their Bitcoin reserves and some mining companies may fail during this bear market. In the end, I believe mining companies will be better positioned for the next bear market following a bull run and the reserves will be in place to weather storms like this.

  • Nigeria to create economic zone for Bitcoin and Crypto: Nigeria is looking to create the first economic free zone for Bitcoin and crypto in West Africa through the Nigeria Export Processing Zones Authority (NEPZA) who is working alongside Binance. The press release is calling the zone Talent City and is modeled after the Dubai Virtual Free Zone. Now Nigeria wants to become a Bitcoin hotspot for talent and encourage companies in the space to emerge and move to Africa. Africa and LatAm seem to be leading the charge in the Bitcoin and crypto space and I hope to see this continue. Making Africa more of a Bitcoin hub will hopefully bring more prosperity to a continent that has suffered for quite some time.

A quick look on chain:
Current price: $20,253
Market Cap: $387.8B
Spent Output Profit Ratio: 0.9948
Current block height: 754129
Mean block interval: 11min. 26sec.

For the full article here.
I'm not in crypto but you sound very worked up / defensive about the ETH merge. I appreciate the commentary about centralization— that is good info. But you kind of undermine yourself by saying:

"This PoS is exactly what it stands for, piece of shit."

If you were confident that your system is better... why would you feel the need to devolve into name-calling?

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Performance 9/17/22 and week
Down -1.77% for the day
Down -7.77% for the week

I’ve basically been making the same round trip between $40k to $50k for most of the year, and using that opportunity to lower my cost into each holding.

No sells this week, just bought more $ADBE

In my crypto portfolio I’ve kept my weekly DCA purchases of $BTC.X and $ETH.X .

Also out of boredom, I’ve been looking into creating a new portfolio focused on income via covered call etfs like $JEPI , where you could build up a six figure position and generate like $1k a month, and reinvest that in tech stocks and crypto, or take advantage of dividend snowball effect and eventually transition it to an dividend etf like $SCHD , because I’m not that interested in picking non tech stocks, and $SCHD has seemed to outperformed most dividend portfolio and even the general market.

However, I’m not going distract my self by chasing other strategies just cause the market is down, instead I’m going keep buying a concentrated portfolio of tech stocks, while they are under/fairly. valued, and when they become overalled , I’ll maybe start building that new portfolio of like (70% $JEPI 30% $SCHD ).

Having a growth tech portfolio that is actively managed, and then having a passive high income & divided growth etfs portfolio, seems like a better balance than just buying the market index funds like $VOO and $QQQ.
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State of Bitcoin: Russia to use Bitcoin for Trade & Saylor Sued $BTC.X
For the full article check it out here.

Top stories from the week:
  • Bank of Russia approves use of Bitcoin (& shitcoins) for international trade: Last week Iran approved the use of Bitcoin for international trade, and now Russia in the midst of a conflict with Ukraine and essentially holding Europe by the balls as multiple countries are nearing an energy crisis. The Bank of Russia will now allow for the use of Bitcoin and shitcoins for cross-border payments BUT is still opposed to legalizing crypto payments within the country. This is a very big detail to this story in my opinion because it not only undermines the US Dollar by allowing the use of Bitcoin for international trade, but it also keeps the Russian population under control of the Russian government and the Bank of Russia.

  • Human Rights Foundation donates $325k for Bitcoin Core Devs: According to a press release from Bitcoin Magazine, The Human Rights Foundation is donating $325k of Bitcoin to Bitcoin developers. BTCPay Server is receiving the largest donation of $100k in collaboration with Strike’s affiliated non-profit. Alex Gladstein the Chief Strategy Officer at the HRF is one of the more notable Bitcoiners in the space because of his global influence. The HRF sees the potential of Bitcoin to help the people in need by bringing sound money. The fiat money world brings plenty of winners and losers, with the winners gaining a bigger lead every time there is inflation.

  • Michael Saylor being sued by Washington DC Attorney General: The District of Columbia is suing Michael Saylor, the founder of MicroStrategy and executive chairman, for alleged tax evasion for the past 10 years he has lived in DC. Saylor claims he lives in Miami Beach and has not lived in the DC area for more than half the year in each of these years. This seems like somewhat of a backdoor attack on Bitcoin as Saylor and MicroStrategy are two of the biggest names in the space. I also find it very interesting that the Attorney General announced this suit via a Twitter thread and made this very public. It seems that many people in the fitwit and outside of Bitcoin want to take Saylor down, so this just adds fuel to the fire. Many always try to take down billionaires as few understand how people can amass that amount of tremendous wealth, but this seems like a grasp at straws and trying to get Saylor to pay taxes when he really does not owe them. It seems like this is all a game, but I am sure many outside the Bitcoin space and in the space will be following this case closely. As I wrote about this last week, I’m speaking about it in this week's podcast so I wanted to rehash this story as I feel there is going to be some developments over the coming months regarding this story.

  • Bitcoin Beach receives $203 million for infrastructure: Bitcoin Beach, or El Zonte in El Salvador, has received a $203 million investment from the El Salvadoran government. President Nayib Bukele released a statement where he said “we are going to fix an area of 15,000 square meters, where there will be a shopping center, parking, beach club, treatment plant, to revitalize the area.” This is another positive move for El Salvador as Bitcoin adoption has brought a ton of new tourist dollars to the country. El Salvador and President Bukele continue to dive into Bitcoin and the adoption. I am bullish on El Salvador as it has positioned itself for the future unlike any country. I’ll look for more developments of El Salvador’s infrastructure in the near future.

  • El Salvador adopted Bitcoin as legal tender 1 year ago: Wow, I can’t believe a year has already passed since the implementation of Bitcoin as legal tender in El Salvador. This does not mean that everything has smooth sailing. Bitcoin’s value has dropped 60% since implementation, the Chivo wallet issued by the government has had major issues, but the positives seem to heavily outweigh the negatives. Tourism increased by 82% in the first half of 2022 and there has been approximately $50 million sent over in remittance payments through Bitcoin and the Lightning Network. Although there has been a lot of “paper” losses, El Salvador has yet to sell their Bitcoin. Repairing a damaged country will take a lot of time and there are other issues outside of the monetary policy, but it seems like there are more positives coming out of El Salvador.

  • 200 Businesses in Guatemala Accept Bitcoin: Another Latin American country is moving towards adoption of Bitcoin as legal tender. Guatemala has over 200 businesses that accept Bitcoin as a medium of exchange. Guatemala is another country with a lot of potential and now has Bitcoin Lake which is similar to Bitcoin Beach in El Salvador. Latin America has little to lose and a lot to gain when it comes changing the monetary policy to Bitcoin. Hopefully Guatemala will see the positives coming from El Salvador and continue to move towards full adoption.

A quick look on chain:
Current price: $19,290
Market Cap: $369.2B
Spent Output Profit Ratio: 0.9974
Current block height: 753098
Mean block interval: 9min. 51sec.

For the full article check it out here.
Interesting chart from Kaiko, showing the $BTC.X performance against USD since the start of the pandemic.

The USD Index (DXY), pushed above the 105 mark recently and is up over 12% YTD. Despite the prospect of a front-loaded ECB tightening, the Euro fell below $0.99 after Russia cut off key gas supplies through the Nord Stream pipeline, escalating Europe's energy
crisis. Over the past 2 years BTC's correlation with the DXY has been mostly negative and further strengthening of the DXY is likely to put some downward pressure on crypto markets and non-yield bearing assets.
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My August Returns Are In!... And The Good Trend Continues
Retirement Portfolio
In August, I opened two new positions in $NET and $PCOR. I added to three times to $MKL , $TYL, $MCD, and $WM as part of my 401k DCA and added to no other positions. Another relatively quiet month. I also added to $JPM, $AAPL, $SBNY, $COST, $O, and $SBUX via DRIP. I exited $MTCH and sold 32% of my shares in $BMBL.

My retirement portfolio was down 2.54% in August but that was less than my benchmark SPY portfolio (down 4.41%) and benchmark QQQ portfolio (4.51%). I'm now down 37.40% YTD compared to my SPY benchmark at 16.52% and QQQ benchmark at 21.72%.

My best performing retirement positions YTD:
  • $SWAV is up 96% YTD
  • $EGIO is up 17% YTD
  • $WM is up 14% since I started buying a couple months ago

My best performing retirement positions in August:

My top 10 positions now make up ~35% of my portfolio. The top 6 remain in the same order of $MELI, $AAPL, $AMZN, $F, $GOOGL, and $SHOP. $SWAV jumped up from 9th to 7th after a great month with great earnings with $NVEE, $SIVB, and $COST rounding out the top 10.

Looking forward to September, I'm contemplating exiting my $SQ position. I'm turned off by Jack's comments and his insistence on $BTC.X being the be all and end all. I don't mind the crypto exposure but the Bitcoin only hardline is narrow-minded in my opinion. If you made me czar, I'd actually just have Square exit their crypto entirely and focus on what they're good at.

I'm also considering exiting $MMM in my 401k and replacing it with one of $ABBV, $BEP, $DEA, $HSY, $MKC, $MTN, $TGT, $TROX, $UNP, or $UPS but I need to research them first before deciding.

Taxable Portfolio
In August, I only added to $DT. No positions in this brokerage pay a dividend so there was no DRIP and I did not exit any positions.

My taxable portfolio had a second great bounce back month, up 9.56% after being up 13/67% in July. My benchmark SPY portfolio was down 3.64% and my benchmark QQQ portfolio was down 4.18%. I'm now down 30.15% YTD compared to my SPY benchmark at 14.84% and QQQ benchmark at 21.43%.

My best performing taxable positions YTD:
  • $TMDX is up 172% YTD for me. Wowsers.

  • $MSP with a 39.49% return YTD - RIP as is had such a great return because it was acquired.

  • That's it. None of my other 14 positions are positive. Whomp whomp.

My best performing taxable positions in August:

My top 10 positions continue to make up ~90% of my portfolio as I only have 14 positions in this brokerage. The top 10 remains basically the same with $SNOW, $TMDX, $ATZAF, $SILK, $DT, $LMND, $NCNO, $CPNG, $OM, and $BIGC.

Looking forward to September, I already added to $ATZAF as my monthly add. I don't expect to make any other moves but we shall see.
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State of Bitcoin: Countries Attempting to Regulate Bitcoin $BTC.X
For the full article check it out here

Top stories from the week:
  • Iran approves regulation for use of Bitcoin and shitcoins for international trade: Iran has enacted a law that allows for the use of Bitcoin and other cryptocurrencies for international trade. This is HUGE for Bitcoin and the overall adoption and the potential movement away from the US Dollar as the global reserve currency. This is only a step because the law just makes it possible, now a trade actually has to be done using Bitcoin. Bitcoin and Iran have had an interesting relationship, with Iran banning Bitcoin mining due to worries about overloading the grid and the Iranian Central Bank made it illegal to trade cryptocurrencies mined outside of Iran. Iran has now seen the writing on the wall for the USD and now seems to be leading the cause for using Bitcoin for international trade. This will be something to look out for in the near future.
  • Singapore planning legislation to decrease purchases of Bitcoin and crypto: As one country embraces Bitcoin, another regulates against the adoption. Singapore is considering making a legislation to regulate the amount of Bitcoin and cryptocurrencies can be purchased. The reasoning is that “cryptocurrencies [are seen] as unsuitable for use as money and as highly hazardous for retail investors” according to the central banker chief. Ravi Menon, the managing director of the Monetary Authority of Singapore (MAS) (Singapore’s central bank) said that there is more anticipated friction for retail investors to get into cryptocurrencies. Central banks and more politicians will try to regulate Bitcoin and other shitcoins as the popularity grows and control is taken away. Countries that continue to push away from Bitcoin and other shitcoins will give the people of their country more incentive to find a more friendly place to live.
  • NYDIG announces Lightning Accelerator Project: The CEO of Stone Ridge Holdings Group and executive director of New York Digital Investments Group (NYDIG) Ross Stevens announced that NYDIG will begin a Lightning Accelerator Project for companies within the Bitcoin and Lightning space. The program will be called Wolf, in reference to a wolf in sheep’s clothing. The accelerator will target companies in the pre-seed, seed, and series A stage as well as individual founders, small teams, and developers working on Lightning, Taro, and covenants. The program will take place for eight weeks in New York City with 8 to 12 teams per cohort. This is HUGE as NYDIG was valued at $7 billion over the last funding round and they are now moving the needle to give those Bitcoin and Lightning companies that extra push to get going.
  • Bitcoin Depot is going public on Nasdaq: The largest supplier of Bitcoin ATMs, Bitcoin Depot, is going public on the NASDAQ via special-purpose acquisition company (SPAC). Bitcoin Depot currently has about 7,000 ATMs around the US which have given the company around $6 million in net income over the past 12 months. About 40% of the US has access to Bitcoin ATMs and with this merger will look to make Bitcoin ATMs accessible to everyone around the country. I am not huge on Bitcoin companies going public because it almost defeats the purpose of users' privacy, but it does give an influx of cash for growth. Bitcoin companies continue to grow and even in a bear market which is extremely bullish for the space going forward. This move is going to be made in Q1 of 2023 so be on the lookout for how this trades early on.
  • Michael Saylor being sued by Washington DC Attorney General: The District of Columbia is suing Michael Saylor, the founder of MicroStrategy and executive chairman, for alleged tax evasion for the past 10 years he has lived in DC. Saylor claims he lives in Miami Beach and has not lived in the DC area for more than half the year in each of these years. This seems like somewhat of a backdoor attack on Bitcoin as Saylor and MicroStrategy are two of the biggest names in the space. I also find it very interesting that the Attorney General announced this suit via a Twitter thread and made this very public. It seems that many people in the fitwit and outside of Bitcoin want to take Saylor down, so this just adds fuel to the fire. Many always try to take down billionaires as few understand how people can amass that amount of tremendous wealth, but this seems like a grasp at straws and trying to get Saylor to pay taxes when he really does not owe them. It seems like this is all a game, but I am sure many outside the Bitcoin space and in the space will be following this case closely.
  • El Salvador Volcano Bitcoin backed bonds hit another delay: The law to enact the Bitcoin-backed bonds, dubbed the “Volcano Bonds” by the Bitcoin community, has yet to be approved and needs “two to three months” of further work following the approval. Initially the bonds were delayed due to worsening market conditions in March, now some analysts are claiming that this is a sign of weak interest. El Salvadoran officials have expressed confidence that the bond would be oversubscribed. I never expected the transition to Bitcoin as legal tender to be a smooth transition and El Salvador’s economy will not be fixed overnight and some bumps in the road should be expected. I’m hoping that there are less bumps in the road going forward, but there is a lot of issues to fix.
  • Eurozone Inflation hits 9.1%: As CPI is getting a lot of publicity in the United States, the Eurozone inflation rate print is even higher. Eurozone inflation for the month of August hit a record high of 9.1%, with a big part due to rising energy prices. Some of the staggering stats are energy inflation rising 38.3% and food jumped 10.6%. If you think things are bad in the United States, Europe seems to be a lot worse. We’ve seen the Euro get under $1 and the overall strength of the European economy is in the dumps. Hopefully there will be a path out of this, but the near future seems grim for Europe.

A quick look on chain:
Current price: $20,044
Market Cap: $383.6B
Spent Output Profit Ratio: 0.9980
Current block height: 752075
Mean block interval: 9min. 46sec.

For the full article check it out here
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