Month: March 2024

“Let him cook” has been the expression that all of the young whippersnappers are using lately when describing somebody or something that shouldn’t be interrupted, because they are on a roll.

I know this piece will come across as annoying to some, especially because I have only been bullish on bitcoin with some gusto for the last couple of months (though I first pointed it out to my readers in December 2022), but as a newfound member of the church of bitcoin community, I’d be remiss if I didn’t try out my voice a bit.

I apologize in advance for opining on things that many members of planet bitcoin have talked about and debated ad nauseam for the last decade. But, one way or another, I have to get myself up to speed, and I do that best cathartically through writing. As a result, you, the reader, are left here to suffer. So, you know, don’t forget to renew your paid subscriptions to Fringe Finance.

Enough with the prelude — we all know it has been a breathtaking week for bitcoin, which is up well over 20% in just the span of days.

“Oh my fuck.” – Bubbles, Trailer Park Boys

The moves have done well to spin up even more interest in the cryptocurrency than there was over the last month with the launch of the ETFs. Hell, even Morgan Stanley came out this week and said they were thinking of throwing their hat into the ring and launching a bitcoin fund of their own.

I’ve gotten a number of phone calls and texts about bitcoin, and I’m not even a prominent member of the community, nor am I a well-known bull. And so I can’t even imagine the outreach that maximalists and longtime advocates have seen this week.

Undoubtedly, it is exciting, and I can’t even imagine how long people have been waiting to savor this moment, after years of abuse from family members and uninformed assholes like myself, as well as general doubt about the asset class. But, if there is one small lesson I have learned from decades in the capital markets that I think translates across asset classes, it is to celebrate modestly and prepare for the worst.

That may seem like the furthest thing from people’s minds this week, but for me, it has always been the best way to savor success. Many people who listened to the podcast that I did a couple of weeks ago with Peter McCormack know that it was arrogance and hubris that turned me off from bitcoin to begin with. Perhaps that is my fault for not having an open enough mind and not doing enough of my own work – it’s a mistake that saw me miss out on large gains. But today I’m speaking as one of the people who can visualize bitcoin as a long-term success and are genuinely excited about onboarding the rest of the world.

My Twitter feed over the last week has been replete with people triumphantly celebrating, bragging, and taking shots at those who doubted that the price would ever go back up again. Here’s one example from my brother James Lavish, who I know well enough to know he won’t mind me using him as an example because he knows I respect the shit out of him. Behold Exhibit A: James talking shit to Vanguard.

Does James have a point? Yes, he does. Could be wind up being right 50 years from now also? Yes, he could. But is it karmically sound to taunt the $7.7 trillion bear? To me, not really. I’d rather just savor the satisfaction of the temporary dub quietly.

Everybody is well within their rights to celebrate this short-term action anyway they would like, but what I’m suggesting today is that karmically and psychologically, the less you force the issue and the more humility you show, the more evenly and consistently bitcoin will thread itself through the rest of the world.

Think of this: celebrating making an exorbitant amount of money or rage-tweeting about your success is going to do two things: (1)it’s going to turn off people like myself who think that behavior is generally synonymous with fraud and (2) it’s going to excite investors with lower-than-average sophistication who will look for quick riches and won’t be the steady hands bitcoin needs to become a perpetual success.

Rather, what I’m suggesting is to allow the news media to do what they do (generally be useless and chase stories long after they’ve happened) and allow people to come to the realization about bitcoin the same way that I did: on my own, once I felt as though I wasn’t being suffocated with the idea by outside sources anymore.

My interest in looking at bitcoin this go-round in early 2024 was completely organic: the news coverage of it had died down, and I had blocked or unfollowed enough people who were hyping it that I could have some clarity and some peace of mind about it when I sat down to consider how it worked, seriously, for the first time ever. It was that calm, relaxed, blank slate that allowed me to grasp the relatively complex concepts of how it worked and believe in it the way that I do now.

I think given the astronomical week that we just had, we’d be better off to “act like we’ve been here before” and to remember that sometimes the more you push an idea, the more people are prone to resistance than barking like hyenas and taunting people. If bitcoin had a $50 trillion market cap, that’d be a different story. But we’re still in the early stages of this courtship with the rest of the world and, like any good relationship or friendship in your life, there has to be a genuine organic interest in “showing up” to the idea of it happening. All of those who have been smothered by a partner or a friend in the past know that all it does is create distortions and unhealthy dynamics. Such delicate things cannot be forced, but rather, accepted willfully like a slow, purposeful deep breath outside on a winter day.

This is not to say that I don’t believe this week is the beginning of much larger adoption that would likely drive the price of bitcoin higher. As I said on the “What Bitcoin Did” podcast, I believe that there is at least one, if not several, nation-states looking at putting bitcoin on their sovereign balance sheets, and that this will kick off a period of game theory for the digital asset revolution the likes of which we haven’t seen yet. Just days after I said that, yesterday Edward Snowden came out and postulated the same.

Try to keep up with me, Eddie.

But in all seriousness, we know what will happen if the price continues to rise. The hype will continue to flywheel further, as will interest and adoption. People will have the same realization that it took me a decade to figure out: this thing simply isn’t going anywhere anytime soon. But if you ask me, especially given the fact that we all know how quickly price moves can whipsaw back to the downside in the short term, I think the community would be well served to focus less on spiking the football here and more on how we will be able to clearly explain and convey the transformation that is unfolding before our eyes in a calm, measured, and comprehensive way.

After all, whose questions do you want to deal with on the next 20% overnight whipsaw lower: unsophisticated maniacs or measured investors who already know and expect the volatility that is a certainty.

And the more time we spend setting reasonable expectations that bitcoin can easily exceed, instead of overpromising and underdelivering, the less time we have to brag about being right. The journey is the reward. Or, as the bible says:

“When pride comes, then comes disgrace, but with humility comes wisdom.”

— Proverbs 11:2

But I think if Jesus were around today, he would simply tell us to “let bitcoin cook”.

QTR’s Disclaimer: I am an idiot and often get things wrong and lose money. I may own or transact in any names mentioned in this piece at any time without warning. I didn’t double check any numbers or figures in this piece and am generally lazy with my research. Contributor posts and aggregated posts have not been fact checked and are the opinions of their authors. Contributor posts and curated content are posted either with the author’s permission or under a Creative Commons license. This is not a recommendation or solicitation to buy or sell any stocks or securities, just my opinions. I often lose money on positions I trade/invest in. Sometimes I just lose money by misplacing it. I’m generally irresponsible. I may add any name mentioned in this article and sell any name mentioned in this piece at any time, without further warning. These positions can change immediately as soon as I publish this, with or without notice. You are on your own. Do not make decisions based on my blog. Do your research elsewhere. I exist on the fringe. The publisher does not guarantee the accuracy or completeness of the information provided in this page. These are not the opinions of any of my employers, partners, or associates. I did my best to be honest about my disclosures but can’t guarantee I am right; I write these posts after a couple beers sometimes. Also, I just straight up get shit wrong a lot. I mention it numerous times because it’s that important that you.

This piece was originally published on Quoth the Raven’s Substack here.

This is a guest post by Quoth the Raven. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

In a momentous surge, Bitcoin has officially smashed through its previous all-time high, surpassing the $69,000 mark. This milestone comes as Bitcoin continues its remarkable ascent after spot Bitcoin Exchange Traded Funds (ETFs) were approved by the U.S. Securities and Exchange Commission, leading to a consistent large influx of capital into BTC.

OFFICIAL: #BITCOIN REACHED A NEW ALL TIME HIGH ABOVE $69,000 pic.twitter.com/DccMr0Gnc5

— Bitcoin Magazine (@BitcoinMagazine) March 5, 2024

The Bitcoin market witnessed a flurry of activity as BTC surged to its new peak as BlackRock’s spot Bitcoin ETF did over $1 billion in trading volume for the sixth consecutive day yesterday. Bitcoin’s previous all time high of $69,010 happened almost three years ago on November 10, 2021, 846 days ago. 

For the month of February, Bitcoin had the biggest green monthly candle in its history, rising almost $20,000 that month alone. To put into context how bullish that month was price wise, the bear market bottom for bitcoin was ~$16,000, meaning bitcoin pumped almost $4,000 more than that alone in February.

JUST IN: #Bitcoin had its biggest monthly green candle EVER in February 🤯🚀 pic.twitter.com/BsaCIXGTJx

— Bitcoin Magazine (@BitcoinMagazine) March 1, 2024

Bitcoin’s meteoric rise has been fueled by a variety of factors, including increasing institutional adoption, growing interest from retail investors, and broader acceptance by traditional financial institutions. Additionally, ongoing geopolitical tensions and inflationary concerns have propelled demand for Bitcoin as a hedge against economic uncertainty.

US spot Bitcoin ETFs had their second biggest day in terms of trading volume yesterday, according to Bloomberg analyst Eric Balchunas. BlackRock’s ETF was responsible for $2.4 billion of the $5.5 billion traded yesterday. Last week, spot Bitcoin ETFs bought over 30,029 BTC, while miners only mined 6,160 new BTC. This massive demand and very limited supply of bitcoin being created every day has been the main driver causing bitcoin’s price to increase dramatically.

Here’s the weekly summary (Feb. 24 – March 1, h/t @HODL15Capital).

Keep it simple: There is more demand than new supply. pic.twitter.com/ighWC0hOOi

— Matt Hougan (@Matt_Hougan) March 2, 2024

MicroStrategy Incorporated (Nasdaq: MSTR) has announced its plans to offer $600 million aggregate principal amount of convertible senior notes due 2030 in a private offering to qualified institutional buyers. The offering is subject to market conditions and other factors, with the potential to increase by an additional $90 million.

JUST IN: MicroStrategy to raise $600 million to buy more #Bitcoin pic.twitter.com/oCKnn8KDpy

— Bitcoin Magazine (@BitcoinMagazine) March 4, 2024

These unsecured, senior obligations of MicroStrategy will bear interest payable semi-annually and mature on March 15, 2030. The company intends to grant initial purchasers an option to purchase additional notes within a 13-day period.

MicroStrategy plans to use the net proceeds from the offering to “acquire additional bitcoin and for general corporate purposes.” The offering will be made to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933.

As the self described “world’s first Bitcoin development company”, MicroStrategy is dedicated to supporting the growth and development of the Bitcoin network. The company uses its cashflows and proceeds from equity and debt financings to accumulate bitcoin, which serves as its primary treasury reserve asset.

The offering will help bolster MicroStrategy’s position in the Bitcoin market and further its mission of advancing Bitcoin adoption and innovation. However, the offering is subject to uncertainties related to market conditions and completion terms, as outlined in MicroStrategy’s recent filings with the Securities and Exchange Commission.

MicroStrategy’s stock has outperformed Bitcoin year to date in 2024, rising 94.70% at the time of writing, compared to a 58.22% rise for BTC.

Bitdeer, a leading technology firm specializing in Bitcoin mining and high-performance computing, has unveiled the SEAL01, a new mining chip built on a 4-nanometer process technology. The SEAL01 chip boasts a power efficiency ratio of 18.1 J/TH, aiming to set a new standard for energy-efficient Bitcoin mining.

Bitdeer has Tested Its 4nm Bitcoin Mining Chip SEAL01

Bitdeer has successfully designed a Bitcoin mining chip, the SEAL01. As a world-leading technology company for blockchain and high-performance computing, Bitdeer (NASDAQ: BTDR) today introduced its first cryptocurrency mining…

— Bitdeer (@BitdeerOfficial) March 4, 2024

“With the successful testing of our new mining chip, I am very excited to formally announce the introduction of both the SEAL01 chip and the SEALMINER A1 as core to our new mining machines business,” said Jihan Wu, Founder, Chairman, and Chief Executive Officer of Bitdeer. “These products showcase our technology excellence and position us well for the future.”

Designed to enhance Bitcoin mining performance while minimizing power consumption, the SEAL01 chip intends to to lower operating costs for miners. Bitdeer plans to integrate this latest chip into its upcoming mining rig, the SEALMINER A1.

Recognizing the evolving challenges faced by Bitcoin miners, Bitdeer said it has invested heavily in research and development to create a solution that offers efficiency, stability, scalability, and sustainability. The company’s international team of engineers specializes in chip design, firmware, and hardware engineering, aiming to push the boundaries of performance to support the mining community.

With preparations underway for the mass production of these mining rigs, Bitdeer says they remains committed to its mission of providing a world-leading, comprehensive Bitcoin mining solution globally and supporting the security and advancement of the Bitcoin network.

At Bitcoin Atlantis, non-profit organization Generation Bitcoin announced the launch of the Bitcoin Students Network (BSN), an initiative aimed at empowering students to learn about and contribute to the Bitcoin space. BSN, presented by Generation Bitcoin, operates as a one-stop platform providing logistical, educational, and financial resources to students interested in Bitcoin.

BSN’s primary goal is to connect students globally, fostering collaboration and knowledge exchange among young individuals passionate about Bitcoin. The network facilitates the creation and scaling of student clubs dedicated to Bitcoin, offering support and financial assistance to affiliated clubs.

“The word ‘network’ is mentioned 21 times in the bitcoin whitepaper,” said Ella Hough, Co-founder and Project Lead at Generation Bitcoin. “Satoshi was too purposeful for this amount to be a coincidence. We founded the Bitcoin Students Network to empower students with knowledge and networking opportunities and encourage them to join the conversation that needs them in it. BSN aims to remove barriers to creating student Bitcoiner communities and strengthen Bitcoin’s Layer 0, the social/human layer.” 

BSN aims to act as a bridge between students and the broader Bitcoin industry, facilitating communication and collaboration between educational institutions and industry players. By providing access to resources, job opportunities, and mentorship, BSN aims to strengthen the social fabric of Bitcoin’s human layer, known as Layer 0.

The network operates on core values such as freedom through knowledge, open-source principles, proof of work, and first principles thinking. These values underpin BSN’s distributed yet organized structure, with a founding team, industry board of advisors, and student board of advisors guiding its operations.

For students, BSN offers a plethora of opportunities, including starting or growing university Bitcoin clubs, accessing educational and job opportunities, and connecting with like-minded individuals in the Bitcoin community.

“A key part of my journey has been educating the next generation about Bitcoin,” stated Generation Bitcoin Growth Lead and Co-founder Arsh Molu. “The Bitcoin Students Network aims to provide support for university clubs as well as equip students with resources, knowledge, and job opportunities worldwide.”

Industry players are also encouraged to participate by organizing events, providing financial support, donating resources, offering mentorship, and sharing internship and job opportunities.