Bitcoin Block Munich, European Bitcoiners.
Welcome to the 7th edition of The Bitcoin Newsletter
As Murray Rothbard, an American representative of the Austrian School of Economics, aptly described, the task of an entrepreneur is to predict the future state of the market. In our current economic system, based on fiat money, this is almost impossible because central bank decisions, for example on interest rates, are unpredictable. This has created a reality of uncertainty in which entrepreneurs and individuals are unable to plan and are exposed to the arbitrary decisions of state actors. Especially since the beginning of the COVID-19 pandemic, laws and interest rates have been changed in an unreasonable and continuously incomprehensible way. Because of this, we face great economic uncertainty around the world.
In this edition of the newsletter I will share with you why owning bitcoin is an excellent hedge against the troubles in the fiat-based financial system and why companies need to integrate Bitcoin into their strategies for long-term success.
Best regards,
Leon
DEEP DIVE
Why companies need to integrate Bitcoin into their strategies for long-term success
As Preston Pysh magnificently described in a tweet a few weeks ago, Bitcoin’s decentralised nature ensures a robust and tamper-resistant foundation for the global economy. Unlike traditional currencies controlled by central banks and governments, Bitcoin operates on a decentralised network that is immune to political interference and manipulation. Bitcoin exists outside of the fiat based and central bank controlled financial system. That means no more waiting for what Jerome Powell, the Chair of the Federal Reserve of the United States, will announce at the next press conference.
I can hardly believe that we live in a system where we are dependent on central institutions and individuals in the state apparatus. I also find it difficult to understand why someone like Jerome Powell or Christine Lagarde, President of the European Central Bank, would think that the exercise of such power would bring any benefit to society. It reminds me of the arrogance of the French sun kings, who supposedly represented God on earth to ensure law and order. Anyway, I don’t want to complain too much. Rather, I would like to explain to what extent Bitcoin offers a solution to the problem.
The capped supply of 21 million bitcoin addresses the issue of inflation that has plagued traditional currencies. With a finite supply, Bitcoin inherently resists inflationary pressures that erode the value of other currencies (Preston Pysh, 2022).
The supply of bitcoin cannot be increased at will. Additionally, due to Bitcoin’s well-known issuance schedule, it’s much easier to plan for the long-term. Owning bitcoin is an excellent hedge against the troubles in the existing financial system as the Bitcoin Network operates outside of it. Holding bitcoin can help a company to preserve the value of capital. It also allows one to save, build capital reserves and plan for the future. With timing, it can boost a company’s balance sheet and allow for a higher multiple at exit. If that’s the companies plan.
I published an article examining why companies need to integrate Bitcoin into their strategies for long term success. It is available on EuropeanBitcoiners.com, a distributed non-profit education and community initiative focused on building a free Bitcoin education platform. READ English |German
WORTH TO KNOW
Bitcoin Block Munich
The opening of the Bitcoin Block in Munich was a full success. The physical space, located in a high-traffic shopping centre in Munich featuring global brands, is one of the first of its kind in Germany, offering an immersive Bitcoin experience for retailers, businesses, and individuals. The space is open until May 20th.
On May 4th, I had the pleasure of joining the popular Zeitsprung Bitcoin Podcast for a special live podcast “The Orange Pill for Banks and Investors” at the Block. Along with Joe Martin, who orange-pilled one of the first banks in Germany to now offer Bitcoin-related services to their customers. The show is available in German. WATCH
On May 5th I joined Daniel Wingen, who is part of “21”, a decentralised community in Germany that organises Bitcoin meet-ups, events and other activities, for a live fireside chat at the opening of the Block Munich. Together with the mall manager, who spontaneously joined us, we discussed how Bitcoin can help businesses hedge against the turmoil we are currently experiencing in the traditional banking system. WATCH (German; 30:36 – 1:18:25 )
Value for Value Panel live at Bitcoin Block München.
If you want to build a “Block” in your city, feel free to contact me.
IDEAS OF INTEREST
Michael Saylor: Bitcoin & Lightning Network Will Transform Businesses and National Cybersecurity, AI WATCH
Robert P. Murphy – Choice: Cooperation, Enterprise, and Human Action READ
If you want to support me. Feel free. You can send me some satoshi/bitcoin.
My lightning address is: law@getalby.com
My bitcoin address is: bc1qyc9q89wjzmvaw729tj3wsrsfhft53mjycrjxdk
Nostr PubKey npub1v5k43t905yz6lpr4crlgq2d99e7ahsehk27eex9mz7s3rhzvmesqum8rd9
Resources
Preston Pysh – Why Everything’s Changing
Murray N. Rothbard – Austrian Business Cycle Theory, Explained
Photo Credit: MemeingBitcoin
Disclaimer: the content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Make sure you do your own research before making any investment and be aware of your own risk tolerance. If you like to build on my thoughts, feel free, but please cite me as the source. 2023 – Leon A. Wankum.
