It was a massive month for Bitcoin in January as the price rose a whopping 35%!
This is the first edition of our monthly newsletter giving you the highlights of the month for Bitcoin.
11th Birthday of Bitcoin
Eleven years ago on January the third, the Genesis block was mined. This was the first-ever block in the Bitcoin Blockchain.
Money is about trust. Each year that Bitcoin survives, it proves itself, gains trust and therefore value.
The first Bitcoin Block had the following text added by Satoshi Nakomoto "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks".
The message highlighted Bitcoin's future political and economic significance.
Square Wallet Founding a Lighting Development Kit
Lighting Network is an important emerging payment network on top of Bitcoin that allows instant and cheap Bitcoin transactions.
Square Crypto founded by Twitters Jack Dorsey announced their work Lightning Developer Kit. It will make it easier for developers to build wallets and apps using lighting.
Crypto In Davos
The World Economic Forum (WEF) in Davos was held in January. “Blockchain Technology” was on the agenda.
The world leaders affirmed their view, that cash is going away.
In regards to digital currencies, There was a stated desire to allow innovation, but that digital currencies need to be regulated
The WEF announced its decision to establish a global consortium for governing digital currencies. Bitcoin price rose on that news.
The consortiums stated goals are to create a framework for innovative and transparent regulation. It is to be composed of traditional financial institutions, global government agencies and academics.
There was a lot of talk about central bank digital currencies (CBDC). The Chinese digital Yuan is due to launch this year. There are similar efforts underway in other countries. This includes the US.
Countries see potential in such currencies to bypass the US controlled financial system. Many oil exporting countries want to have the ability to use such currencies for settlement instead of the US Dollar.
Christopher Giancarlo from US of the Digital Dollar foundation said “Many other global powers are looking to assert their own currency as an important reserve currency.”, “A digital dollar allows for a more scalpel-like approach to sanctions.”
The newly formed consortium released a framework to help central banks create their own CBDCs.
U.S. Warns Iraq It Risks Losing Access to Key Bank Account if Troops Told to Leave
Iraq's central bank account is held at the Federal Reserve Bank of New York. This is where international oil sale revenue is kept.
The politicisation of the financial system is why many countries are now looking for alternatives for settling international trade.
Bitcoin is such an alternative. It is too early for it yet but it is being taken more seriously each year.
For now, nations are attempting to create their own digital currencies. These have fundamental flaws that Bitcoin does not. I.e. They are centrally controlled by governments that are not trusted to uphold the integrity of their Digital Currencies.