What’s going on in the world? A recap of the top Bitcoin news stories this past week.
1. Fed Watch
Yesterday, the US released the latest inflation figures and the ‘official’ figure is 7.5% – a new 40-year record.
The consumables that people actually want and need – meat, cars etc. are all at double-digit increases.
With this release, Goldman Sachs released an official statement forecasting the Fed to raise rates 7 times this year (rather than 5). There was even a point where the rate hikes were at a 100% probability and they also saw the likelihood of the Fed raising rates by 50bps in March alone. This stance has recently changed and they see the Fed raising rates by a continuous pattern of 25bps.
Once again, this factor is more important than any variable, TA analyst or Youtuber. This is the key short-term driver for Bitcoin’s price. In the long-term, the ponzi can only go so far.
2. Russia embraces Bitcoin: now the real geopolitical games begin
Russia’s government has agreed to their Ministry of Finance’s proposition to regulate Bitcoin and to treat it as a currency. This is only a few weeks after their central bank alluded to banning Bitcoin entirely.
Russia released an official statement on Tuesday and now they have come to realise that Bitcoin cannot be stopped – it has to be accepted in some form or manner.
It is important to note that this is not the same as El Salvador. Russia is not treating Bitcoin as legal tender – they are treating it as a currency which needs to be regulated and taxed accordingly.
However, this is a very important precedent when Russia is looking at the threat of sanctions and removal from the SWIFT network. If they were to invade Ukraine, it is quite likely they would be removed from a network that allows them to trade and settle with international partners. They have recently agreed to use Euros to settle with China – earmarking the fragility of the current Petrodollar system.
Bitcoin, however, could always be used as an instrument for international settlement. This has been a thesis of Bitcoiners since the early days. It seems that the grand chessboard is playing out right now and it is simply one of the most important geopolitical events to keep your eye on.
3. Canadian Truckers are moving to the Bitcoin Standard
You may have heard about GoFundMe’s decision to block millions of Dollars from reaching the Canadian truckers who are protesting against authoritarian measures in Canada.
This has caused a massive uproar and many people have seen the lack of freedom one has over their money in the traditional banking system.
Well, Bitcoiners have decided to show the world the true power of Bitcoin and how it is the only thing that cannot be controlled by governments and regulators.
As of Friday, 11 February, Bitcoiners have raised over 21 Bitcoin for the movement – with the largest single donation of 5 Bitcoin ($200,000).
Also, another event to note: Canada’s KPMG also added Bitcoin to its treasury.
Last week, Ricki chatted with Dr. Jonathan Witt about the Price of Truth. Dr. Witt has been extremely vocal about lockdowns since the beginning of the pandemic and received an enormous amount of pressure in the beginning but with more data over time, his initial concerns have become more rational to many. Ricki and Dr. Witt also discussed his stance on Bitcoin in the latter part of the podcast.
Ricki will continue the discussion with Nick Hudson of Panda this week. Check out the discussion here or subscribe to our channels and get notified as soon as a new pod is released!
By The Horns is a Bitcoin podcast about South Africa. You can follow our discussions via video on YouTube or via the audio version on Spotify, Google Podcasts or Apple Podcasts. If you are listening on a different podcast app, here is our RSS feed. Our episodes are also newly available on Breez and Rumble.