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Strike Brings The Lightning Network To Every US Merchant. The Market Yawns

The Strike announcement was an atomic bomb, but the market is not impressed. Since Jack Mallers wasn’t there to reveal an Apple deal as rumored, the general public was somewhat disappointed. However, the Strike CEO announced something much bigger. The company partnered with Blackhawk and NCR to bring Lightning Network transactions to Point Of Sale terminals all over the United States. Plus, with Shopify for the e-commerce equivalent. 

The man was playing third-dimensional chess with us. Mallers titled the presentation “The King’s Gambit,” an alternative to the “pawn to e4” chess opening he usually mentions. Here’s the video:

Inside Strike ‘s Announcement

The presentation started with a brief history of payment networks, starting in 1949 with the invention of the Diner’s Club card. The first revelation comes next: payment networks have not evolved or innovated in 50 years. The legacy financial system is still using this ancient technology like there’s no tomorrow. 

These merchants are adopting Bitcoin for payment this year. (Jack Ballers – Strike). pic.twitter.com/FF57vYF7BH

— Big Sky HODL ⚡ CO Beef Initiative (@BigSky_HODL) April 7, 2022

As usual, Strike’s Jack Mallers proposes to the world that it should join an “open payment standard.” That it should use a “superior payment network.“ And with these partnerships, he finally accomplishes it. Strike will use the bitcoin network as payment rails to enable Lightning Network transactions in a high percentage of merchants in the US. According to Mallers, bitcoin will finally be “embedded into our lives.”

Another interesting part of the story is Senator Cynthia Lummis’ support. According to a letter she sent to Mallers, she says “I am working to bring smart legislation to the digital assets space, so that innovations like this can be integrated into America’s financial services industry.“ That’s reassuring. Because chances are legacy players will fight this. 

thank you @jackmallers. you're an incredible inspiration.

— jack⚡ (@jack) April 7, 2022

The senator will speak tomorrow, on Bitcoin 2022’s final day of conference. 

BTC price chart for 04/08/2022 on Oanda | Source: BTC/USD on TradingView.com
How Did The News Affect The Market?

The general public was expecting Strike to announce an Apple partnership that would’ve made bitcoin’s price pump to infinity. It didn’t get it. So, bitcoin traded around the $43K range the whole day and acted unaffected in front of Jack Mallers’ news. It seems like the market didn’t even flinch. 

What @jackmallers just announced is going to kick off the #Bitcoin circular economy in a massive way.

I think few understand that the inability to easily use BTC is what makes it difficult to accept as a daily driver.

Medium of exchange is here. Next stop, Unit of Account.

— Guy Swann ⚡ (@TheGuySwann) April 7, 2022

More nuanced than an Apple partnership, it will take months, maybe years to see the new’s impact. On the one hand, people aren’t incentivized to spend their bitcoin. As long as its price is increasing, people will want to hold the asset. On the other, this provides a non-KYC way to spend your bitcoin. A non-KYC way of paying. The Strike announcement makes bitcoin a competing Medium of Exchange and puts it into every store in the US.

Is that fact priced in? 

What Does The Twitterati Think About Strike ‘s News? 

The Guy Swann sums up the announcement by declaring it’ll “kick off the Bitcoin circular economy in a massive way. I think few understand that the inability to easily use BTC is what makes it difficult to accept as a daily driver.” For his part, podcaster Anthony Pompliano said, “Hundreds of millions of people can now spend bitcoin or dollars across the Lightning Network instantaneously, completely for free at every major US retailer.”

Strike CEO @jackmallers and Strike just announced partnerships with Shopify and other leading payment providers.

Hundreds of millions of people can now spend bitcoin or dollars across the Lightning Network instantaneously, completely for free at every major US retailer.

— Pomp 🌪 (@APompliano) April 7, 2022

In a phenomenal thread, Economist Lyn Alden explains the implications. “The more places that accepted BTC at point of sale (on-chain or Lightning or otherwise), the more permissionless the whole network is. This is because, if all you can do with BTC is convert it back into fiat on a major exchange, then it’s easy to isolate it, effectively blacklist addresses, etc.”

This is because, if all you can do with BTC is convert it back into fiat on a major exchange, then it's easy to isolate it, effectively blacklist addresses, etc.

But if you can directly spend it on goods and services across companies and jurisdictions, it's harder to isolate.

— Lyn Alden (@LynAldenContact) April 7, 2022

On the other hand, notorious YouTuber Bitboy Crypto misses the point completely and says. “Michael Saylor: Never Sell your Bitcoin (crowd goes WILD) Jack Mallers: Here’s a great way to spend your Bitcoin (Crowd goes WILD) Like does no one see the disconnect here?” 

Michael Saylor: Never Sell your Bitcoin (crowd goes WILD)

Jack Mallers: Here’s a great way to spend your Bitcoin (Crowd goes WILD)

Like does no one see the disconnect here?

— Ben Armstrong (@Bitboy_Crypto) April 7, 2022

Matt Ahlborg, head of research at Bitrefil, gives Bitboy the 411. “What Jack Mallers is really saying is that you will be soon be able to offload your Bitcoins in the real world without KYC’ing through an exchange first.” While Jack Dorsey keeps it short and sweet by saying, “thank you Jack Mallers. you’re an incredible inspiration.”

What Jack Mallers is really saying is that you will be soon be able to offload your Bitcoins in the real world without KYC'ing through an exchange first.

If this is true, it is actually an extremely substantive and important development for Bitcoin.

— Matt Ahlborg (@MattAhlborg) April 7, 2022

The whole world changed after that Strike announcement. It might feel similar, but we’re living in bitcoin world now. Make of that what you will. 

Featured Image: Jack Mallers at Bitcoin 2022 taken from this tweet | Charts by TradingView

Bitcoinist @ Bitcoin 2022 Miami

Bitcoinist will be at Bitcoin 2022 Miami in Miami Beach, FL from April 6th through 10th reporting live from the show floor and related events. Check out exclusive coverage from the world’s largest BTC conference here.

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Bitcoin Should Not Be Measured In Dollar Terms, Says Pompliano

The value of bitcoin is currently being measured in dollar terms and this is understandable given that fiat is still the most dominant form of currency. While those in the crypto space believe this will not continue for much longer, it is still important to price the digital asset in fiat currency to show its value to investors.

However, millionaire investor Anthony Pompliano has countered against this accepted form of valuing bitcoin. He addressed the way the digital asset is valued as well as the dreaded volatility on a recent episode of CNBC’s Squawk Box.

Don’t Value Bitcoin In Dollars

Presently, one bitcoin is trading for around $51K. This apparent value is derived from the dollar, which confers a fiat value upon an asset that was created to replace it. Pompliano says that this should not be so. Instead, bitcoin should be priced in bitcoin. This way, “one Bitcoin still equals one Bitcoin,” says the investor.

Related Reading | Billionaire Ricardo Salinas: Forget Fiat, Buy Bitcoin Bitcoin Instead

Bitcoin’s value, when gauged in bitcoin, does not really change. The deflationary asset was designed in a way that it appreciates in value over time rather than depreciate, as is the case with the dollar.

However, Pompliano notes that people ignore or overlook this part because they are so used to using dollars in their everyday lives. Bitcoin was never really meant to be priced in dollars as the issues that already plague the fiat currency could then translate onto the asset, for example, its volatility.

“The dollar itself is hyper volatile as well,” said Pompliano. “We just don’t think of that because all of the goods and services around us are priced in dollars.”

BTC continues downtrend | BTCUSD on TradingView.com
Volatility Is Good When It Favors You

Speaking to host Joe Kernen, Pompliano revealed his thoughts around the volatility that is one of the hallmarks of bitcoin. Said volatility has been one of the most mentioned reasons when prominent figures and governments have advised investors to steer clear of the digital asset, explaining that they are prone to losses due to the widely fluctuating nature of the prices.

Related Reading | Why Bitcoin Will Never Surpass The Market Cap Of Gold

Pompliano however does not see bitcoin’s volatility to be a bad thing. He explained that volatility is mainly a matter of how it affects an investor. An example of this is when a digital asset’s price swings upwards and the investor realizes gains from this move. In this scenario, they would accept volatility as being a good thing. But if the opposite happens, then it would be regarded as a bad thing.

“Volatility is not good or bad, right? Basically, volatility is only bad when it goes against you, so if you long an asset and it goes down you don’t like volatility, if you long an asset and it goes up, you do like volatility.”

The millionaire also pointed out that another issue was that bitcoin’s volatility was also being mentioned in dollars. Given the latter’s also volatile and depreciating nature, Pompliano said that it was a flawed way of measuring volatility.

Featured image from CoinDesk, chart from TradingView.com

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“The United States Is Already Mining” Bitcoin… “Maybe,” Says Compass Mining CEO

Does the Compass Mining CEO know something we don’t? Is The United States mining Bitcoin? Whit Gibbs was a guest in a recent episode of Anthony Pompliano’s “The Best Business Show” and spilled the beans… or did he? The host cleverly disguised his question by talking about other countries following El Salvador’s footsteps and starting mining Bitcoin. He also mentioned Venezuela and other not-friendly to the U.S. countries already doing it. Then, he asked point-blank, what would it take for their country to start mining?

Related Reading | Will Bitcoin Mining Backed Volcano Bonds Be Enough To Ward Off The IMF?

“The United States is already mining,” Gibbs answered. And then softened the blow with a “Maybe.” If true, this is huge. And the implications are even greater. “They might have like 10 or 20 watts running somewhere in the midwest to test it out. Maybe. It’s hypothetically speaking. But, it’s a matter of national security.” Was that hypothetical? Or was the Compass Mining CEO giving us inside information? That’s what we’ll try to figure out.

But first, here’s the video: 

What Does The Compass Mining CEO Know?

Well, for starters, he knows Bitcoin is the hardest asset ever created. “When it comes to mining, when you’re talking about what Bitcoin is, whether it’s a store of value, it’s a medium of exchange. It’s the future financial instrument that many, many things are going to be built on top of. Nations would have to be absolutely out of their mind to not be getting some exposure to the underlying infrastructure which supports it.” 

So, it’s safe to say that the Compass Mining CEO is bullish on Bitcoin. Why do we think he might know something the rest of the world doesn’t, though? Gibbs continues, “So, the US I think is on the front foot. We’ve had a lot of conversations with the government in DC, state governments, to help educate them, but they are very forward-thinking when it comes to supporting this.”

So, does the Compass Mining CEO know something we don’t? Is The United States mining Bitcoin already?

Gibbs completes the idea by saying that El Salvador is showing the way to countries that are not at the forefront and, historically, have been hurt by the current system. They now know that being early to Bitcoin can make a huge impact and “get them there.”

BTC price chart for 12/03/2021 on FTX | Source: BTC/USD on TradingView.com
Other Countries That Are Already Mining Bitcoin

Story Time With Pomp And Gibbs. The host senses that the guest knows something and tries to get it out of him. Pompliano shares a story with him: he knows that in 2012-2013 a Federal law enforcement agency was mining Bitcoin. The rationale was that they couldn’t get a budget approved to buy Bitcoin at exchanges to fund black/ undercover operations. So, they filled papers to get computers instead and started mining. The Bitcoin they got was untraceable, it had no history. And they used it to run operations.

Then, it was Gibbs’ turn. “So, this is how you get in trouble,” the Compass Mining CEO answered. Cleverly, he shifted the focus from the U.S. to other countries. According to Gibbs, a North African country that’s a hotspot for the United States is getting into Bitcoin Mining. This is happening at the presidential level.

Related Reading | Bitcoin Mining In The U.S.: 4 States Attract The Most Miners

Also, he lives in Latvia. A very close neighbor of Latvia, “that may have stopped a plane no too long ago, to remove a journalist,” is already mining Bitcoin with nuclear power. The Compass Mining CEO closes his stellar presentation with, “I don’t believe that they’re mining Bitcoin to skirt sanctions. I believe that they’re mining Bitcoin because they see it as the future, and they want to boost their economy, they want to grow.”

You read it here first, Bitcoin is the future and many world leaders know it.  

Featured Image by Christopher Skor on Unsplash – Charts by TradingView

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Ricardo Salinas Pliego: Bitcoin “Should Be Part Of Every Investor’s Portfolio”

Mexico’s third wealthiest billionaire according to Forbes is a Bitcoin fan. Ricardo Salinas Pliego sure did his homework, and he’s here to make you see the light. The billionaire recently announced that he holds 10% of his portfolio in Bitcoin. Why? Salinas Pliego knows a few of the reasons that make BTC the soundest money that the world has ever seen.

The subtitled video arrives via podcaster Anthony Pompliano, who says, “Incredible to see this from @RicardoBSalinas given his historic wealth and success.”

If you can speak Spanish and have eight minutes to spare, the original video comes from José Pimpo’s YouTube channel.

Related Reading | The Wall between US and Mexico May Work out Well for Bitcoin

The Reason Bitcoin Should Be Part Of Your Portfolio

According to Michael Saylor, you have to invest at least 100 hours studying Bitcoin before you start to get it. His Mexican counterpart here, Salinas Pliego, evidently put in the time. About Bitcoin, he says:

“I’ve invested a lot of time studying it, and I think that it’s an asset that should be part of every investor’s portfolio. It’s a valuable asset, with international value, that’s traded with enormous liquidity at a global level. And that’s reason enough for it to be part of any portfolio. Period.”

Those are important reasons, but not something that can’t be said about the Dollar. The US’s currency holds international value and you can exchange it with ease for local money in any market. However…

What Does Salinas PliegoThink About Fiat Currencies?

The facts are the facts, money printing and inflation devalue the purchasing power of all the holders. There are no two ways about that. Or, as Salinas Pliego puts it:

“Fiat is a fraud. I started my professional career in ‘81. The Peso was at 20 x 1 (USD.) Today, we are at 20.000 x 1. That’s all there’s to know. And that’s here in Mexico, because if we look at Venezuela, Argentina, or Zimbawe, the numbers loose all proportion. The fraud of fiat is something inherent to the fiat system, and we’re watching it happen in the USA. The monetary emission went to the moon, you understand. The Dollar as hard money is a joke.”

It’s worth noting that in 1993, Mexico phased out the Peso (MXP) and introduced the Nuevo Peso (MXN, “New Peso”.) One MXN is worth one thousand MXP. So, Salinas Pliego’s numbers are correct. 

Also, notice the casual mention of the “went to the moon” meme. This man clearly studies the crypto sphere.

Why Is Ethereum Not A Valid Store Of Value?

Sorry, Vitalik fans. Ethereum has many qualities, but being a store of value isn’t one. Salinas Pliego puts it in simple words:

“Bitcoin’s finite supply, the 21 million, that’s the key of the whole thing. That’s what I was saying about Ethereum. As long as they don’t have a finite supply, I don’t believe them at all. For all I know, they emit more and your asset depreciates.”

And yes, when the EIP 1559 proposal comes into effect, Ethereum will burn some ETH after every transaction. Still, the daily issuance will be much higher than the daily burns. And there’ll not be a hard cap.

Related Reading | Bitreserve adds Bitpeso and Bitrupee to Support 8 Currencies

Who Is Ricardo Salinas Pliego, Anyway?

For a quick profile, we’ll pass the mic to Forbes:

  • Ricardo Salinas Pliego runs the number two Mexican TV broadcaster, TV Azteca, and retailer Grupo Elektra.

  • His Grupo Elektra targets lower middle class consumers who borrow money from his banking arm, Banco Azteca, to buy items at Elektra stores.

  • Elektra, which is publicly traded, was founded in the 1950s by Ricardo’s grandfather, Hugo Salinas Rocha.

  • Salinas appointed a new CEO to TV Azteca in January 2021, replacing his son, Benjamin Salinas Sada, who he’d appointed in 2015.

Among the world’s billionaires, Salinas Pliego is currently at #166 according to the same magazine.

BTCUSD price chart for 06/27/2021 - TradingView

BTC price chart on Bittrex | Source: BTC/USD on TradingView.com