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Issue #985: Bitcoin Fundamentals Pumping

Issue #985: Bitcoin Fundamentals Pumping

May 5, 2021
Marty's Ƀent

Issue #985: Bitcoin Fundamentals Pumping

As every TikTok star and their mother is screeching about Dogecoin's recent pump, there have been some strengthening fundamental indicators in Bitcoin. We'll spill some Internet ink to talk about them in today's rag.

First up, the co-founder of f2pool, the second largest bitcoin mining pool in the world, made everyone aware of the fact that f2pool observed more hashrate being directed to its pool from miners outside of China than from inside of China.

If what Chun Wang describes is true, which I believe to be the case based off years of following Chun, this is a confirmation of a massive trend/development in the mining world of hashrate production becoming more geographically distributed. The "cHiNa CoNtRoLs MiNiNg" line of FUD from Bitcoin detractors has been one of their most effective knocks on Bitcoin. While those who actually understand Bitcoin, the nature of mining, and the logistical nightmare that would be attempting to corral all of the miners within China to levy an attack on the network know that this has been a weak talking point for some time now; it is great to have some data coming from Chinese pools that proves the percentage of overall hashrate production is being reduced within China's borders.

As miners seek cheaper power and put more weight on jurisdictional risks, hashrate production will naturally disburse to very remote areas around the world. Your Uncle Marty expects the mining industry to become incredibly distributed and robust over the course of the next decade.

Next up, Lisa Neigut from Blockstream completed the first ever dual-funded Lightning Network channel on c-lightning's/Bitcoin's mainnet earlier this week.

This is a pretty massive development for the Lightning Network because it will significantly improve the UX around channel management and the ability of users to be able to send AND receive sats immediately after a channel is created. The way channels are opened right now requires an individual to directly open a channel with another node and then that node has to reciprocate a channel open if both parties want to send and receive sats via those channels. Dual-funded channels make this process much more seamless by allowing two individuals to open a channel together by each contributing inputs to a transaction which opens a channel on the Lightning Network.

Your Uncle Marty is a rube though, if you want a more thorough description watch this demo from Lisa Neigut, the developer who has been working on this tirelessly for quite some time.

Lastly, it seems that the banks are tired of Coinbase et al reaping the fees produced by bitcoin trading fees as they watch with their dicks in their hands from the sidelines and will soon offer their clients the ability to buy, sell and hold bitcoin via a partnership between FIS and NYDIG.

via Business Wire

Once launched, this will open up the spigots for 300+ banks in the US to offer Bitcoin to their hundreds of millions of clients. At the moment, your Uncle Marty will be chalking this up as a bullish awareness indicator as it is hard to deny that 300+ banks giving Bitcoin the "okay" is good for awareness. What hasn't been made clear to me via my cursory research into this development is whether or not customers will be able to take their bitcoin out of their bank and into self-custody upon purchase.

Since bitcoin is digital cash, a bearer instrument like cuck bucks, I would imagine this would need to be made possible from a legal perspective. I'm hoping that this is the case and, if so, would be a MASSIVE fundamental as it would mean hundreds of millions of people don't need to spin up exchange accounts to purchase bitcoin and take self custody. They would now be able to click a few buttons in their mobile banking UI and accomplish the task from there with little effort.

While everyone and their mother is having fun playing the altcoin casino game yet again, the fundamentals around the Bitcoin network are only getting stronger. The future is bright!

Final thought...

My wife is slow cooking some high quality pork for some high quality tacos tonight. Very pumped about it.


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