Bitcoin News Weekly #4
A transition towards self-sovereign lightning wallets.
TLDR:
The Bitcoin hashrate reaches a record high, surpassing 500 EH/s.
Wallet of Satoshi exits US app stores.
Banco Santander introduces Bitcoin to clients in Switzerland.
Nayib Bukele authorizes 'Team Bitcoin El Salvador' to visit Argentina.
Hi there, it's Bam! I hope your Thanksgiving weekend with family and friends was fantastic! I'm incredibly grateful for the amazing people in my life and for Bitcoin's existence. It allows us to own private property in the digital realm and gives hope for a future where central banks can't erode our hard-earned money through inflation.
This week saw governments attempting to manipulate the Bitcoin market through regulatory actions. Despite this, the price soared to a new 2023 high of ~$38,200 and experienced a significant upward difficulty adjustment of 5.07%. Let's dive in and catch up on all the latest developments from this past week!
LATEST NEWS
Adoption:
Bitcoin hashrate hits a new all-time high, surpassing 500 ExaHash per second (EH/s).
A peer-reviewed study on Bitcoin emphasizes the industry's advancements in energy efficiency, transition toward renewable sources, and innovative applications.
BTCPay Server introduces the capability to generate vouchers redeemable for Bitcoin, allowing merchants to sell Bitcoin for cash.
Legal:
Wallet of Satoshi exits from the US app stores operated by Apple and Google due to a regulatory crackdown.
Changpeng Zhao (CZ), the former CEO of Binance, pleads guilty, steps down, and settles his case for $4.3 billion. Since CZ's conviction on federal charges in the US, the exchange's reserves have dropped by over $200 million.
Three men in Vietnam receive prison sentences for stealing 7 bitcoins (valued at $287.5K) from an individual who had left a Trust Wallet recovery phrase in a note.
Markets:
Banco Santander starts providing Bitcoin access to high-net-worth clients in Switzerland.
Ark submits another amendment to their spot Bitcoin ETF with the SEC, indicating continued progress behind the scenes.
Austrian subsidiary of EU lender Raiffeisen Bank to launch Bitcoin trading services in 2024.
Mining:
Unbox Therapy, a YouTube channel with 20M+ subscribers, reviews a bitcoin mining space heater/air purifier.
Environmental benefits of Bitcoin mining on the front page of The Salt Lake Tribune
F2Pool's censorship in filtering Bitcoin transactions according to U.S. OFAC sanctions is causing notable concerns within the Bitcoin community.
Politics:
South Korea unveils a Central Bank Digital Currency (CBDC) pilot program. Scheduled to begin in Q4, 2024, the program will allow 100,000 selected individuals to purchase goods with CBDCs.
US Presidential candidate Robert F. Kennedy Jr says Bitcoin is "a huge threat to the economic model of big bankers."
El Salvador President Nayib Bukele authorizes 'Team Bitcoin El Salvador' to visit Argentina on a Bitcoin diplomatic mission.
Bam’s take:
As the Lightning Network experiences continued growth, Wallet of Satoshi (WoS), a major custodial lightning wallet, anticipates processing over 1.1 million Lightning payments this November, marking their highest monthly volume yet.
Shortly after sharing this milestone, the WoS team opted to withdraw from the US market, initiating the removal of its app from Apple and Google app stores. This choice was likely tough considering the potential in the US market, but the perceived regulatory risks made it an untenable gamble.
As Lightning continues to develop as a scaling solution for Bitcoin, a closer look reveals a remarkable evolution. Just a year ago, self-custodial Lightning wallets appeared limited in their capabilities, but now, they are impressively functional. My advice for custodial Lightning wallet users is straightforward:
Think about transitioning to self-custodial options like Blixt, Phoenix, or other available alternatives.
Begin with a significant initial transaction (500k-1M sats). This action triggers the wallet to automatically establish a channel with a Lightning Service Provider, guaranteeing sufficient liquidity for your long-term usage.
Additionally, it's crucial to protect your seed phrase and consistently back up the state of your channels to avoid any potential loss.
Currently, you can engage with Lightning addresses, but soon you'll have the ability to create and handle your own in a self-custodial way. In the meantime, keep using your custodial wallet but regularly transfer funds to your self-custodial wallet (e.g., Blixt, Phoenix) for heightened security.
Taking self-custody of your Bitcoin might feel overwhelming at first, but it's a learnable skill that pays off immensely. Imagine the potential for Bitcoin to grow tenfold in value. This viewpoint is vital to understanding the significance of securely storing this seizure-resistant asset. Keep in mind that Bitcoin's limited supply of 21 million makes it exceptionally valuable. Treat it with the care it deserves.
Stay Humble & Stack Sats,
Bam
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I do agree about suggesting people to use two LN wallets: one for saving, one for pennies. Maybe the topic could deserve a post with a list/review of the best custodial and not-custodiale LN wallets. ;)