0:02

Welcome to the Coin Stories News Block powered

0:04

by BitDeer. I'm Natalie Brunell and in the

0:06

span of just 10 minutes, roughly the time

0:08

it takes to mine a Bitcoin block, I'll

0:10

provide you with concise, insightful updates on Bitcoin

0:13

and the global financial landscape. Everything you need

0:15

to know in one place in one block.

0:17

Let's go. Over

0:24

the weekend, we saw Bitcoin's price crash by

0:26

about 10% as conflict

0:28

in the Middle East escalated when Iran attacked

0:30

Israel. Markets hate uncertainty

0:32

and when geopolitical tensions rise, it can

0:35

spook investors, resulting in sharp sell-offs like

0:37

the one we just experienced. And when

0:39

major global shockwaves hit on a weekend,

0:41

well, Bitcoin is the only macro asset

0:43

you can trade 24-7, 365 days a

0:46

year. So

0:49

it makes Bitcoin available to sell

0:51

at any moment. When markets experience

0:53

stress, investors sell whatever's liquid

0:55

to hedge against other asset classes,

0:58

and it's really no surprise that we saw Bitcoin

1:00

react first to the drone strikes over the weekend.

1:04

As I said on Fox Business on Monday,

1:06

the fast money trades these events or gets

1:08

liquidated due to leverage. The

1:11

smart money and the permanent capital is here

1:13

to stay because it is seeking shelter in

1:15

Bitcoin as a flight to safety over the

1:17

long run. Now, as

1:19

expected, this price drop had some Bitcoin

1:21

skeptics coming out of the woodwork, like

1:23

CNBC's Andrew Ross Sorkin, who

1:26

tweeted, quote, trying to understand Bitcoin's price

1:28

movements this weekend. If

1:30

it is, as Bitcoin bulls believe, a store of

1:32

value during a war, wouldn't it be considered a

1:34

safe haven? And if

1:36

it is a hedge against inflation, wouldn't buyers

1:38

rush to it out of fear that countries

1:40

will spend more on conflict? What

1:42

explains its fall? I'm genuinely curious to

1:45

hear various perspectives. Okay,

1:47

I have a ton of thoughts on this, but

1:49

the first one that popped in my mind is

1:51

actually a quote from bestselling author Morgan Housle, who

1:53

said, every investor is making a bet

1:55

on the future. It's only called speculation when you

1:57

disagree with some of the things you're thinking about.

2:00

someone else's bet or time horizon.

2:02

What I would say to Andrew Ross-Storkin is WTF. What

2:07

timeframe? Lengthen your

2:09

time horizon, zoom out, and consider

2:11

how these developments can bolster or

2:14

undermine Bitcoin's long-term value proposition. Historically,

2:16

Bitcoin has sold off immediately on

2:18

news of war breaking out, only

2:21

to sharply rebound in the coming

2:23

months. Last year, when

2:25

Hamas attacked Israel, Bitcoin immediately dropped in the

2:27

wake of the news, only to

2:29

shoot up more than 25% in the coming months. Right

2:33

now, it feels like we're on the

2:35

brink of another world war. Geopolitical conflict

2:37

is accelerating, and war is always inflationary.

2:39

It offers the perfect excuse for printing

2:42

more money without asking any of us

2:44

for consent. And wars are expensive.

2:46

A common theme of all wars is a

2:48

sharp rise in government spending. And the things

2:50

you don't want to own during times like

2:52

this are cash, which will be devalued, and

2:55

bonds, which the government will flood with new

2:57

supply as they borrow more money for their

2:59

war efforts. The data proves this,

3:01

too. The CFA Institute published data that

3:03

showed that during World War II,

3:05

Treasury bonds returned double-digit losses for

3:07

investors when taking into account inflation.

3:10

And if you do hold cash, you're definitely going to

3:12

have a bad time. Don't believe me? Well,

3:14

just listen to what Warren Buffett had to say about it in 2014.

3:18

When people start to think, well, this could be the

3:20

beginning of something really bad. It could be even a

3:22

World War III situation. It could be a return to

3:24

the Cold War. Does any of that

3:27

ever go through your mind? Well,

3:29

if you tell me all of that's going to happen, I

3:32

will still be buying the stock. You're

3:34

going to invest your money in something over time. The

3:37

one thing you could be quite sure of

3:39

is if we went into some very major

3:41

war, the value of money would go down.

3:43

I mean, that's happened in virtually every war

3:45

that I'm aware of. In

3:47

times of war, investors want to

3:50

own hard, scarce assets like Bitcoin

3:52

that cannot be devalued and that

3:54

will outpace the rising inflation. But

3:56

also one of the reasons we've seen a surge in

3:59

the price of gold. which we have

4:01

to acknowledge. Gold has historically functioned

4:03

as a safe haven asset that

4:05

investors flee to during times of

4:07

geopolitical or economic upheaval. Central

4:09

banks have been buying record amounts of gold

4:11

over the last couple of years, and

4:13

gold has outperformed bitcoin over the last

4:15

months. But when you zoom out,

4:17

the scoreboard is clear. Bitcoin still shines.

4:20

And the reality is both bitcoin and

4:22

gold are poised to do well if

4:24

the traditional system grows increasingly unstable and

4:26

inflationary pressures continue to mount. But in

4:29

the long run, only bitcoin has all

4:31

the properties that will enable it to

4:33

become the foundation of a new monetary

4:36

system. We already tried it

4:38

with gold, but because of its defects,

4:40

namely its physicality, it led to fiat

4:42

and a system built on IOUs and

4:44

leverage. It's bitcoin's time now. And

4:47

unlike gold, which people will be trying to

4:49

mine on asteroids if it were to somehow

4:51

hit $100,000 an ounce, no

4:54

bitcoin price or level of demand

4:56

can increase the supply. As Jack

4:58

Moller said, you can always direct

5:00

more energy to mine gold out

5:02

of the ground. You can't travel

5:04

in time to mine more bitcoin.

5:07

And on the topic of rising geopolitical

5:09

tensions, we're witnessing the world become more

5:11

fragmented and multipolar, and bitcoin has no

5:14

stake in any of it. It's a

5:16

neutral place to store wealth without having

5:18

to worry about who wins or loses

5:20

in any conflict. Bitcoin is peaceful, and

5:23

it's really the only thing certain during

5:25

times of chaos. It's the only thing

5:27

predictable. Wars are political. The

5:30

dollar and every fiat currency is

5:32

political. Bitcoin is apolitical and

5:34

incorruptible. It just keeps going like clockwork.

5:36

The halving won't be delayed or postponed

5:39

due to any outbreak of violence. It

5:41

will arrive as scheduled at block 840,000. So, kick talk, next

5:44

block. The

5:48

news block is powered exclusively by

5:50

Bitdear. As a publicly traded leader,

5:52

Bitdear's not just mining, their industry

5:54

pioneers standing alone as the only

5:56

vertically integrated, technology focused Bitcoin mining

5:58

company. industry's most experienced

6:01

leadership team and 25% of

6:03

the workforce dedicated to R&D, Bitdear

6:06

is pushing the boundaries of what's possible

6:08

in Bitcoin mining. Learn more at bitdear.com

6:10

and explore how they are pioneering the

6:12

future today. Turning

6:15

now to China, where multiple asset managers

6:17

announced that they have received conditional approvals

6:19

from the Hong Kong Securities and Futures

6:22

Commission to launch spot Bitcoin ETFs. These

6:25

ETFs will help boost Bitcoin adoption in the

6:27

long run as more ETF products around the

6:29

globe mean more ways for investors to gain

6:31

exposure. But although this is no doubt good

6:33

news, it's important to remember that the Hong

6:35

Kong stock market is just a fraction of

6:37

the size of the U.S. stock market. Bloomberg

6:40

Senior Analyst Eric Beltunas threw some cold water

6:42

on the excitement when he said quote, don't

6:45

expect a lot of flows. I saw one estimate

6:47

of $25 billion. That's

6:49

insane. We think they'll be lucky to get $500

6:51

million. But

6:53

Beltunas also added, just to be clear, all

6:55

of this is clearly positive for Bitcoin as

6:58

it opens up more avenues to invest. All

7:01

right, let's talk about inflation, which continues to

7:03

run hot. Last week, CPI rose

7:05

3.5% year over year above expectations. Shelter

7:10

and energy costs drove the increase in the

7:12

headline number. The shelter component

7:14

of CPI is particularly interesting because

7:17

higher interest rates meant to bring

7:19

inflation down could actually be contributing to

7:21

rent and home prices remaining high. And

7:24

it's crazy to think how many people wouldn't

7:26

be able to afford the home they're currently

7:28

living in at current prices and mortgage rates.

7:31

Oppenheimer CIO John Staltfuss recently argued

7:33

that lower mortgage rates would prompt

7:35

more people to sell their homes,

7:37

leading to more supply and potentially

7:39

softer prices. But we haven't seen

7:41

home prices fall because no one

7:43

is selling. People are locked into

7:45

low 30-year mortgage rates. And who

7:47

wants to move when their new

7:49

mortgage would effectively be double? This

7:51

has caused home prices to stay high,

7:53

which forces more people into renting, which

7:55

keeps rent levels elevated and ultimately leads

7:58

to higher CPI prints. The

8:00

Times recently covered this one. It found

8:02

that about seventy percent of all Us

8:04

mortgage holders had raised more than three

8:06

percentage points below with the market would

8:08

offer them if they tried to take

8:11

out a new loan. And the shelter

8:13

component is the largest when it comes

8:15

to calculating Cpc. So the fact that

8:17

inflation remains elevated should surprise no one.

8:19

And one note on inflation. He recently

8:21

came across a chart that showed how

8:24

price increases major fast food restaurants have

8:26

risen faster than Cpm nights. Mcdonalds prices

8:28

have more than doubled since Twenty. Fourteen

8:30

despite Cp I inflation only rising

8:32

thirty one percent over that time

8:34

phone. Traditionally fast food is the

8:36

cheap option for struggling families, but

8:38

now feeding a family at Taco

8:40

Bell or Mcdonalds has never been

8:42

more expensive. Coin. Base just

8:45

released a new ad on how

8:47

holding bitcoin has allowed a person

8:49

to buy more pizza with each

8:51

having they wrote food for thought?

8:53

What if money was designed to

8:55

get you more overtime? A nautilus?

8:57

everything's and pizza to homes are

8:59

getting cheaper when placed in Bitcoins

9:01

and as time goes on, you

9:03

can buy more goods and services

9:05

with fewer. Bitcoin is is why

9:07

Bitcoin is the best solution to

9:09

the pernicious theft of inflation. Allright

9:12

last story This week it's a video

9:14

clip that went viral of us see

9:16

Fighter Re not only Cornell after he

9:18

won his fight at U F C

9:20

three Hundred and in his post victory

9:23

speech, he gave a shout out to

9:25

Austrian economists Ludwig von Mises and told

9:27

everyone to read his lectures on inflation

9:29

and capitalism. He talked about the importance

9:31

of property rights, and then he tweeted

9:33

that he wants his bonus to be

9:36

paid in Bitcoin when professional athletes are

9:38

talking about Austrian economics and asking to

9:40

be paid in Bitcoin. Than you

9:42

know, Bitcoin is starting to reach people

9:45

from all walks of life and that

9:47

makes me optimistic because everyone needs Bitcoin

9:49

and Bitcoin is for everyone. And

9:52

that's. It for the news lock powered

9:54

by bit the or your weekly bitcoin and

9:56

economic news update. I'm Natalie Brunel. Make sure

9:58

you're subscribed to Points. you never miss

10:00

an episode. This show is for educational

10:03

purposes and should not be construed as

10:05

investment advice. Until next time, keep stacking.