Bitcoin monthly digest: July 2023

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This is the second edition of our monthly Bitcoin newsletter. This issue continues our commitment to keeping you informed about important developments within the Bitcoin ecosystem. Catering to expert enthusiasts and newcomers alike, we explore advancements, regulations, technology, market trends, and more, revealing Bitcoin's transformative potential across industries and society. Let's dive in!

• The Human Rights Foundation announces a Bitcoin development grant

The Human Rights Foundation (HRF) has unveiled a 20 BTC (roughly equivalent to $580k, at the time of writing) bounty initiative to support open-source Bitcoin developers in enhancing its user-friendliness and upgrade the current state of Bitcoin's UI infrastructure. Inspired by HRF's global activism, the bounties aim to boost usability and privacy across Bitcoin, the Lightning Network, ecash, and Nostr.

Spread throughout 2024, the challenges encompass privacy, censorship-resistance, and self-sovereignty. Unclaimed bounties by year-end are reverted to HRF's Bitcoin Development Fund. Two of these challenges focus on:

1. Border wallet integrations: Incorporating border wallet functionality into current Bitcoin wallets, allowing users to generate and practice memorizing seed phrases (which allow for seamless recovery of access credentials to one's wallet) for cross-jurisdictional movements, and

2. Serverless protocols: Developing a serverless implementation Bitcoin payments protocols, specifically aiming at sending transactions without relying on a public server.

These bounties signify HRF's commitment to supporting developers and enhancing Bitcoin's capabilities. Successful solutions earn a 2 BTC reward after undergoing scrutiny by industry experts.

• Bitcoin's future in Norway

Global Bitcoin adoption numbers are lacking, but the average adoption rate stood at around 12% in 2022, as Bitcoin holds roughly half of the total cryptocurrency market cap. Surprisingly, Norway, despite its tech-savvy population and oil riches, lags at 8% adoption, possibly due to factors such as low inflation and negative government sentiment. Trust in the government by six out of 10 Norwegians, as per the OECD, also plays a role. However, the Norwegian krone (NOK), has seen a gradual depreciation (against the Dollar, the Euro and many other major currencies), gaining momentum recently, which might push people and businesses towards Bitcoin.

Loose monetary policy, high import costs, and the exodus of the wealthy worsen the NOK's situation. Despite Norway's oil wealth, its sovereign wealth fund invests abroad, weakening the NOK's investment base. The NOK's decline coupled with low Bitcoin adoption makes Norway's case stand out. If Bitcoin gains traction amidst NOK devaluation, this trend might spread to other economies with lenient monetary policies. Whether Norwegians will embrace Bitcoin due to economic incentives over government trust remains to be seen.

• Growth in institutional appeal

BlackRock, renowned as the global leader in asset management with a staggering $9 trillion in assets-under-management, has taken significant strides towards integrating Bitcoin into their investment landscape. Besides filing for a spot Bitcoin exchange-traded fund (ETF), BlackRock's CEO Larry Fink made a notable appearance on Fox Business. During this interview, Fink likened the role of Bitcoin to the concept of "digitizing gold." He expounded on this idea by stating that instead of solely resorting to gold as a hedge against currency devaluation or inflation, Bitcoin can be perceived as an alternative asset class. This association reinforces the notion of Bitcoin as a store of value, paralleling the historical role that gold has assumed within investment portfolios. By drawing this parallel, Fink subtly underlines Bitcoin's global reach and potential as a universal reservoir of wealth. A pivotal point emphasized during the broadcast was Fink's assertion that "Bitcoin is an international asset," signifying his belief in its broad relevance.

This televised statement carries significant weight as it underscores both Fink's and, by extension, BlackRock's confidence in Bitcoin's potential and its future trajectory. The CEO's acknowledgment of the international facet of Bitcoin adds further credence to the growing institutional interest and potential investments in the sector. BlackRock's determined pursuit of a Bitcoin ETF, coupled with Fink's comparison of Bitcoin to digital gold, signifies a discernible shift in the sentiment of major financial establishments towards the asset class and the emerging Bitcoin industry. This shift in stance substantiates the idea that Bitcoin is progressively evolving from an esoteric digital entity into a compelling investment avenue with implications that resonate across a broad spectrum.

That's a wrap for this month! We hope you enjoyed the read. Make sure to get in touch with us by using the "Contact us!" button at the top of this page if you have any questions or comments.