Donald Trump makes historic Bitcoin payment | Bitcoin News by CoinCorner

Transcript

A huge week for Bitcoin, as former President Donald Trump makes history by becoming the first ever US president to publicly make a transaction on the Bitcoin network. More countries are adopting Bitcoin as a strategic asset, as it has been revealed that Bhutan has accumulated a vast Bitcoin reserve. It seems nothing can stop Michael Saylor, as MicroStrategy buys another billion dollars' worth of Bitcoin.

Kicking things off with Bitcoin's price, it has been a bullish week so far, with around an 8% gain. However, zooming out, there are still no clear signs that we've broken out of the sideways chop we've experienced for the last six months. The stage may be set for a big move, as the Fed finally announced this week that they will be lowering interest rates in the US by 50 basis points, with further cuts anticipated in November. This marks the end of a sustained period of tighter monetary policy from the Fed, and it's the first rate cut in over four years.

One story that may have played a role in Bitcoin's price move this week is the announcement from MicroStrategy that they have purchased an additional $1.1 billion worth of Bitcoin with proceeds from a recent issuance of convertible senior notes. In a post on X, founder Michael Saylor revealed that MicroStrategy has acquired an additional 18,300 Bitcoin at an average price of $6,450 per coin. This tops up their total holding to an enormous 244,800 Bitcoin acquired at an average price of $38,518 per coin. Today, their total Bitcoin holdings are worth over $15 billion. According to Saylor, the company has achieved a 177% Bitcoin yield year-to-date, capitalising on Bitcoin's appreciation while continuing to borrow fiat at low interest rates to expand its holdings. It seems nothing can hinder Saylor's conviction, as this week they also announced another private offering of $875 million of convertible senior notes at an interest rate of 0.625%. The proceeds will be used to settle an existing debt of $500 million, which they borrowed at a higher rate of 6.125%, and, as for the rest of the capital, you guessed it, they will use it to acquire more Bitcoin.

Bullish news on Wall Street this week, as BlackRock released a new report explaining why Bitcoin is a unique portfolio diversifier detached from other assets. The world's largest asset manager, with over $10 trillion of assets under management, explained that while volatile, Bitcoin is fundamentally detached from other asset classes over the long term. Its adoption depends on global concerns over monetary stability, geopolitics, fiscal policy, and political stability, which are inversely related to traditional risk assets. The report also stated that Bitcoin, as the first decentralised, non-sovereign monetary alternative to gain widespread global adoption, has no traditional counterparty risk, depends on no centralised systems, and is not driven by any one country's fortunes. This endorsement by such a major player in traditional finance is likely to improve Bitcoin's reputation and could accelerate its adoption, cementing its place in mainstream finance.

Also in the news, it has been revealed that Bhutan holds over $780 million worth of Bitcoin. The country's Bitcoin address, publicly identified by Arkham Intelligence, shows that Bhutan holds over 13,000 Bitcoin, making them the fourth largest government Bitcoin holder on their platform. Unlike some other governments that acquired Bitcoin through asset seizures, Bhutan's holdings come from its own mining operations, which have increased since early 2023. The country's abundant hydropower resources make it a suitable location for sustainable Bitcoin mining, and in May 2023, they partnered with Bitdeer to develop a carbon-neutral Bitcoin mining operation.

One country proving less favourable towards Bitcoin mining is Norway, where a mining facility utilising excess energy from the grid was shut down this week due to ongoing noise complaints from locals about loud cooling fans. This has led to a 20% increase in electricity costs for residents of the town of Hadel, which equates to approximately $300 more per month than before. The situation highlights that Bitcoin mining is not without its flaws, and mitigation measures are clearly needed to reduce the impact of noise emitted from cooling fans. However, it also demonstrates how mining can have a hugely positive impact on locals by offering financial benefits while reducing wasted energy. The incident has fuelled debate in Norway about imposing restrictions on energy-intensive mining, but this could force miners to relocate operations abroad, potentially increasing energy prices for residents.

In our next story, the Human Rights Foundation has announced its latest round of Bitcoin development grants totalling 10 Bitcoin, worth over $590,000. The funds have been granted across 20 different projects worldwide, focusing on technical education for people living under authoritarian regimes, Bitcoin development conferences, decentralising mining, and providing human rights groups with more private financial solutions. The main areas of focus are centred around Latin America, Asia, and Africa. While it is tragic for people living in these unfavourable environments, it's encouraging to see initiatives like this that show Bitcoin can offer hope to improve people's situations.

Now for our final story: Donald Trump made history earlier this week by becoming the first ever US president to publicly make a transaction on the Bitcoin network. Trump made an appearance at New York's famous Bitcoin-themed bar, PBKey, where he spent approximately $1,000 worth of Bitcoin on burgers, which he then gave out to supporters. The transaction was made over the Lightning Network, utilising its faster transaction technology and near-instant settlement. Although a bit of a publicity stunt, the appearance demonstrates his efforts to embrace Bitcoin and represents a significant step forward in legitimising the digital currency for mainstream use.