Hello Humble Bitcoiners!

Sit down and get ready for your daily dose of Bitcoin signal!
Today's Rundown:
  • Scaling:  We must retain privacy practices for Lightning.
  • FED Raising Rates?: Jerome Powell said they are committed to curbing inflation and promoting a strong labor market.
  • S2F: The famous models predicting high prices for bitcoin actually have fundamental issues.

LIGHTNING

The Fight For Bitcoin: The Lightning Round
By Mark Goodwin

For the Bitcoin network to become the new standard of the global financial system, a second layer is essentially required for scaling in perpetuity without sacrificing the beloved and immutable properties in the Nakamoto consensus that ultimately secure and give value to the network. 

As time goes by, the scaling solutions brought by the Lightning Network make it look more and more like the right implementation for the second layer required for Bitcoin’s mass adoption. In this technical write-up, the author discusses in depth lightning network features that add value to the Bitcoin network and debates a controversial topic related to the implementation: its anonymity. 
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THE FED RAISING RATES?

Bitcoin Trades Neutral As FED Chair Powell Speaks
By Namcios

On January 26, Federal Reserve Chair Jerome Powell went live on a press conference to address the future of U.S. monetary policy. He stated that the committee is determined to maintain a strong labor market and restrain the rampant inflationary pressure produced by the COVID-19 crisis, as he affirms. 

He also stated the committee has not yet decided on an increase for the interest rates, but that such a thing will most likely be discussed in the next meeting in March. He also strongly reassured everyone of their efforts to curb inflation to ensure a prosperous economy and labor market. Meanwhile, bitcoin's price went back up to $39,000 just for a brief moment, but most importantly, the Bitcoin network produced, as usual, 6 more blocks during 1 hour of the conference.
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THE DAILY BITS
1. A look at how macroeconomic volatility spikes are impacting the bitcoin price.

2. Bitwage, bitcoin payroll provider, brings a redesigned dashboard and new features for employers and workers seeking to pay and get paid in bitcoin.

3. Real Bedford Football Club, to accept bitcoin through OpenNode.

4. Vladimir Putin says Russia hasadvantages in bitcoin mining, and asked the central bank and the government to come to a consensus on bitcoin regulation.

5. Numerous developments made 2021 an unprecedented year in bitcoin mining, setting the stage for a monumental 2022.

6. A professional tax advisor explains the key things for Bitcoiners to know when filling out their returns for 2021.

7. Bitcoin Magazine Episode: Discussing bonds, Federal Reserve activity and the impact they have on the bitcoin market.

S2F

Why The Bitcoin Stock-To-Flow Model Is Not Useful
By Level39

The now famous Stock-To-Flow (S2F) model, by an anonymous individual "PlanB," was released in March 2019 astonishing investors as it predicted exponential growth of the bitcoin market value based on scarcity. The model reached the mainstream media and many rookie and professional investors have been using it to justify bitcoin's value proposition either to themselves or to shareholders.

"All models are wrong, but some models are useful" - A common aphorism in statistics

The author dives into the argument of why this model is not only wrong, but also not useful, as the measures used in S2F are invalid. The model is tautological as it has "stock" on both sides of the equation, which means it is automatically correlated.

As beautiful and optimist as the model seems to appear, the author argues it is time to move on and gain real conviction in bitcoin by learning about its properties and network effects, instead of basing its future success on lines with no scientific basis.
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BITCOIN MAGAZINE LIVE
How is bitcoin consensus mechanism similar or different than democracy?
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MEME OF THE DAY
By Jack Mallers

The IMF urged El Salvador to remove bitcoin as legal tender, claiming it could bring instability and inflation to the impoverished Latin American country. They also have previously told Bukele that this actions could prevent the country from getting a loan from the institution.

Well no one said "congratulations" when the price of bitcoin was appreciating. And now, El Salvador has another vehicle of raising money for the country, through the issuance of Bitcoin Bonds.

I guess IMF finds it hard to believe that they are becoming irrelevant?

Stack harder.
With love,
Bam

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