Bitcoin is Digital Oil That Will Fuel the Economy

I don’t think I have ever been more excited about the low price of bitcoin. I only hope it lasts for a few more months while I can still make some big moves (for me) and larger buys of bitcoin at these prices. In my view, it’s the digital oil that will fuel growth in our economy for the next decade or more.

Right now it's similar to being able to buy barrels of oil back in April of 2020 when crude oil went negative for a brief period of time. The difference being the average investor could not buy barrels of oil for storage like bitcoin and other cryptocurrencies.

Today, we saw a major step with bitcoin and other cryptocurrencies with the bill proposed by Senators Cynthia M. Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) to treat them as next generation commodities. If passed, this would hand control to the commodity futures trading commission (CFTC) over the securities and exchange commission (SEC). Of course, we need to remember that like the School House Rock cartoon illustrates, I'm Just a Bill, it’s a long way to being a law. What’s encouraging though, and a very big step forward, is that the conversation has begun and the horse trading can commence over the salient details.

Some of the key points of the bill are:

• The bill delivers on the promise of no taxes on transactions under $200. The exemption or “De Minimis" allows BTC holders to buy goods and services

• The bill would enshrine into law the right for bitcoin holders to self custody their bitcoin.

• A key part of this bill is the move to make miner awards taxed after their "disposition". Currently, mined bitcoin is taxed as income the moment it is mined.

The next year or so will be filled with a frenzy of innovation and conversation that the optimist in me hopes will shape the bill to have an even more pro-growth impact on the Web3 crypto economy. It’s well timed as tech firms have laid off 17,000+ highly skilled workers since the beginning of 2022. We need them and they’ll need jobs, all good for this next growth trajectory and path forward for our economy. Certainly, that path is Blockchain and Bitcoin as the digital oil that fuels all kinds of products and services just as petroleum fuels many products we use today but are mostly unaware of.

So, as often happens, as one tech cycle declines, the next one begins to evolve and accelerate. There’s little doubt that Web3 will be fueled by digital commodities such as bitcoin. In fact, Web3 promises to transform the experience of being online as dramatically as PCs and smartphones did according to a recent Harvard Review article.

As someone who has been in technology for three decades, I have never seen such an opportunity to stake a claim in this new commodity with unprecedented upside at such an easy and low barrier to entry for us common folk.

Currently, we are at the beginning of the end of what I characterize as Blockchain 1.0 and the de facto winner is bitcoin that will continue to increase in value as a commodity, and that will be the final settlement layer for all things digital in the future. The Web3 Blockchain landscape right now is still very much the Wild West.

No one knows exactly how things are going to shake out at the moment in regards to technology standards for NFTs, DAOs, and Smart Contracts. We are still very much in the early days and it's not too late to be early. The safest and best opportunity is to increase our stake in digital commodities such as bitcoin before the price starts to match the demand that is sure to come, just like we see at the gas pump.

All the best,

Jim Fox

CEO

Bitcoin Buyers Club