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Why Luna Selling BTC Is Good

Why Luna Selling BTC Is Good

Sats O'Clock
May 17, 2022

Wake Up! It's Sats O'Clock.

Good morning. It's May 17, 2022.

It seems as if the past weeks sell off has stabilized. Bitcoin is back above $30K at the time of writing.

El Salvador hosted a Bitcoin conference with more than 40 countries sending their representatives to discuss the adoption of BTC and economics surrounding the future of their countries.

El Salvador’s president is hosting the Davos for Bitcoin with more than 40 countries represented

The discussion will focus on Bitcoin along with other subjects like crypto’s role in the digital economy.

https://fortune.com/2022/05/16/el-salvador-president-nayib-bukele-davos-bitcoin-crypto/

Bukele posted a list regarding the countries in attendence.

Tomorrow, 32 central banks and 12 financial authorities (44 countries) will meet in El Salvador to discuss financial inclusion, digital economy, banking the unbanked, the #Bitcoin rollout and its benefits in our country.
— Nayib Bukele (@nayibbukele)
2:41 AM • May 16, 2022

It would not be surprising if other countries follow suit in making Bitcoin as legal tender. Panama and the African subcontinent seem like the most likely next candidates.

Michael Saylor discussed the impact of regulation in the crypto industry. As adoption grows it is inevitable that regulation will come.

#Bitcoin provides a sound economic, technical, and ethical foundation for the cyber economy. Payments will move over the open Lightning⚡️ protocol and via custodial Applications. Regulation of the #Crypto industry will be accelerated and encourage bitcoin adoption. @YahooFinance
— Michael Saylor⚡️ (@saylor)
4:28 PM • May 16, 2022

It is important to note that Bitcoin is censorship resistant technology and regulation would not be able to hinder it's overall use-case.

With the news of LUNA selling 80,000 Bitcoin, many investors questioned its role as a reserve asset. Nic Carter expressed a different view.

good news for bitcoin. unstable systems buying a lot of bitcoin is generally not good as they have to spit it out when they fail. we are free of a $3.5b overhang now.
— nic carter (@nic__carter)
3:08 PM • May 16, 2022

Nic also discussed why Bitcoin fees are necessary in a Proof of Work system and explained the concept in great detail.

Bitcoin’s Proof Of Work Is Well Worth Its Fees

While centralized exchanges might think they want to promote proof-of-stake blockchain projects, they misunderstand the value of Bitcoin’s proof-of-work model.

https://bitcoinmagazine.com/business/the-value-of-bitcoin-proof-of-work

Another important thing to note is the growing capacity of the Bitcoin lightning network. While speculators focus on price, long term holders understand the network effects of technology.

A word of caution...

A Talebian play in two acts.
— Arthur B. 🌮 (@ArthurB)
11:26 AM • May 14, 2022

Do not listen to academics just because they are academics.

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