During the summer of 2021, the Sigma Alpha fraternity at Lipscomb University decided to put a large percentage of their cash reserves into bitcoin, hold it on their balance sheet, and to accept dues in bitcoin through the Lightning Network. It unanimously passed and was implemented shortly after. At the peak of the move in November, the Sigma Alpha treasury had risen 70% in value from their original purchase.
I am thrilled to have the opportunity to be covering this story from an inside perspective as an executive of the fraternity. I was a key orchestrator in this process, alongside President Sean Hagan, Vice-President Mason Nam, and Treasurer Cole Warren. I am pleased to announce that we are the first fraternal organization in the nation to hold bitcoin on our balance sheet and accept dues in bitcoin.
This is a huge milestone for not only the fraternity but student organizations across the globe.
The Organizational Fiat Dilemma
The executives ran into a dilemma in the summer of 2021 while we were planning and anticipating the start of another school semester, a dilemma I assume many other organizations also faced: “How can we, as a student organization with exclusively cash, maintain our purchasing power during such a high inflationary period?”
Sean and I were very much orange-pilled at the time so he had suggested to me that we should follow Saylor’s suit and put bitcoin on our balance sheet. We then continued further with the obvious solution of accepting dues in bitcoin as a means to increase our exposure. This was a very popular choice among members and we believe it to be a contributing factor in the unanimity of the following vote to adopt a Bitcoin standard.
This served two purposes for us: First, it helped us diversify our cash into an asset that would maintain its purchasing power significantly better than fiat. And second, it gave incentive to the members of the club to keep up with the bitcoin price and learn more about bitcoin. This was very successful, with a majority of our members now holding bitcoin themselves.
Why Do Student Organizations Need To Implement Bitcoin?
Not only will student organizations benefit from adopting bitcoin, the asset, but they will also significantly enhance their operations by adopting Bitcoin, the monetary network. Bitcoin, the network was founded by Satoshi Nakomoto for the specific purpose of giving the people or organizations who use it monetary freedom and to enhance the way they conduct their operations. This was our thesis behind accepting dues in bitcoin through the Lightning Network as it is actually a faster, more transparent, and better way to conduct peer-to-peer transactions for our organization.
Some campuses actually require their organizations to hold their assets in an account controlled by the University itself. Bitcoin fixes this and gives the custody of the assets back to the organization.
Ultimately during high inflationary periods, even student organizations will be needing to protect their purchasing power. Historically, from the last century, we have been able to conclude that the Federal Reserve Board cannot be trusted in protecting us from this phenomenon themselves. As Consumer Price Index year-to-date was announced recently to be upward of 7%, this is the largest yearly increase we have seen since the period ending June 1982. As bitcoin is a fixed asset that moves at the speed of light, we now have an opportunity to take this responsibility into our own hands. The result is not only a protected purchasing power but an increase in custody and value.
By taking on this responsibility, you as an individual will be able to not only use this modern technology but also educate yourself through experience. This education will ultimately be more valuable to you than the actual increase the asset may provide. Specifically for students, it is important to educate yourself outside the confines of your university’s system due to the quickly changing landscape of traditional finance.
Through working with this next generation of technology, it will increase the decentralization of it and decrease the power of the centralized system of control. Therefore, not only is this an explanation of why you should buy bitcoin, but also a call to action for you to educate yourself in areas where you would not have been able to otherwise.
This might sound intimidating for the average user. Many are often scared of embracing new technology that is hard to understand from the outside looking in. But I can reassure you that it is actually very simple and ultimately freeing. It is easy to use, easy to implement, and easy to understand with the right mindset. Ultimately, it is your choice to call yourself to this standard, but I highly encourage you to do so.
How Does A Student Organization Implement Bitcoin?
To start, there needs to be a call to action for students who want bitcoin and the study of Austrian economics to get properly implemented within the structure of academia. This might look different on a university to university basis, but the core goal should remain the same.
A second step is to encourage other fraternities, sororities, and student-led organizations to study and implement bitcoin themselves. If the educational system keeps refusing to instruct on basic economic concepts and monetary freedom, then there must be actions of leadership taken by student-led organizations to fill this void.
I encourage you, if you are a student reading this article, to start up a Bitcoin club at your university. I bet you will be surprised by the interest in students who want to learn more and be educated on the topic. If you are a professor reading this who has been looking to get involved, you should sponsor the club and give these students guidance on how to properly educate themselves and increase their discernment.
A great place to start would be reading “The Bitcoin Standard” by Saifedean Ammous, and opening up discussion, challenging one another to understand these concepts. Then if that goes well, follow up with Ammous’ “The Fiat Standard.”. Both of these books are curated for this very reason and would provide a very solid framework for your club.
The last step is to buy bitcoin. And keep buying more bitcoin. I know this sounds very cliche and bromide, but it is the core behind what bitcoin is. To fully embrace bitcoin, you must start stacking sats.
The best way to do this is to start using Strike as your new Venmo. Ordered a pizza for you and your roommates? Bought tickets to the game under your debit card? Request them on Strike for the dollar amount they owe you. But instead of receiving the payment in USD, you will be receiving the payment in the hardest money on earth, bitcoin. And the best part about it? NO FEES! You can transfer it back to your bank account if you need to, just like Venmo. You can also download Strike as a Google Chrome extension, so no matter where you are, you have control of your bitcoin.
As of January 2022, Sigma Alpha has taken action to not only be a bitcoin-holding organization but also to be a small piece in the “hyperbitcoinization” of the entire globe. We hope to be a light to other organizations who are looking to follow in our footsteps or those who have asked the same questions that we once did. We also are looking to bring awareness to the misguided opinions about Bitcoin within academia. This calls for us to push back against the constant pressure on educational systems to cattle their students into the traditional educational systems predominantly influenced and persuaded by the corporate world.
I encourage you to take control over your financial destiny and start implementing bitcoin into your everyday life. First educate, then implement. These two steps will create the largest paradigm shift the world has ever seen, starting with student-led organizations, and the Trojan horses like Sigma Alpha, who decided to take a risk for the betterment of humanity.
This is a guest post by Chris Smith. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
The founder of the decentralized exchange, dYdX, asserts that individuals involved in cryptocurrency development should direct their efforts toward international markets beyond the United States for the upcoming five to ten years.
Antonio Juliano conveys to his audience of 49,400 on the social media platform X that the prevailing regulatory uncertainty within the United States does not merit the associated challenges or concessions.
Juliano contends that it would be more prudent for cryptocurrency developers to establish their products in alternative countries and subsequently re-enter the United States from a position of strength.
“Cryptocurrency developers would be well-advised to temporarily discontinue catering to the US market and instead seek re-entry in a span of 5-10 years. The complications and compromises involved do not warrant the endeavor. Moreover, a substantial portion of the market exists overseas. It is recommended to innovate in those regions, ascertain product-market fit, and then return with greater bargaining power…
The paramount objective shared among all stakeholders is to secure a significantly more potent product-market fit for cryptocurrency. The pursuit of a robust product-market fit does not necessitate flawless distribution. A multitude of substantial overseas markets present avenues for experimentation.”
Juliano articulates that advocating for more amiable cryptocurrency regulations demands time, although the process could be expedited if developers manage to introduce products that elicit consumer demand.
“However, this perspective does not undermine the importance of efforts to influence US cryptocurrency policy. On the contrary, such endeavors are absolutely vital. Given the protracted timeframe required (in anticipation of re-entry), and considering that much of the world takes cues from the United States, it becomes evident that our progress in shaping policies hinges upon achieving global-scale product usage.”
The dYdX founder proceeds to emphasize that, with time, American citizens will come to realize that cryptocurrency is inherently aligned with US values and principles.
“The tenets of cryptocurrency closely align with American values. What concept could be more quintessentially American and reflective of capitalist ideals than a financial system conceived for the people, driven by the people, and answerable to the people? This, indeed, constitutes the very essence of our endeavor.”
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
Bloomberg Intelligence’s senior macro strategist, Mike McGlone, is conveying a pessimistic outlook for Bitcoin (BTC) in the immediate future.
During a recent interview on Kitco News, McGlone underscored that Bitcoin is currently displaying bearish signals even amidst the ascent of other high-risk assets.
“In the event of a downturn, adhering to a rule prevalent in bear markets, resources across the board could witness a reduction in value, and Bitcoin will not be an exception.
A crucial observation is the necessity for Bitcoin to exhibit divergent strength at a certain juncture, akin to the behavior of treasury bonds and gold in a deflationary economic environment. Regrettably, this pattern has not materialized.
After attaining its peak towards the conclusion of Q1, reaching approximately $31,000, driven by optimism and the influence of exchange-traded funds (ETFs), Bitcoin subsequently retraced to $25,000 or approximately $26,000. Presently, it is manifesting divergent weakness in contrast to the concurrent upsurge in the stock market.”
According to McGlone’s analysis, the ongoing “economic reset” implies a continuation of Bitcoin’s recent downward trend, although he anticipates that the premier cryptocurrency will ultimately attain a six-figure valuation.
“While I believe that Bitcoin will eventually achieve a valuation of $100,000, the onset of a global economic reset, as I anticipate, characterized by a standard deflationary recession leading to a decline in the housing and stock markets, analogous to the conditions of 2008—though arguably exacerbated due to the ongoing removal of liquidity from the system—Bitcoin’s role as an influential precursor comes to the forefront.
This underscores my point that Bitcoin has recently been taking on the role of a harbinger of trends. Its value ascended briefly to around $31,000, only to subsequently trend downwards. From my perspective, it serves as a leading indicator for a majority of high-risk assets.”
As of the time of writing, Bitcoin is trading at $26,079.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
Shiba Inu’s (SHIB) Latest Layer-2 Scaling Solution Nears Public Relaunch Following Recent Technical Challenges
Shytoshi Kusama, the enigmatic lead developer behind the SHIB project, has shared in a recent blog post that significant progress has been made in addressing the technical setbacks that temporarily halted the operation of Shibarium, SHIB’s new layer-2 scaling solution. The initial release of Shibarium encountered network issues that prompted its temporary closure. However, Kusama assured the community that diligent testing and parameter adjustments have led to notable improvements.
Kusama elaborated, stating, “After extensive testing and parameter refinements aimed at achieving a ‘ready’ status, Shibarium has undergone enhancements and optimization. While still undergoing testing, it is now successfully producing blocks.” Additionally, to prevent a recurrence of the past network overload, Kusama revealed the implementation of a new monitoring system and supplementary fail-safe measures. These include rate limiting at the RPC (remote procedure call) level and an automated server reset mechanism in the event of another surge in traffic.
With these advancements in place, the team is on the verge of reopening Shibarium to the public. As part of this progression, more network validators will be integrated into the ecosystem on August 23rd. Kusama emphasized the significance of this step, remarking, “Tomorrow, additional validators will become operational, expanding the options available for staking BONE. This will allow for a distribution of rewards earned through their roles within our community. As testing concludes, we will once again prepare for public utilization.”
Shibarium’s previous technical difficulties were attributed to an overwhelming influx of users and transactions during its initial launch. As of the current writing, SHIB is trading at $0.00000798, marking a 0.4% increase over the past 24 hours.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
FTX’s co-founder, Sam Bankman-Fried, is currently seeking a temporary release from incarceration. The purpose behind this endeavor is to engage in collaborative strategizing with his legal representatives within the confines of the federal courthouse situated in Manhattan.
In a formal letter dispatched to US District Judge Lewis Kaplan on a Friday, Bankman-Fried’s legal team expounded that their client’s capacity to effectively scrutinize the extensive legal documents pertaining to his case has been significantly curtailed during his time spent incarcerated at the Metropolitan Detention Center (MDC) in Brooklyn.
Christian Everdell, the attorney representing Bankman-Fried, divulged that the government recently disseminated a voluminous three-quarters of a million pages of Slack communications. These were originally due several months prior. Expressing the urgency of the situation, Everdell articulated, “Only last week did the government furnish an aggregate of approximately seven hundred and fifty thousand pages of Slack communications that were originally stipulated for release months ago. Given the current timeline, it is a futile endeavor for Mr. Bankman-Fried to endeavor to review these materials.”
He underlined the pivotal necessity for Bankman-Fried to collaborate meticulously with his legal team, emphasizing his dire need to avail himself of an internet-enabled laptop within the courthouse premises. Such a resource would undoubtedly expedite the process of comprehensive document review, an imperative undertaking in light of his impending fraud trial scheduled for the forthcoming October.
In riposte to Bankman-Fried’s plea for reprieve, the prosecuting body voiced apprehensions regarding his adherence to the prerequisites concerning his planned defense strategy. Notably, they underscored that Bankman-Fried is yet to furnish the complete gamut of essential information regarding the counsel upon which he predicated his actions.
The prosecutors proffered caution that unless Bankman-Fried promptly discloses the minutiae regarding the counsel he received and the provenance thereof, any attempt to interject such a defense during the trial should be summarily proscribed.
Although the prosecutors extended an offer to facilitate the transfer of documents onto hard drives for Bankman-Fried’s perusal within the MDC premises, a viable laptop-based solution was deemed unattainable. Initially, the notion of relocating Bankman-Fried to a more compact, upstate correctional facility where he could access an internet-enabled laptop was contemplated by the prosecutors. However, this proposal was met with resistance from prison officials.
Regarded for its starkly onerous conditions, the Metropolitan Detention Center has cultivated a notorious reputation among its inmate population.
Bankman-Fried’s Incarceration Stemming from Unsanctioned Internet Utilization
As documented, Judge Kaplan sanctioned the re-imprisonment of the beleaguered cryptocurrency luminary, citing alleged instances of witness tampering.
In that juncture, Judge Kaplan pronounced that a strong prima facie case existed indicating that the accused had endeavored to tamper with witnesses on no fewer than two separate occasions.
The decision was additionally influenced by Bankman-Fried’s unsanctioned use of the Internet while released on bail under the guardianship of his parents at their abode located in California.
Judge Kaplan discerned that Bankman-Fried had indulged in excessive communication with various individuals via electronic correspondence, even resorting to the utilization of a virtual private network.
Concurrently, the disgraced progenitor of FTX is simultaneously grappling with novel allegations brought forth by the Department of Justice (DOJ). These allegations encompass the misappropriation of customer deposits, including the purported embezzlement of said funds.
An indictment filed on the most recent Monday delineates that Bankman-Fried stands accused of diverting and embezzling customer deposits from the FTX platform. The illicitly obtained funds were purportedly channeled towards political campaign contributions, collectively amassing a substantial sum exceeding one hundred million dollars, in advance of the 2022 US midterm elections.
The indictment further posits that despite Bankman-Fried’s intimate knowledge of FTX’s fiscal insufficiencies, he continued to channel the purloined funds into personal investments, acquisitions, and political campaign contributions.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
The U.S. Securities and Exchange Commission (SEC) is taking significant steps towards pursuing an appeal in their recent legal battle against Ripple, indicating a potential shift in the course of the lawsuit.
James K. Filan, an experienced defense attorney specializing in crypto-related legal matters, has shed light on the latest developments. District Judge Analisa Torres has initiated a structured process for considering the SEC’s request to present an interlocutory appeal—a move that would allow the SEC to contest certain aspects of the ongoing case.
It’s important to note that this preliminary step does not guarantee the authorization of an interlocutory appeal; rather, it signifies that the SEC has been given the opportunity to formally request such an appeal.
Judge Torres has outlined the timeline for this process in her official order. The SEC is expected to file their motion for the appeal by August 18th. Subsequently, Ripple is given until September 1st to submit their opposition papers. If the SEC deems it necessary, they have until September 8th to file a reply.
The news of these developments had an immediate impact on the cryptocurrency market. Following the announcement of the judge’s order, the value of XRP experienced a sharp decline. The price, which had been trading at approximately $0.571, dropped to around $0.499 at the time of writing. This decrease of over 12% aligns with the broader trends observed across the cryptocurrency landscape.
The legal clash between the SEC and Ripple began when the regulatory agency filed a lawsuit against the San Francisco-based payments company in late 2020. The SEC alleged that Ripple had engaged in the sale of XRP without registering it as a security.
In a significant turn of events last month, Judge Torres issued a ruling that had mixed implications for both parties. She determined that Ripple’s automated programmatic sales of XRP, which occurred on the open market, could not be classified as securities offerings—a pivotal point of disagreement between the SEC and Ripple.
However, the judge did uphold a key aspect of the SEC’s argument. She agreed with the agency’s assertion that Ripple’s direct sales of XRP to institutional buyers indeed amounted to a securities offering, reinforcing the complexity of the case.
As the legal battle continues to unfold, the spotlight remains on the actions and responses of the SEC and Ripple, and how their ongoing dispute could shape the future regulatory landscape for cryptocurrencies and digital assets.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.