MAJR Newsletter 085
Bitcoin’s IQ is going up. Get smarter with it.
MAJR NEWS BRIEF
An upgrade to the Bitcoin protocol is coming, and it's only getting better.
Now more than ever, it's important and necessary to remind everyone of what Bitcoin is at its core...a technology. Bitcoin, in light of recent news and headlines, was created as more than just a storage of value. When you invest in Bitcoin, you are investing in a robust technology that has the potential to change the world. Simple as that. Recently, the market has been distracted with Bitcoin’s volatile price action, but Bitcoin as a network is taking center stage with an upgrade called Taproot. Let’s turn our laser eyes there.
What exactly is Taproot?
Taproot is a backwards compatible upgrade proposed by the Bitcoin community to improve the network without changing bitcoin’s core characteristics. Taproot has three main objectives.
Increased privacy for complex transactions, such as smart contracts, timelocks, or those involving various parties.
Lower transaction fees for complex data packed Bitcoin transactions to help lower costs.
More functionality and the introduction of a new smart contract signature that makes complex conditions simple, cheap and doable.
This last point should not be overlooked. To some, Bitcoin is a “one trick pony” compared to other cryptocurrencies. Not anymore. Taproot suppresses these discussions of incapability as the addition of the new smart contract signatures (“Schnorr signatures”) opens the gateway to more opportunities and use cases for Bitcoin. These signatures are also smaller by byte size and length offering those that adopt the upgrade to save space on the blockchain. It is just the beginning, but this could be big for Bitcoin. The Bitcoin critics have always claimed lack of functionality, however Taproot’s introduction of smart contract technology provides the framework to build more complex applications like we see on Ethereum, but on the Bitcoin protocol. Huge.
Taproot Signaling
Who Approves These Changes?
In a decentralized world, there is no governing body or single authority. Thus, when a change to the protocol is proposed there must be collective buy-in and approval to move it forward. Consensus matters. In order for Taproot to be implemented in the coming November, 90% of the Bitcoin miners need to “signal” support for the project in a given two-week period. They do this by literally including a signal bit in the blocks they mine over the two-week window. If the threshold is met with the mined blocks showing 90% support, the upgrade will be locked and activated later this year. The voting period begins this weekend, and it’s likely Taproot will be approved as the miners are already showing support. However, the upgrade has until August to get pushed through or else it gets dropped.
Wrap Up.
Taproot offers solid improvements for Bitcoin that will greatly benefit the network. If passed, it would be the biggest upgrade since SegWit in 2017. These rare changes and extensive gaps between updates goes to show the deep consideration presented by core Bitcoin developers and community, along with efficiency and health of the decentralized network. While still a new technology, Bitcoin is only getting stronger, faster, and smarter as it ages. Taproot furthers the usability, performance, and the market for Bitcoin. There is so much potential for Bitcoin, and the Taproot upgrade is just another step closer to reaching its full potential.
As Bitcoin evolves, we evolve. Believe in Bitcoin.
In other news:
Seven-time Super Bowl Champion, Tom Brady, says he is definitely invested in crypto at Consensus without disclosing specific coins. He does not see cryptocurrency going away as it’s here to stay and believes there are more solutions the NFL can make to meet demand for adoption.
Ark’s Cathie Wood, blames the recent crypto crash on Elon and ESG movement. She thinks central banks will begin to buy crypto at some point, and Elon will be positive in the long-term for Bitcoin.
Biden to unveil $6 trillion spending blueprint. Under the proposal, debt as a percentage of annual gross domestic product would within a few years exceed the level at the end of World War II and climb to 117% of GDP by the end of 2031. That would be up from about 108% this year.
Americans continue to venture back out into public to buy services they went without for more than a year—a shift that is adding fuel to the economic recovery and stirring higher inflation.
FACTS
You do not need to be an Ivy League student/graduate to learn about Bitcoin. Anyone can and should learn about cryptocurrencies.
It is very simple. Grab a book, take the time to do your own research, and educate yourself on possibly one of the biggest opportunities of our lifetime.
TOP STORIES
BITCOINArk’s Cathie Wood, blames recent crypto crash on Elon and ESG movement, Coindesk
Bitcoin Drops, Stocks Rally Ahead of Biden’s Budget Announcement, Coindesk
Bitcoin Falls Below $36,000 as Cryptocurrencies Slip Once Again, CNBC
Bitcoin 2021: World’s Largest Cryptocurrency Conference Coming To Miami’s Wynwood Neighborhood, CBS
CRYPTOTom Brady is “definitely” in on crypto, Coindesk
Australian Tax Office Warns Crypto and NFT Investors to Report Activity, Decrypt
The $100 Billion Stablecoin Question, Bloomberg
21 Shares to List Three Crypto ETPs, Coindesk
MACROBiden plans to unveil $6 trillion blueprint, WSJ
Migrants Keep Money Flowing Home as Rich Economies Bounce Back, WSJ
Americans’ Boost to Spending Is Adding Fuel to Economic Growth, WSJ
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THIS IS NOT FINANCIAL ADVICE. IT’S IMPORTANT TO DO YOUR OWN RESEARCH. INVESTING IN CRYPTOCURRENCY OR ANYTHING FOR THAT MATTER COMES WITH RISK. THE INFORMATION PRESENTED IN THIS NEWSLETTER IS FOR INFORMATION AND ENTERTAINMENT PURPOSES ONLY.