Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Donald Trump: ‘Pay Off Our Debt With Bitcoin’: Former President Donald Trump suggested leveraging Bitcoin to address the U.S. national debt of $35 trillion.

2. ZKX After Shutdown: Amber Group and other investors criticized ZKX for its lack of communication following its economic infeasibility.

3. Potential Recession Looms: Amid signs of a potential recession, Bitcoin could benefit from economic deterioration. Recent job reports suggest that the Federal Reserve may cut interest rates significantly, historically benefiting Bitcoin.

4. Feature of the Day - Memecoin Dumps, Then Pumps?: Vitalik Buterin's sale of his 17 billion Neiro airdrop caused significant fluctuations in the memecoin's value. Initially, the token plummeted by 60% but rebounded by 200% shortly after.

   
   All this and more in today’s headlines!

📰 News Highlights:

Donald Trump: ‘Pay Off Our Debt With Bitcoin’ [Source][Source][Source]

Former President Donald Trump suggested that the U.S. could leverage Bitcoin to address its $35 trillion national debt. In a recent interview, Trump proposed establishing a strategic Bitcoin reserve and hinted at using the cryptocurrency to "hand 'em a little Bitcoin" and alleviate the debt.

This marks a significant shift in Trump's stance on digital assets, having previously been critical of Bitcoin. He praised the crypto community's intellectual capacity and criticized the Biden administration for its lack of support for the industry.

Trump's comments echo a new bill from Senator Cynthia Lummis, which proposes the U.S. invest in Bitcoin to pay down debt over time. Lummis' bill suggests creating a strategic Bitcoin stockpile and acquiring one million BTC over five years.

While the feasibility of Trump's idea is questionable, given the total market cap of Bitcoin is $1.2 trillion, it signals a growing interest in integrating cryptocurrencies into national financial strategies.

ZKX After Shutdown [Source][Source][Source]

The unexpected shutdown of the ZKX protocol has prompted calls for greater transparency in the cryptocurrency industry. On July 31, ZKX, a derivatives trading platform on the Starknet layer-2 network, ceased operations due to economic infeasibility.

Amber Group, a market maker for ZKX, expressed shock at the sudden closure and emphasized the need for clear and accountable communication from crypto projects.

Amber Group had been instrumental in providing liquidity for ZKX, holding 3 million ZKX tokens through a combination of loans and market purchases. Despite efforts to support the platform, including reducing their token loan at the request of ZKX to boost community confidence, the project still folded.

Other investors, such as Hashkey Capital, echoed Amber Group's sentiments, criticizing ZKX for its lack of transparency and poor communication.

Potential Recession Looms [Source][Source][Source][Source]

Amid signs of a looming recession, Bitcoin could stand to benefit as economic conditions deteriorate. Recent dismal job reports have led analysts to predict that the Federal Reserve may soon cut interest rates significantly, a move that historically benefits Bitcoin.

The U.S. unemployment rate rose to 4.3% in July, while job creation lagged behind expectations, prompting fears of a recession.

Financial commentators suggest that the recession could boost Bitcoin as the Fed might cut interest rates by 0.5% in September to stimulate the economy.

Such monetary policy changes tend to devalue the dollar and increase the appeal of fixed-supply assets like Bitcoin and gold.

Historically, Bitcoin has performed well when central banks ease monetary policies. When the Fed last cut rates in April 2020, Bitcoin surged from $8,000 to $64,000 over the next year.

💡 Feature of the Day: 

Memecoin Dumps, Then Pumps? [Source][Source]

Vitalik Buterin's recent sale of his 17 billion Neiro airdrop led to a dramatic fluctuation in the memecoin's value. Initially, Buterin's sell-off caused the token to plummet by 60%, but it rebounded by 200% shortly after.

The Neiro token, which attempted to gain attention by airdropping a significant portion to the Ethereum co-founder, saw its value hit an all-time high despite the initial dump.

Buterin exchanged his NEIRO tokens for 44.5 ETH, worth about $103,000, which led to the initial price drop. However, the token's value surged as market activity picked up, reaching unprecedented levels.

The Neiro on Ethereum (CTO) account acknowledged Buterin's sale and humorously requested he donate part of the proceeds to a stray dog shelter.

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And that’s it for this today.

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See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com