Inflation. It’s good for your tires and essential for hot air balloons, but it’s famously bad for the economy.

As prices rise, you’ll begin fondly reminiscing about when a loaf of bread was just a nickel and a carton of eggs was less than $10.

But one of our favorite cryptocurrencies could prove to be the key to fighting inflation. So, let a little air out of your balloon and we’ll gently descend through today’s newsletter.

Espresso Shots

☕️ New Guilty Plea from FTX Engineering Director 🚨 ⚖️

Nashad Singh, the Engineering Director at FTX, has pled guilty to six criminal charges in the case against the firm.

Singh joins ex-Alameda CEO Caroline Ellison and FTX co-founder Gary Wang, who have also pleaded guilty to fraud, conspiracy, and other crimes regarding FTX.

“Nishad is deeply sorry for his role in this and has accepted responsibility for his actions,” said Singh’s lawyers.

“He wants to do everything he can to make things right for victims, including by assisting the government to the best of his ability in this case.”

On the other hand, Sam Bankman-Fried, the man at the center of the FTX collapse, still maintains his innocence, pleading not guilty to the 12 charges against him.

But we’ll see how well SBF’s defense holds up when his Engineering Director “Singhs” like a canary.

☕️ Binance Vs. Forbes 🚨 📰

Binance CEO, Changpeng Zhao, took to Twitter to decry a recent Forbes article comparing Binance to FTX.

The article, entitled, “Binance’s Asset Shuffling Eerily Similar to FTX,” tries to draw a comparison between FTX in the days before its collapse and Binance today.

Forbes lists Binance.US’s failed Voyager bid and details the SEC’s case against Paxos’s Binance USD as reasons to doubt Binance’s stability.

Naturally, this made Changpeng Zhao pretty peeved, so he took to Twitter to air his frustrations.

If you think he’s mad now, wait till CZ sees the “who wore it best” with him and Mark Zuckerberg in Us Weekly.

☕️ SHIBA Coin’s Concerning Movements 😳 🪙

A single wallet, 0Xd6, holding 182 billion Shiba Inu tokens, moved its contents to exchanges Crypto.com and Gemini on monday.

When a whale migrates like this, it usually means that they’re about to sell. And a sale this large could cause a pretty serious price drop for SHIBA.

In fact, when this same wallet moved 200 billion SHIBA to Crypto.com three months ago, they sold all of it and sent SHIBA down 7%.

Estimates show that this single wallet holds roughly 3.1 trillion shiba inu token or .3% of the total supply.

We’re worried about our doge. The last time a dog behaved this erratically was Old Yeller, and Travis had to shoot him behind the barn.

Spilling the Beans

How Bitcoin Fights Inflation 🎈

We talk a lot about crypto’s utility.

If you can’t tell, we’re pretty bullish on crypto. And coffee. Those are really the two things that we like.

But when we talk about how crypto is solving the problems created by centralized finance, what do we mean?

Well, today we’re going to dive deep into one of Bitcoin’s both captivating and fundamental properties: its resistance to inflation.

Why is Bitcoin resistant to inflation?

Because it has something that the fiat currencies don’t. Again, fiat currencies are just any kind of currency that’s regulated and backed by a government, think the U.S. dollar or the euro.

Bitcoin maintains a limited supply. There can only be 21 million Bitcoin at one time.

Fiat currencies, on the other hand, are infinite. The governments behind them can print as much as they need to.

And they need to print more every year. In fact, the average global inflation is around 3% per year.

Banks and governmental institutions are comfortable with that. It’s us, the little guy, who takes a beating.

Because when serious inflation occurs, prices rise everywhere while your dollar becomes worth less. Suddenly those retirement savings you’ve been hoarding are looking a lot wimpier.

Bitcoin has a limited supply, so when Bitcoin goes through cycles, it doesn’t inflate, it halves.

For every 210,000 blocks of Bitcoin that are mined, Bitcoin goes through a halving cycle.

After each halving, the block reward for miners goes down.

Bitcoin cost $10 at the first halving cycle. $500 at the second halving. Bitcoin was less than the estimated $25,000 at the third halving, but this predictability makes it an incredible asset.

Yes, there are factors that make crypto more volatile than some of your parents’ investments, like gold. But unlike gold, Bitcoin’s value clearly moves in patterns that are easy to track.

And the nature of Bitcoin makes it utterly inflation-proof.

In fact, if you were to put some of every paycheck into Bitcoin, you’d be essentially operating as your own hedge fund.

You’d be hedging that Bitcoin deposit against the larger economic conditions of your country, and that money’s value has nothing to do with Uruguay, Kansas, Nebraska, or wherever you’re reading this.

Maybe don’t put all your money into Bitcoin. We’re not telling you to do that. But when it comes to Bitcoin, you’re not going to find a better method to fight inflation.

Except slashing your ex’s tires. That’s a pretty good way to fight inflation.

Meme of the Day

Bitcoin is coming for the Macy’s Day Parade. Inflation should be afraid. Be very afraid.

Crypto 101

Crypto 101: FUD: Fear. Uncertainty. Doubt. “FUD” refers to a general pessimistic outlook.

Investors and crypto enthusiasts may accuse each other of using FUD to manipulate consumer’s emotions. It’s also just a fun way to tell someone they’re being a downer.

The Last Sip

Here are some other good ways to fight inflation:

• Create your own, barter-based economy by trading beads and furs.

• Unplug the power chord from a bouncy castle.

• Kill and consume the Michelin Man.

Stay Caffeinated,

Coffee & Crypto Team

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.