You know what’s in your coffee. Whether that’s oat milk, hazelnut syrup, or you’re just drinking it black like the liberal arts undergrad you’ll always be at heart.

But is there a hidden, digital element to your coffee that you’re not aware of…?

In today’s Coffee & Crypto, we’re going to live up to our name and dredge up the crypto that’s been hiding in your morning cup of joe.

Espresso Shots

☕️ Is America Surrendering Crypto? 🇺🇸 ❌

American regulation may be hurting crypto innovation to the point that the USA will soon be overtaken by Europe and Asia.

Crypto entrepreneur, Zain Jaffer posits in a new opinion piece that with the closures of crypto-friendly banks and lawsuits against exchanges, it's too late for the US.

“With this move to try and kill crypto, the US is potentially ceding what could be its lead to other countries. Europe and Asia already lead in 5g and some aspects of chipmaking,” writes Jaffer.

Jaffer is hardly alone in his concerns. A report released by venture capital firm a16z, suggests that anti-crypto enforcement has driven 10% of developers out of the country.

According to a16z, the US was home to 40% of all crypto developers in 2018. That number has now fallen to just under a third and shows no signs of slowing. 

But even if the tide should turn against us and we lose out on crypto to other countries, the U.S. will always, always, be number one in private gun ownership.

☕️ CleanSpark Doubles Bitcoin Mining Fleet 💎 ⛏️

CleanSpark, a major U.S. bitcoin miner, has purchased an additional 45,000 Bitcoin mining machines for $144.9 million, effectively doubling their fleet.

The new machines are expected to be rolled out by the end of the year. CleanSpark is currently based out of Sandersville, Georgia and is an essential part of the South’s Bitcoin mining boom.

Isaac Holyoak, CleanSpark’s chief of communications, feels that his company could be a boon for Georgia’s economic growth.

“Sales tax on our energy bills pour hundreds of thousands of dollars a month into local programs and infrastructure,” said Holyoak.

“We work hard to cultivate strong relationships at the community level, with mayors, city councils, and local residents and do our best to give back.”

Though CleanSpark is growing at a breakneck pace, they can’t hope to match the raw, transformative power of Optimus Prime’s AllSpark.

☕️ Doge Documentary Announced 🎥 🐕

Doge, the meme that inspired a cryptocurrency with an $11.6 billion market cap, is coming to the silver screen.

The yet untitled documentary, which is already being affectionately referred to as a “dogumentary,” is currently searching for Hollywood backers.

The feature length documentary will chronicle the rise of the 17-year old Shiba Inu which became an internet sensation, spawning a cryptocurrency, several DAOs, a school of philosophy, and a quasi-religious pilgrimage to Japan.

Tridog, a pseudonymous online film producer and founder of the “Own The Doge,” NFT community, thinks they have an absolute blockbuster on their paws.

“We plan to have a variety of partners and producers, traditional and crypto-native alike, in order to make this the absolute best piece of art the internet has ever seen,” said Tridog.

This documentary hopes to finally answer the question, “is it the size of the doge in the fight, or the size of the fight in the doge?”

Spilling the Beans

Coffee & Crypto Presents: Crypto & Coffee ☕️

Well folks, we decided it was finally time to live up to our namesake. Sure, we deliver crypto news every day... but how often do we deliver coffee news?

Almost never. It's a shame really. Well that all changes right now. 

Today, we've got the greatest story to grace this coffee and crypto themed newsletter. That's right, we're finally combining coffee and crypto into one story. 

Our story begins at the most popular coffee store in the world. No, it's not Dunkin. America, does not in fact run on Dunkin. Sorry, Boston.

America, and the rest of the world for that matter runs on Starbucks. And what does Starbucks run on?

Well, you've been to a Starbucks, right? And you've seen the long lines of people waiting for the register and placing their order?

But you've also scene that spot on the counter where baristas drop cups and people wander in, find their order and leave. That, is what we're interested in. 

This is the story of the Starbucks mobile app: One of the biggest payment apps in the world.

The Starbucks App is one of the most popular consumer apps. It makes ordering and picking up your coffee quick and painless.

It’s a simple system, you deposit money into your Starbucks account with a debit or credit card and place an order for whatever you want. Then your coffee is waiting for you.

It’s a format that’s been copied by numerous restaurants such as Chipotle and Chick-Fil-A, with similar success.

But the Starbucks app isn’t just the most popular restaurant app. Because Starbucks isn't just the most popular coffee shop: it's an absolute behemoth.

Starbucks has become the second most popular payment app in the world. It's only surpassed by Apple Pay. 

By sheer volume of users, Starbucks easily beats out both Google Pay and Samsung Pay... It's estimated over 30 million people use the Starbucks app in the US.

In other words, 10% of the country is using the Starbucks app, loading it up with funds, and ordering their coffee with digital payments. 

In fact, by one estimate, the Starbucks App holds well over a billion dollars in customer funds at any given time.

Now this is an important note: Starbucks takes customer funds like a deposit. You then have essentially a store credit or gift card on the App: a digital credit if you will.

In other words, it doesn't work the way Apple Pay does, where it pulls directly from a credit or debit card with every purchase. Rather, it pulls from your digital credits.

Which means, Starbucks isn't just a payment app, it's a digital payment app. It's using digital credits and transacting between accounts and stores. 

Even with the burgeoning crypto sphere, that means that Starbucks's mobile app is the biggest digital payment app in the world. 

Another wild note here: Starbucks has control of the money that customers put on the app. It's a bit like a bank account. Your money isn't just sitting untouched. 

Though that credit amount may not change, your money is being used to build and run countless brick-and-mortar Starbucks and pays the salaries of Starbucks’s staff.

So, what would happen if all of Starbucks’ customers withdrew their money from the app?

Would it lead to a run on the Starbucks app or a devastating collapse of epic proportions? Well... Probably not. Largely because you can't withdraw money from the app. 

You're essentially buying a gift card and it's not easily refundable. In fact, only residents of California and Oregon have easy refund options - and both of those are limited.

California residents can withdraw a whopping $9.99. Oregon is capped at $4.99.

Everyone else? You've gotta call the company and wait on hold and jump through hoops and you'll likely be told "no" or maybe "we'll mail you five bucks."

So it turns out... Starbucks is an even larger force than we ever imagined. 

Now one major note here: Starbucks is a digital payments app - but the app isn't run on crypto technology... yet. Though it's certainly not out of the question.

The coffee corp has already rolled out proposed NFT programs, crypto rewards, and crypto payment options, so the app may not be far behind. 

Which means that even though we've been spending months writing about the crypto part of our name, it turns out the money was in "coffee" all along.

So the next time you sip on your special treat, that skim caramel macchiato with extra foam, know that this wasn’t just a coffee run.

You’re an active participant in the world's largest digital payment app. So enjoy that sip of coffee... with just a hint of crypto. 

Meme of the Day

It's a dream come true really.

Also, please reply to the tweet below if you have any other crypto stories that relate to coffee. Or vice versa.

Crypto 101

Public Key: This is ostensibly the opposite of your private key, that 12 word recovery phrase that you should write down somewhere and never ever share.

A public key is a string of characters used to purchase crypto. For example, an NFT creator can list their public key to receive crypto payments for their work.

A public key is kind of like your crypto routing number or Venmo username.

The Last Sip

Here are three things that could be hiding in your coffee that are much worse than crypto:

• FBI truth serum.

• Waterborne parasites.

• Whole milk when you specifically asked the barista for skim.

Stay Caffeinated,

Coffee & Crypto Team

That's all for today! If this email got you hooked on our unhinged crypto takes, be sure to get a full dose on Twitter @GetCoffeeCrypto.

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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.