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Bitcoin and Other Digital Assets Are Foundational Technologies

Bitcoin was created a mere 16 years ago by its pseudonymous inventor, Satoshi Nakamoto. In the years since, Bitcoin and other digital assets have rapidly become a critical component of the global economy. Bitcoin alone now has a total market capitalization of approximately $1.85 trillion as of December 9, 2025.

The reason for this explosive growth is that Bitcoin and other digital assets are far more than financial assets— they are a revolutionary financial technology that promises to fundamentally rework the global financial economy. 1 Bitcoin not only created a first-of-its-kind scarce digital commodity, but also established the technological infrastructure—blockchain technology—that allows anyone, anywhere in the world to transfer that commodity (or, in the case of other blockchains, other digital assets) over the Internet without the permission of a bank or other centralized intermediary.

The implications of Bitcoin’s technological leaps are profound. Bitcoin democratizes finance by creating a new, global asset class and infrastructure that cannot be controlled by any individual, company, or government. And Bitcoin allows for the creation of an entirely new financial system on top of that asset and infrastructure that has the potential to usher in novel industries and massive economic growth by unleashing productive forces that are hindered by our current, outdated systems. Moreover, as noted by the Digital Chamber of Commerce, digital assets can be used as productive capital, securing decentralized networks, facilitating on-chain services, enabling customer transactions, and supporting essential business operations.

Bitcoin’s novel technology is already supporting the development of multiple adjacent industries that interact in meaningful ways with the broader financial system. Bitcoin mining businesses like Marathon Digital Holdings, Bitfarms, CleanSpark, and Cipher Mining, for example, invest in and operate energy and computing infrastructure around Bitcoin. Exchanges like Coinbase, Robinhood, and CME provide liquidity and price discovery for Bitcoin and other digital assets. Custodians like Anchorage, Bakkt, and Fidelity have developed standards for safekeeping, cybersecurity, and governance of Bitcoin and other digital assets. These companies and others are creating wallets, payment and settlement mechanisms, compliance and analytics, and infrastructure development. And many companies, like Strategy, are developing new and innovative financial instruments backed by Bitcoin. These companies are not just investing in Bitcoin—they are building a new financial system on top of it. This investment pattern is not new.

Years ago, companies like Standard Oil and AT&T invested in drilling for oil or building a national telephone network at a time when whale oil and telegraphs dominated the economy. Some may have thought then that those companies were investing too heavily in a single, then-novel asset class.3 Yet today, we regard those companies as visionary leaders that generated foundational economic infrastructures—in turn unlocking transformative economic development that few could have foreseen at the time. So too, companies like Intel or NVIDIA may have been chided by some for putting all of their investments into semiconductors or GPUs at a time when few would have thought that computers or artificial intelligence would one day become ubiquitous.4 Yet again, those companies built the infrastructure that our digital economy relies on today and that powers our nation’s modern economic growth.

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Finance Technologies LTD: Christmas 🎁 Cash Boost!

A spectacular offer to elevate your financial journey this festive season!

Finance Technologies LTD is spreading Christmas cheer with an unparalleled Cashback and Deposit Boost for all our valued clients—both new and existing!

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From $400,000 to $1million     +10% to the deposit

 

Kind regards,
Finance Technologies LTD.

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The European Central Bank (ECB) has implemented its fourth interest rate cut of the year, reducing the deposit rate by 25 basis points to 3%. 

The European Central Bank (ECB) has reduced its deposit rate for the fourth time this year, cutting it by 25 basis points to 3%. This decision comes at a crucial moment for the 20-country eurozone, as the region shows signs of a slowing recovery from the pandemic. By lowering rates, the ECB aims to stimulate economic growth and provide support for the economy during a period of continued uncertainty.

 

In a recent statement, ECB President Christine Lagarde highlighted the progress made in reducing inflation, noting that the disinflation process is "well on track." Inflation, which reached a peak of 10.6% in late 2022, has since fallen significantly to 2.3% by November. While this decline is a positive sign, it has shifted the ECB's priorities from fighting inflation to addressing the more pressing challenge of weak economic growth.

 

As the recovery from the pandemic faces headwinds, the ECB's focus has turned to supporting the eurozone's economic momentum. Growth projections for the next few years have been revised downward, with expectations for 2024, 2025, and 2026 now pegged at 0.7%, 1.1%, and 1.4%, respectively. This adjustment reflects the ongoing challenges within the region, such as political instability and potential global trade tensions, which could weigh on economic expansion.

 

Despite these challenges, the ECB has adopted a measured approach in its monetary policy, opting for gradual rate cuts rather than more aggressive moves. This strategy is designed to balance the need for economic support with the imperative of maintaining price stability. The central bank's cautious stance reflects the delicate nature of the current economic environment, where the risks of both inflationary pressures and stagnation persist.

 

The ECB's actions mirror a broader global trend, with many central banks adopting dovish policies to safeguard economic recovery. The interconnectedness of global markets means that the eurozone's monetary policies will continue to have far-reaching implications. The ECB's role in navigating the post-pandemic economic landscape will be crucial in determining the region's trajectory over the coming years.

 

As the eurozone grapples with its recovery, the ECB's careful management of interest rates will remain a key tool in its efforts to foster a stable and sustainable economic environment. The balance between supporting growth and controlling inflation will likely dominate the central bank's agenda in the months ahead, with policymakers remaining vigilant in the face of emerging risks and uncertainties.

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