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The Bitcoin Minimalist Week 4 - Iranian Miners Seized, Inflation "Reduction" Act & US Debt Spiral

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The Bitcoin Minimalist Week 4 - Iranian Miners Seized, Inflation "Reduction" Act & US Debt Spiral

This week's Bitcoin Minimalist is packed with macro news and charts. The European energy crisis deepens as the US debt spiral speeds up with more spending.

MitchKlee_
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Bitbo.io
Aug 24, 2022
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The Bitcoin Minimalist Week 4 - Iranian Miners Seized, Inflation "Reduction" Act & US Debt Spiral

minimalist.bitbo.io

"If you want to change the world, don't protest. Write code!"

- Hal Finney (1994)

This week:

  • Miners Seized in Iran

  • Inflation Reduction Act

  • US Debt Spiral

  • Congressmen write defending Tornado Cash and digital cash privacy

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News

Inflation Reduction Act

Break Down:

  • $80B (6x annual budget) increase to IRS & 87k new agents

  • $437B in spending

  • $369B goes to investment in Climate

  • 15% Minimum corporate tax rate

  • Prescription drug price reform

  • 1% excise tax on stock buybacks ($74 billion)

More info here

US Congressman Tom Emmer Writes Letter to US Treasury Defending 'Tornado Cash'

Congressmen Emmer wrote the sanctions are unique in that they are leveraged over a “privacy enabling” code. In “Bernstein v. Department of Justice,” the supreme court ruled that ‘code is speech.” This was a landmark case, and Bitocin seems to fall under both the first and fourth Amendments.

  • Update: Tether is not blacklisting accounts associated with Tornado Cash

10,000 Miners Seized In Iran

The miners were found by inspectors reportedly in the location of schools and mosques where electricity is free. This is illegal since the electricity is not going towards the schools but to Bitcoin mining.

Riot Takes $349M Goodwill Impairment Charge

An impairment charge is usually written off for “worthless” equipment but may be slightly different for Bitcoin miners. The recorded impairment charges were in the second quarter concerning its Whinestone facility and the electrical equipment provider.

Price Analysis

Price Chart

With macro markets turning over again, it seems that Bitcoin is still not yet separate or immune to the movements in the greater market. Price has fallen from the high of $24,000 last week and has chopped to around $21,000.

Bitbo.io

Chart of the week

Energy prices in Europe continue to rise after the Russian invasion halted the energy trade. Some European countries, such as Germany, shut down Nuclear, Gas, and Coal ahead of the war to become green energy capitals, but instead caused an energy crisis. Now citizens are stocking up on wood to keep warm for the coming winter.

Image
Tweet link

Powerful Thread

Twitter avatar for @jameslavish
James Lavish @jameslavish
If you’ve never heard of a *debt spiral*, it’s time you did, and ask the question, "is the US already in one?" Let’s dig in and answer that. A debt 🧵👇
2:06 PM ∙ Aug 23, 2022
569Likes170Retweets

Tweets this week

Electricity Costs Sky Rocket in Europe

Twitter avatar for @JavierBlas
Javier Blas @JavierBlas
MAP OF THE DAY: Day-ahead electricity prices in Europe are eye-watering, with lots of countries setting record highs for today. Notable to see the Nordics close to €400 per MWh, and Germany at €600. Before 2020, anything above €75-100 was considered expensive| #EnergyCrisis
Image
10:08 AM ∙ Aug 23, 2022
7,666Likes3,369Retweets

The Importance of Proof-of-Work

Twitter avatar for @BitcoinPierre
Pierre Rochard @BitcoinPierre
Preventing unethical seigniorage, the monopoly profit on monetary issuance, justifies the energy cost of bitcoin proof-of-work. There is no other way, morally.
7:27 PM ∙ Aug 23, 2022
116Likes27Retweets

Housing Market Priced in Bitcoin

Twitter avatar for @TuurDemeester
Tuur Demeester @TuurDemeester
I expect the house/bitcoin ratio to drop sharply in the coming months. 🏡🚀 Now ~16 BTC for median house, I won’t be surprised if it’s at 8 or even 4BTC by end of 2024.
Image
4:28 PM ∙ Aug 23, 2022
314Likes37Retweets

The Founding Fathers and Their Thoughts on Money

Twitter avatar for @FOUNDATIONdvcs
FOUNDATION @FOUNDATIONdvcs
"I deny the power of the general government to make paper money, or anything else a legal tender." - From Thomas Jefferson to John Taylor, November 1798. The United States Founding Fathers would have loved #bitcoin
Image
1:45 PM ∙ Aug 18, 2022
95Likes28Retweets

Bitcoin: Tyranny vs. Freedom

Twitter avatar for @CedYoungelman
Cedric Youngelman⚡️ @CedYoungelman
#Bitcoin is freedom money.
Image
10:30 PM ∙ Aug 17, 2022
881Likes264Retweets

What to read

What's a Debt Spiral, and is the US already in one?: “Well, we know what happens to a company that issues too much debt and winds up unable to pay the interest on it.”

- James Lavish

Dollar raging, China easing, and Fed pausing - ”Coming off a recent call that bitcoin could trade back up to $70,000 by November of 2023 (next year), we wanted to provide a closer look at what to expect for the rest of this year.“

- The Bitcoin Layer


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The Bitcoin Minimalist Week 4 - Iranian Miners Seized, Inflation "Reduction" Act & US Debt Spiral

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