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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_

and

Bitbo.io

Aug 24, 2022

"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.

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.

Powerful Thread

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 🧵👇

Tweets this week

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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