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.
"If you want to change the world, don't protest. Write code!"
- Hal Finney (1994)
Miners Seized in Iran
Inflation Reduction Act
US Debt Spiral
Congressmen write defending Tornado Cash and digital cash privacy
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Inflation Reduction Act
$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)
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.
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.
Tweets this week
Electricity Costs Sky Rocket in Europe
The Importance of Proof-of-Work
Housing Market Priced in Bitcoin
The Founding Fathers and Their Thoughts on Money
Bitcoin: Tyranny vs. Freedom
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.”
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.“
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