On weathering Bitcoin price
Mags
mags@nostrverified.com
npub1tjyl...0e9k
Bitcoin mining, custody, & memes ๐ซก. Advisor PRTI โ๏ธ. Energy, carbon & economic dev policy. Volunteer firefighter ๐
๐จ๐ฆ ๐ง๐ฟ๐ฒ๐ฎ๐๐๐ฟ๐ถ๐ฒ๐, ๐ง๐ฟ๐ฎ๐ฑ๐ฒ ๐๐ต๐ฎ๐ผ๐ & ๐๐ถ๐๐ฐ๐ผ๐ถ๐ป ๐๐ผ๐ป๐ฑ๐
In his 2025 letter to shareholders this week, Blackrock's CEO warns, โThe U.S. has benefited from the dollar serving as the worldโs reserve currency for decades... If the U.S. doesnโt get its debt under control, if deficits keep ballooning, America risks losing that position to digital assets like Bitcoin.โ
A factor driving the trade war (or at minimum indirectly benefiting from it) is the looming refinancing "wall" faced by the US, with approx $14 trillion in federal debt maturing over the next three years.
In January, 10-year Treasury rates hit 4.8% โ these rates would have meant high interest expenses from debt refinancing (compared to the last decade). Cue, the trade war. It's indirectly influencing debt refinancing in 2 ways:
1. Flight to Safety: Heightened economic uncertainty tends to push global investors toward safe haven assets, like US treasuries. And increased demand for Treasuries drives down yields lower
2. Economic Slowdown: prolonged trade conflict can create global economic concerns, causing central banks (incl. the Fed) to reconsider rate hikes & even implement rate cuts, reducing borrowing costs further
And viola, with the chaos of the trade war, the 10-year Treasury yield dropped below 4% today. Lower 10-year yields mean lower future refinancing costs, helping the US gov manage its refinancing wall. But, this is a piece in solving for the massive debt puzzle.
๐๐ถ๐๐๐ผ๐ป๐ฑ๐
There's an alternative โ or parallel โ path to manage interest payments without inciting market chaos: Bitcoin-backed bonds.
In a new Bitcoin Policy Institute report, Andrew Hohn & @Matthew Pines propose "Bitcoin-Enhanced Treasury Bonds." They recommend that 90% of bond proceeds finance standard gov operations or refinance existing debt, & 10% be allocated toward acquiring Bitcoin to establish a Strategic Bitcoin Reserve. By issuing these bonds at a significantly lower interest rateโsuch as 1% compared to current ratesโthe gov can substantially cut its debt-servicing expenses. Furthermore, considering Bitcoinโs historical performance, BitBonds have the potential to considerably reduce or even eliminate the federal debt burden over time.
Adopting Bitcoin-enhanced bonds could thus offer the US a financial advantage, aligning debt management with a new era of fiscal and monetary policy.
A factor driving the trade war (or at minimum indirectly benefiting from it) is the looming refinancing "wall" faced by the US, with approx $14 trillion in federal debt maturing over the next three years.
In January, 10-year Treasury rates hit 4.8% โ these rates would have meant high interest expenses from debt refinancing (compared to the last decade). Cue, the trade war. It's indirectly influencing debt refinancing in 2 ways:
1. Flight to Safety: Heightened economic uncertainty tends to push global investors toward safe haven assets, like US treasuries. And increased demand for Treasuries drives down yields lower
2. Economic Slowdown: prolonged trade conflict can create global economic concerns, causing central banks (incl. the Fed) to reconsider rate hikes & even implement rate cuts, reducing borrowing costs further
And viola, with the chaos of the trade war, the 10-year Treasury yield dropped below 4% today. Lower 10-year yields mean lower future refinancing costs, helping the US gov manage its refinancing wall. But, this is a piece in solving for the massive debt puzzle.
๐๐ถ๐๐๐ผ๐ป๐ฑ๐
There's an alternative โ or parallel โ path to manage interest payments without inciting market chaos: Bitcoin-backed bonds.
In a new Bitcoin Policy Institute report, Andrew Hohn & @Matthew Pines propose "Bitcoin-Enhanced Treasury Bonds." They recommend that 90% of bond proceeds finance standard gov operations or refinance existing debt, & 10% be allocated toward acquiring Bitcoin to establish a Strategic Bitcoin Reserve. By issuing these bonds at a significantly lower interest rateโsuch as 1% compared to current ratesโthe gov can substantially cut its debt-servicing expenses. Furthermore, considering Bitcoinโs historical performance, BitBonds have the potential to considerably reduce or even eliminate the federal debt burden over time.
Adopting Bitcoin-enhanced bonds could thus offer the US a financial advantage, aligning debt management with a new era of fiscal and monetary policy.
Me, when the omega candle is delayed another month
The Golden Age of Crypto:
Buying shitcoins & meme coins is like panning for fools gold, hoping to strike it rich
The highest number of transactions in one block (so far) was in block 367853 with 12,239 transactions! ๐คฏ
The Mempool Open Source Projectยฎ
Explore the full Bitcoin ecosystem with The Mempool Open Source Projectยฎ. See the real-time status of your transactions, get network info, and more.
๐ Bhutan has sold 4,000 Bitcoin since Oct 2024 (from a peak of 13k to 9k). It is unclear why at this time, but I would guess it will fund the development of the Gelephu Mindfulness City.
In 2023, Bhutan sold US$100million worth of BTC to fund a 50% pay rise for civil servants.
Are you?
Finally women in STEM are winning ๐คฃ
If your friends are not discussing BARs (Bitcoin, AI, Robots), you need to find new people
The 2035 $5-wrench attack will be hacking home robots to hold occupants hostage until they pay a Bitcoin randsome
Millennial can't afford homes, they can't even afford Legos. Thanks money printer
Nostr fixes this
Oh no, the SEC got their mining definition from the bargain bin
1. Miners donโt solve complex equations: they're repeatedly hashing a block header using the SHA-256 algorithm until a valid hash is found
2. Not cryptographic puzzles: it's closer to a brute-force search for a hash that meets a specific difficulty target
3. The process is trial & error: a game of luck & computational power
We're getting there, but more education is needed
1. Miners donโt solve complex equations: they're repeatedly hashing a block header using the SHA-256 algorithm until a valid hash is found
2. Not cryptographic puzzles: it's closer to a brute-force search for a hash that meets a specific difficulty target
3. The process is trial & error: a game of luck & computational power
We're getting there, but more education is needed
Europeans & Canadians have been given a gift, unlike citizens in in Zimbabwe, Cyprus, India & Lebanon where they could not prepare
They're telling you what they will do so you can aquire permissionless money that cannot be frozen, devalued, demonetized, or taken a haircut from
