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BITCOIN BOX SCORE

Exchange Rate: $103,940
Market Capitalization: $2.05T
Hash Rate (90 days): 763.1 EH/s
Transactions (30 days): 11,297,914
Network Fees (economy): 2 sat/vB
Bitcoin Dominance: 59.01%

What do these numbers mean?

Minutes into his address to World Economic Forum participants at Davos, President Donald Trump stated that the coming increase in American energy production would make the United States the "world capital of artificial intelligence and crypto."

Trump's statement is a welcome reversal from the previous administration, which prioritized heavy-handed energy, bitcoin, and AI regulations that deterred innovation and growth.

The Davos crowd would have laughed at serious discussions about bitcoin and pro-energy policy in years past. Their focus would have been the typical elitist hodgepodge of issues like ESG, central bank digital currencies, and how global surveillance initiatives could be extended.

Yet that same group is no longer laughing when it comes to bitcoin. BlackRock's Larry Fink, for example, speculated yesterday at Davos that bitcoin could reach a dollar exchange rate of $700,000. Meanwhile, Coinbase's Brian Armstrong explained the benefits of a Strategic Bitcoin Reserve to a South African central banker:

As the saying goes: First, they ignore you, then they laugh at you, then they fight you, and then you win. Which stage are we in now?

NEWS

President Trump pardons Ross Ulbricht

Silk Road founder Ross Ulbricht,who was sentenced to life in prison without parole in 2015, was pardoned by President Trump this week, fulfilling a campaign promise that resonated strongly with libertarians and the bitcoin community. Trump framed his decision as an act of solidarity with the liberty movement, with bitcoin’s price moving up after the announcement.

A step toward justice

Ulbricht’s case symbolized excessive government overreach, with critics arguing that the punishment did not fit the crime. A more bitcoin-friendly administration will likely take further steps to challenge entrenched systems.

Ethereum Foundation launches “Etherealize”

A rumored “second Ethereum Foundation” focused on institutional adoption turned out to be a ruse, but coincidentally, a new group called Etherealize emerged shortly after. Funded by the Ethereum Foundation, Etherealize describes itself as the “institutional product, BD, and marketing arm for the Ethereum ecosystem,” and aims to market Ethereum’s ecosystem to traditional finance, highlighting its scaling solutions and staking yields.

Decentralized say what?

Etherealize reflects Ethereum’s decision to give up on decentralization as the project struggles to maintain relevance amid a severely declining exchange rate between ETH and BTC. While this initiative might attract some attention in the short term, Ethereum’s malleable monetary policy and insider-driven strategy contrast with bitcoin’s Nakamoto Consensus.

Blockstream launches asset management division

Blockstream debuted two institutional-grade bitcoin funds under its new asset management division: the Blockstream Income Fund and the Blockstream Alpha Fund. These funds offer regulated access to bitcoin investments, focusing on collateralized lending and active management strategies.

Driving bitcoin’s financial future

Blockstream’s move highlights bitcoin’s evolution into a foundational asset for institutional portfolios. Unlike speculative altcoins, these funds leverage bitcoin’s unique properties: scarcity, liquidity, and neutrality.

Meme coin mania vs. bitcoin fundamentals on display this week

$TRUMP, a meme coin tied to Donald Trump, launched this week, briefly reaching a $14.5 billion market cap before plummeting. Critics noted the coin’s speculative nature, with 80% of the supply locked in the hands of insiders.

Memes are fleeting; bitcoin is forever

The meme coin frenzy demonstrates the speculative excesses of altcoin markets which lack bitcoin’s credible staying power. Bitcoin’s fixed supply and decentralized governance ensure its status as sound money amid a sea of fleeting narratives. Balaji posted a great educational thread on meme coins:

BITCOIN ADOPTION CONTINUES

David Bailey, CEO of BTC Inc., predicts bitcoin could reach $1 million during Trump’s presidency.

Wyoming has introduced a bill to create a Bitcoin Strategic Reserve, aiming to solidify its leadership in bitcoin innovation, enhance financial sovereignty, and support broader national efforts.

UTXO Management, Sora Ventures, and partners acquired a majority stake in HK Asia Holdings Limited, rebranding it as Moon Inc. to focus on bitcoin and financial innovation in Hong Kong's dynamic market.

A key indicator suggests bitcoin trading above $100,000 is like a coiled spring poised for a volatility surge, with bullish market positioning signaling potential for upward price movement.

BlackRock CEO Larry Fink predicted bitcoin could reach $700,000, citing its growing role as a hedge against inflation and currency instability, further solidified by BlackRock's increasing spot bitcoin ETF investments and institutional adoption momentum.

HOW BITCOIN WORKS

Learn one key idea about bitcoin each week. This week:

The Federal Reserve's "Independence": Myth or Reality?

Today, President Trump informed a crowd at Davos that he would mandate the Federal Reserve lower interest rates–a move that mainstream media described as "setting up a clash with Fed."

The narrative suggests that political influence over monetary policy threatens the Fed's independence and risks economic harm. But the notion of an independent Federal Reserve, operating free from political pressure, is not the unquestionable virtue it’s made out to be.

The idea that the Fed operates independently is more myth than reality. Historically, the institution has repeatedly bent to political pressure, whether from the Treasury or the White House, prioritizing deficit spending and economic stimulus over sound money principles. The Fed’s track record demonstrates that its supposed independence is a convenient illusion, invoked when it suits those in power and discarded when political expediency demands it.

The Fed’s claim of neutrality serves as a shield against accountability. By positioning itself as a technocratic body, it avoids scrutiny while wielding enormous influence over the economy. Interest rate manipulations, monetary expansion, and inflation targeting have direct consequences on ordinary people—leading to rising costs, asset bubbles, and widening inequality—all without meaningful oversight or consequence.

Worse, the Fed's persistent ‘knowledge problem’ makes its authority highly questionable. Setting the price of money is, by definition, an exercise in central planning, and like all such endeavors, it’s prone to failure. The Fed necessarily relies on outdated and incomplete data to make decisions. Even Fed Chairman Jerome Powell likened their task to "navigating by the stars under cloudy skies." In other words, they’re guessing.

America’s constitutional framework was designed to prevent unchecked power, yet the Fed continues to operate as a financial ‘philosopher-king,’ insulated from meaningful republican oversight. Some propose reforms such as Congressional review of the Fed's inflation targets, full audits, and greater transparency. But more oversight could lead to even greater political manipulation—further entrenching short-term decision-making at the expense of long-term stability.

This is where bitcoin changes everything. As a disinflationary, and eventually deflationary, asset, bitcoin renders the Fed’s debate over monetary elasticity irrelevant. Its fixed supply, divisibility, and ability to achieve final settlement over the internet solve the age-old challenges of liquidity and scarcity without the need for central planning. Under a bitcoin standard, the Fed’s role would shrink to the point where political oversight would become not just appropriate but necessary to ensure whatever remains of its function serves the interests of the people rather than entrenched elites.

The key ingredient to making this work is bitcoin. Because it is a disinflationary, and eventually deflationary, currency, the age-old argument among central bankers about the appropriate level of elasticity versus discipline in the money supply would be rendered moot. Because units are infinitely divisible, and final settlement can be achieved over the internet, the problems that monetary historians remember from the 19th century where there weren’t enough dollars in circulation, are also no longer an issue. The entire academic discipline of central banking will be transformed by the emergence of a bitcoin standard. And what’s left of the Fed’s purview probably should be subject to the oversight of elected officials to ensure that our system of money reflects the will of the people.

The Fed's unchecked power has far-reaching implications for economic stability and freedom. Rather than tinkering with laws and policies to ensure greater oversight, we have a chance to rebuild a strong U.S. economy that rests on a rock solid foundation of cryptography and thermodynamics. Bitcoin provides a compelling alternative that could supercharge productivity and human flourishing, that is, if we have the courage to embrace it.

COIN CHECK

How many bitcoins did the government seize from Silk Road?

1. 2,100

2. 69,370

3. 243,027

4. 808

Check your answer at the end of the page.

FROM THE MEME POOL

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ANSWER

243,027

Initially, nearly 30,000 BTC were confiscated from Silk Road marketplace, followed by an additional 144,000 BTC linked to its creator, Ross Ulbricht. In 2020, authorities seized 69,370 BTC—then valued at around $1 billion—from an unknown individual who had allegedly stolen them from Silk Road. Fast forward to today, and the value of these seized assets has soared, now worth over $24 billion. Over the years, the government has taken various actions with these holdings, including auctions conducted by the U.S. Marshals Service and recent transfers to exchanges like Coinbase Prime, signaling a possible shift in liquidation strategy. With the new administration promising to halt further liquidations and possibly even supporting a strategic bitcoin reserve, a new era is unfolding where bitcoin’s value is being recognized even within the walls of government institutions that once fought it.

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