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BITCOIN BOX SCORE

Exchange Rate: $93,501
Market Capitalization: $1.82T
Hash Rate (90 days): 749.6 EH/s
Transactions (30 days): 11,652,227
Network Fees (economy): 2 sat/vB
Bitcoin Dominance: 58.01%

What do these numbers mean?

The purpose of a system is what it does. For years, the Federal Government "system" in Washington D.C. has gripped onto power while transferring as much wealth from the American economy as it could get away with, racking up trillions in debt, inflating trillions of savers wealth, and dampening the ability of countless business to thrive through heavy-handed regulations.

Changing the system is not impossible. Yet, the new administration faces serious challenges. Inflation remains at 3%, which is 50% above the Fed’s target, and it eats away at savers' purchasing power. For the past few years, outright lies about employment have deceived the public about the health of the economy, and it is in much worse shape than reported. Reform during a period of economic pain while facing off against a hostile media is no easy task.

On the other hand, most global economies are in worse shape, and the new administration aims to reduce regulations and create an environment friendly to innovation, stimulating growth that could mitigate the effects of the past four years of excessive spending and rule-making that has hung like a millstone around the neck of the U.S. economy.

Regardless of the Trump administration’s efforts to course correct, accumulating bitcoin to protect savings from uncertainty and out of control governments, which JPMorgan termed the "debasement trade," is here to stay.

NEWS

Bitcoin mining profitability rises for second consecutive month

According to a new JPMorgan report, bitcoin mining profitability ticked higher again in December, outpacing network hashrate growth for the second month in a row. Miners’ daily revenue and gross profit reached their highest levels since April, though they remain well below pre-halving benchmarks.

Key data

• JPMorgan estimates that miners earned an average of $57,100 per exahash per day last month, up 10% from November. Mining remains a tough, capital-intensive business, but it is profitable.

• The network’s hashrate grew by 6% in December to 779 EH/s, significantly slower than 2023’s 103% surge, but still reaching all time highs. The bitcoin network is in great shape by any measure.

• The total market cap of 14 publicly listed bitcoin miners tracked by the bank fell 23% to $28 billion in December. Retail investors may struggle to profitably trade mining stocks in the current environment.

• TeraWulf (WULF) was the only miner that outperformed bitcoin last year, rose 136% compared to bitcoin’s 120%. Bitcoin Marginalism lives on.

• Daily revenue and gross profit per EH/s are still well below pre-halving levels, underscoring the impact of April’s block reward halving.

Overall, JPMorgan’s data suggests that miners benefited from a resurgent bitcoin price in December, even as the overall mining landscape remains challenging.

U.S. Fed's Michael Barr set to step down as Vice Chair for Supervision

Michael Barr, the Federal Reserve's top banking watchdog, announced he will step down from his vice chair position on February 28th, or earlier if a successor is confirmed. He will remain on the Federal Reserve Board of Governors, citing concerns over potential disputes with the incoming Trump administration as his key motivation.

Barr's departure reflects the ongoing politicization of bank regulation, undermining the Fed's public presentation as an independent agency. His resignation hopefully signals a shift in the Fed's approach to supervision and regulation.

US Government cleared to sell $6.5 billion in Silk Road bitcoin before Trump takes office

A federal court ruling on December 30th permitted the Department of Justice to liquidate 69,370 BTC seized from the Silk Road marketplace, effectively moving forward on a multibillion-dollar sale before the incoming administration — which campaigned on retaining seized bitcoin as part of a strategic bitcoin stockpile — takes charge in just over a week. The DOJ cited price volatility as a key factor for expediting the process, sparking broad market interest in how the sale might affect liquidity and pricing when bitcoin has been trading in the $92,000–$100,000 range.

The timing of the ruling adds fuel to the fire of the ongoing debate about government-held bitcoin. Although Justice wants to move quickly to take advantage of current prices, the incoming presidential administration has a more sophisticated understanding of the underlying value of bitcoin. The decision to sell at what will ultimately be characterized as a loss could make the Trump administration's appetite for a strategic bitcoin reserve stronger.

BITCOIN ADOPTION CONTINUES

Fidelity forecasts that 2025 will be the turning point when more sovereign states, central banks, sovereign wealth funds, and government treasuries establish strategic bitcoin positions.

U.S. Senator Dusty Deevers (R-OK) sponsored the Bitcoin Freedom Act, which would let Oklahomans choose to be paid in bitcoin, positioning the state as a frontrunner in financial innovation.

In the wake of Canadian Prime Minister Justin Trudeau’s resignation, bitcoin leaders have rallied behind Pierre Poilievre - who holds an 89% chance of winning Canada’s next election, according to Polymarket – for his strong pro-bitcoin stance and advocacy of a national bitcoin reserve.

Thailand will trial a pilot program in Phuket allowing foreign visitors to use bitcoin for everyday transactions within existing legal frameworks, aiming to streamline payments in one of its top tourist destinations.

UAE-based Phoenix Group has opened a 50 MW bitcoin mining facility in North Dakota, adding 2.7 EH/s to its global hashrate, building on recent U.S. and Canadian expansions, and positioning itself for a potential NASDAQ listing in 2025.

HOW BITCOIN WORKS

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

Is bitcoin a Ponzi scheme?

A Ponzi scheme is a financial setup where early investors are paid with funds from new participants, rather than from genuine profits. Some accuse bitcoin of being a Ponzi scheme, or some kind of similar scam.

Bitcoin is sometimes hyped up as a get-rich-quick opportunity. However, bitcoin doesn’t fit the pattern of a Ponzi scheme.

First, there are no promises of risk-free or guaranteed gains in bitcoin. Its price is determined by an open market, not by a central operator funneling money from new buyers to old holders. Bitcoin is also fully decentralized – no single mastermind runs the network. Instead, tens of thousands of nodes enforce its consensus rules, and miners secure it by expending real computational effort. This stands in contrast to Ponzi schemes, which rely on a ringleader orchestrating payouts using the latest entrants’ money.

Second, bitcoin doesn’t collapse when adoption stalls. It has powered through multiple boom-and-bust cycles since its inception and continues to function regardless of short-term price fluctuations or the arrival of new participants. Ponzi schemes, on the other hand, crumble quickly once new funds dry up.

Finally, bitcoin operates transparently in full public view. Its codebase, monetary schedule, and issuance rate are all open for anyone to inspect, eliminating the secrecy that typically cloaks fraudulent endeavors. Deception is the lifeblood of a Ponzi; transparency is the essence of bitcoin.

While it’s true that dishonest actors sometimes package bitcoin in scammy ways, the technology itself isn’t set up for fraud. Instead, it’s an emerging form of money – capped at 21 million coins – whose value stems from a growing consensus that it’s worth holding. That’s a far cry from a pyramid resting on empty promises.

COIN CHECK

What major event in bitcoin history occurred on January 3rd, 2009?

1. Satoshi mined the Genesis Block

2. Satoshi released the Bitcoin Whitepaper

3. Craig Wright was revealed to be Satoshi Nakamoto

4. Bitcoin traded above $1 for the first time

Check your answer at the end of the page.

FROM THE MEME POOL

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ANSWER

1. On January 3, 2009, Satoshi Nakamoto launched the bitcoin network by mining the very first block, known as the Genesis Block. Within that block, Nakamoto included the text “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks,” which references the date and front-page headline of that day’s issue of The Times newspaper, a clear signal that the motivation for bitcoin’s creation was the destructive impulses of central bankers.

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