BITCOIN BOX SCORE

Exchange Rate: $120,180
Market Capitalization: $2.40T
Hash Rate (90 days): 967.3 EH/s
Transactions (30 days): 14,339,029
Network Fees (economy): 2 sat/vB
Bitcoin Dominance: 58.75%

What do these numbers mean?

In most developed countries, sovereign debt has ballooned so fast that trillions of dollars are now added every few months. Are we going to get away with it?

Maybe, and maybe not. When a nation’s debt to GDP ratio crosses 1 (meaning they hold more debt than they produce in a year), economic growth slows and eventually stagnates. Global debt now stands well above $300 trillion against GDP of only a third that amount.

Central banks have been net-selling U.S. Treasuries since 2014 while stacking physical reserves. In fact, we may soon see another key indicator that the monetary order is being rearranged before our very eyes: Sovereigns will soon hold more gold than U.S. Treasuries.

"When it comes to the 'circle' of an increasingly apparent economic collapse, the systemic, mathematical and historical 'arcs' of this dying economic/financial/social sphere are becoming easier for all of us to both feel and see," writes Matthew Piepenburg.

What JP Morgan calls "the debasement trade" isn't about hedging uncertainty but instead recognizing mathematical inevitability. When paper currencies complete their historical slide toward worthlessness, bitcoin stands as the exit from a system designed to fail.

NEWS

U.S. Treasury exempts bitcoin from corporate minimum tax

The U.S. Treasury Department issued guidance clarifying that unrealized gains on bitcoin holdings will not be subject to the Corporate Alternative Minimum Tax (CAMT), reversing Biden-era policy and sparing companies like Strategy from potentially tens of billions in phantom tax liabilities. The exemption levels the playing field with stocks and bonds, which were already excluded from CAMT despite similar mark-to-market accounting treatment.

Treasury gets realistic

This policy shift acknowledges what bitcoiners have long understood: taxing unrealized gains is economically destructive and unconstitutional. By removing regulatory uncertainty around bitcoin treasury strategies, Treasury has effectively endorsed corporate bitcoin accumulation as sound financial policy. U.S. Senator Cynthia Lummis called it "common sense" – but it's really just the government stepping out of the way of superior money.

Fed's pandemic bailout blurred line between fiscal and monetary policy

A new analysis reveals that the Federal Reserve's 2020 Municipal Liquidity Facility loaned $6.55 billion to Illinois and New York's MTA – both near-junk credit ratings – without requiring any structural reforms. The debtors simply refinanced the debt by issuing new bonds, using one credit card to pay another, while the Fed's mission creep established a dangerous precedent for future bailouts of states and local governments.

Sound money requires institutional boundaries

The Fed abandoned its proper role as lender of last resort by purchasing municipal bonds directly from fiscally mismanaged governments, creating backdoor fiscal policy without congressional approval. Bitcoin offers states an alternative: adopt a hard money standard that makes bailouts impossible and forces genuine fiscal discipline instead of passing the bill to taxpayers and future generations.

Bitcoin and crypto millionaire count surges 40% as bitcoin drives historic wealth boom

A new wealth report from Henley & Partners estimates that 241,700 bitcoin and crypto millionaires now exist globally, representing a 40% year-over-year increase driven primarily by bitcoin investors. The report also estimates global bitcoin adoption has reached 295 million people, with total crypto (bitcoin, altcoins, stablecoins) users at 590 million worldwide. Approximately 60% of total crypto millionaires derive their wealth from bitcoin, with 17 of the industry's 36 billionaires coming exclusively from bitcoin holdings.

Bitcoin's fixed supply fuels generational wealth transfer

This wealth explosion was triggered by bitcoin's fundamental superiority as a store of value when compared to most alternatives. The amount of currency printed by a government always bends toward infinity, while bitcoin's 21 million supply limit creates scarcity that rewards long-term holders. As JAN3 CEO Samson Mow notes, this contrast between "infinite expansion and fixed supply" represents "the defining paradox of our age" – a wealth system governments cannot control or dilute advancing globally without permission from any parliament or central bank.

Bitcoin mining hits toughest level yet

Bitcoin's mining difficulty climbed 5% to a record 150.84 trillion on Wednesday, marking the seventh straight upward adjustment as the network's hash rate surged above 1.05 ZH/s. Hashprice, which measures miner revenue per unit of hashrate, has slipped below $50 per petahash despite bitcoin trading above $118,500, as low transaction fees and rising difficulty squeeze profit margins.

The Bitcoin Network is healthy and secure

Record-high difficulty is synonymous with unprecedented network security. Individual miners face pressure, and only the most efficient mining operations with access to inexpensive energy will survive. Throughout this process, bitcoin’s foundation becomes ever more robust and resistant to attack.

BITCOIN ADOPTION CONTINUES

Bitcoin cleared $120,000 for the first time since August as on-chain data showed long-term holder selling pressure easing and short-term holders absorbing losses, signaling a potential new accumulation phase.

Templar Protocol launched, letting bitcoin holders borrow stablecoins without intermediaries.

Tether purchased 8,889 bitcoins worth over $1 billion, bringing total treasury holdings to more than 86,000 coins to diversify its reserves with bitcoin, gold, and real estate.

Bitcoin lender Lava raised $17.5 million from angel investors including former Visa and Block executives and launched a dollar yield product offering up to 7.5% APY on loans backed by bitcoin collateral.

AsiaStrategy, a Hong Kong-based institutional firm, partnered with Anchorage Digital to purchase 30 bitcoins as part of a treasury strategy across the U.S.-Asia corridor.

Capriole Investments founder Charles Edwards predicted bitcoin could surge to $150,000 before year-end as investors pile into safe-haven assets alongside gold.

Sazmining opened a data center in Ethiopia powered by 100% hydropower from Grand Ethiopian Renaissance Dam, expanding bitcoin mining operations to four continents with energy costs of $0.056/kWh reducing mining cost to approximately $50,000 per bitcoin.

HOW BITCOIN WORKS

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

Welcome to the era of Bitcoin Diplomacy

Foreign policy scholar Victoria Jones has published an article entitled "Bitcoin Diplomacy" which describes a new phenomenon in international relations.

In July 2025, Pakistan and El Salvador signed a Letter of Intent, not for a trade agreement or security guarantees, but for bitcoin cooperation, marking the first official diplomatic contact between the two nations.

This is new. Traditionally, diplomatic relations flow through established channels like foreign service or multilateral institutions like the IMF. But Pakistan and El Salvador are both subject to IMF programs that explicitly discourage bitcoin. By formalizing cooperation around bitcoin anyway, they created an innovative framework for engagement.

The partnership appears to be substantive. Pakistan plans to send technical delegations to study El Salvador's Bitcoin Office, explore blockchain for government payments, and examine Bukele's tax policies on bitcoin. El Salvador holds over 6,200 coins worth approximately $745 million, while Pakistan ranks eighth globally in bitcoin adoption with 20 million citizens holding $20-25 billion in digital assets.

Jones argues this parallel defiance of IMF guidance "signals the development of an effort to establish alternative monetary frameworks that fall outside traditional regulatory structures." When two nations can build formal diplomatic ties through a shared commitment to digital sound money, it shows how bitcoin can serve as neutral ground for international cooperation.

Bitcoin is an ideal foundation for such partnerships. No nation controls it. No institution can revoke access to it. And it provides emerging economies a tool for asserting financial independence while reducing dependence on debt-dominated institutions.

COIN CHECK

Which central bank currently holds roughly half of its own government’s outstanding bonds?

A) U.S. Federal Reserve
B) European Central Bank
C) Bank of England
D) Bank of Japan

Check your answer at the end of the page.

FROM THE MEME POOL

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ANSWER

D) Bank of Japan

The BoJ’s balance sheet includes about half of all Japanese government bonds after years of massive purchases, though it has begun tapering.

The Fed is the largest single holder of Treasuries but owns only a much smaller share than the BoJ does of its own country’s debt. By mid-2025, the European Central Bank held about 25% of euro-area government bonds, and the percentage for the Bank of England is similar.

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