Market Update

The system is rigged. Bitcoin is how you get out

As the old saying goes, the purpose of a system is what it does, not what it claims to do. For many years, the federal government “system” in Washington, D.C., successfully entrenched itself while draining wealth from the American economy. The result has been trillions of dollars in debt, savings evaporating due to hyperinflation, and companies burdened with regulatory abuses.

Despite promises of fiscal responsibility, the machinery of government prioritized control and redistribution over growth and stability. Bitcoin offers an alternative to a broken system.

While the financial system falters, the Bitcoin network works Completely independently, Easy going. Here are some trends to watch in the coming weeks.

Bitcoin Mining: Resilience Amid Economic Turbulence

Bitcoin mining is a critical component of network security and economic model Recent data Highlights its continuing strength. The JPMorgan report noted that mining profitability increased for the second straight month in December, with miners earning an average of $57,100 per exahash per day – a 10% increase from November. This trend reflects the positive relationship between Bitcoin’s rising price and miners’ revenues, even as the broader economic landscape remains volatile.

The network hash rate rose 6% in December to reach an all-time high of 779 EH/s (exahash per second), demonstrating the collective power of the decentralized mining system. While growth has slowed compared to the staggering 103% increase in 2023, the fact that mining companies are continuing to build despite economic headwinds underscores their long-term conviction.

However, the mining sector faces challenges. The total market capitalization of 14 publicly listed bitcoin mining companies fell 23% to $28 billion, reminding retail investors that the profitability of mining stocks does not always reflect bitcoin price movements.

Even in this difficult environment, standout performers like TeraWulf (WULF) have managed to outperform Bitcoin itself, gaining 136% compared to Bitcoin’s 120% rise in the past year. This highlights a broader theme that mainstream analysts often miss – that Bitcoin mining works on the basis of a Marginal frame.

The role of the Federal Reserve in economic distortion

Meanwhile, shifts within the Fed could signal a new era of financial regulation.

Michael Barr, Federal Reserve Vice Chairman for Supervision He announced that he would step down By the end of February. Barr’s exit coincides with the incoming administration’s stated goal of reducing regulatory burdens and promoting a more conducive financial environment for innovation.

However, comprehensive reform will not come easily. Inflation remains at 3%, which is 50% above the target set by the Federal Reserve. For many years, misleading employment reports have obscured the economy’s deeper structural weaknesses, giving the illusion of prosperity while small businesses and middle-class families struggle to stay afloat. Fixing a broken system in the face of economic hardship and media resistance is an enormous task.

However, there are reasons for optimism. The US economy, although battered, remains more resilient than many of its global peers. If regulatory rollbacks and pro-growth policies take hold, innovation could flourish and offset the damage done by years of reckless spending and over-regulation. But regardless of the success or failure of these efforts, one trend is clear: the “devaluation trade.” Accumulating Bitcoin to protect against currency depreciation and government abuses -It’s not going away any time soon.

Missed opportunity to acquire a strategic stock of Bitcoin?

A recent federal court ruling on December 30 allowed the Department of Justice (DOJ) to liquidate 69,370 bitcoins seized from the Silk Road market, an estimated value of more than $6.5 billion. The Justice Department cited price fluctuations as justification for the sale, but anyone interested would naturally wonder whether the sudden sales were an attempt to derail the incoming administration. Bitcoin stated policy, Which includes maintaining a strategic Bitcoin stash.

By selling at current levels, the Justice Department may inadvertently strengthen the case for a strategic reserve. Selling such valuable assets before an administration that recognizes their long-term value directly takes office could reinforce the belief that the US government should build up its Bitcoin holdings, rather than deplete them. Sincerity Latest forecasts The fact that 2025 will be a turning point for the adoption of sovereign Bitcoin adds weight to this perspective.

Sovereign movements and political transformations

Sovereign interest in Bitcoin is not limited to the United States. In Canada, the political landscape is changing after the resignation of Prime Minister Justin Trudeau. Bitcoin advocates did He threw their support He succeeds Pierre Poilievre, whose pro-bitcoin stance and commitment to financial sovereignty have made him the front-runner in the upcoming Canadian election. According to Polymarket, Poilievre has an 89% chance of winning.

Meanwhile, Thailand has Fired A pilot program to allow foreign visitors to use Bitcoin in everyday transactions. This initiative aims to simplify payments in the country’s tourism industry and integrate Bitcoin into their existing legal frameworks.

The UAE-based Phoenix Group opened 50MW Bitcoin mining facility in North Dakota, expanding its presence in North America. With plans to pursue a Nasdaq listing in 2025, Phoenix exemplifies the global interconnectedness of the Bitcoin mining industry and the strategic moves being made to capitalize on expected regulatory reform in the United States.

As the world grapples with economic uncertainty, Bitcoin continues to provide a path toward resilience and innovation. US Senator Dusty Devers (R-OK) Introduced the Bitcoin Freedom Act, This will allow Oklahoma citizens to receive their salaries in Bitcoin, helping position the state as a leader in financial innovation.

The way forward: Choosing out of the failed system

As governments and corporations compete for strategic Bitcoin positions, individual adoption remains crucial. Despite the interest in Bitcoin from sovereign nations and financial institutions, the real strength of Bitcoin lies in its independence. This is what distinguishes Bitcoin from all other modern financial assets such as gold. Its value cannot be easily belittled or censored.

Bitcoin gives people the freedom to choose, and that’s what makes the difference. The economic distortions created by central monetary policy, the trillions of dollars in debt, the inflationary pressures, and the regulatory abuses that followed are not going away any time soon. But Bitcoin offers an alternative vision that anyone on the planet can choose.

As 2025 approaches, the scene is set for further seismic shifts. Whether through strategic reserves, sovereign adoption, or individual accumulation, adoption of Bitcoin as an insurance against economic instability is accelerating. The question is not whether Bitcoin will continue to rise, but whether individuals, institutions and countries will recognize its importance in time. In a world where economic systems are failing in their basic mission of preserving value, Bitcoin remains an unparalleled instrument of financial sovereignty.

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