Summary:
Federal Government's system has entrenched itself while siphoning wealth from the economy.
Bitcoin offers an alternative to a broken system.
Mining profitability increased for the second consecutive month in December.
JPMorgan report: miners earned an average of $57,100 per exahash per day.
Michael Barr's departure from the Federal Reserve signals potential regulatory changes.
As the old saying goes, the purpose of a system is what it does, not what it claims to do. For years, the Federal Government’s "system" in Washington, D.C. has entrenched itself while siphoning wealth from the American economy. The result has been trillions of dollars in debt, evaporated savings from unchecked inflation, and businesses burdened by regulatory overreach.
Despite promises of fiscal responsibility, the machinery of government has prioritized control and redistribution over growth and stability. Bitcoin offers an alternative to this broken system.
Bitcoin Mining: Resilience Amidst Economic Turmoil
Bitcoin mining is a critical component of the network’s security and economic model, and recent data highlights its continued robustness. A JPMorgan report noted that mining profitability increased for the second consecutive month in December, with miners earning an average of $57,100 per exahash per day – up 10% from November. This trend reflects the positive correlation between bitcoin’s rising price and miner revenue, even as the broader economic landscape remains volatile.
The network’s hashrate grew by 6% in December to an all-time high of 779 EH/s, demonstrating the collective strength of the decentralized mining ecosystem. Yet, the mining sector is facing challenges, with the total market cap of 14 publicly listed bitcoin mining firms falling by 23% to $28 billion.
The Federal Reserve’s Role in Economic Distortion
Meanwhile, shifts within the Federal Reserve could signal a new era for financial regulation. Michael Barr, the Fed’s Vice Chair for Supervision, announced his impending departure, coinciding with a stated goal of reducing regulatory burdens. Inflation remains at 3%, which is 50% above the Fed’s target, highlighting ongoing structural weaknesses in the economy.
Nevertheless, there are reasons for optimism. If regulatory rollbacks and pro-growth policies take root, innovation could thrive and offset the damage caused by years of reckless spending and overregulation. However, the debasement trade – accumulating bitcoin to protect against currency debasement and government overreach – isn’t going away anytime soon.
Missed Opportunity For a Strategic Bitcoin Stockpile?
A recent federal court ruling authorized the Department of Justice (DOJ) to liquidate 69,370 bitcoins seized from the Silk Road marketplace. By selling at current levels, the DOJ may unintentionally strengthen the argument for a strategic bitcoin reserve, especially with the incoming administration’s pro-bitcoin stance.
Sovereign Moves and Policy Shifts
Sovereign interest in bitcoin is not limited to the United States. In Canada, the political landscape is shifting following Prime Minister Justin Trudeau’s resignation. Bitcoin advocates have rallied behind Pierre Poilievre, whose pro-bitcoin stance has made him the frontrunner for Canada’s next election.
In addition, Thailand has launched a pilot program to allow foreign visitors to use bitcoin for everyday transactions, while the UAE-based Phoenix Group has opened a 50-megawatt bitcoin mining facility in North Dakota, indicating the global interconnectedness of the bitcoin mining industry.
The Road Ahead: Opting Out of a Failing System
While governments and corporations vie for strategic bitcoin positions, individual adoption remains critical. The true power of bitcoin lies in its independence, distinguishing it from other financial assets. As 2025 unfolds, the landscape is poised for further seismic shifts. Whether through strategic reserves or individual accumulation, the adoption of bitcoin as a safeguard against economic instability is accelerating. Bitcoin remains an unmatched tool for financial sovereignty.
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