BITCOIN MINING

Bitcoin's Mining Difficulty Hits Yet Another Historic All-Time High

The Scoop: On November 25, 2023, the Bitcoin network underwent its sixth consecutive difficulty increase, reaching a record high of 67.96 trillion at block 818,496.

Number Go Up: Since September 19, 2023, Bitcoin's mining difficulty has escalated consistently, with a total increase of 23.27% over two months. This latest increase bumped difficulty up another 5.07%.

Moving Averages: The network also saw a record-breaking seven-day moving average of 507 Exahash per second (EH/s) observed on the morning of November 25.

Pool Party: The Bitcoin network currently sees participation from around 49 mining pools, with Antpool and Foundry USA leading in hashing power. While miners all compete against one another, those in the same pool form a sort of “cooperation” amongst themselves.

🔍 The GBTC discount continues to evaporate, recently hitting a multi-year low of 7.29% as excitement builds for an ETF approval from the EC. Grayscale is seeking a ticker of ‘BTC’ should the approval go through.

🇺🇸 Pro-Bitcoin US presidential candidate Vivek Ramaswamy admits to owning Bitcoin in an episode of What Bitcoin Did. Ramaswamy has increasingly ramped up his image as a proponent of Bitcoin and a skeptic of central banking.

⚖️ According to a memo from the SEC, Grayscale met with the regulator to discuss its ETF application. Grayscale revised its prospectus soon after, hinting at a potentially imminent approval.

💬 In an interview with Bloomberg Crypto, SEC Commissioner Hester Peirce stated “I have been very transparent that I have thought for years now there is no reason for us to stand in the way of a Bitcoin exchange-traded product.”

💸 Someone recently paid 83.7 Bitcoin on a single transaction fee, overpaying by 12,025,700%. This is not the first time, as Paxos made a similar mistake a few months ago; that bitcoin was returned by the miner.

Milei’s Transition Team Sees Departures; President-Elect Undeterred From Policy Goals

The Scoop: Despite the exit of key advisors from his team, Argentina's President-elect Javier Milei reaffirms his unwavering commitment to shutting down the country's Central Bank.

Shuffling the Cards: Following significant departures within his transition team, Milei's administration faces a reshuffle. However, these changes do not alter his plans to dramatically re-organize Argentina’s economy away from state control.

New People, New Rules: The only confirmed appointments so far are for the heads of the social security agency and the YPF state oil company which Milei is set on privatizing as part of his broader economic reform agenda.

Quelling Rumors: In an official statement from Milei’s office, the cabinet made the following proclamation (translated from Spanish) “…(A)gainst the false rumors spread, we wish to clarify that the closure of the Central Bank of the Argentine Republic (BCRA) is not a negotiable matter.” Milei’s office also reiterated his intention to privatize other key state entities.

Will Javier Milei Be Effective at Repairing Argentina's Economy?

Yes - 80%

No - 20%

👍 Yes: “As long as he follows through with dollarization their inflation will likely decrease and conditions will improve.” - William

👎 No: “Not fully. More likely he will change course and make strides in a positive way but not fully repair it. The challenge is not the macro, but the micro, with the number of small businesses and individuals depending on social welfare programs.” - Daniel

📈 Coinbase Global and MicroStrategy stocks surged to highs not seen for over 18 months. Coinbase closed at $115.54, while MicroStrategy ended at $520.24 signaling strong investor confidence.

🔄 Mt. Gox, the collapsed bitcoin exchange, announced plans to begin cash repayments to creditors within 2023, with the process expected to extend into 2024. Trustee Nobuaki Kobayashi confirmed the redemption of 7 billion yen to fund these repayments, with 8.8 billion yen remaining in trust assets.

🔒 Binance founder Changpeng "CZ" Zhao, after pleading guilty to violating the Bank Secrecy Act, must stay in the U.S. as a federal judge reviews a motion to keep him in the country until sentencing. Despite securing a $175 million bond, the possibility of him being a flight risk has halted his return to the UAE. Zhao faces a potential prison sentence and has agreed to a $50 million fine as part of his plea. The SEC also seeks to prove Binance and CZ committed a similar fraud to FTX.

🚀 Bitcoin’s Weekly Stats

• If you had started dollar cost averaging (DCA) Bitcoin on a daily basis starting at Bitcoin’s all-time high would put you in profit of +40% today.

• Bitcoin hit an all-time high price of $ARS 13,559,166 in Argentina following shortly after Milei’s win.

• The percentage of Bitcoin not moved in the last 3 months hit another all-time high of 90%.

• Bitcoin accounted for 90% of all digital asset inflows last week - $311M of the $364M total.

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Today’s newsletter was written by Colin and edited by Jordan.