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BIS CBDC report “Project Icebreaker”

The Bank of International Settlement recently released its findings on its Central Bank Digital Currency (CBDC) study. The study outlines new paths for a cross-border retail CBDC.

A retail CBDC gives the creator full control over the user’s payments and bank account. That means any transaction can have a time limit, be frozen on command, or be segmented by transaction type, controlling the sort of goods the user can purchase.

CBDCs are an extension of the fiat system and may be either a continuation of an old “dollar” or the start of a new one. If it is a continuation, then the printing and devaluation continue down a path of value destruction, a negative network effect pushing people towards more valuable commodities and money.

Nuclear Bitcoin Miner Online

Bitcoin Miner TeraWulf, the first known miner to utilize nuclear power for Bitcoin mining, has started hashing with miners online. The facility is operated by PJM and will utilize 100% nuclear power at $0.02 per KWh. The full deployment will be close to 160 MW.

Silvergate Insolvency

Silvergate played a role in the FTX and Alameda fiasco by allowing them to utilize their bank and USD rails. Dylan covers this in depth below.

FTX Debtors Sue Grayscale

Alameda, the fund run by Sam Bankmane Fried, which was later found to be running FTX simultaneously, is now suing Grayscale Investments.

The two funds seem to have pointed fingers at each other and “violated” agreements. The press release details how and why Grayscale violated the contract with Alameda. It cites management fees, preventing shareholders from redeeming shares, and NAV being below market value. More info here.

Price

Price has fluctuated between $20,000 and $23,000 over the past few months. This pattern has been coined the “Bart” pattern (looking like Bart Simpson) and has historically shown a consolidation in previous cycles near the bottom.

The Bitcoin halving happens every four years. The amount mined per block in the fourth halving will be reduced from 6.25 BTC to 3.125 BTC, reducing the amount of bitcoin released.

Historically, around 70% through the halving is when Bitcoin has bottomed in terms of price. This chart illustrates how history could be repeating itself.

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What to read

How Many Bitcoin Confirmations is Enough? - Jameson Lopp

Bitcoin's value appreciation engine: increasing scarcity - Jesse Myers