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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 a broken system.
While the financial system flounders, the bitcoin network, which operates completely independently, marches on. Here are some of the trends to watch in the coming weeks.
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 (exahashes per second), demonstrating the collective strength of the decentralized mining ecosystem. While growth has slowed compared to the staggering 103% increase in 2023, the fact that miners continue to build despite economic headwinds underscores their long-term conviction.
Yet, the mining sector is facing challenges. The total market cap of 14 publicly listed bitcoin mining firms fell by 23% to $28 billion, reminding retail investors that the profitability of mining stocks doesn’t always mirror bitcoin’s price movements.
Even in this difficult environment, standout performers like TeraWulf (WULF) managed to outpace bitcoin itself, gaining 136% compared to bitcoin’s 120% rise last year. This underscores a broader theme often missed by mainstream analysts – bitcoin mining operates on a marginalist framework.
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 he will step down by the end of February. Barr’s exit coincides with the incoming administration’s stated goal of reducing regulatory burdens and fostering a more innovation-friendly financial environment.
Yet, systemic reform will not come easily. Inflation remains at 3%, which is 50% above the Fed’s target. For years, misleading employment reports have masked the deeper structural weaknesses of the economy, giving the illusion of prosperity while small businesses and middle-class households struggle to stay afloat. Reforming a broken system in the face of economic hardship and media resistance is a monumental task.
Nevertheless, there are reasons for optimism. The U.S. economy, though battered, remains more resilient than many of its global peers. If regulatory rollbacks and pro-growth policies take root, innovation could thrive and offset the damage caused by years of reckless spending and overregulation. But regardless of the success or failure of these efforts, one trend is clear: the “debasement trade” – accumulating bitcoin to protect against currency debasement and government overreach – isn’t going away any time soon.
Missed opportunity For a Strategic Bitcoin Stockpile?
A recent federal court ruling on December 30th authorized the Department of Justice (DOJ) to liquidate 69,370 bitcoins seized from the Silk Road marketplace, a haul valued at over $6.5 billion. The DOJ cited price volatility as justification for the sale, but anyone paying attention will naturally wonder whether the sudden sell-off is an attempt to kneecap the incoming administration’s stated bitcoin policy, which includes the maintenance of a strategic bitcoin stockpile.
By selling at current levels, the DOJ may unintentionally strengthen the argument for a strategic reserve. The optics of selling such a valuable asset right before an administration that understands its long-term value takes office could reinforce the belief that the U.S. government should build, rather than deplete, its bitcoin holdings. Fidelity’s recent forecast that 2025 will be a turning point for sovereign bitcoin adoption only adds weight to this perspective.
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 thrown their support behind Pierre Poilievre, whose pro-bitcoin stance and commitment to financial sovereignty have made him the frontrunner for Canada’s next election. According to Polymarket, Poilievre holds an 89% chance of victory.
Meanwhile, Thailand has launched a pilot program to allow foreign visitors to use bitcoin for everyday transactions. This initiative aims to streamline payments in the country’s tourist industry and integrate bitcoin into its existing legal frameworks.
The UAE-based Phoenix Group has opened a 50-megawatt bitcoin mining facility in North Dakota, further 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 anticipated regulatory reform in the U.S.
As the world grapples with economic uncertainty, bitcoin continues to offer a path toward resilience and innovation. U.S. Senator Dusty Deevers (R-OK) introduced the Bitcoin Freedom Act, which would allow Oklahomans to receive their salaries in bitcoin, helping to position the state as a leader in financial innovation.
The Road Ahead: Opting Out of a Failing System
While governments and corporations vie for strategic bitcoin positions, individual adoption remains critical. Despite the interest in bitcoin by sovereign states and financial institutions, the true power of bitcoin lies in its independence. This is what distinguishes bitcoin from every other modern financial asset – like gold, it cannot be debased by fiat or easily censored.
Bitcoin gives individuals a choice – and that makes all the difference. The economic distortions created by centralized monetary policy, and the trillions in debt, inflationary pressures, and regulatory overreach that follow are not going away anytime soon. But bitcoin offers an alternative vision that is accessible to anyone on the planet who chooses it.
As 2025 unfolds, the landscape is poised for further seismic shifts. Whether through strategic reserves, sovereign adoption, or individual accumulation, the adoption of bitcoin as a safeguard against economic instability is accelerating. The question isn’t whether bitcoin will continue to rise—it’s whether individuals, institutions, and nations will recognize its importance in time. In a world where economic systems are failing their most basic mandate to preserve value, bitcoin remains an unmatched tool for financial sovereignty.
