Washington-based mining mining company Giga Watt has filed for Chapter 11, after investing tens of millions in facilities and equipment. Markets moved sideways today, but if we consider the Network-Value-to-Transactions or NVT of Bitcoin, the price may have more room to fall. The US Department of Justice is probing whether Tether was used to prop up crypto prices during critical dips. Meanwhile, the broader economy crosses a rubicon into worrying territory.
Bitcoin Mining Firm Giga Watt Declares Bankruptcy Owing Millions
"Giga Watt has estimated assets worth less than $50,000, whereas estimated liabilities are in the range of $10–50 million, according to the court documents."
Bitcoin-Rigging Criminal Probe Focused on Tie to Tether
"While federal prosecutors opened a broad criminal probe into cryptocurrencies months ago, they’ve recently homed in on suspicions that a tangled web involving Bitcoin, Tether and crypto exchange Bitfinex might have been used to illegally move prices, said three people familiar with the matter."
Bitcoin Bulls Who Lived by This Metric Now Dive With It
"It fell nearly $700 in Monday’s trading session to just under $4,800. At the same time, though, the NVT continued to rise. It was 160 a week ago, three times what it was a year ago, even though Bitcoin’s price was down 20 percent. Monday’s drop brings the ratio down to 90, still far higher than it was a year ago, despite the much lower price. For Bitcoin to get back to the 'value' it was a year ago, it would have to fall an additional 37 percent to around $3,000. But because use as an actual form of payment is shrinking, not growing, perhaps the NVT should be lower than it was a year ago, indicating Bitcoin’s price should drop even further."
A 1970s Essay Predicted Silicon Valley's High-Minded Tyranny
"In the early days of the internet, she says, 'it was highly inventive, it was highly spontaneous, but we’re past that. As long as you reject the idea that any organization is bad you are never going to have the discussion about the best organization for whatever it is you are trying to do.' And while this rhetoric of personal empowerment has been great for Silicon Valley, for the rest of the world it has produced a deeply painful reality: greater disparity in wealth and power, fewer tools for reversing these conditions, and a false sense that we are personally to blame for our own difficult circumstances."
The ‘Neo-Banks’ Are Finally Having Their Moment
"'If you look ahead five years, there’s no way there will be a financial services industry that is charging consumers $30 billion a year in overdraft fees,' said Chris Britt, the chief executive of Chime. 'We aim to shake that up, and I think a lot of other consumer companies will be doing the same thing.'"
Markets Are Revealing the Sum of All Risks
"The implicit message: If all of these negative forces really do start to harm growth, the Fed will slow the pace of rate increases, rather than stick to some preordained path. The great fear for the economy in the next couple of years shouldn’t be the risks we know about. It is that those risks will materialize and interact in unpredictable ways, and together cause damage that none of them alone could. And if that happens, the last few weeks will look like a crucial moment when it began."
News from the (BSV) trenches
"We now have an uncontaiminated bitcoin blockchain that can scale. Our team has worked 18 hour days since the fork and they are a truly amazing bunch of people. Among our own devs and some supporting devs that came to support us I have seen some of the most legendary dev skills I've come across in my entire life these last 5 days. Hitting a 64mb block was a big deal for our team last night (and after 4 days hard slog we took the opportunity to have a few celebratory drinks and we all have headaches today). But development progress is exponential."
Programmable Constraint Systems for Bulletproofs
"We realized that it is more efficient to bypass arithmetic circuits altogether and provide the API for building a constraint system directly. This way we do not have to construct the graph or arithmetic expressions and then transform them into constraints: higher-level protocols can often keep that graph represented statically by their source code and build constraints on the fly."