Bitcoin is rewriting the history of our time.
Blockworks’ newest podcast Supply Shock now actively connects the dots between the current state of Bitcoin and its tumultuous timeline — all anchored by the unique perspective of its host Pete Rizzo, the Bitcoin Historian.
Let’s bring you up-to-date with three of the most notable Bitcoin moments from the last week.
Uncle Diamond Hands
This is happening: the US government holds Bitcoin as an official reserve asset.
Could the Executive Order of Thursday last week have been more aggressive? Maybe. The Strategic Bitcoin Reserve will, in the beginning, only hold bitcoin seized in criminal and civil cases — a list that presumably includes Silk Road, which Arkham puts at 198,109 BTC ($16.64 billion) in total, though it’s likely much less.
The Digital Asset Stockpile is made up of coins other than BTC and currently stands at $419 million.
The Secretary and the Commerce Secretaries were authorized to develop “budget-neutral strategies” It is possible to buy bitcoins in the future as long as the taxpayer is not paying for it. Officials have stated that at least two government departments are exploring the possibility.
The same can’t be said for other cryptocurrencies — with the executive order stating the government will not acquire more assets for the Digital Asset Stockpile outside of forfeiture proceedings.
No. Second. Best.
The 11th Hour in Utah
The Utah Senate passed the Bitcoin-focused bill known as HB230 by a 19-7-3 vote on Friday — which should’ve allowed the state to create its own strategic bitcoin reserve.
The lawmakers effectively retracted the crucial provision at the last moment. Utah would have become the very first US state actively buying bitcoin if lawmakers hadn’t acted.
The bill originally allowed the State Treasury to invest up-to 5% of some funds in digital assets. This included accounts for state budgets related to disaster recovery, income tax, and other fund budgets.
Only coins that had a total market value above $500 billion could have been purchased by the Treasury, on average over the previous year. The only crypto-currency that meets that criteria is Bitcoin, and the bill was seen as a step towards creating a strategic reserve of bitcoin.
Good news! Bill enshrined in law certain Bitcoiner rights, such as the right to self-custody, mine and run nodes. Staking is allowed for all coins, not just bitcoin. Devs are able to build their software using blockchain rails, without having to worry about money-transfer laws.
It’s all good. At least, the dream of a state-backed bitcoin reserve is still alive, in more than 12 states such as Arizona, Texas New Hampshire, Oklahoma Florida Georgia.
The bills have been rejected by five states.
Bitcoin Hydropower – Powered by Bitcoin
Bhutan’s Kingdom is a Buddhist whale who has been mining bitcoins as far back as February 2021.
We were fortunate to have the first interview known with Tshering Tobgay, the Prime Minister of the Kingdom, about mining operations in the kingdom, which are intended to compensate for declining tourism revenues. “There are hundreds of people who have made billions of dollars on the back of Bitcoin. Why aren’t governments doing more?” Tobgay said Al Jazeera.
“We have used bitcoin for health — to provide free healthcare, for [the] environment. But these are minor. The main use of Bitcoin has been to finance the salaries of public servants.”
Blockworks’ analysis of Bhutan in September last year found that the country was earning up to $4.9 billion BTC per month and had produced 27,727 BTC in total up until then, which is worth $2.3bn at today’s prices. At that time, it is possible the government made $578.5 millions from the sale of its coins. Arkham reports that its wallets contain 10 635 BTC (876 million dollars).
When asked if the Bhutanese would ever make Bitcoin offerings to Buddha the outlet stated that Tobgay believes the world will be a better place. “heading inevitably towards using and exchanging bitcoin just like any other currency.”
It’s a great quote.
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