While Those Were Waiting For MtGox Unlock, Biden 30% Tax On Crypto Mining Comes
Overnight, Bitcoin suddenly broke away from 22k and plunged sharply. It once fell below the key point of 20k, falling by more than 7.5 percentage points. Not just the crypto market, the U.S. stock banking sector is also reportedly down sharply.
A bank called Silvergate, which carried the business of many crypto companies, was unable to continue operating because of the risk exposure to FTX and other mine explosion incidents, and voluntarily announced its liquidation.
The crisis infected Wall Street and the financial industry. U.S. banking stocks and financial stocks dived one after another.
Really, the mountain rain is about to come and the wind is full.
Dark clouds overwhelm the city.
Liu Jiaolian Public Account Mar 7 article "Rumor Mt.Gox 140,000 BTC will be smashed on March 10; Yuga Labs' Bitcoin NFT took more than 16 million U.S. dollars" [link] mentioned that at the VIP party of Planet on Mar 5 it has been pointed out that the current stage is still in a bear market, so it is not appropriate to be too optimistic, and the front is looking bad, so you should pay attention to discount opportunities.
Figure: Liu Jiaolian's planet (simplified picture)
Looking back, on March 5, Bitcoin was 22.3k.
On March 8th, the daily "Jiaolian Internal Reference" in Liu Jiaolian's planet mentioned that US law enforcement agencies transferred 10,000 bitcoins to the coinbase exchange. (It was originally rumored to be nearly 50,000 BTCs, but later coinbase refuted the rumor that more than 40,000 BTCs were internal transfers and had nothing to do with US law enforcement agencies)
Reminiscent of the fact that MtGox was going to start the compensation process on March 10, I am afraid that the US law enforcement agencies are going to take a step before the MtGox big cake flows out and smashes the market?
Originally, due to the liquidation of Silvergate, the liquidity on the Bitcoin chain dropped sharply, and the transaction volume fell by as much as 35%. Now that the US law enforcement agencies are throwing out nearly 10,000 BTCs, it is tantamount to making things worse, and the market should react soon.
From the diving in the market, we can speculate that there is a high probability that the US law enforcement agencies have sold the BTCs.
As the saying goes, blessings come without pairs, and misfortunes never come singly.
The New York Times broke the news[1] that the Biden administration proposed on Thursday that it needs to solve a new budget of 6.8 trillion US dollars for military spending and other social programs. At the same time, a deficit of almost $3 trillion would need to be cut in parallel.
In order to raise such a huge amount of funds, Biden proposed to increase taxes on high-income earners, corporates and specific industries by US$5 trillion!
Well... that's very Democrat.
In this grand tax increase plan, in addition to old faces, there are also new plans. One of the new plans is to start with the crypto mining industry.
As for the reason... we old folks have all heard it in 2021. That is naturally: mining consumes a lot of electricity, produces a lot of emissions, and causes climate change.
To be honest, the writer is too bored to expand on this old-fashioned reason (excuse). Readers who are interested or don’t remember may wish to read these articles in 2021:
- "Research on Three Regulatory Policies for Bitcoin Mining" [Link], Public Account of Liu Jiaolian, 2021.6.3
- "Who Is Killing the King's Horse" [link], Liu Jiaolian public account, 2021.6.27
- "Bitcoin May Have Completed The Carbon Peak Goal" [link], Liu Jiaolian public account, 2021.7.3
What we just want to say is that Europe has started to burn coal and charcoal, and the environmental protection princess have been arrested. At this time, environmental protection and climate are used as an issue. Doesn’t it mean that you don’t want to lose your old face?
It is really a well-known double-standard brand in the United States.
To increase military spending, do you want to fight on two frontlines?
To reduce the deficit, the Federal Reserve has raised the interest rate too high. After two years, the low-interest debt will be replaced by high-interest debt. Is the US government going to go bankrupt?
Raising taxes, not borrowing, is it because the Fed wants to tighten money and has no money to borrow?
After Biden thought about it, there is really only one way left in Huashan - the traditional arts of the Democratic Party - increasing taxes.
It will take 3 years to gradually "phase in" the tax increase. Now that the entire expectation is out, everyone panics.
The Fed's Powell continued to sing eagles a few days ago, scaring the market.
The writer reckons that all this singing and singing is just talk, or the real strength is the BTCs of the US Department of Justice.
I am afraid that the real reason is often not noticed by people.
Believe it or not, not even the MtGox deferment of payments could save the market.
The Rainbow comes after the storm.
To be honest, this bit of wind and rain is really just a small wave in a thousand miles of sea for Bitcoin.
Bitcoin has ever experienced country-level attacks.
Besides making Bitcoin more decentralized and more robust, the new policies of the Biden administration will not have more impact.
Blessings come, disasters come. Misfortune comes, and blessings lie there.
Quite a few crypto people will mistakenly believe that the ideology of encryption is naturally allied with Western democratic politics.
If they had read the book "History of Bitcoin" and understood the vision and history of Cypherpunk, they would not have such a deep misunderstanding.
Historical misunderstandings and cognitive biases are harmful.
In the past two years, when various countries in the Western Democratic Political Alliance began to turn their guns around, crack down on, sanction, and arrest crypto practitioners, they were stunned, surprised, and confused.
They don't know who the cypherpunks are fighting against from the beginning.
In this sense, cypherpunks are our united front.
References:
Extra: The full book of "History of Bitcoin" has been released on leanpub https://leanpub.com/history-of-bitcoin
nostr: npub1dlwqsauewd56dekrnuxh8xukvg7pgeelwp39qah8ts5x28tmf7pqp5tcp3 twitter: @liujiaolian https://twitter.com/liujiaolian
(Disclaimer: The content of this article does not constitute any investment advice. Cryptocurrency is a very high-risk product, and there is a risk of going zero at any time. Please participate carefully and be responsible for yourself.)