Here is the most painful piece I have ever written: "Sovereignism Part 8: Everywhere and Nowhere" exploring market dynamics, the nature of fiat, #Bitcoin, and the mass-psychosis of totalitarianism.
Quick thread of a few excerpts from this written work⬇️
"Humans not only trade goods, and the ideas on which they are based, but they also imitate one another’s actions in waves of mimetic exchange—imitative patterns of action directly responsible for the development and propagation of ritual, culture, and social institutions."
"As covered previously in this series, political statism is a mass-psychosis premised on the profitability of property violation. This psychotic mode of human organization—a watered-down version of outright slavery—is dependent on a general ignorance and passivity among people."
"The end result for every state across history is mass-suffering, collapse, or defeat in war. Statism has always been a self-defeating enterprise, because it is based on the falsehood of fiat: an assertion about reality made in an attempt to override reality."
"A mass-cerebral aneurysm, totalitarianism is the inevitable end game of statism. The reason is fairly straightforward: the initial act of coercion, no matter where it originates, must mimetically propagate and become magnified in the market process."
"As a coercion-based business strategy, statism strives to grow tax revenues until there is total submission to state power. In its final form, statism becomes the de facto super-dominant social institution, giving way to the most dangerous mass-psychosis of all—totalitarianism."
No pain, no gain. I hope this resonates as the topic is quite relevant to the madness we see unfolding worldwide today. Knowledge is power, and with great power comes great responsibility. Individuals taking responsibility for themselves and their actions is the path to healing.
Subscribe to The Freedom Analects for access to all my latest written work as it is released, it is free and will hopefully help free your mind:
The state doesn’t tax because it needs money.
It can print that.
Taxes exist to steal the value of your labor.
Taxes are a system of legal coercion designed to extort value from producers and redirect it toward political ends.
Once you see this, the tax code stops being confusing.
It becomes revealing.
🧵👇
The tax code is not neutral.
It punishes prudence. It punishes productivity.
It punishes saving in depreciating currency.
And it selectively spares those who deploy capital into productive systems.
Two systems of taxation exist:
• One for those who understand the incentives
• One for everyone else
“Rules for thee, but not for me.”
The current administration is taking this idea and sprinting with it.
The national debt is approaching $40 Trillion and you can’t tax your way out of that.
The only options are to:
Print your way out of it
Grow your out of it
The so-called ‘Big Beautiful Bill” exists to do both:
Spend (via money printing)
Tax deductions for business owners through bonus depreciation
Bonus depreciation isn’t generosity. It’s a desperate attempt to “stimulate” growth.
An economic hail-mary that business owners can stimulate enough long-term real economic growth to offset monetary debasement.
Are Bitcoin’s 4-Year Cycles Over?
The team at @BlockwareTeam thinks so — and their latest report lays out why Bitcoin is transitioning from a retail-driven boom-and-bust asset into a true macro asset class.
Here’s what it says 🧵👇
Historically, Bitcoin’s price action followed predictable 4-year cycles, driven by halving supply shocks and retail speculation.
But in the post-ETF era, institutional capital is changing the rules. The old cycle model is breaking down.
Since the creation of the ETF in January 2024, Bitcoin’s largest drawdown has been a mere 30%
One of the best ways to value Bitcoin (and remove the noise from the signal) is by using ‘Realized Cap.’ This is the value of all BTC based on the price they were last traded at.
Blockware’s report highlights a diminishing multiple between the Market Cap and Realized Cap. Moreover, their regression of these metrics shows that the impact of capital inflows is far more predictable post-ETF.
The immature, retail-driven market with wild reactions to capital inflows is over (both to the upside and downside).
How the Wealthy Avoid Taxes (Legally) — and Why Bitcoin Mining is the Newest Loophole
Donald Trump never paid much in taxes.
Not because he cheated — but because he understood one of the most powerful weapons in the U.S. tax code: depreciation.
He bought real estate, buildings, and claimed massive paper losses… and still made money.
Now you can do the same — with Bitcoin Mining.
🧵👇
Under Trump's original tax plan in 2017, investors could write off 100% of the cost of business equipment (like real estate renovations or machinery) in Year 1.
This is called bonus depreciation.
It let Trump "lose" millions on paper, while collecting real income.
That’s now BACK — thanks to the Big Beautiful Bill.
Bitcoin miners can now write off 100% of mining hardware costs in the first year.
Instead of writing off a property over the course of 39 years like real estate investors...
Bitcoin miners can depreciate everything instantly.
- Same tax shelter
- Higher returns
- Bitcoin income, not dollars
A good Commercial Real Estate investment returns 10% per year.
Bitcoin miners consistently return 50% per year.
The man who revived Atari from the brink of death is now building the fastest growing Corporate Bitcoin Treasury on the Paris Stock Exchange – and hardly anyone is paying attention.
Here’s the story of Frédéric Chesnais and Crypto Blockchain Industries () 🧵👇ALCBI.PA
Frederic Chesnais took Crypto Blockchain Industries ($ALCBI.PA) public in Q4 2021 at the peak of the BTC bull run and the post-covid monetary expansion. They started as a Web3 conglomerate — with ventures in the metaverse, tokenized gaming, and digital identity.
But by 2025, their stock was down more than 90% from its high.
Liquidity was gone.
The core business was fading.
CBI needed a strategic pivot — fast.
On May 14th, 2025, CBI shocked the market.
They announced a 10-year partnership with @BlockwareTeam to build a Bitcoin-native treasury — not by buying BTC directly, but by mining it.
Since then:
▫️ Stock up 10x
▫️ Market cap +€500M
▫️ Trading Volume up 100x
This move took CBI from a zombie stock to Bitcoin proxy.
On April 19, 2024, Bitcoin Miners went from earning 900 BTC per day to 450 BTC per day.
"Halvings" enforce Bitcoin's 21,000,000 supply cap, but the drop in revenue creates a challenge for Miners.
How have Miners fared since the 2024 halving? Is Bitcoin Mining still profitable? 🧵👇
To start, let's look at 'Hashrate' -- the combined computational power of all Bitcoin miners on the network.
When hashrate is increasing, miners are expanding operations. They're building new facilities, plugging in new machines, etc. -- it's a sign of a healthy, profitable, competitive market.
Hashrate rarely drops. But when it does, it usually means miners are struggling.
The best way to analyze hashrate is by comparing the 30 & 60-day moving averages. These are known as 'hash ribbons.' When the 30-day moving average drops below the 60-day that means the least profitable miners on the network have turned off their machines.
This typically marks a local bottom in the BTC price as well as mining profitability:
- Inefficient Miners (old machines & high electricity rates) capitulate
- Mining Difficulty adjusts down
- Surviving miners become more profitable
- Less sell pressure from miners
- BTC price increases, mining becomes more profitable
Bitcoin Mining is a competitive, free market with no bailouts. The best operators -- those with efficient machines and low cost electricity -- survive and thrive over the long-term.
'Hashprice' measures the amount of revenue earned by Bitcoin miners everyday per unit of computing power. This is the best metric to gauge mining profitability because it factors in the Bitcoin Price, Mining Difficulty, the Halvings, and Transaction Fee Revenue.
It’s been volatile, but over the past 13 months, ‘Hashprice’ has averaged about $0.05/Th/Day.
All things considered, this has been a great performance and a bottom seems to have been established in terms of miner revenue. Multiple re-tests of the lows have been successfully won by the bulls, and it’s likely that the past year’s performance will be the ‘bear market’ of this epoch for Bitcoin miners.
Many bullish catalysts are emerging that could send the BTC price, and consequently, miner revenue, much higher over the next 3 years.
I don’t normally speculate on short-term #Bitcoin price action — but some friends of mine have provided some fascinating perspectives that I want to share.🧵 👇
Bitcoin is up 25% from its April 9th low and there’s a handful of indicators that show a major bull market around the corner. Starting with the Average Miner Cost of Production.
In a rational economy, assets rarely trade below their cost of production. Now, what it costs to “mine” a Bitcoin is different for every miner – machine type, electricity cost, and uptime all play a role — but the analysts @BlockwareTeam have aggregated data to create a metric called the “industry average”.
This metric has timed each of the past 6 Bitcoin bottoms:
September 2024
November 2022
September 2020
March 2020
December 2018
April 2016
This metric is signaling a bottom right now.
Next is the long-term holder supply. This measures the amount of Bitcoin that have not moved on-chain in at least 155 days (and the 30-day change)
At its core, the Bitcoin price is simply a function of supply and demand. After an increase in the Bitcoin price, you start to see previously inactive coins move on-chain. Inversely, after prolonged periods of sideways or negative price action, long-term holders begin accumulating more coins, setting the stage for a supply-shock and upward price pressure.
Over the past 30 days long-term holders have acquired ~150,000 more BTC. Bitcoin is running out of sellers in the $80k to $100k range.
Not getting shaken out by volatility is why it’s so important to know what you hold.
Lastly, and most importantly, is USD liquidity. This effectively represents the “demand” side of the equation. More dollars in the system means more potential bidders.
Bitcoin is highly correlated to fiat liquidity – and that’s becoming increasingly more of the case as ETFs, Bitcoin Treasury Companies, and Convertible Bonds, provide easier access for new liquidity to enter the Bitcoin market.
And it’s not just USD liquidity that’s increasing – liquidity of all fiat currencies is on the rise, and Bitcoin is a global asset.