- Crypto Nutshell
- Posts
- 🥜 The Trial of SBF Has Begun...
🥜 The Trial of SBF Has Begun...
PLUS: Bitcoin Halving 195 days away
GM to all 13,610 of you. Crypto Nutshell flyin’ by. ✈️🥜
We’re he crypto newsletter that's less intense than breaking the laws of space to save humanity from a dying Earth... 🌌🚀
Today, we’ll be going over:
🧑⚖️ The trial of SBF
📅 The Halving is only 195 days away
🤔 Will miners survive the Halving?
💰 And more…
MARKET WATCH ⚖️
Prices as at 5:45am ET
Only the top 20 coins measured by market cap feature in this section
THE TRIAL OF SAM BANKMAN-FRIED 🧑⚖️
BREAKING: The trial of Sam Bankman-Fried has begun
SBF is about to face the most significant legal battle in the history of crypto.
Less than one year ago, SBF and FTX were killin’ it. FTX was everywhere. They had celebrities such as Tom Brady and Steph Curry promoting them. They were on top of the world. 🌎
But under the hood, FTX found itself with an $8 billion shortfall. This left thousands of customers stranded with their crypto assets frozen. The US Government eventually stepped in and charged SBF. The downfall of FTX is one of the largest financial frauds in history.
The Charges
The charges SBF is facing relate to the alleged diversion of billions of dollars from FTX’s clients for personal gain and benefit (remember that $30 million mansion he bought his parents?). The charges are:
Wire fraud (20 years imprisonment)
Conspiracy to commit wire fraud (20 years imprisonment)
Conspiracy to commit commodities fraud (25 years imprisonment)
Conspiracy to commit securities fraud (25 years imprisonment)
Conspiracy to commit money laundering (20 years imprisonment)
Conspiracy to defraud the Federal Election Commission (5 years imprisonment)
The Defence Strategy
Since his arrest, SBF has stuck to the same story. He claims that he was an inexperienced businessman and never knowingly committed fraud. (seriously? That’s the best defence they could come up with?!)
His lawyers have stated that they will invoke an “advice of counsel” defence. This basically means that SBF had no idea that his actions were illegal and was only following guidance from FTX’s lawyers. 😂
It’ll be interesting to see how well this holds up in court…
What Happens if he’s Convicted?
The trial is expected to last 6 weeks.
If SBF is found guilty of all charges he will be facing 30 - 150 years in prison.
The most similar sentencing to SBF would be Bernie Madoff who received a 150 year sentence. 😱
For the full article click here.
TOGETHER WITH STOCK MARKET RUNDOWN 📈
Do you want to sound smart in front of your boss? 🧠
How about stunning your friends with your business knowledge?
There’s an easy way to do it: the Stock Market Rundown.
It’s a daily 3-minute read that keeps you covered on the stock market and all things business.
We enjoy reading Stock Market Rundown because they make keeping up with the latest business news amusing and actually kind of fun.
The best part? They’re 100% free.
Whack that subscribe button to get smarter on business today. 😎
|
THE HALVING IS 195 DAYS AWAY 📅
The Bitcoin Halving is scheduled to take place on April 17, 2024.
If history’s a guide, it will send Bitcoin & consequently crypto, screaming higher.
Today’s crypto expert believes it won’t be for the reason you think. 🧐
Dylan LeClair, sat down with Robert Breedlove to discuss the Bitcoin Halving.
At the date of the Halving, Bitcoin daily issuance will be cut from 900 to 450. The general consensus is that the cut in supply is what sends Bitcoin higher.
The equation is simple: Supply cut in half + demand remaining the same = price going up. 📈
Dylan has a contrarian take. He believes it’s not about the cut in supply, it’s about the demand the Halving creates.
The Bitcoin Halving is a different beast this time around. Bitcoin is now much more mainstream. Meaning the 2024 Halving will get waaay more attention than previous Halving events.
“I think, paradoxically, everybody's like: ’It’s a supply event!’ and at the margin it is. Going from 900 Bitcoin a day to 450 matters in issuance but I think it's more of a demand driver.”
On top of this, the 4-year Bitcoin cycle and post-halving run-up in price is now much better understood.
Dylan believes the narrative of the Halving will drive a huge amount of new demand for Bitcoin.
With the supply of Bitcoin held so tight, (as you’ve seen from our on-chain coverage!) all that’s needed to ignite the fuse is a spark of demand. 💣
Whether it’s the cut in supply or it’s a driver of demand, it’s a much of a muchness.
Both roads lead to the same place: the Bitcoin price exploding up. 🚀 😎
WILL MINERS SURVIVE THE HALVING? 🤔
The Halving is only 195 days away. Let’s take a look at how this will impact Miners. ⛏️
Glassnode released a model that perfectly answers this question.
The model looks at how much Issuance (rewards) miners earn per unit of Difficulty. Think of it as cost vs reward.
The math behind this model is quite complex but here’s what you need to know:
Difficulty: Estimated number of hashes required to mine a block
Issuance: The reward received for mining a block (currently 6.25 BTC, decreasing to 3.25 BTC post Halving)
🔴 Most Efficient Miners: The approximate cost to mine a Bitcoin for the most hardcore miners
🟣 Most Efficient Miners Post Halving: 2x the red curve due to the halving cutting rewards in half
So what does this model tell us?
Well as of today the most efficient Miners have an estimated cost of production of $15,100.
With the price of Bitcoin at $27,300, things are looking good for Miners. They are in profit. 🤑
BUT if we jump forward to the halving, the estimated cost of production becomes $30,200...
If Bitcoin’s price doesn’t go above $30,000 before the Halving, there’s going to be some real stress in the mining industry. 🥲
This stress could result in increased selling pressure by Miners as they are forced to sell more of their Bitcoin holdings to stay operational. With more and more coins becoming available for sale this would drive the price down. 📉
If a large amount of Miners were to shutdown, the Hash Rate (computational power of the Bitcoin Network) would also decrease. But this is where the true genius of Bitcoin shines.
Every 2 weeks, Bitcoin adjusts it’s difficulty to ensure blocks are mined every 10 minutes. So if many Miners exit and the hash rate drops, the difficulty will also decrease. This means that it’s now easier (and more profitable) to mine Bitcoin. It will all return to an equilibrium. 🧠
Bottom Line: Miners need Bitcoin to rise above $30,000 before the Halving. If this doesn’t happen, miners will be forced to sell more Bitcoin to cover their operating costs.
This could result in the Halving actually being a bearish catalyst in the short term. 🐻
However, once miners go insolvent and exit, the hash rate would drop, making it profitable to mine Bitcoin at lower prices. Worst case? there would only be short-term selling pressure.
The genius of Bitcoin. "🤓"
CRACKING CRYPTO 🥜
WHAT WE’RE READING ✍️
Want to get even smarter? Check these out.
p.s. all completely FREE
|
|
|
CAN YOU CRACK THIS NUT? ✍️
How often is Bitcoin’s blockchain updated with new transactions?
A) Every hour
B) Every 30 minutes
C) Every 30 seconds
D) Every 10 minutes
Find out the answer at the bottom of “Meme Corner” below 😀
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) Every 10 minutes 🥳
Bitcoin’s block time is 10 minutes, meaning every 10 minutes a new block is created and transactions are verified.
GET IN FRONT OF 13,000+ CRYPTO INVESTORS
Advertise with Crypto Nutshell to get your product or brand in front of the crème de la crème of crypto investors. Crypto Nutshell readers are high-income earners who are always looking for unique or interesting offers.
HOW DID WE DO? 🤷
We read every comment submitted in this poll and love to hear what you guys have to say. 😁 (bonus points for suggestions 🍪)
What did you think of today's Newsletter?don't worry, you won't hurt our feelings... 🥲 |
NUTCASE REVIEW OF THE DAY 🔍
DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
Reply