print-icon
print-icon

That ain't no turkey, mister.

Coinbits's Photo
by Coinbits
Friday, Nov 28, 2025 - 17:23

S&P Global just downgraded Tether's USDT to its worst possible rating: a 5 out of 5. It cited Tether's bitcoin holdings, which comprise 5.6% of its reserves, as "risky."

Never mind that USDT has maintained its peg through multiple price cycles while Circle's USDC (which S&P rates at a "very strong" 2/5) de-pegged when Silicon Valley Bank collapsed in 2023. The rating agency warns that bitcoin price drops could leave USDT "undercollateralized," applying what Tether correctly calls "a legacy framework that fails to capture the nature of digitally native money."

Meanwhile, JP Morgan is weaponizing its too-big-to-fail status against bitcoin companies. The bank raised margin requirements on Strategy stock from 50% to 95% overnight, forcing customer sell-offs. When clients tried transferring shares elsewhere, JPM dragged out the process for months, suggesting they might have been lending those shares to short sellers. The bank also shuttered Strike CEO Jack Mallers's personal account without explanation.

Imagine working for Jamie Dimon, who confidently proclaimed for years that bitcoin was worthless, causing many Americans to steer clear of it – only for his bank to invest in bitcoin once it had sufficient regulatory capture. And then finding out senior JPM executives banked Jeffrey Epstein even with knowledge of shady dealings – and then debakning regular Americans who are building innovative business that add real value to the American economy.

These wild swings are just because legacy finance recognizes bitcoin as an existential threat – and doesn’t know whether to fight it, or try to control it. JPM will one day serve as a historical example of bitcoin’s disintermediation of rent-seeking institutions.

When dinosaurs roar, extinction is near!

And Happy Thanksgiving! 🦃

Texas becomes first U.S. state to buy bitcoin ETF, purchases $5 million through BlackRock

Texas acquired $5 million of BlackRock's iShares Bitcoin Trust (IBIT) on November 20, making it the first U.S. state to purchase bitcoin for its Strategic Reserve. The purchase, made at approximately $87,000 per bitcoin, was disclosed by Lee Bratcher, President of the Texas Blockchain Council, who noted the state plans to eventually self-custody while the formal process is finalized.

States compete to front-run federal Strategic Bitcoin Reserve

Texas joins a growing wave of state-level bitcoin adoption following the passage of legislation in June establishing its Strategic Bitcoin Reserve.

With New Hampshire authorizing $100 million in bitcoin-backed municipal bonds and Arizona creating its own reserve, states are not waiting for federal action. They recognize bitcoin as a strategic asset and are acting accordingly, understanding that those who move first will benefit most from appreciation.

Nasdaq elevates IBIT options to top-tier status as institutional bitcoin demand explodes

Nasdaq ISE filed with the SEC to increase BlackRock's IBIT options position limits from 250,000 to 1 million contracts, placing bitcoin ETF options in the same liquidity tier as major global equity benchmarks, such as emerging markets and China ETFs. The exchange also seeks to remove limits on physically settled FLEX IBIT options, citing IBIT's strong liquidity and noting that even a fully exercised one-million-contract position would represent only 0.284% of total bitcoin supply.

Bitcoin derivatives achieve institutional scale

IBIT overtaking Deribit as the largest venue for bitcoin options is a watershed. When Wall Street's gatekeepers demand the same position limits for bitcoin as for equities, they're acknowledging that bitcoin is among the most liquid and accessible assets in the world.

America's poverty trap requires $140k to escape as 1963 formula collides with modern costs

A thorough analysis by financier Mike Green found that U.S. families need $136,000–$150,000 in annual income to achieve basic economic stability. You read that right – his analysis rests on the concept of “price of participation” in various modern institutions that are central to American life.

Yet the official poverty line remains anchored to a 1963 formula that assumed food was one-third of household budgets when it now accounts for just 5-7% of a family’s spending. Below this threshold, benefit cliffs create effective marginal tax rates of 80-120%, meaning families earning $45,000 can become poorer by jumping to $65,000 as they lose Medicaid, SNAP, and childcare subsidies while facing full market prices in heavily regulated sectors.

Fiat is designed to skim off the upwardly mobile

Decades of Federal Reserve monetary expansion inflated housing, healthcare, and education costs, while outdated welfare formulas create poverty traps. The same monetary debasement that turned a $10,000 bank reporting threshold from "down payment on a house" into "dental emergency" has made upward mobility more difficult. Bitcoin's fixed supply offers the only escape from a system where the Fed's printing press continuously raises the floor while keeping the next rung of the ladder out of reach.

Strategy releases credit dashboard to address bitcoin treasury concerns, claims 70-year dividend runway

Strategy introduced a new BTC Credit Rating dashboard showing the company maintains 5.9x assets-to-debt coverage even if bitcoin falls below its $74,000 average cost basis. The announcement comes as digital asset treasury stocks experienced sharp pullbacks, raising investor concerns about potential forced liquidations. Strategy's market net asset value of 1.16 indicates the company can still issue shares to raise capital for additional bitcoin purchases.

Low time preference is key to bitcoin treasury strategy

Strategy's financial position means the world's largest corporate bitcoin holder is unlikely to sell during downturns. This motion is part of how bitcoin wins: strong hands accumulate from weak hands, and coins held by committed holders with long time horizons effectively exit circulating supply, tightening available inventory for future price discovery.

BITCOIN ADOPTION CONTINUES

Bitcoin miners surpassed 19.95 million coins mined, crossing the 95% threshold with approximately 1.05 million bitcoins remaining to be mined over the next century.

ARK Invest maintains its price target of $1.5 million for one bitcoin by 2030 despite recent market corrections, citing returning liquidity and the Federal Reserve's anticipated upcoming pivot to quantitative easing.

Abu Dhabi Investment Council tripled its BlackRock bitcoin ETF stake to 8 million shares worth $518 million.

Spanish commerce-tech company seQura launched a shopping app offering up to 15% cashback in bitcoin across 500+ partner brands, replacing traditional expiring loyalty points with bitcoin sent directly to people's wallets.

El Salvador purchased a record 1,090 bitcoins worth $100 million during the price drop, bringing total holdings to 7,475 coins despite IMF loan restrictions against using public funds for bitcoin purchases.

Bitizenship launched The Bitcoin Dolce Visa, allowing investors to obtain Italian residency through a €250,000 equity investment in a Milan-based bitcoin startup.

HOW BITCOIN WORKS

Learn one key idea about bitcoin each week. This week:

The deflation myth and bitcoin's promise

For nearly a century, economists and policymakers have treated deflation (falling prices) as a plague. This fear stems from a fundamental misreading of the Great Depression, where experts confused cause and effect.

Between 1920 and 1933, the dollar’s purchasing power rose 66%. This a natural correction following Federal Reserve-induced inflation, but President Hoover (and later FDR) were convinced by technocrats that falling prices themselves caused the Depression. Their solution was to forcibly inflate, devalue the dollar, and even confiscate gold from citizens.

The actual problem was government interference preventing the market from adjusting naturally. Falling prices were a gift to consumers and savers during difficult times. By fighting deflation, authorities prolonged the Depression by over a decade.

The deflation myth persists today. Central bankers worldwide panic when inflation falls below their arbitrary 2% target, even as prices continue to rise. They prefer steady currency debasement to purchasing power gains.

Why? Because deflation benefits savers and consumers but puts pressure on debtors, including heavily indebted governments. Politicians favor inflation because it allows continued deficit spending and delivers short-term economic stimulation that helps win elections. The incentive structure makes adopting sound money from the top down politically impossible.

Bitcoin breaks this cycle. With its fixed supply of 21 million coins, bitcoin cannot be manipulated by politicians seeking quick fixes or central bankers targeting inflation rates. As adoption increases and productivity grows, bitcoin naturally gains purchasing power over time.

This is not a bug but a feature. A currency that rewards saving and benefits consumers is precisely what deflation-phobic experts have trained us to fear. Bitcoin proves their century-old myth wrong by offering an escape from perpetual monetary debasement. It forces us to relearn what the Gilded Age demonstrated: rising money value drives genuine prosperity.

COIN CHECK

In Mike Green’s “participation audit,” which type of cost is the real problem for families, even more than the price of groceries?

A. Luxury spending (vacations, gadgets)
B. Participation costs (housing, healthcare, childcare, transport, connectivity)
C. Entertainment subscriptions
D. Restaurant meals

Check your answer at the end of the page.

FROM THE MEME POOL

Follow us on X for more fresh content

ANSWER

Answer: B. Participation Costs

Food prices closely track the Consumer Price Index (CPI) and have gotten lower relative to income over the past few decades. What has exploded is the cost of participation – being able to work and raise kids, find a rental near one’s place of work, and paying for childcare, healthcare, commuting, and always-on connectivity.

Contributor posts published on Zero Hedge do not necessarily represent the views and opinions of Zero Hedge, and are not selected, edited or screened by Zero Hedge editors.
0
Loading...