Iris Energy made $56K per Bitcoin mined in August. Yep, you read that correctly.
Keep reading to find out how they did it. It’s a good one.
Also!!! Our brand-new trading course is still available at a 50% discount—but only until September 11th.
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Here’s what’s in today’s issue:
- Rebecca shares her thoughts on Bitcoin’s recent wins, a possible central bank pivot, the spot ETH ETF race, DYdX launching a decentralized order book and Google jumpstarting NFT games.
- Altcoin alpha by David.
- This week’s airdrop by Jesse.
- Sam has an NFT report on why people are so angry with Mr Beast, Creator League, and NFTs.
Thanks to Phemex for sponsoring today’s newsletter.
Trade on Phemex to participate in the xPT Pre-mining event. Mint your Phemex Soul Pass (PSP) today and when you start trading receive an airdrop of Phemex tokens based on your trading activity.
💰 Bitcoin Scores 3 Big Wins
1. Bitcoin Miners Getting Paid by the Grid
It’s Bitcoin to the rescue!
Bitcoin miners have been out in force saving the energy grid this summer and making a ton of cash whilst doing so. Iris Energy made $56K per Bitcoin mined in August.
First, it was paid $28K per Bitcoin by the Texan grid to make use of excess energy.
Then, it made another $28K per Bitcoin when sold.
Riot Platforms got in on the action too, getting paid $31.7 million in energy credits from the Texan grid to power down.
That’s the beauty of Bitcoin mining!
2. JP Morgan Revises Bitcoin’s Mining Production Cost
Last week, The University of Cambridge confessed to over-exaggerating Bitcoin’s energy consumption in 2022 by a whopping 10%.
Americans drying clothes used 108 TWh. Whilst the world mining Bitcoin used 95.5 TWh.
Now JP Morgan has revised some of its maths too. It’s updated its methodology for calculating Bitcoin’s mining production cost.
This brings the new estimate down from $21,000 to $18,000. And means miners are well in profit at current price levels.
3. US Crypto Accounting Rule to Change
Michael Saylor is one happy guy right now.
Businesses with Bitcoin holdings will finally be able to value the asset at current prices on their balance sheets.
Current accounting rules mean that businesses must report unrealized losses when the Bitcoin price goes down but can’t declare unrealized profits when the price goes up.
The change has been approved by the Financial Accounting Standards Board (FASB) and will come into effect from December 2024. Just in time for those bull market vibes!
🤔 Central Banks Ready To Pivot?
Whilst we await the Fed’s next interest rate decision, other central banks are making moves…
The Pause: The Bank of Canada has left its interest rate unchanged at 5% as it sees signs of weaker growth. The Reserve Bank of Australia has also left theirs unchanged at 4.1% for a third month. Remember they flip-flopped earlier in the year going from pause-hike-pause.
The Cut: Poland’s central bank shocked the market by cutting its interest rate by 75 basis points, for the first time in 3.5 years even with inflation at 10%. This is of course due to the upcoming election in October.
The Stimulus: Japan is preparing to roll out new stimulus in October to support wage hikes and rising energy bills. The scale of the stimulus is yet to be announced, but it’s clear the country’s debt burden is weighing it down.
The Inflation: Saudi Arabia and Russia have extended their cuts to oil production to the end of the year. So of course, oil has risen to $90 for the first time in 2023. All eyes will be on the next set of inflation data…could this be inflation round 2? Just like the 1940s or 1970s?
Watch Out For:
- Sep 13: US inflation data (August)
- Sep 20: US interest rate decision
⏰ The Race Is On For A Spot ETH ETF
First, there were spot Bitcoin ETF applications. Now, there are spot ETH ETF applications.
ARK Invest and 21Shares have filed an application for the ARK 21Shares Ethereum ETF.
If approved by the US Securities and Exchange Commission (SEC), it will be listed on the Cboe BZX exchange and will have Coinbase as its custodian.
The institutions are piling on the pressure over at the SEC after they delayed all 7 spot Bitcoin ETFs last week. Cos If the first attempt fails, try your luck with the next best thing.
Once the SEC acknowledges the filing, they will have 240 days to review it. Cue the ETH ETF mania…taking bets on how many ETF applications we see roll on.
Which will we see first: spot Bitcoin ETF or spot ETH ETF? Reply to this email and let me know.
📖 DYdX To Launch Decentralized Order Book
dYdX is in the middle of moving chains and building a brand-new order book.
The DEX is taking a step forward in the name of decentralization by making the order book decentralized—without adding it on-chain.
DEXs previously faced the issue of having an order book on-chain meant network performance had to be compromised.
There is a need for speed. But dYdX doesn’t think taking order books off-chain is the answer either. So, their solution is to host the order book within the validators.
This means the validators will continue to validate and create new blocks but will in addition store order books in their memory. If it all goes to plan, it will be interesting to see who follows.
dYdX is aiming to complete its migration from Ethereum to Cosmos in the coming months. All users will need to do is connect a MetaMask wallet to the new chain and dYdX will take care of the rest.
🎮 Google To Jumpstart NFT Games
The NFT craze seems dead….at least, for now.
Monthly trading volumes dropped 81% between January 2022 and July 2023. Is Google about to change all that?
Well, after a 5-year ban on crypto-related advertising, Google will allow ads on its platform for NFT games. This comes after updating its crypto advertising policy.
Starting from September 15, this includes NFT games with in-game items, as long as they don’t promote gambling or gambling services. But excludes games allowing users to wage or stake NFTs for rewards.
This is likely to bring in big players with big budgets. And this could help push altcoins up. But you will need to do your own research to avoid aping into something you shouldn’t.
Thanks to Radix for sponsoring today’s newsletter.
Losing confidence in Crypto? Don’t worry—the next phase of Web3 and DeFi is almost here. From September 27, Radix launches its Babylon mainnet upgrade, including a live wallet and public smart contracts. Over 50 ecosystem projects will follow.
This marks a new era for Web3 and DeFi user experiences.
Want to learn more? Visit our site to explore the Radix full-stack and reignite your excitement for Crypto.”
Existing Projects / Tokens
- Cosmos [ATOM] just received a potentially game-changing boost. That’s because Krafton, the developer of PUBG (30M monthly users), has committed to building a new L1 blockchain, called “Settlus”, on Cosmos. Settlus will use USDC for payments and settlement between metaverse projects and users. The new blockchain was announced at South Korea’s Blockchain Week conference, and testnet is expected to begin in early 2024.
- PancakeSwap [CAKE] just expanded to Base. And another one!! This means the DEX is now live on 8 blockchains. At this rate, they’ll be on 20 by next month.
- Polygon [MATIC] just released the Polygon CDK (Chain Development Kit), which is an out-of-the-box toolkit that lets developers easily construct their own Ethereum L2 blockchains. The CDK is powered by Polygon’s ZK technology.
- Solana [SOL] is being tapped by Visa as a stablecoin settlement rail between the payment provider’s consumer and merchant banks. Visa’s use of Solana comes after a successful 2021 stablecoin pilot program on Ethereum. Visa representatives said they utilizing Solana due to its fast transaction times and low fees.
- Zephyr Protocol [ZEPH] now offers an over-collateralized, crypto-backed stablecoin combined with Monero’s privacy features. The result is a ZephUSD, a stable and private form of digital cash. ZEPH is a micro-cap valued at $4.25M.
New Projects / Tokens
- Mantle Network [MNT] has a new governance proposal issued that, if passed, will deploy $150M treasury reserve assets to support third-party dApp development. Specifically, the funds would be used for direct dApp support, seed liquidity for stablecoins backed by real world assets, and liquidity support for third party bridges. Mantle is developing Ethereum L2 with a mainnet launch set for this year.
- Masq Network [MASQ] is developing a Web3 browser that’s centered on privacy and anonymity. Users can access a decentralized VPN, browser, Web3 marketplace, dApps, and revenue opportunities. MASQ is used for two-way payments, depending on whether you’re pulling or providing data to the browser. The UI looks amazing, and their purpose is solid. Masq Network is currently in beta.
We’ve been discussing Mangrove this year and going over the potential it has for a massive early adopter reward in our premium reports. But now might be the last chance you have to create some transactions and participate in the testing phase of the project.
Mangrove is one of the first programmable on-chain decentralized order books that allows liquidity providers to post arbitrary smart contracts as offers. Mangrove is conducting its testnet on Polygon and preparing to launch its mainnet very soon.
To participate you’ll need some Polygon Testnet Tokens from the Mumbai Faucet if you don’t already have some. Once you have some testnet tokens, head over to the Mangrove Trade Page and complete a few orders.
As a Mangrovian and early user of the testnet, you’ll also be eligible to redeem up to three special NFTs. Mangrove has stated that early users “will” be rewarded based on their active participation and usage of the protocol. Meaning there’s a guaranteed reward for participating.
Check out the Testnet Announcement for more details.
Mr Beast, Creator League, and NFTs: Why Are People Angry?
An esports tournament called Creator League was promoted by Mr Beast, along with Creator League Community Passes, which were available to buy.
However, Connor Colquhoun, a high profile creator involved in the project, was unaware that NFT technology was involved and withdrew upon finding out, implying that he had been misled.
Currently, the Creator League is postponed, and pass sales have been disabled.
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Thank you so much for your support, and I truly hope that today’s issue will give you insights needed to help you master your wealth.
If you are reading this it means you are on the free version of the Wealth Mastery Investor Report, which is great for news and tips on the crypto markets.
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Lark and the Wealth Mastery Team
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Wealth Mastery (Lark Davis, and the Wealth Mastery writing team) are not providing you individually tailored investment advice. Nor is Wealth Mastery registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. Wealth Mastery is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.
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