We update you on the latest happenings in wealth concentration, hashrate, and the best of Bitcoin Twitter

Reservations on the (Federal) Reserve Printing 🖨️

Last week the Federal Reserve started creating a significant amount of money to deal with its precarious situation.

When the money printer turns on, we think about something called the Cantillon Effect. What’s that?

In a 1755 paper, Richard Cantillon described how when new money is created and injected into an economy, its effects on prices are unevenly distributed. Those nearest to the source of money creation stand to benefit most.

Since April 2020, Fed printing has increased the money supply by nearly 230%. More recently, the U.S. Government has printed enough money to undo months of balance sheet shrinking.

Guess where most of that money will be going per the Cantillon Effect?

Here are 3 scenarios in history in which the wealth gap starts to reverse: 2001, 2008, 2020. Technological advancements are naturally a deflationary force (new tech enables us to get more for less), but there’s nothing the Fed fears more than deflation. This is when quantitative easing starts.

You can read more about the Cantillon effect in our River Learn article.

Bitcoin’s Hashrate Going Vertical 📈

Bitcoin's hashrate just touched 400 Exahashes, growing 50% since the start of the year. At the current growth rate in 2023, we'd reach a Zettahash by the end of 2025–far ahead of initial predictions in our mining report.