tarrifsshift

Effects of federal decisions on the Market
There is a persistent debate over whether current policies—such as tax structures, deregulation, and trade moves—disproportionately benefit asset owners (the "rich") while maintaining a labor-dependent "working for the system" status for others.
Here is a breakdown of the current situation, specifically focusing on the recent 10% universal tariff and its effects.
1. Federal Decisions and the Wealth Gap
Critics of the current administration’s "One Big Beautiful Bill" (OBBBA) and recent executive orders argue that these policies create a feedback loop for wealth concentration.
* Corporate and Capital Gains: Policies that favor lower corporate taxes or capital gains often benefit those who own stocks and real estate. This can lead to "asset inflation," where the net worth of the wealthy grows rapidly while wages for workers struggle to keep pace with the cost of living.
* Safety Net Cuts: Recent adjustments to health care and social safety nets (like SNAP and ACA credits) are seen by some as a way to increase labor participation by making "not working" less viable, essentially keeping the "poor working for the system" to meet basic needs.
* Tariff Revenues: Interestingly, the administration is using tariff revenue to offset the deficit created by tax cuts, effectively shifting the "tax" from income/wealth to consumption (since tariffs are often passed to consumers as higher prices).
2. The 10% Universal Tariff & Crypto
The executive order imposing a 10% across-the-board tariff (and higher for specific nations like China) has had a mixed, somewhat volatile effect on the crypto market.
Short-Term Pain: The "Risk-Off" Response
When the tariffs were first announced (often called "Liberation Day" tariffs), the crypto market initially dropped.
* Market Shock: Bitcoin fell significantly (from roughly $109,000 to $77,000) as investors panicked. In times of global trade war uncertainty, investors often flee "risk assets" like crypto in favor of "safe havens" like gold or the US Dollar.
* Dollar Strength: Tariffs can temporarily strengthen the USD. Because Bitcoin is often traded in USD pairs, a stronger dollar usually creates downward pressure on Bitcoin’s price.
Operational Impact: Mining Costs
* Hardware Prices: A 10% tariff on electronics directly hits the import of ASIC miners and GPUs, which are largely manufactured in Asia. This makes setting up or expanding a mining farm in the US more expensive, potentially squeezing the profit margins of US-based miners.
Long-Term Narrative: "Digital Gold"
* Inflation Hedge: If the tariffs lead to "stagflation" (high inflation + slow growth), some proponents believe Bitcoin will eventually decouple from the stock market and act as a hedge. If people lose faith in the purchasing power of the dollar due to rising prices from tariffs, they may turn back to crypto as a store of value.
It’s a bit of a "wait and see" game to see if the crypto market can reclaim its post-election highs or if the weight of trade tensions will keep it suppressed.
Would you like me to look into how specific tech companies are reacting to these hardware tariffs, or perhaps compare the current inflation rates to crypto's performance?
#Bitcoin❗
#tarrifsshift
#miningBTC
#FOGO
$FOGO