SPARROW WALLET RUNNING ON A $40 HANDHELD GAMING CONSOLE @DesobedienteTec, the developer who brought SeedSigner to a gaming handheld, is back with a fully functional Sparrow Wallet proof of concept. The device features two microSD slots, camera support, a virtual keyboard and emulators for Nintendo, SEGA, N64, PSP and PS1 games.

INDRA HIT BY DOS ATTACK DURING OPEN BETA JAN3 says its newly launched swap infrastructure is experiencing a denial-of-service attack, forcing it to temporarily disable forward swaps while the team investigates. Swaps already in progress may face delays. Indra was built to replace Boltz in Aqua, allowing users to move bitcoin between Lightning and Liquid while Liquid peg operations remain limited.

FRUIT FLY BRAIN MINES BITCOIN AT POTENTIAL 10X ASIC EFFICIENCY Introducing HashFly by @FutureBit, an experimental Bitcoin miner based on a reconstructed fruit fly brain using 2,914 real neuron connections to run SHA-256. The team says that if the system could be scaled using actual organic neurons, it could theoretically hash at roughly 1 W/TH, around 10x more energy efficient than leading 3nm silicon ASICs. For now, it’s an experiment. But biologically inspired Bitcoin mining is officially a thing.

LEFTIST LAWMAKERS ERUPT AS 🇦🇷 ARGENTINA MOVES TO LIMIT MONEY PRINTING Argentina’s lower house has approved a major reform of the country’s central bank charter that would prohibit the BCRA from printing money to finance government spending. The measure, a centerpiece of President Javier Milei’s economic agenda, passed 144-102 with 9 abstentions. The reform would make the following changes: Ban direct monetary financing of the Treasury Eliminate the central bank’s mandate to promote employment and economic development Make preserving the value of the peso its primary objective Restrict future governments from using central bank financing to fund deficits The vote sparked fierce opposition from leftist and Peronist lawmakers, who argued that the restrictions would strip future governments of an important tool for funding public spending and responding to economic crises. Milei has spent years blaming Argentina’s chronic inflation and currency destruction on governments financing persistent deficits through money creation. Now his government is trying to make it much harder for future administrations to turn the printing press back on.

NAKAMOTO PROJECT TAKES OUT A FULL-PAGE BITCOIN AD IN THE WALL STREET JOURNAL A full-page Bitcoin ad appeared in today’s WSJ declaring “The fringe phase is officially over.” The ad points to Bitcoin’s growing adoption, claiming 1 in 4 Americans now owns it, $1.25 trillion in wealth is secured by it, and it powered the most successful ETF launch in history. It also highlights Bitcoin’s arrival on the balance sheets of some of the world’s largest companies and the U.S. government. “Not bad for a fad that started 17 years ago.” The ad was created by an educational project from The Nakamoto Project focused on bringing Bitcoin into popular culture.

STAN DRUCKENMILLER BLASTS BESSENT’S TREASURY BOND BUYBACK STRATEGY Legendary investor Stanley Druckenmiller, Scott Bessent’s former boss, is sharply criticizing the Treasury Secretary’s attempt to push down long-term yields. In a new WSJ op-ed, Druckenmiller argues Treasury’s decision to double long-dated bond buybacks from $2B to at least $4B per operation risks crossing the line from liquidity management into outright yield suppression. “Once markets believe Treasury is defending a price, every rise in yields becomes a test of official resolve, and the operations must grow to survive the tests.” Druckenmiller argues there is no obvious market dysfunction requiring intervention. Treasury auctions are functioning, volatility is contained and markets remain orderly. With inflation above target, deficits around 6% of GDP and national debt above $40T, rising yields may simply be the bond market appropriately pricing America’s deteriorating fiscal position. Suppressing those yields also removes one of the few remaining forces imposing fiscal discipline on Washington. Druckenmiller goes even further, arguing that buying long-duration Treasuries while issuing short-term bills effectively removes duration from the market and begins to resemble a small-scale form of QE conducted by Treasury rather than the Fed. And once traders believe Treasury is defending a particular level of yields, they have an incentive to test just how committed officials are to that defense. His solution is simple. Let the bond market determine the price of government borrowing and fix the underlying fiscal problem through lower deficits, entitlement reform and better debt management. The criticism is particularly notable given the history here. Bessent worked for Druckenmiller at Duquesne Capital Management after both had worked under George Soros. There was a compelling story that some of the greatest macro minds of their generation were finally in positions to confront America’s fiscal problem. Druckenmiller’s op-ed throws some serious cold water on that idea. If Washington refuses to address the underlying fiscal problem, increasingly aggressive attempts to suppress yields may only invite the bond market to test its resolve.

@BritishHodl @AnchorWatch Questions can be answered live this Thursday, directly with the CEOs/CTOs of AnchorWatch, Unchained, and ArcadiaB - webinar on Bitcoin custody options:

COULD TRUMP BE SETTING UP DEMS TO DEAL WITH AN IMPLODING BOND MARKET? Quinn Thompson on Forward Guidance lays out the provocative theory that Trump may be keeping the bond market at bay until after the midterms, when Democrats could take control of Congress and inherit the consequences of years of runaway spending. At that point, the admin could “let the bond market go,” creating the crisis needed to finally force Congress to cut spending, with Democrats taking the blame. “You kind of need a crisis or event” to force real legislative change and confront the tsunami of national debt.

LUKE GROMEN: AMERICA NEEDS A DEBT RESET Luke Gromen says US leaders need to level with Americans about what eliminating the country’s debt burden would mean. “The effects of this are going to be very inflationary.”

BITCOIN’S FUNDAMENTAL THESIS IS STRONGER THAN EVER The US national debt has doubled from roughly $20 trillion to $40 trillion in just a decade, while interest payments have climbed above $1 trillion a year. Bitcoin News’ @_Rob_Wallace went on @PlebUnderground and argued the government ultimately has one escape hatch - to print more money to keep the bond market functioning. “Every dollar that they print decreases the value of every dollar in your bank account.” Rob's conclusion is that Bitcoin is increasingly becoming the escape valve for investors looking to protect their purchasing power.