Bitcoin Course | Big Picture Basics 6.3 - Sats Per KWh (pt1)

Free Course Full Lesson https://hashpower.academy/lessons/6-finance-bitcoin/

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Financial Disclaimer:

This video is for educational and informational purposes only and should not be considered as financial advice or an investment recommendation.
The opinions expressed herein are solely those of the presenter and do not reflect the views of Hashpower Academy. Information is provided ‘as is’ and without warranties, either expressed or implied. We do not guarantee its accuracy or completeness. Investing in cryptocurrencies involves significant risk and should be undertaken only by individuals who can afford potential losses. Viewers are advised to conduct their own research and consult a qualified financial professional before making any investment decisions.

Video Transcript:

[Music] is Bitcoin digital gold no is Bitcoin digital cash no Bitcoin is electronic cash because it has electron value its purchasing power is literal because you can purchase power with Bitcoin what do I mean by this well everyone has an extreme focus on the Bitcoin to dollar price or Bitcoin to any fiat currency for the matter and so what that does is people are comparing a currency Fiat that has no intrinsic value to a Curr currency with intrinsic value and so that is a complete mispricing of the truth the truth is found in the production with energy that a Bitcoin miner converts a quantity of electricity into a quantity of Bitcoin and that is a direct comparison what that does is it sets a global decentralized energy price how on Earth does it do that well as we’ve discussed the the Bitcoin miners they will stop mining Bitcoin to sell the energy if they can earn more Bitcoin than what they could produce and that is the Arbitrage you cannot do that with gold nobody’s coming along to buy a load of rock that has some ounce of gold value in it the Bitcoin is reversible because if you wanted to pay the miner for their electricity what price would they want well if they could produce a Bitcoin that day how much would they sell their electricity for one Bitcoin and that’s exactly what that rate is that it’s not just the rate of producing Bitcoin but like cash and gold stored in a vault that Bitcoin is redeemable for the electricity used in the production of Bitcoin and so it creates a circular economy of producing and consuming and spending the currency Bitcoin is electronic cash because it’s redeemable for electricity itself and this opens up an entirely new world of energy economies that you’ll learn [Music] next

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