Explore our collection of informative blog posts and articles centered around the topic of Bitcoin. Dive into the latest trends, news, and insights on this digital currency that is reshaping the financial landscape.

Posts

Bitcoin Course | Big Picture Basics 4.3 - Cryptography (pt1)

Bitcoin Course | Big Picture Basics 4.3 – Cryptography (pt1)



As we transition from the physical intricacies of the global network of mining hardware and the warmth they produce, we step into the limitless realm of cyberspace. This digital dimension houses a vast expanse of data, memories, videos, photos, and myriad digital transactions that move like whispers, effortlessly traversing the globe.

For Bitcoin, the journey began with a simple yet revolutionary premise: leveraging this vast domain to record and authenticate financial transactions.

Free Course Full Lesson https://hashpower.academy/lessons/4-networks-hashpower/
—————————

🤝 Connect With Us:
Share your thoughts and questions in the comments.
We value your input!
Subscribe to Hashpower Academy for more educational videos.
Discover more at https://hashpower.academy/

👤 Your Educator – Jake Scanlan
https://www.jakescanlan.com

🟧 Additional Resources:
https://hashpower.academy/
https://terahash.co.uk
https://satoshisea.io

—————————

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] crypto no cryptography crypto is a speculative world of investing in people cryptography is the hard mathematics that make Bitcoin the most secure network that has ever existed and so cryptography can be understood with a clear example of WhatsApp you send a message and when it receives to the other person they see a message but in the middle it’s being encrypted into a jumble of text and at the other end it’s decrypted back into the normal message that prevents other people from being able to read it interfere it because they can read it but they’re just going to read a jumble of text that they would have to spend a lot of compute power trying to decrypt and so the best example for use of cryptography in the Bitcoin world of things is sending a transaction think of transactions like a check a bank check you have who it’s from the wallet who you’re sending it to their public key and obviously the amount and maybe why you’ve sent it but the signature your signature that verifies that this is legit and it’s your money that you want to send that is encrypted with your private key and through that encryption you get that security on the network because what do you do you write your you sign your transaction you broadcast it to the network and all the different nodes they store that information and that is what allows the security of the Bitcoin Network to operate and we we’re all communicating all around the world being able to broadcast and send transactions freely because no one else can interfere with the validity of those [Music] transactions

Watch on Youtube!

/by
Bitcoin Course | Big Picture Basics 5.2 - Decentralised Data Grid

Bitcoin Course | Big Picture Basics 5.2 – Decentralised Data Grid



Free Course Full Lesson https://hashpower.academy/lessons/5-blockchain-data/
—————————

🤝 Connect With Us:
Share your thoughts and questions in the comments.
We value your input!
Subscribe to Hashpower Academy for more educational videos.
Discover more at https://hashpower.academy/

👤 Your Educator – Jake Scanlan
https://www.jakescanlan.com

🟧 Additional Resources:
https://hashpower.academy/
https://terahash.co.uk
https://satoshisea.io

—————————

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] so bitcoin’s blockchain is a technical topic and so to give you the clearest understanding the text of this section is going to take you through all of the different moving parts of the blockchain and what it’s trying to achieve and this video is to give you the best analogy as to the blockchain and how it works and all the different moving parts and the clearest way to understand the blockchain is think of our physical electricity grids it is a network managing the supply and demand of electricity and trying to remain balanced over time the blockchain is a digital Network trying to manage the recording of data over time with the supply to report data being hash power and the demand to record data being transactions that is the clearcut understanding of what the blockchain is it’s a Digital Data electricity [Music] grid [Music]

Watch on Youtube!

/by
Bitcoin Course | Big Picture Basics 2.2 - Commodity: Electricity

Bitcoin Course | Big Picture Basics 2.2 – Commodity: Electricity



“The Price We Pay and Society’s Prosperity.”
Every time we flip a switch or plug in a device, there’s a cost associated. While it might appear as just a “number” on our monthly bills, the price of electricity ($/kWh) profoundly impacts our lives. High electricity prices strain household budgets and ripple throughout the economy.

Free Course Full Lesson https://hashpower.academy/lessons/2-grids-electricity/

—————————

🤝 Connect With Us:
Share your thoughts and questions in the comments.
We value your input!
Subscribe to Hashpower Academy for more educational videos.
Discover more at https://hashpower.academy/

👤 Your Educator – Jake Scanlan
https://www.jakescanlan.com

🟧 Additional Resources:
https://bit.ly/m/hashpoweracademy
https://hashpower.academy/
https://terahash.co.uk
https://satoshisea.io

—————————

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] so we’ve discussed so far the production of electricity the transfer of electricity to the grid and obviously on the other end is the consumers of electricity and I believe that the pace of society was really set by the price of electricity when the price of electricity is really high it’s really hard for people to to manage their savings against these really high expenses they start adjusting the quantity of electricity that they use these societal impacts translate across goods and services when the cost of producing something is the cost of the energy to actually produce it it means that if the energy price goes up everything goes up alternatively if the energy prices come down it means goods and services are cheaper to manufacture it means electric cars are cheaper to run per mile and all other aspects of society that need energy and so if we have a world that is aiming to reduce the price of electricity over time I believe we can bring about human prosperity in multiple different ways for society as a [Music] whole [Music]

Watch on Youtube!

/by
Bitcoin Course | Big Picture Basics 2.1 - Grids and Transmission

Bitcoin Course | Big Picture Basics 2.1 – Grids and Transmission



“The electricity grid is one of those things that people take for granted… until it stops working”.
– Ernest Moniz

What would you do without electricity?

The significance of basic electricity access cannot be overstated. It dictates the pace in which a society progresses. Children can study after sunset, businesses can operate efficiently, people can walk under street-lamps and daily life just becomes less taxing. A well-structured electricity grid isn’t merely a provider of power; it’s a catalyst for opportunities. As we move forward, the spotlight needs to shine brightly on these intricate networks, acknowledging their pivotal role in shaping our 21st century world.

Free Course Full Lesson https://hashpower.academy/lessons/2-grids-electricity/

—————————

🤝 Connect With Us:
Share your thoughts and questions in the comments.
We value your input!
Subscribe to Hashpower Academy for more educational videos.
Discover more at https://hashpower.academy/

👤 Your Educator – Jake Scanlan
https://www.jakescanlan.com

🟧 Additional Resources:
https://bit.ly/m/hashpoweracademy
https://hashpower.academy/
https://terahash.co.uk
https://satoshisea.io

—————————

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] in module two we’re going to discuss grids and electricity module one discussed the producers of electricity the grids is how we transfer all that energy to us in our homes and hospitals and everyday life now I believe that the grid is the most underappreciated infrastructure that brings about everything we do in the 21st century think about your dependency on the electricity grid right now I’m connected to a grid and that is providing me power to be able to do this communication everything about the electricity grid requires constant maintenance and stability and its expansion is really expensive think about that renewable stranded producer that we discussed in the previous module they need to be connected to the grid and to get connected they require however many 10 or 20 30 40 or 100 miles of transmission lines to be to be connected and that serves a problem because what if the local farmer that owns that land doesn’t want these huge cables running across his land he might want concessions monetary amounts to actually agree to have it being built so there’s all these frictions to the progress being made to have all the connection between our producers and obviously us as the consumers so take that into mind because when the power goes out it’s a stark reminder that we truly depend on this infrastructure being there and being [Music] available

Watch on Youtube!

/by
Bitcoin Course | Big Picture Basics 2.3 - Balancing the Grid

Bitcoin Course | Big Picture Basics 2.3 – Balancing the Grid



“Dynamic Supply requires Dynamic Demand.”

The renewable transition brings about a new wave of volatility in electricity pricing. Many Bitcoin miners seek stability amidst this flux, by locking into Power Purchase Agreements (PPAs). Think of them like a fixed mobile phone contract but for electricity, a miner agrees to a fixed rate of example: $.05 per kWh, converting that energy into about $.10 worth of Bitcoin revenue.

Free Course Full Lesson https://hashpower.academy/lessons/2-grids-electricity/

—————————

🤝 Connect With Us:
Share your thoughts and questions in the comments.
We value your input!
Subscribe to Hashpower Academy for more educational videos.
Discover more at https://hashpower.academy/

👤 Your Educator – Jake Scanlan
https://www.jakescanlan.com

🟧 Additional Resources:
https://bit.ly/m/hashpoweracademy
https://hashpower.academy/
https://terahash.co.uk
https://satoshisea.io

—————————

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] the grid is one of the biggest and most important topics of this entire module because it boils down to the basics of we have people that produce power at all different times of the day and they have no control over when they produce it Renewables but also you’ve got the demand of power of people that want want to use power when they want to use it how they want to use it in whatever quantity they want to use and so you’ve got this mismatch of production and consumption and the grid has to balance an exact amount of production and consumption keep the grid balanced because a power cut occurs when it becomes imbalanced now electricity prices typically aggregate the supply and the demand of electricity on the grid and so this is a problem that mining is a solution because miners use a huge but constant rate of power so when there’s loads of power and lots of wind and loads of solar but very little demand Bitcoin mining could soak up all that Excess power and monetize it alternatively what if we’ve got no wind it’s the middle of the night and there’s no rain what do you do when You’ still got demand for electricity and this is where miners can also step in instead of consuming the power to turn it in essentially a quantity of electricity into a quantity of money cuz that’s what Bitcoin mining is essentially is that that electricity that they were consuming instead they switch off and sell the power and that rate between the amount of electricity and the amount of Bitcoin that make we call this the SATs per kilowatt rate and if the price of electricity was higher than this rate why mine it as Bitcoin when you can earn even more Bitcoin by selling the power and rebuying it as Bitcoin so it’s a healthy Arbitrage which helps stabilize our energy grids and our Energy prices to the downside and to the [Music] upside [Music]

Watch on Youtube!

/by
Bitcoin Course | Big Picture Basics 2.4 - Wealth is Energy

Bitcoin Course | Big Picture Basics 2.4 – Wealth is Energy



“There’s No Such Thing as a Low-Energy Rich Nation.”
A nation’s prosperity is inextricably tied to its energy consumption. As the axiom goes, “There’s no such thing as a low-energy rich nation.” This strong correlation between energy and GDP underscores the principle that the efficient use of energy equates to economic growth and prosperity.

Free Course Full Lesson https://hashpower.academy/lessons/2-grids-electricity/

—————————

🤝 Connect With Us:
Share your thoughts and questions in the comments.
We value your input!
Subscribe to Hashpower Academy for more educational videos.
Discover more at https://hashpower.academy/

👤 Your Educator – Jake Scanlan
https://www.jakescanlan.com

🟧 Additional Resources:
https://bit.ly/m/hashpoweracademy
https://hashpower.academy/
https://terahash.co.uk
https://satoshisea.io

—————————

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] I say the word work you probably think of your job or your business and that is something that you convert your time and your energy into money and those two properties I think are pretty much the most valuable two things in this world and so what the physics definition of work is is the transfer of mechanical energy essentially and that’s essentially what we do with our time and our energy is we convert it into money and so when money is our storage of energy because we turn that money into buying something else and so that’s its intrinsic value but does it have intrinsic value in its current form not really because that amount of energy that was created or destroyed we transferred it from somewhere through our work through our labor that energy we store in our money but what happens when the government print more of these units it’s well the energy from the storage that we have is siphoned off to part of those new units because as they purchased things their energy wasn’t created as the money was created it was transferred from the existing money in circulation our savings our salaries and so we need to preserve our energy and you preserve it by storing your energy in certain things Fiat money as we said loses energy over time gold had a historical value as energy storage because you spend a certain amount of of energy processing a certain amount of rock to then receive that quantity of gold so it’s its energy storage is locked within time so gold over time preserves energy and that’s why its value appreciates the Bitcoin comes in as this network of energy that’s entering the network as a live stream and so that has the opportunity of a fixed Supply asset that appreciates in over time and therefore its value appreciates over time [Music] additionally

Watch on Youtube!

/by
Bitcoin Course | Big Picture Basics 1.3 - Commodity: Carbon

Bitcoin Course | Big Picture Basics 1.3 – Commodity: Carbon



“Planetary problems require planetary systems”. As we delve deeper into the intricacies of energy generation, we are confronted by the unavoidable implications of carbon emissions. Historically, our reliance on fossil fuels, while bringing about amazing human prosperity through an industrial revolution, introduced significant volumes of carbon dioxide into the atmosphere.

Free Course Full Lesson https://hashpower.academy/lessons/1-generation-carbon/

—————————

🤝 Connect With Us:
Share your thoughts and questions in the comments.
We value your input!
Subscribe to Hashpower Academy for more educational videos.
Discover more at https://hashpower.academy/

👤 Your Educator – Jake Scanlan
https://www.jakescanlan.com

🟧 Additional Resources:
https://bit.ly/m/hashpoweracademy
https://hashpower.academy/
https://terahash.co.uk
https://satoshisea.io

—————————

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] [Music] so carbon it is a huge topic it is a planetary gas with a planetary problem Associated to it depending on which side of the argument you see but the one thing that we can agree upon whether you believe in climate change or you don’t is that we can at least agree to an accounting system to track the carbon it’s nice to breathe in clean air and so many people choose Renewables as the option going forward but they bring their [Music] problems

Watch on Youtube!

/by
Bitcoin Course | Big Picture Basics 1.2 - Generation Types

Bitcoin Course | Big Picture Basics 1.2 – Generation Types



“We don’t print energy: we generate it with work”.
Unlike fiat currency, electricity cannot simply be conjured with the press of a button. It is generated through diligent effort. Throughout history, our primary sources of energy have been fossil fuels like coal, oil, and natural gas. Extracted from the Earth’s core, these fuels provide the necessary heat to convert water into steam.

Free Course Full Lesson https://hashpower.academy/lessons/1-generation-carbon/

—————————

🤝 Connect With Us:
Share your thoughts and questions in the comments.
We value your input!
Subscribe to Hashpower Academy for more educational videos.
Discover more at https://hashpower.academy/

👤 Your Educator – Jake Scanlan
https://jakescanlan.com

🟧 Additional Resources:
https://bit.ly/m/hashpoweracademy
https://hashpower.academy/
https://terahash.co.uk
https://satoshisea.io

—————————

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] what is important to understand about our production of power is it really boils down to two distinct groups we have the renewable sources which is solar wind Hydro power which nature is in control of when we produce power and how we produce power but also the non-renewable side which is that we have control over the power that we produce but obviously that comes at the cost of releasing carbon into the atmosphere so they both have a history and a future involved in the development of our world of [Music] energy [Music]

Watch on Youtube!

/by
Bitcoin Course | Big Picture Basics 1.4 - Stranded Renewables - Not All Electricity is the Same

Bitcoin Course | Big Picture Basics 1.4 – Stranded Renewables – Not All Electricity is the Same



“Not All Electricity is the Same”. So the solution is to build more renewables? At first glance, the answer to this question deserves an unequivocal ‘yes’. But deeper examination reveals nuances. Envision expansive regions rich with persistent sun, strong winds, or abundant water flow. These places are ideal for harnessing renewable energy, but often they are remote and removed from populous areas.

Free Course Full Lesson https://hashpower.academy/lessons/1-generation-carbon/

—————————

🤝 Connect With Us:
Share your thoughts and questions in the comments.
We value your input!
Subscribe to Hashpower Academy for more educational videos.
Discover more at https://hashpower.academy/

👤 Your Educator – Jake Scanlan
https://www.jakescanlan.com

🟧 Additional Resources:
https://bit.ly/m/hashpoweracademy
https://hashpower.academy/
https://terahash.co.uk
https://satoshisea.io

—————————

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 stranded energy stranded energy is essentially a site that can produce power typically Renewables but because they’re in the middle of nowhere where it’s really wet really windy or really sunny they have no ability to sell power to people because nobody lives there and so we need grid infrastructure those huge transmission lines to transfer the power and obviously money goes in the opposite direction and so that economic cycle of being able to sell your power as a renewable energy producer is the exact Lifeline that you need to run your business and imagine that imagine starting a business and opening opening your doors is is how you make money but you couldn’t open your doors for 3 years you wouldn’t run your business and that’s the the issue the gridlock issue of of running a renewable energy site is that you need to have grid connection otherwise you’re stranded and so the problem arises there that we need a buyer of energy to come in that can fill that gap between when the site is producing power but doesn’t have a good connection you need someone that uses a lot of power power a flexible amount of power and wants to consume it directly on site those are the exact properties of a Bitcoin minor and so in a world where people have contested that Bitcoin is wasting power what if the power was already wasted and the mining comes in to monetize it which helps that renewable site Finance their operation of building more Renewables which is exactly what everyone wants [Music] oh

Watch on Youtube!

/by
Bitcoin Course | Big Picture Basics 1.1 - Energy Fundamentals: Power in Watts

Bitcoin Course | Big Picture Basics 1.1 – Energy Fundamentals: Power in Watts



“Power is measured in Watts”. Whether you turn the first pages of ancient religious scriptures or leaf through the introductory chapters of a science textbook, one theme resonates clearly: everything begins with energy. It’s the fundamental currency of our existence, seamlessly interwoven into the fabric of our universe.

Full Lesson:
https://hashpower.academy/lessons/1-generation-carbon/

—————————

🤝 Connect With Us:
Share your thoughts and questions in the comments.
We value your input!
Subscribe to Hashpower Academy for more educational videos.
Discover more at https://hashpower.academy/

👤 Your Educator – Jake Scanlan
https://www.jakescanlan.com

🟧 Additional Resources:
https://hashpower.academy/
https://terahash.co.uk
https://satoshisea.io

—————————

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] so if I had to explain Bitcoin in one word it would be electricity what is electricity it’s energy what is energy energy is essentially the transactional currency of our entire universe nothing breathes nothing moves nothing works without energy and that’s what’s so fundamentally important about everyday society that everything has a cost the cost of your plane ticket is mostly fuel liquid energy the cost of driving your car is mostly fuel liquid energy and as we transition into a society that uses electricity even more more on the roads in the transportation system in general and all other aspects of society it really becomes the most fundamentally important thing to understand and it’s especially important for this [Music] course

Watch on Youtube!

/by
The Big Picture Basics [Lesson: 1/24] Energy Fundamentals

The Big Picture Basics [Lesson: 1/24] Energy Fundamentals



There’s two sides to every coin, but Bitcoin has more than sides – it has worlds. It bridges digital and physical realms. To truly grasp the secret of one, we must learn about the other. Welcome to Hashpower Academy, where we uncover these worlds, starting with our course ‘Big Picture Basics.’ Today, we dive into Module 1: Generation & Carbon, exploring Lesson 1.1 ‘Energy Fundamentals.’ This is not just a lesson; it’s the beginning of a journey into understanding Bitcoin’s complex universe.”

📚 Welcome to Lesson 1.1 “Energy Fundamentals” in Module 1: “Generation and Carbon,” part of the “Big Picture Basics” course at Hashpower Academy!
This is a beginner-friendly guide to the world of energy, crucial in both the digital and physical aspects of Bitcoin mining.

🔋 What You’ll Learn:

Get to know energy – the universe’s way of doing transactions.
Learn about power measurement in watts and how it relates to time.
See how energy changes form in different areas of life.
Find out how electricity is changing our world today.

🌟 Key Points:

Gain basic knowledge about different types of energy.
Understand how energy changes and is saved in technology and your daily life.
Discover the vital link between energy and Bitcoin mining.

👥 Who Should Watch:

Perfect for anyone new to the concepts of energy and power.
Great for those curious about how energy is a game-changer in tech, especially Bitcoin mining.

📖 Learn More:

Check out the full “Big Picture Basics” course on our website, hashpower.academy, for a deep dive.

Join our community for more discussions and insights into Bitcoin mining.

🤝 Connect With Us:

Share your thoughts and questions in the comments. We value your input!
Subscribe to Hashpower Academy for more educational videos.

Embark on your journey at Hashpower Academy, where we demystify the complexities of Bitcoin’s digital and physical worlds, starting right here with “Energy Fundamentals.”

—————————

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] so if I had to explain Bitcoin in one word it would be electricity what is electricity it’s energy what is energy energy is essentially the transactional currency of our entire universe nothing breathes nothing moves nothing works without energy and that’s what’s so fundamentally important about everyday society that everything has a cost the cost of your plane ticket is mostly fuel liquid energy the cost of driving your car is mostly fuel liquid energy and as we transition into a society that uses electricity even more more on the roads in the transportation system in general and all other aspects of society it really becomes the most fundamentally important thing to understand and it’s especially important for this [Music] course

Watch on Youtube!

/by

The Economics of Bitcoin Mining: Buying vs. Growing

“Buy the corn or grow the corn”

Have you ever thought about the economics behind Bitcoin mining? It’s a fascinating concept that revolves around the idea of producing Bitcoin at a lower cost rather than buying it at market rates. In this blog post, we’ll explore the economics of Bitcoin mining and why miners choose to grow their own Bitcoin.

Imagine you have the means to grow corn in your backyard. Would you rather do that at a fraction of the cost or buy it for a premium at a market? The same principle applies to Bitcoin mining. Instead of purchasing Bitcoin at prevailing market rates, miners set out to produce it themselves, often achieving a production cost considerably lower than the market price.

The cornerstone of cost-efficient Bitcoin production is an ASIC (Application-Specific Integrated Circuit) miner. This impressive piece of technology comprises dedicated power supplies, cooling systems, and uniquely designed chips for optimized calculations. The hashpower of each miner, denoted in $/TH (Dollars per Terahash), determines its efficiency and market value.

Efficiency is crucial in Bitcoin mining as it directly impacts the amount of Bitcoin produced for a given amount of electricity consumed. An optimally efficient machine can generate a more significant amount of Bitcoin with just 1 kWh of electricity compared to less efficient miners. Miners strive to optimize every available resource to ensure that every Satoshi of Bitcoin is produced at the lowest possible cost.

Bitcoin mining is not just about producing digital currency.

It’s about doing so with precision and maximizing resources. Miners carefully calculate their costs and aim to minimize them to increase their profitability. By growing their own Bitcoin, miners can control the production process and reduce their reliance on market fluctuations.

As you can see, the economics of Bitcoin mining are fascinating. Miners are driven by the desire to produce Bitcoin at a lower cost than buying it from the market. They invest in advanced technology and optimize every aspect of the mining process to maximize their efficiency and profitability. Just like a farmer growing his own corn, Bitcoin miners take pride in producing every Satoshi of Bitcoin with precision and at the lowest possible cost.

The strength or capability of each miner is denoted by its hashpower, often expressed in terms of $/TH (Dollars per Terahash). This price point isn’t arbitrary. A miner’s efficiency – its ability to turn electricity into Bitcoin – directly impacts its market value. An optimally efficient machine can take 1 kWh of electricity and generate a more significant Bitcoin amount compared to its less efficient counterparts.

/by
Bitcoin FinancePhoto by André François McKenzie on Unsplash

Bitcoin: The Evolution of Money

The Essence of Money: A Journey Through Time

The story of money is as ancient as civilization itself. Initially, the barter system was the norm, directly exchanging goods for other goods. However, the system had a critical flaw: it depended on the “coincidence of wants.” What if you had apples and wanted to purchase bread, but the person with the bread you wanted didn’t want apples? Enter money—an intermediary of exchange so that the transaction of goods needed to only go one way. Money needs to be something of universal acceptance to all of us.

Did you know that the word “salary” is derived from the Latin word “salarium,” which was the money paid to Roman soldiers for the purchase of salt? In ancient times, commodities like salt were not just a seasoning, they were used as money due to their intrinsic value. Salt was vital for preserving food long before we had refrigerators, everyone needed it and everyone wanted it, therefore an ideal form of money.

Money over the centuries has been tried and tested in many forms. As societies evolved, so did money—from commodities to coins, then to paper, and now to digital forms. Over this time certain criteria have been agreed upon to test its effectiveness. It needs to be:

  • Durable: Money must withstand wear and tear, retaining its value over time.
  • Divisible: It should be easily divisible into smaller units without losing value.
  • Fungible: One unit must be as good as another, ensuring interchangeability.
  • Portable: Money should be easily transportable, facilitating trade.
  • Verifiable: Its authenticity should be easily identifiable to prevent fraud.
  • Scare: Money must be available in limited supply to maintain its value.

Bitcoin and the Evolution of Money

Fast forward to today, and we have Bitcoin, a digital currency that’s revolutionizing our understanding of money. It’s not just a digital phenomenon; it’s a fundamental rethinking of what money can be, tethered in electricity, a commodity as vital to our modern lives as salt was to our ancestors.

Bitcoin’s Durability is conceptual, lying in its digital existence. Unlike physical currencies, Bitcoin cannot be worn down, degraded, or destroyed in the traditional sense. Its robustness comes from its decentralized blockchain ledger, maintained across thousands of nodes worldwide. Each node has a copy of the entire transaction history, and the system is designed to withstand any attempt at fraud or destruction, even if individual pieces of the network are compromised. You would have to simultaneously destroy every electricity grid, computer and every internet network to remove Bitcoin from existence, which have far bigger implications.

In terms of Divisibility, Bitcoin breaks down barriers. Consider the US Dollar, which divides into 100 cents (2 decimal places). Now, take Bitcoin, which divides down to 100 million satoshis which is the smallest unit of Bitcoin (8 decimal places), making micro-transactions a reality and expanding the possibilities of financial interactions big or small.

Portability with Bitcoin is unparalleled. You can send it anywhere globally, almost instantly, and remember that you decide what fee you want to pay. Bitcoin is not constrained by borders or banking hours, it’s neutral money for the internet age, because all you need to transact peer-to-peer is an internet connection.

For Verifiability, Bitcoin is in a league of its own. Every transaction is recorded as a public ledger file that every node has a copy of (the blockchain), visible to all but alterable by none, ensuring unparalleled transparency and security. And as we have learnt, if you would like to update this global ledger and earn the block of fees and subsidy BTC you need hashpower.

As for Fungibility, every Bitcoin is equal 1BTC = 1BTC, but it’s also unique because of its history on the blockchain. The value of Bitcoin in circulation represents an amalgamation of the energy and transactions it facilitates, it’s a multibillion dollar asset which is traded on order books both within the traditional finance world and in new emerging markets. Furthermore, in places like El Slavador it has become legal tender.

Scarcity is where Bitcoin mirrors the precious commodities of old. There will only ever be 21 million Bitcoin, making it the hardest and deflationary asset unlike any other in modern history. It’s the only ‘thing’ that humans cannot make any more of.

Visualization Recap:

Imagine money that appreciates in value, that can be sent across the globe in seconds, that’s transparent with absolute scarcity and defended both physically

/by

The Dance of Energy and Time: How Bitcoin Speaks the Universal Language

Whether you turn the first pages of ancient religious scriptures or leaf through the introductory chapters of a science textbook, one theme resonates clearly: everything begins with energy. It’s the fundamental currency of our existence, seamlessly interwoven into the fabric of our universe. Power, an expression of this energy, is quantified in watts, bringing a temporal dimension into the mix. By understanding watts, we glimpse the intricate dance between energy and time, two of the universe’s most profound concepts.

This dance abides by a core principle: energy, in its myriad forms – from the kinetic rhythm of a heartbeat to the electric hum of our cities – is neither created nor destroyed. It simply transforms, finding new ways to manifest. As our world accelerates towards electrification, understanding the transactional nature of energy becomes ever more crucial. It’s the universal language, and as we’ll discover, Bitcoin speaks it fluently.

/by