Carbon Credits

Video Transcript:

Video Transcript:

Video Transcript:

Accretive dilution. Something that traditional finance uses as an explanation for doing merger and acquisition of companies to increase the amount of earnings per share for your shareholders. But Micro Strategy, Michael Sailor has very much uh brought new life to this explanation of issuing more shares at one price, the market price, and buying more Bitcoin with that to drive the amount of Bitcoin per share up over time and drive long-term value into his company. Now, interestingly enough, Bitcoin in of itself has its own form of accretive dilution. This is the word used associated to the dilution of shareholders to give them accreatively more value. Now when it comes to Bitcoin’s version of accreative dilution, it works in a bit of a different way. There is continually more Bitcoin miners joining the network fighting for one of the 144 slices of the Bitcoin cake available per day, otherwise known as the 455 Bitcoin distributed in 144 blocks per day. Now, when the price goes up, there’s even more incentive for more miners to plug in online and capture this revenue, which increases it from about 144 a day to an even greater level. And so what the network does is it has a difficulty adjustment which reconstrains and raises difficulty to make sure there is only about 144 blocks being found per day aka one block roughly every 10 minutes. And so what you’re having is this effect of more miners earning from this 455 bitcoin. So they are effectively diluting themselves. But the accretive part is this that if 10% more hash rate comes online, it represents potentially 10% more energy being consumed in the network as well. So the electron value of Bitcoin has gone up another 2,000 megaww in this 10% increase example. So accretively, the Bitcoin has gained more value being repriced against more energy. The value mechanism of Bitcoin is its production cost and its exchange rate with electricity because the exchange rate goes both ways. It’s not just consume energy to produce Bitcoin, but potentially selling energy to buy Bitcoin. Now on the micro strategy side of things, it gets a little bit interesting because what I’m explaining here is that Bitcoin has a production flaw and that represents its own form of value mechanism versus the Bitcoin to dollar price. Now, if the Bitcoin to dollar price is recognized as the value of Micro Strategy shares, it essentially means that the Bitcoin per kilowatt hour production floor average, let’s say it’s 50%. It’s actually less, but Bitcoin per kilowatt hour. And if we applied it to this price chart, that’s per Micro Strategy share. So what if people viewed Micro Strategy shares not for their underlying Bitcoin per share, but actually the value and exchange rate of Bitcoin to electricity being a true fundamental value of these shares because it’s how much energy you can buy with your Bitcoin. Uhund 27.5. So this is a way of perceiving essentially the underlying value of Bitcoin which is recognized in Micro Strategy shares um as the price of Bitcoin as the shares value. I’m giving you another fundamental layer which is essentially the energy value of these shares. Now the reason why I would use this as a new perspective on looking at the sort of accretive dilution nature is that when the bull market takes off if the production floor for Bitcoin is about 60,000 and the price is hovering 20,000 the price was to double production floor would still not be able to catch up. So it would be now 25%. So the way that people treat the difference between the share prices and Bitcoin per share and the gap between these two, if the price of the shares gets too high, essentially the shares are trading at a massive premium to their underlying Bitcoin value that you can assimulate the comparison between the Bitcoin price and yes, I’ve got it in a chart for Micro Strategy pricing, but you can you can work with me here. Bitcoin to dollar and Bitcoin to kilowatt hour as a value mechanism that truly in the peak of the bull market the ability for these shares to drop is people observing that the share price could drop one to one par is the worst case scenario but Bitcoin can drop to one to one par of its production floor so potentially Bitcoin’s production cost could be a true value metric underneath the price of Bitcoin. underneath the price of Micro Strategy shares. So, it’s just another interesting way to view the production cost of Bitcoin as a value exchange rate from the physical world because with finance being focused on finance, they can get a little bit disconnected from the reality of the world sometimes aka 2008. So yes, an interesting other way of viewing Bitcoin’s accretive dilution properties of the miners diluting their own revenue, but their revenue being priced against their energy use and that being the assigned value mechanism of their exchange rate of electricity to produce Bitcoin that can go both ways in our future world of building Bitcoin electricity grids where all the different homes can trade energy and money interchangeably through compute power. Thank you for listening. I hope you enjoyed this other perspective. There is obviously going to be multipliers that you can apply to these different levels and interesting ways to model out the long-term value of these companies along with all the other Bitcoin Treasury stocks that will come. See you next time. Goodbye.

Video Transcript:

Hello there and welcome to the HashPower Academy. This is a different sort of video, but I would say it’s even more important. I’m looking for your feedback. A couple of months ago, YouTube demonetized the Hashpower Academy account and uh not a single video flagged, no warnings, no nothing. The only video I made was the corporations want your Bitcoin and that was the day that it was demonetized. I don’t think that’s related to it. But the the key aspect here is they banned the AdSense account. Um, demonetized the YouTube account. I appealed and got the you the YouTube account remonetized, but they refused to let me connect it to a new AdSense account. So, it’s still demonetized. Now, all I did with the AdSense account was create the account, connect it to the YouTube. I didn’t even receive the the pin in the post and uh they closed the account. I don’t know why. If someone from Google or YouTube or you’ve got a girlfriend or a boyfriend that works there, help me find it. Figure it out because it does not make sense. But we move on to the positives. looking for your feedback in terms of the different things that you would like to see on the academy in terms of content or product market services uh which I’ve already started putting some affiliate links in the descriptions because if this academy has helped inspire you to learn more about the Bitcoin network inspired you to want to run your own node get your own mini miner wallets and all these sorts of things if you want those sorts of products markets and services I’m going to continually reach out to all different vendors that provide these within industry and that strength of the network of if I send them your way there’s an an affiliate income on the side that just helps me justify the continual effort of endless videos that I want to produce but they cost time and energy and thus money is needed. So on the academy side of things, one of the things that people have requested initially um is a paid course and that is something that’s to be defined of a price and I the the design idea for a course from my eyes is something that’s timeless and the big picture basics is a free course currently on the hash power academy and this paid course idea if you’re interested please let me know is to scale that to a whole different level uh one-on-one or even group workshops and all different pieces, different uh documents and materials alongside the course. Just just a multiaceted course that delves into every sector of the Bitcoin network, past, present, future, storytelling, the math, the physics, the finance, and obviously a lot of unique value ad. There’ll still be a continual amount of free education, but the paid course helps financialize and grow the academy to the much larger scale of the ecosystem that’s been in development for many years. And on the ecosystem side of things, you’ll also see a link to the platform. We’re developing this fractional share aspect for Bitcoin mining which is most important to allow access into mining because if one machine one ASIC is5 to $10,000 how does 90% of the world afford to get into mining let alone learn about it because there’s no economic incentive to get into the mining side. And so there’s a path to helping people get into hosted mining in fractional fungeible amounts and it builds something even bigger. But everything starts with education. So again, I’m looking for your feedback and whether you are looking personally for a paid type course. What you’re willing to pay for such a thing, the value ad of all the different content that you’ve learned so far, the the direction for me is to get some clarity on what the largest majority of viewers want and need and just home run focus on that particular niche alongside creating videos and on the business side as well. Thank you for listening. If you listen this far, it truly means that you care about all this stuff. So, send me a message. Contact [email protected]. Um, yeah. Or drop a comment below. I’m looking for your thoughts, questions, queries, feedback, likes, subscribes, and all that fun stuff. I will see you in the next video. Goodbye.

Video Transcript:

Hello there and welcome to the Hash Power Academy, your place to learn anything to do with Bitcoin. The topic of today’s video delves into the idea of Bitcoin trust fund kids, which leans on the topic of Bitcoin inheritance. Think about it. If you are growing your Bitcoin wealth at any age, I presume you want to financially reach the level of potentially having a family. And the next step of thought from that is teaching your kids how to manage and hold and secure Bitcoin. And then the the finality of that is when you’re not involved and there is an inheritance process to pass that orange wealth, that bloodline retiring stack to your next of kin. And there are some problems in that. And we can explore history just to demonstrate that at any level of wealth, especially kings and queens, that you had that king that built the empire and then passed away and quite literally handed the keys down to the young prince and it all went wrong from there. whether it was that they didn’t assign the importance of that money to themselves because they didn’t put the work and energy in because they didn’t exist maybe at the point and this isn’t a bash on people that have inherited great wealth in fact if you are one of those people reach out because there is many things I’m looking to build and they cost a lot of money there’s lots of amazing things that come out of it so the idea of this is It’s a harsh statement, but I think it’s fair. You value nothing when you can afford everything. And you truly get boiled down to the sentimentality of things. And I think that might be one of the disconnects that if someone, especially young, is handed money with no assigned cost to the physical effort required to make it, earn it, and work for it. This is why we have this very age-old statistic that 70% of families lose their wealth by the second generation. And this gets even better interesting. 90% of families lose their wealth by the third generation. So it is absolutely fundamental that if you would like to be one of the Satoshi era bloodline retiring family names and helping your family preserve wealth into the future in a way that they can assign the true value and cost to the money. There is an interesting effort that needs to be made collectively and I’m looking for your feedback as well on this and the comments as to how we can educate our children of the future to preserve their time and energy in a way that whether it’s inherited in time and energy from someone else’s work or themselves that they they lead a path to making sure they don’t recklessly spend it and blow it on Lamborghinis, shall we say? how we can prevent this for our particular family and be the 10%. And uh not to make it all about mining, but uh the the key issue with say the fiat currency side of things is that we detached the idea of what money was from the physical world in the 70s. We disconnected our money, numbers on an account and salaries and whatnot. we disconnected it from gold and the average age that people have kids has gone up. Uh there’s all other different socio socioeconomic and political aspects to this and uh women entering the workforce at that particular point in time that’s changed things. But what doesn’t change is that we have a form of money that everyone’s detached from in the idea of just spend it now because it buys you less tomorrow. And I think that detachment from money and that concentration of wealth to those has created an accelerated amount of concentrated wealth and a wealth gap in our world that there will be a lot of Bitcoin trust fund kids as well as just normal trust fund kids shall we say or Bitcoin wallet kids. There’s several problems to this which is the question then may become how do we help our kids assign a value to the money and mining comes into this because what is Bitcoin mining it’s the educational perspective that Bitcoin didn’t just appear every single bitcoin was produced and computed with an electrical cost whether it was that at the start with Satoshi and CPU use and a very nominal amount of energy where it was high 50 Bitcoin quantity per block with a tiny amount of energy to today going into tomorrow which is a massive quantity of energy to produce a tiny amount of Bitcoin. But in that process there is a new pricing system to understand the cost of Bitcoin through electricity. And I think if the digital nature of Bitcoin creates a psychological lack of responsibility, because I’m sure everyone has just and paid without thinking twice as to, oh, let me check my bank balance. If you’re truly in a credit world, a lot of people’s consumer behaviors and spending psychology is on the fact that the detachment of the physical checking of our wallet to see if we actually have the the the money available to spend. The detachment into this physical uh physical aspect going into digital means that we now spend money in a way that can be more reckless and irresponsible because it’s just click and pay. It’s been made so easy. And I always reference the buy now and pay later, the the the misalignment between actions and consequences. But the fundamentals come back to the fact that Bitcoin is this new form of money on the internet digital and swells this wealth that means that there will be people that need to hand it off to their kids. They want they will want to whether they build and spend with it, which I think is an a smart thing to do. Um and also the aspect of what they hand down to their kids. if their kids have had an educational journey into Bitcoin and learning about the energy side as well. I feel like if kids can conceptualize physically a large mining site and the amount of Bitcoin that one large site can make can make this tiny amount of Bitcoin per machine with all the noise and energy use. I feel like there’s it it’s my biased opinion in that particular front, but I feel like helping kids understand that they’re digital orange wealth that they inherit and making them understand the the the timeline and the physical cost side of the money will just help them understand its importance to preserve into the future for their generation and so on. There’s all other different social aspects to how we spend money. But that’s come from the fact that especially the last 50 years, even longer, that we’ve got money that is not worth the paper it’s printed on quite literally. And that’s created an environment where people spend recklessly and hyper consumption and the quality of materials that the the Bitcoin hard money standard does introduce a society where people focus more on quality. Why would I let go of my Bitcoin for anything other than something that I believe is a good experience and high quality? Good food, good travel, good people, good conversations. That’s what we want. And the aspect of the end of that enjoying enjoy that life full of adventure and experience that we can afford now stacking Bitcoin in this collective investment vehicle of a planetary scale. Still that problem. How would we hand it to our kids in a way that they understand all of those pieces of knowledge that is required to not recklessly spend it? And it’s they need to assign the money to some form of physical attribute whether it’s their work, their time and energy. One idea I have is in the debt money system world of nations and governments if this is an idea and I’m very much interested to get your thoughts on this that um for example if I have a child in the future and they go and work which I would like them to do and understand their exchange of time and energy into money that if the government takes 20% of it as a tax bill I would rebate that 20%. So it’s almost ensuring that their time and energy and their work that they do is fully preserved that 100% mark. So if they want more money from Elpadre, they need to go and work harder and not have their effort to work more put them in a higher tax bracket to take more, which makes things like sugar taxes in England quite paradoxical. you’re going to apply a tax on sugar to make people consume less sugar. So why is there a tax on earning and working more? Are you trying to make people work less or the system’s messed up and we’re just trying to figure it all out? But when it comes to that inheritance aspect, another thing is I’m uh currently in discussions with a hardware wallet provider that’s got a very interesting piece of technology that I’d like to explore because the biggest issue with the handing handing off of Bitcoin wealth to our kids is truly to that piece of information, the private key, whether it’s a single private key, multi-IG setup, custodial setup that uh has a transfer and an an inheritance process. There’s all these different pieces, but I like this particular this this company that developing this technology to allow the handling of signatures and backups and all these sorts of things in a in a more human way. Raising that technical level to a more human interface is very much what is needed. Again, if any of you have particular ideas on how we can hand this digital bloodline retiring wealth to our kids and and allow those dominoes to continually fall over time, comments and questions very much for you. Thank you for listening. I hope you enjoyed this video. I did as well. And I will see you in the next video. Goodbye.

Video Transcript:

hello there and welcome to the Hash Power Academy your place to learn anything to do with Bitcoin and the topic of today’s video is the direct comparison between mining versus buying are you growing your tomatoes or buying it from the shop that’s the key difference and so here with mining versus buying the first thing to understand is the 99.99% of you have probably logged into a platform deposited your fiat currency clicked purchase to buy your Bitcoin suffering a spread and a fee and I’m hoping that you’re withdrawing with another fee and depositing into cold storage to hold your timeless energy money units and preserving your purchasing power for now and forever over time and that’s why I have this orange line here that over time your quantity of Bitcoin doesn’t change if you go and put it in a lending platform or hand it to Michael Sailor for yield that’s your risk to take this key comparison is buy and hold versus say potentially mine and hold so where does mining come into this well mining is the other avenue to acquire one of those 21 million units that if everyone goes and buys all the Bitcoin they can the only thing left is what is available to produce and when that runs out when all the subsidy is gone it’s what Bitcoin is moving and in circulation through payment of fees that’s what is available to be collected and so with mining it boils down to this whatever you spend on mining you have a direct comparison of how much Bitcoin you could be holding the opportunity cost of do I hold this one whole Bitcoin $100,000 or spend it on Bitcoin mining hardware and what’s my goal well if I spent one whole Bitcoin potentially I want to produce more than one whole Bitcoin and effectively what happens with mining is exactly that that you start with purchasing those computers and you have no Bitcoin you didn’t buy any you have an opportunity cost of potentially selling it even to to buy those machines so here’s the thing what happens with mining is it produces the most amount of Bitcoin uh the more efficient the machine is but the younger it is as well relative to other machines so most Bitcoin mining hardware in this diminishing returns environment of how much Bitcoin you can earn per day with the hings coming every four years what happens is you have this very steep curve that slows down and this is possible to outperform your original purchase or just held in in the first place this is possible as an opportunity and what I mean by this is high uptime good computers that that haven’t got all these fee extractions or high electricity rates that there is a certain amount of revenue that you have the ability to capture and what gets taken away from you is how high is your electricity bill how much uptime this could be a theoretical 100% uptime but if you’ve only got 95% uptime and you’ve only lost or it’s going to take longer if your electrical bill is really high or your machines need lots of repairs then you’re continually spending more you’re going to have to keep increasing this rate and so that payback period might take even longer and so one of the key things to understand about mining is that going onto a calculator and understanding the profitability today is not at all anywhere accurate to what it is tomorrow cut it in half that’s what you think the profitability might be but this is the key thing the objective goal on the Bitcoin mining side of things is to accumulate a greater quantity of Bitcoin over time than what you simply could have just purchased all the way back at the beginning and yes there is a lot of miners that regret buying their machines and learning the hard way and they would have accumulated way more Bitcoin by simply holding so where the opportunity to go into the mining side versus just buy it is if you have access to cheap electricity a lot of capital with good operators or hosts or running it yourself or doing it small scale with an energy setup that you’ve already paid for if you’ve got a solar battery setup and excess electricity sitting and and you can read it on your meter that there’s power you’re not using you can sell it back to the grid or sell it to a global monetary network it’s up to you and so the other side of this is well when you buy Bitcoin you’re depositing dollars you’re purchasing that Bitcoin so there’s an exchange rate and a spread so you’re losing some in the process you’re paying a fee most definitely for the services of that exchange and they’re probably going to charge you to withdraw so there’s sort of three fees in that process versus with Bitcoin mining you earn revenue i’m going to draw these in you earn revenue big stack of Bitcoin and the fundamental thesis behind Bitcoin is that it has a cost to produce all right and what this means is a form of money with a cost to produce truly comes into reality through your electrical bill and here’s the thing your profit is what’s left over if you was to sell your Bitcoin to pay the electrical bill but if you’re trying to stack Bitcoin you’re not trying to sell it so pay the electrical bill with dollars and you’re accumulating the Bitcoin you would have sold what I’m trying to say is essentially that the electrical bill is your way of buying Bitcoin without fees suggesting that your bank transfer doesn’t cost you anything so to speak and that’s one thing so mining allows you to do the same experience of buying without fees you’re buying you’re essentially buying Bitcoin by paying the electrical bill dollars and keeping Bitcoin that you’ve already mined that’s one thing so that’s the electrical bill aspect the second thing is that Bitcoin mining hardware has these tax advantages if you buy Bitcoin there’s no tax incentives there but if you buy a physical good like a computer that depreciates over time and eventually breaks and trends to zero but produces potentially a greater quantity of Bitcoin than what you could have spent on it in the first place that is an asset that can be a tax deduction so if you’re looking for tax advantage investing that might be different to say a retail person well the opportunity to mine is also deductions on that inevitable profit that you get on the other end and then on the the payout side of things that experience of either going into a platform to buy your Bitcoin and withdraw it to cold storage with the exchange probably got it getting your know your customer personal information and all the anti-money laundering aspects of things uh it’s a double-edged sword because I believe that more information has been hacked from these centralized collections of information than uh the actual protections that AML and KYC actually offer topic for another video but the point I’m trying to make is you’re your Bitcoin is tracked you are pseudo anonymous but the exchange knows who you are onchain analytics is getting better and better and better when it comes to mining there is this aspect of privacy you could scale it with millions of dollars to the rate of producing your own blocks which is there is no sender address just a receiver freshly issued Bitcoin which means you are producing Bitcoin but you also have Bitcoin which is effectively private a compliance aspect of being able to have Bitcoin that has no transaction history is another benefit if you’re a large financial financial institution you don’t want Bitcoin that’s got this long story from a theft or a hack or something that could affect your ability to use it and impact its fungeability so to speak into the future so buying Bitcoin in in an exchange you’re you’re getting that money that’s uh been through several hands so to speak versus freshly issuing it yourself and so mining has these different sort of benefits but with more risk you’re not buying Bitcoin immediately you’re buying a computer that produces it over time another way I like to refer to Bitcoin mining is is it’s like energy staking the proof of work to proof ofstake comparison being that it’s the energy entering the system versus um existing monetary units in proof of stake being staked against other people’s ability to uh spend and save in the same units and just collecting collecting rents we don’t want to go back to that system we want to go to towards a system where we’re building out energy based infrastructure that is also a monetary system which helps us build out more energy infrastructure which makes energy cheaper in a fixed supply unit so everyone’s getting more purchasing power and so the importance of mining and buying is a duopoly it’s a circular economy but to those that want to step out and just save and live their life buying is one offer but mining offers different other aspects that could be more institutional but there’s there’s opportunities for retail as well that’s the hosted mining aspect of things but the limitations there is you need a financial barrier to to hurdle over that a typical computer is5 to$10,000 and the average person out there in the world does not have five5 to$10,000 the average um and so there’s there’s a few limitations there but the overall gist for this video is that yes mining is an opportunity to accumulate a greater quantity of Bitcoin over time than what you could have purchased in the first place if you have cheap electricity access to computer cheap rate wholesale rate versus a retail price for those computers and the performance your proof of work over time is the revenue minusing the electricity and your uptime and that true reality of where that point is and there are sadly some miners that don’t make their money back or machines break or they burn something down the insurance won’t pay out and they never make their money back and there is a loss that happens that is the brutal game of Bitcoin mining but there you go so thank you for listening i hope you enjoyed and I will see you in the next video goodbye

Video Transcript:

hello there and welcome to the Hash Power Academy your place to learn anything to do with Bitcoin now here’s the thing if you’ve been watching my previous videos you will notice that this is a different whiteboard and this is a different wall this is because I’m in a different country i am in Dallas Texas in the USA for a couple weeks so if there’s any Bitcoin companies or mining companies that would like to show me an interesting mining site or setup I’m all game so here’s the thing this video is just going to be a short and sweet one to get into the nature of understanding the three fundamental commodities of the Bitcoin network electricity hash power and Bitcoin now I have covered this sort of way of explaining things in previous videos but the thing I’m going to sort of emphasize here is this that if you go back in time to Satoshi Nakamoto he consumed electrons produced hashes and produced Bitcoin exactly the same as today but not with the different technologies now we have better mining hardware faster more efficient different cooling systems different cooling system types and all these sorts of things the technology branch of consuming electricity to produce hash rate that is complexifying in its own way into the future the Bitcoin blockchain the hash rate that’s producing it the mining pools and all these sorts of things i haven’t written them all in just keeping the focus on these three commodities and then the Bitcoin that’s produced the output of blocks being added to the chain electrons being uploaded to the internet and the bit that I find the most interesting is this branch as well well that’s where I see the Bitcoin unit of account branch that the electrical inputs into society begin the first Bitcoin unit of account second to block space the cost of data storage to pay to store your information online forever and what I’m trying to explain with this is that everything is going to change with the technologies in between the commodities but these three commodities will not change this one is contained it’s 21 million units but these two expand and also in other videos you will have seen that I show it typically in a linear series the cost to produce electricity the hash rate side of things from Bitcoin mining the Bitcoin blockchain all the different moving parts and metrics and obviously Bitcoin coming out the other end but that is not the end of the story the future of this is the interconnectivity of all three commodities together the demand response side things on the electrical grid such as here in Texas the Urkott electrical grid has demand response programs that fluctuation of supply and demand of power has a new buyer of power that is just an economic user so if the economics change the other way and to sell the electrons instead of consume them there is stability offered to the grid and higher economic return to the miners because you got to think of it like this a Bitcoin miner is optimizing for 100% uptime which means they need a grid or a power source with effective 100% uptime that is the perfection aspect and we’re continually working towards it we want to get maximum uptime so Bitcoin miners are incentivized to help the grid as much as possible because that’s their source their source input and then all of the different aspects of hash rate and the complexities going into the future of being hash rate being this reusable proof of work commodity that is going to complexify and of itself but what’s not going to change is its use and its expansion the the network hash rate going up to one zeta potentially this cycle i think it’s possible but with all this expansion of electricity that everyone needs compute that everyone needs and even the buildout of AI being helped by Bitcoin mining because Bitcoin mining per megawatt in terms of cost is onetenth of the price to build out so if you’re trying to access large power contracts you can build out Bitcoin mining to access those power contracts at onetenth of the cost of AI so all of this physical buildout whilst this digital race is trying to to race even further ahead quicker than the physical constraints of how much energy and compute we can produce well Bitcoin being this accelerant to all the different things we need in society whether it’s the energy sector compute microchip aspects or finance and the future there that as things change into the future what will not change is the relationship between these three core commodities so with Bitcoin mining again I’m not an art student so forgive me here bitcoin mining what is the key exchange rate or efficiency shall we say not exchange rate jewels per terash that is the direct conversion of electrical consumption for output hash rate and on the blockchain side of things here we’ve got hash rate going to produce Bitcoin blocks that is typically in mining pools and here’s the thing Bitcoin mining pools are the ones holding the pen of the accounting system and all of the different complexities going into the future on the blockchain side of things are new op codes new decisions of how much block space there should be or shouldn’t be all the different debates chaos and changes what will not change 21 million units expansion of hash rate expansion of compute so the expansion here and constraint here with the constant changes of different layers and different oh there’s endless there’s just continual complexity in the technology branches I always use solar as the nice easy drawing example again I’m not an art student um so yeah now here is the interesting one after I’ve put hash price in there BTC per terahash per A Bitcoin as a unit of account the understanding of how to buy something with a quantity of Bitcoin in your mind not a quantity of dollars and using Bitcoin as the settlement layer which people like Jack Dorsey and Block wanting to use payment terminals where you can pay Bitcoin that’s great if I go in and purchase a $3 coffee it’s not priced in Bitcoin i’ve just paid with Bitcoin with dollar as a unit of account but that’s okay for today the transition into the future in my opinion is Bitcoin per kilowatt hour or kilowatt for the cost of building out energy infrastructure what will Bitcoin bonds be used for in the future probably building out large energy infrastructure projects because they have the energy potential to produce compute to produce more bitcoin so you have to understand that anything h that has a fundamental relationship to electricity compute of bitcoin is going to have a mathematical relationship to a quantity of bitcoin and that quantity can derive into a quantity of kilowatt hours there is a cost to produce one bitcoin for a minor with a typical efficiency and so what I’m trying to explain here is these three um mathematical functions essentially and variables metrics these three represent the key core metrics as to how to understand your your ability to accumulate sats or build out things in relation to the different areas of the network but Bitcoin per kilowatt hour represents in my opinion the second Bitcoin unit of account commodity that comparison of electrons in the quantity of SATs because Bitcoin miners are already on the electrical grid such as here in uh Texas where if the electrons have an higher economic return to be sold back to the grid aka the the amount of dollar per bitcoin per kilowatt is higher they switch the machines off but they’re doing it the other way around they’re measuring what the value of Bitcoin is to the Bitcoin layer not Yes the dollar is involved at this stage but the whole aspect that I’m trying to explain is we can remove the dollar from that entirely you could have Bitcoin citadels that aren’t connected to any grid because Bitcoin is essentially a deacto wireless electricity grid because it standardizes a global price for energy that is compared to the revenue rate of how much you can earn per bitcoin per per terahash per day and that revenue rate is defined by your efficiency so again these three core uh metrics for your local efficiency your global access to revenue and that key comparison between those two decided by your individual access to these two your uptime and your efficiency on the mining perspective of this there is a lot to dive into with this but it’s all about the different perspectives that you look within the mining perspective the mining pool perspective the developers perspective people holding Bitcoin their perspective their purchasing power and their access to block space so those two Bitcoin unit of account components come in here the cost to store information online forever and the cost to buy energy in the future Bitcoin miners even today are continually moving towards becoming energy producers and what are they producing energy for to produce Bitcoin but if that energy in that moment in real time is being being directly priced against subsidy and fees it means global subsidy and fees and their fraction of that and their conversion efficiency gives a direct pricing of how much Bitcoin they’re earning per kilowatt hour so if you want to buy that energy from that miner on that local off-rid or large infrastructure scale grid or maybe even the Buckminster Fuller planetary scale grid it means we have a global pricing system that we can define an exchange rate from Bitcoin into electrons at the local level so you can buy your energy from a minor because he has a clear pricing comparison at the global level it delves into quite a rabbit hole that you go hang on well if Bitcoin can directly price electricity at a mathematical layer and electricity is used in a countless amount of inputs in the 21st century well now you can start creating Bitcoin unit account connections into everything that requires electricity to produce or even go backwards in the chain how much electricity can you produce with a barrel of oil and if that electricity can produce a quantity of Bitcoin maybe you can start standardizing a price for oil on a Bitcoin unit account all these sorts of things but again it’s about your efficiency at the particular local level the most efficient mining machines will demand a higher Bitcoin per kilowatt hour rate to buy that energy is more expensive they have more efficient compute and naturally you’ll find more efficient machines closer to cities on larger uh more sort of economically developed countries and what will happen is the less efficient machines will go out into countries that are less economically developed but it also means that the electricity on a Bitcoin unit of account is cheaper but here’s the thing as the network is continually expanding in hash rate it means that those holding Bitcoin 21 million fixed in supply um being priced at the rate of how much uh subsidy and fees is being distributed to that pool of compute and electricity that if you’re the one holding Bitcoin in any amount just by holding it and that exchange rate that cost of production to produce a bitcoin if you’re on the other side of that you want to buy the energy and switch that minor or off you’re able to buy everinccreasing amounts of electricity as the production cost of Bitcoin goes up basically what I’m trying to say is the production cost of Bitcoin is a direct exchange rate where you holding Bitcoin can buy electricity in the future when miners are the operators of electricity grids and micro grids and off-grid communities why would your neighbor switch his minor off if by delivering the electricity to you he does it at the same rate he’s producing Bitcoin or luck of Bitcoin or just slightly higher and he’s captured a premium and when he switches some of his machines off he can lower the efficiency and increase his revenue rate with the existing machines online so there’s an elasticity to that as well i’m going to stop it there if you found this video interesting then like subscribe share send me any comments questions queries and fe feedback to the email info@ hashpower academy and I will see you in the next video goodbye