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name something that is part of every single problem in our society but is never considered the problem and fixing it is never considered the solution well the answer of this is money now bitcoiners have a quote for this and that is fix the money fix the world and that quote is a compact amount of thoughts and feelings of someone that has probably done their research about a problem gone through the fundamental layers as to why the problems occurring not catching the problem solving the problem and the solution seems to always be something to do with that our monetary system our fiat currency our debt-based system is broken that you go to work converting time and energy into money your whole life but a federal banking system can press a button and issue those units that you work tirelessly for at the cost of nothing it means you acquire resources at cost they get them for free that’s called theft

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apparently Bitcoin wastes energy and I’m here to tell you no it doesn’t Bitcoin doesn’t waste energy it recycles energy and the reason for this is very similar to any system with a commodity that is eventually perishable electricity has to be consumed then and there or stored in a battery and that means that the grid has to oversupply how much power is produced so that we as the consumers can switch on our light and TV and Kettle and anything when we want how we want now the thing is when it comes to other systems such as food the shops have to overs Supply in food so that we always have an available fresh INE amount of food to be able to purchase but what do they do with their excess food they throw it out it’s a waste or they recycle it in a sense what Bitcoin mining does is a similar thing for energy it turns $1 of electricity into $2 of Bitcoin that’s adding economic value not wasting

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Bitcoin is not just a digital money that consumes a lot of energy it is in fact an entire network of technology and commodities circulating Bitcoin has three core sectors that being the energy side of things shown in yellow the compute side of things shown in blue and the financial data side of things shown in Orange being BTC what I personally find most interesting to learn about Bitcoins expansive use cases in many directions with different Commodities is as what’s shown below the opportunity to Foster carbon markets because the consumption of energy has an Associated carbon cost the consumption of electricity managed and sustained on the grids the heat from the machines used for farming and agricultural systems hash power is a commodity in of itself which can open up compute markets the data storage of blockchains and obviously Bitcoin as money for the finance sector oh

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here is something crazy to understand about Bitcoin is that it’s actively lowering the price of energy as a network but obviously you’d think hang on the miners are buying energy so how on Earth can Bitcoin be lowering the price of energy well here’s the thing every time a new Miner plugs in that amount of Bitcoin M think of it like a cake if all the miners are going to a birthday party and there’s a single one cake on the table if twice as many people come to the party everyone’s getting a smaller slice and that’s exactly the same with Bitcoin that all these miners consuming more and more energy to get less and less Bitcoin so the energy to Bitcoin exchange rate of how much they mine keeps dropping which means the amount of Bitcoin per kilowatt keeps dropping and so if the electricity price goes above they sell the energy so it’s a natural selling pressure the miners are actively selling energy if it’s more than Bitcoin

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this Bitcoin bull cycle if you are not keeping track of the amount of Bitcoin fees per block then you’re doing something wrong now fees aren’t the only thing in a block it’s the new supply of Bitcoin as well we call this subsidy and subsidy has been hardcoded into Bitcoin software that every four years the new amount of Bitcoin per block is cut in half until all 21 million is mined now where does that leave us with fees well fees are great they measure the adoption and the demand for space in these blocks but if you’re on the consumer side of Bitcoin paying to store your transactions in these blocks you’re going to pay more on the mining side we’re going to earn more and the problem for the mining side is this subsidy is that 3.125 Bitcoin guaranteed per block but transaction fees are variable so they fluctuate so in the bull market great in the bare Market we’ll see

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the Bitcoin Haring is coming does that
mean that the price of machines are
going to cut in half let’s have a look
Satoshi set the monetary policy of
Bitcoin for the next 100 plus years from
when he first created it and so that
means we know exactly when these events
are going to happen how they’re going to
happen and what’s going to happen and so
for example the public Bitcoin miners
everyone knows that their earnings are
going to effectively cut in half and so
people will be selling in advance now
here’s a chart showing mining Hardware
compared to bitcoin price and typically
in the ball markets it follows it like a
moving average but since this last bare
Market the price of machines has stayed
suppressed that’s for two reasons the
network hash rate has gone up so mining
profitability goes down but also the
harving is anticipated we know it’s
going to happen and so machines are sort
of priced over time you look at the 180
day or 2year sort of values of how much
you think you’re going to mine into the
future

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This is the price of Bitcoin over the last few years and this is the production cost of bitcoin over the last few years as a network average now here’s the thing to understand about why Bitcoin goes parabolic in price well the short answer can be explained with fiat

Currency fiat currency is an infinite amount of printed monetary units inflating to chase a scarce amount of goods and services at any given time that means that more money is chasing fewer Goods the prices go up and the money is going down Bitcoin does this the other way around the monetary units

Are scarce and the energy the mining the production to chase those monetary units is continually going up as the production cost shows and so it’s an infinite amount of energy chasing a scarce amount of monetary units Infinity over 21 million Bitcoin

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One of the concerns people have had before about Bitcoin mining is that how can you have an income stream that is random that you produce blocks randomly based on for example if you are mining with 1% of the Network’s hash rate you will earn approximately 1% of the blocks

Of Bitcoin but the struggle there is well how much money do you know you’re going to earn but the same analogy can be brought across to any other industry farming does the farmer know exactly how much he’s going to grow that year or does he put all of the time and energy

In preparing his field and the growth and the connection to the sun and the fertilizer and the efficiency of his Machinery it’s the exact same thing with Bitcoin mining it’s the best way to understand it is Bitcoin or bitco and that’s the same for if you

Open a business you don’t know how many customers are going to come in the door you can just sort of throw out an estimate and hope for the best

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So here’s something interesting HSBC have launched a digital gold token that is a digital asset which is an IOU that references a fractional amount of ownership of gold stored in a vault but here’s the problem how do you know and how can you trust they have the actual

Gold stored in a vault somewhere there is no way of intrinsically connecting the physical asset in the real world to the digital coin or commodity in the digital world but there is two Commodities out there that do have a physical asset or energy that is referenced in digital form with a direct

Intrinsic connection between the two bridging Both Worlds that answer is Hash power and Bitcoin are digital Commodities that are intrinsically connected to the physical world of energy through the computational timestamps of producing the next block in the chain