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Energy cannot be created or destroyed, only transferred.

A principle that perfectly aligns with the ideal operation of money. In this video, we delve into the fascinating parallels between energy and money, and how Bitcoin exemplifies this relationship.

Bitcoin is a unique form of currency produced from energy, but its connection to energy goes deeper than just its production. Each approximately 10-minute update of the Bitcoin blockchain serves as a proof of work, showcasing the immense energy expended by miners worldwide to secure the network and validate transactions.

Bitcoin’s issuance follows a predetermined schedule, with a total cap of 21 million Bitcoins to be mined by the year 2140. After this point, no new Bitcoins will be created, marking the end of its issuance phase. Join us as we explore how Bitcoin’s energy-backed system sets a new precedent for digital currencies and what this means for the future of money

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the largest two Bitcoin mining pools currently are running over 50% of the Bitcoin Network’s compute power that is the management of a group of compute power to find the next block in the chain on behalf of an entire distributed network of Bitcoin miners around the world now that’s important because the more compute power they get the more Bitcoin blocks that they earn versus other people it’s very very competitive and every small nominal advantage makes the difference and for example you’ve got all of these other smaller pools such pools like Luxor who are introducing products and services within their ecosystem and other things like marapole which is a public minor they don’t let anyone else join their pool but they run their own pool and have extra products and services to accelerate your transactions on top it’s a nent industry that’s very very early and very very Innovative if you think about it

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does your project use blockchain technology as this magical VC stimulating keyword well the blockchain technology is only best served based on its use cases and that is that for example Bitcoin regulates energy space and time with its blockchain the issuance of money is important so we derive an energy cost to that so you can’t produce a block without consuming energy and when you have money it needs to be traded and transferred all of that information is stored in the blocks and the regulation of how quickly those blocks are arbitrated based on the energy component and regulated Through Time called the difficulty adjustment these different components use blockchain for different things but it all converges into a single circular economy of a monetary system Bitcoin which is distributed fair and demographically sound versus the issuance from a central Authority money is data energy and information all in one what

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Fun fact for you: did you know that the Bitcoin miners are actually more hardcore DCA buyers than the DCA buyers now DCA buying dollar cost averaging is instead of purchasing your Bitcoin in one lump sum you do it in recurring payments what that does is it removes the volatility of the price from your acquisition now what the Bitcoin miners do is they mine a stack of Bitcoin and they have to sell probably half of it to pay their electricity bill they have to sell something or use something to pay that bill so what you can do is you can use Fiat to pay your electricity bill and then you’re keeping all your Bitcoin which is effectively buying it so if you’ve got that monthly payment of buying your Bitcoin effectively through your electricity bill you have access no fees on exchanging or any liquidity problems of all these exchanges mining gives you direct access to bitcoin from the source so you’re a more hardcore DCA than the DCA […].

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Crazy fact for you did you know that Bitcoin miners aren’t actually producing their own Bitcoin instead they sell their raw material compute power hash rate to a mining pool who manages an entire pool of hash rate to mine blocks faster and the reason for this is if you’re a tiny tiny percentage of the network you’re going to get a tiny tiny percentage of the blocks and if the blocks are only 144 per day well then to get one block a day you need to be 144th of the network which is actually tens of millions of dollars worth of Hardware if you’ve only got a small amount it means that you may find a block every 3 months but what if your electricity bill is monthly you have an imbalance of cash flows so people join mining pools sell their hash rate are paid Bitcoin in return and the poll manages the production of Bitcoin blocks […].

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so the Haring has occurred and as you can see miners Revenue per Peta has per day got cut in half but the Haring actually caused a spike in income for miners because of fees now what happened was the launch of a new protocol called runes which is a different way of storing different data in Bitcoin blocks because remember your transaction fee and the size of your transaction fee in Bitcoin is based on the data size how much data you’re putting on the blockchain instead of the size of the amount of Bitcoin you want to send it’s there’s no difference as to the size it’s all based on how much data you’re paying to store in the blocks now why is this important well because in the future of Bitcoin mining we’re going to see more dependence on transaction fees which are volatile than the subsidy which is guaranteed every single block this creates a more volatile fee environment as shown below

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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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is Bitcoin going to help reduce war and increase peace around the world I think so in some ways and for the reason of that Bitcoin is natively digital it’s not an asset that exists in the physical world it’s produced from the physical world but it doesn’t exist in the physical world and that’s important because all of our Warfare throughout history as Humanity has been about resources and money and gold for example has been very tainted with blood over many thousands of years of warfare so if we remove our money from the physical world and place it into a digital world where we can still transact and trade but digitally that just takes us one step closer to a world where it’s much harder to obtain resources resources off of people and actually bring about a better world I’d like to know what you think

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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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What happens if you send the wrong amount of Bitcoin or send it to the wrong address?

The answer is straightforward but crucial – the Bitcoin is lost. This is because Bitcoin operates as a peer-to-peer currency, a fundamental aspect often overlooked in discussions.

Peer-to-peer money means there is no third party to mediate disputes or reverse transactions. Allowing changes to past transactions would necessitate a central authority capable of rewriting history, which contradicts Bitcoin’s core principle. Bitcoin’s blockchain embeds and locks each transaction in a block, creating a series of immutable 10-minute records that form the foundation of the network. This ensures the integrity and permanence of the transaction history, providing a bedrock upon which the future of Bitcoin is built.

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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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how many years do you plan to hold Bitcoin this question will really help and support you in your acquisition method when you buy Bitcoin you’ve got all 100% of it great maybe a small fee when you mine Bitcoin you’re not buying BTC you’re buying compute power mining machines and those machines will produce Bitcoin for you over time and what’s the case here well mining is an opportunity to accumulate more Bitcoin over time with good efficiency and good operational standards and that is that maybe you spent one whole Bitcoin buying a load of machines how much Bitcoin do you want those machines to produce well obviously 100% is one Bitcoin but here’s the thing with mining you’re having a production output eventually the machine breaks or becomes inefficient but in that gap of four to 6 years you have the opportunity to potentially mine even more Bitcoin than what you could have bought in the first place that’s the difference so

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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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bitcoin’s issuance rate or what you would consider an inflation rate has now dropped to lower than Fiat and gold to a new inflation rate of 8% let me show you the numbers well the first thing to understand is this rate of issuance is cut in half every 4 years 210,000 blocks that’s 52,500 blocks per year each block has 3.125 Bitcoin which is 164,000 Bitcoin approximately per year year if we divide this by the total Supply what do you get 78% or8 if you are holding Bitcoin well then this inflation rate is inflating what you hold and if you are mining Bitcoin you are being paid this inflation rate aka the 3.125 Bitcoin per block every 10 minutes but the thing to understand is this is all in consensus Satoshi Nakamoto set this monetary policy for the next 100 years

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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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bitcoin’s adoption rate is outpacing the
adoption of the internet now obviously
Bitcoin uses the internet as its
communication system that is moving
energy from electrical physical form
into digital data form AKA
BTC I believe that the adoption of
Bitcoin has been at such a fast pace due
to the fact that Bitcoin connects to so
many different sectors and industries
that is the production of energy the
management of energy on our grids the
machines that produce heat that’s an
ancillary Services heating green houses
in the farming sector all that compute
power coming out of the machines is the
communication of energy transferring
into data and all that data managed by
mining pools that produce the blocks in
the next block of the chain and all of
the blockchain development expanding
into new layers such as Lightning liquid
and the financial sector delving into
all different Financial products and
services with Bitcoin there is something
for everyone

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Video Transcript

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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energy is subservient to bitcoin why
well Bitcoin is fixed in Supply but that
doesn’t stop the amount of hash rate AKA
The amount of energy in the system
chasing those finite amount of units
this goes to a bit of an extreme level
you could harness the energy of an
entire sun to power the Bitcoin Network
and it still would reference all of that
energy in 21 million units why is this
important well let me show you even more
Bitcoin has a dollar based pricing
mechanism but it also has an energy
based pricing mechanism I call it
Bitcoin per kilowatt hour or saxs per
kilowatt since the dawn of bitcoin’s
Inception it’s gone parabolic in price
and the only other thing that has gone
parabolic in reference to bitcoin is its
production cost the production cost of
bitcoin will go up infinitely which
means its purchasing power goes up
infinitely that’s

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now I love examples like this this is
the price of a home in US Dollars versus
Bitcoin and as you can see in dollars
the price of the property has almost
doubled so if you were holding dollars
now the house is more expensive but if
you are holding Bitcoin now the home is
10 times cheaper why is this well it’s
because Bitcoin as an asset outperforms
everything else because it’s fixed in
Supply properties can can be produced
you can build them you can build more
which is a selling pressure in the
housing market so if bitcoin’s fixed in
Supply and houses can be produced the
other part of this is money fiat
currency Fiat is infinitely printed so
there’s more money in the system chasing
the same amount of fixed Supply Bitcoin
or properties and so the prices go up
but the value of Bitcoin stays
consistent because it’s outperforming
everything else so everything else gets
cheaper in Bitcoin and

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