Despite this year’s tough market environment, some are still bullish over the long term and are rolling out products to attract investors. Jiang Zhuo’er, CEO and founder of mining pool BTC.Top.
After a decade of barbaric growth, the mining industry is at crossroads. The entanglement of the three forces produces unpredictable short-term variances, but over the long-term as Bitcoin integrates deeper and wider with the rest of the economy, mining will become more competitive and resource-intensive.
Bitcoin will become the international monetary standard and validating the network will be a matter of national security and sovereignty.
Bitriver, the largest data center in the former Soviet Union, was opened just a year ago, but has already won clients from all over the world, including the U.S., Japan and China.
The market price of Bitcoin may be completely detached from the global mining effort from a mathematical point of view but it will still be dependent on it – the amount of energy put towards securing the network is still a fundamental key parameter of Bitcoin.
In 2120, singular bitcoin production now operates at a rate that we mortals struggle to match. >100 years are now needed to mine one bitcoin.
An extensive article explaining the future of Bitcoin mining using fossil fuels.
The future of Bitcoin mining forces us to consider what tradeoffs we are willing to make for the continued growth of the network. Mining blocks in a world with mass Bitcoin adoption will require orders of magnitude more energy than present. There is nothing inherently immoral about that, but it does present a challenge in the pursuit of a multi-trillion dollar market capitalization.
By considering energy and supply growth, Charles has found an intrinsic link between Bitcoin’s price and its value.
The value of Bitcoin is a function of its energy input in Joules.
You can check out his article here:
Charles Edwards dives deeper into the production costs of Bitcoin and the price floor due to CAPEX.
Commodity Prices and Production Costs.
The Cambridge Bitcoin Electricity Consumption Index (CBECI).
Bitcoin’s Production Cost.
Bitcoin Miner Price.
Bitcoin Electrical Cost — A Bitcoin Price Floor.
Miner Profitability Oscillator.
Read his in-depth article here: