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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
somebody asked me so Jake what happens if I send the wrong amount of Bitcoin or even to the wrong address well the answer is you’ve lost it and the reason for this is Bitcoin was introduced to the world as peer-to-peer money now it’s something that gets very lost in the discussion but here’s the thing peer-to-peer money means that if you have a dispute with another person there’s no third person in the middle to settle that dispute because if we had the ability to change a transaction that we’ve already made in the past on the network that means we have to place somebody in control of rewriting the history and that is exactly what we want to move away from we want to be able to embed and lock history in a block and start working on the next block and that embeds a series of 10-minute truths for a truth of forever now that sounds a bit wishy-washy but the whole point of this is we have a Bedrock to build everything else on top of that’s Bitcoin
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
https://i3.wp.com/hashpower.academy/wp-content/uploads/2024/05/Bitcoin-is-a-Network-not-just-an-Asset-BTC-crypto.jpg?w=1280&resize=1280,720&ssl=17201280Jacob Scanlanhttps://terahash.co.uk/wp-content/uploads/2023/11/terahash_logo.pngJacob Scanlan2024-04-29 17:12:402024-04-29 17:12:40Bitcoin Is A Network, Not Just An Asset! #BTC #crypto #education
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
https://i2.wp.com/hashpower.academy/wp-content/uploads/2024/05/How-many-years-do-you-plan-to-own-BTC.jpg?w=1280&resize=1280,720&ssl=17201280Jacob Scanlanhttps://terahash.co.uk/wp-content/uploads/2023/11/terahash_logo.pngJacob Scanlan2024-04-28 13:00:572024-04-28 13:00:57How Many Years Do You Plan To Own BTC?
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
https://i3.wp.com/hashpower.academy/wp-content/uploads/2024/05/How-on-earth-is-BTC-lowering-the-price-of-energy.jpg?w=1280&resize=1280,720&ssl=17201280Jacob Scanlanhttps://terahash.co.uk/wp-content/uploads/2023/11/terahash_logo.pngJacob Scanlan2024-04-27 18:31:112024-04-27 18:31:11How On Earth Is BTC Lowering The Price Of Energy!?! #education #bitcoin #crypto
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
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
https://i3.wp.com/hashpower.academy/wp-content/uploads/2024/05/A-very-important-BTC-metric-to-track-fees-bitcoin-education.jpg?w=1280&resize=1280,720&ssl=17201280Jacob Scanlanhttps://terahash.co.uk/wp-content/uploads/2023/11/terahash_logo.pngJacob Scanlan2024-04-25 21:33:072024-04-25 21:33:07A Very Important BTC Metric To Track! #fees #bitcoin #education #mempool
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
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
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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