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Bitcoin Mining in Misery with Nick Hansen – What Bitcoin Did

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Nick Hansen is the CEO of Bitcoin mining software program agency Luxor Applied sciences. On this interview, we focus on the misery throughout the Bitcoin mining trade brought on by an ideal storm of leverage, stagnant worth, enormous development in capability, power value shocks and wider headwinds affecting funding. This might grow to be a nationwide safety subject.

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Precisely one yr in the past, US Bitcoin mining firms have been posting document quarterly earnings. An enormous quantity of funding adopted China’s mining ban making North America the centre of world Bitcoin mining. It spurred the event of mega miners: firms creating industrial-scale operations. These firms began constructing out new sources of power and creating distinctive relationships with grid operators. And Bitcoin’s value was at an ATH.

Roll on one yr, and the trade is going through a possible disaster. Bitcoin value is at 2-year lows, the hash charge is at an all-time excessive, funding is drying up as a result of a variety of points, rig costs have tanked, while a swath of firms are struggling to handle debt obligations. Add to this the broader fallout because of the FTX collapse. It actually is an ideal storm. 

On the identical time, firms are being buffeted by widespread disinformation, and polarised assaults predicated on power utilization considerations. Regulators looking for to acquiesce to these selling FUD, have thought of, advisable, and introduced ahead poorly designed guidelines. See the NY moratorium on PoW mining utilizing fossil fuels simply handed into legislation. 

That is greater than a parochial subject for the Bitcoin group. Bitcoin mining gives an unprecedented alternative for wider society. It’s the premise for an alternative choice to a damaged financial system and the means with which to incentivise and help the power transition at scale. It’s the trade to assist the US navigate a bunch of strategic issues. Bitcoin mining is, essentially, a nationwide safety subject. Its safety must be our main focus.

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