Blockware Intelligence

Explaining the Bitcoin Miner Profitability Spread Positive when Miner Revenue ∆ > Difficulty ∆ Negative when Difficulty ∆ > Miner Revenue ∆ The spread flipping positive after the halving has historically signaled the start of the parabolic bull run Listen here:

Paul Tudor Jones: "All roads lead to inflation" Me in the latest report for @BlockwareTeam: "Over the long-term, fiat liquidity must increase in order to subsidize the debt payments of large fiscal deficits. Trad-Fi talking heads are now saying the same thing that Bitcoin'ers have been saying for years: Permanently high inflation is inevitable If you save in dollars and/or fixed income, you are going to lose everything #Bitcoin is the life raft mining.blockwaresolutions.co…

🧠BTC / AI / Mining Thesis Explained: Under no circumstances can The Fed / Treasury / Congress have **deflation.** If nominal prices fall, nominal GDP will fall, nominal tax revenues will fall, and Congress will be unable to pay back the money it has borrowed through the issuance of Treasury bonds. AI is in the process of radically increasing productivity, which naturally drives prices down (deflation). If the entire economy was not built on debt, this would be a great thing. However, to avoid a collapse of the debt Ponzi, the supply of dollars will increase in order to offset what would otherwise be a drop in prices. The amount of newly created dollars necessary to achieve this will make the 2020 stimulus look tiny in comparison. The price of scarce assets will soar as investors rush to protect the value of their capital. Bitcoin -- with its limited supply of 21,000,000, global accessibility, zero counterparty risk, etc. -- will be the largest beneficiary of this inflation. Subsequently, Bitcoin miners -- who acquire BTC by converting energy rather than dollars (exchange rate of kWh/BTC vs $/BTC) -- will thrive under these circumstances. While the fiat price of BTC soars, the cost of production for miners will remain relatively fixed (marginal increase with rising network difficulty). BTC will preserve your purchasing power, and mining allows you to accumulate BTC at a much lower cost than by purchasing directly with dollars. If you're interested in mining, then reply to this post or send me a DM and my colleagues at @BlockwareTeam can get you set up. We have machines that are available for purchase with zero lead time!

“Realized Cap HODL Waves” is an underrated on-chain metric This is a blend of the famous "HODL Waves" and "Realized Price" metrics It shows us how much of the network’s realized market cap is attributable to various cohorts of holding duration. In other words, "who has the most chips on the table." Notice the older cohorts (darker shade) comprise a smaller portion. This is because someone who last moved their BTC 10+ years ago did so at a much lower $ price. So while their BTC is valuable, in terms of the total value being stored in the network they attributed very little compared to someone buying an equivalent amount of BTC at current day prices. Peaks in Long-Term Realized Cap HODL Waves mean that most of the value stored in the network has been done so by those who are inherently much less likely to sell their coins. Right now long-term holders represent more than 60% of the value in the network -- which bears a strong resemblance to the onset of previous bull markets.

Since the halving five months ago, total network hashrate is down ~2%. - Hashrate (14DMA) on Halving Day: 637.7 EH/s - Hashrate (14DMA) Today: 624.0 EH/s The cornerstone of @BlockwareTeam's latest research report is the idea that hashrate/difficulty growth is slowing down. This trend is in full effect thus far in this halving epoch - and it's only going to be greater as large scale miners pivot operations away from pureplay BTC mining and into AI/HPC Continued "diminishing returns" in hashrate growth this cycle creates a huge opportunity for incumbent #Bitcoin miners if/when BTC price begins to rip > Price grows by (X%) in (Z months) > Hashrate grows by (X - Y%) (Z + 12 months)

After this week's difficulty adjustment, hashrate will up ~8% in total since the Halving This is slower rate than at the same point in previous cycles at Commoditizing ASICs, more grid dependency/curtailments, & physical infra/energy production as bottlenecks all contributing to the slowing growth rate across cycles