WTF?
Everyone okay out there? Still licking your wounds from the chaotic price crash? Welcome to bitcoin. There will be many more days like this in the coming decade. This should be expected when the world is introduced to a new world reserve currency that is completely foreign to the average human. The road to a Bitcoin Standard is going to be extremely bumpy.
With that being said, I thought I'd draw your attention toward the current hashprice, which hit its lowest point since November 2020 when bitcoin was trading around $15,000 and hashrate was about 100 exahashes lower. We warned you freaks a few weeks ago that the culmination of rising energy prices, a rising mining difficulty environment, and a stagnant bitcoin price would lead to some stress in the bitcoin mining market. Well, today we find ourselves in an environment where energy prices seem primed to keep rising through the Summer, difficulty continues to climb, and the price of bitcoin happens to be crashing (and could continue to fall). This should pull forward some turmoil in the mining sector.
Public mining company blood will flow thick.
— Zack Voell (@zackvoell) May 9, 2022
Overleveraged and under deployed, mining companies watch hashprice plummet, supply chain disruptions worsen and shareholders jump ship.
And then the halving.
Only a few will survive, the strong.
Bet the fucking house on them.
Who will survive the storm? I think we'll be able to tell by the Fall.
If this price action is scaring you, you need to take a deep breath and remind yourself of the fundamental utility bitcoin provides the world. Bitcoin is a distributed peer-to-peer cash system with a fixed supply on 21 million that provides individuals the world over with a monetary system that is wholly separated from the parasitic system that is wholly dependent on cheap debt and the ability to kick the can down the road. With the potential for stagflation hitting the US economy and the Fed completely out of ammo, the road is coming to an end. Truman Show style. At some point soon the Fed and the Treasury are going to try to kick the can further down the road and it is going to bounce off a wall with a road drawn on it.
When that happens, bitcoin will be there waiting. Producing blocks and facilitating peer-to-peer transactions for anyone who can access the software to receive and broadcast transactions. This is a blessing. Never forget it.
Final thought...
A good couch lounge is good every once in a while.
