Freedom technology maximalism. Running: Orange Label, Beefcoin, Hood Mining, Words, Guns.Team.
Publisher at Bitcoin Magazine.

The Long Boys

No one is longer than miners. The Great Mining Ban in China, the Exodus of Hashrate to North America, Next Generation ASICs, Liquid + Immersion Tech, Pub Co.’s leveraged expansion… this is remarkable. As a small scale miner, you don’t have a lot of things in your control. Really the only thing you can secure with some certainty is your ASIC cost and your energy rate. The second of those two factors is arguably the most important of all factors in bitcoin mining. After all, any ASIC can be profitable with cheap energy.

Zooming in on the last quarter+ of 2023, you can see significant increases in both hashrate and BTCUSD. The chart below shows log scale for both series and the trend line is a great measure showcasing Number Go Up for both. It is worth noting that it wasn’t until H2 of 2023 that we saw a sustained increase in BTCUSD over time. This has been a godsend for small and medium scale miners who were feeling the pain of the bear for the past 18 months.

Over the same period of time it’s interesting to observe how my own humble farm has performed. I have not acquired any additional hashrate during this period, yet you see some wild swings in hashrate. I believe this is due to the small pool I am hashing with missing and correcting lost hashrate. It is also worth noting the declining BTC earned each day. This is the painful part of mining. You are competing for a piece of the pie, and your competition is making your slice smaller every time they plug in an additional ASIC. September started around 0.015 daily and we are currently around 0.011 daily. Number Go Down. This is proportional to the Bitcoin’s network hashrate illustrated in the chart above.

So what’s the elephant in the room for miners? With the halving 4 months away, we need to see BTCUSD double if we want to see the same USD daily earnings. Of course that intense price appreciation will create a positive feedback loop for hashrate growth which will make our slice of the pie that much smaller. The real lesson in all of this is to seek out cheap power. If you are small/medium scale you need a host that is trust worthy, and lastly it is probably more sane to just stack sats.

long bois