The following is a direct excerpt from Marty’s Bent Issue #1206: “Hash price at lowest level since November 2020” Sign up for the newsletter here.
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about brains
Everyone out there okay? Are you 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 completely alien to the average person. The road to a bitcoin standard will be extremely bumpy.
With that being said, I thought I would draw your attention to the current hash price, which hit its lowest level since November 2020 when Bitcoin was trading at around $15,000 and the hash rate was around 100 exahashes lower. We warned you geeks a couple of weeks ago that the peak of rising energy prices, an environment of rising mining difficulty and flat bitcoin price would lead to some stress in the bitcoin mining market. Well, today we are in an environment where energy prices seem poised to continue higher through the summer, difficulties continue to mount, and the price of bitcoin is crashing (and could fall further). This should fuel some turmoil in the mining sector.
Who will survive the storm? I think we’ll be able to tell by the fall.
If this price action scares you, you need to take a deep breath and remember the fundamental utility that bitcoin provides to the world. Bitcoin is a peer-to-peer distributed cash system with a fixed supply of 21 million, providing individuals around the world with a monetary system that is completely disconnected from the parasitic system, powered entirely by cheap debt and the ability to… Getting money dependent can be down the road. With the potential for stagflation to completely drain the US economy and the Federal Reserve from ammunition, the road is coming to an end. Truman show style. Sometime soon the Fed and Treasury will try to kick the can further down the street and it will bounce off a wall with a street drawn on it.
When that happens, Bitcoin will wait there. Creating blocks and enabling peer-to-peer transactions for anyone who can access the software to receive and transmit transactions. That’s a blessing. Never forget.
