Monday Mining Metrics: Markets Crashing
Bitcoin Mining Update - 8/5/2024
“There are decades where nothing happens; and there are weeks where decades happen” - Vladimir Lenin
Friday’s bloodbath promptly resumed on Sunday night as Asian markets opened for trading. A strengthening Yen has caused a chain reaction across financial markets resulting in BTC dropping to as low as $49,000 early Monday morning. BTC now sits at ~$54,000 with buyers promptly stepping in on the dip.
The last time BTC dropped by this much or more on a % basis in a single day:
November 2022
June 2022
March 2020
Each of these moments turned out to be a tremendously great buying opportunity. This time will likely be no different.
Despite the short-term volatility, the recent undertakings highlight an incredibly bullish case for Bitcoin, and subsequently, a bullish case for Bitcoin miners. Let’s discuss…
Monetary Policy Uncertainty
After having interest rates at less than zero for the past six years, the Bank of Japan has raised rates by 25bps twice in 2024.Japan is a highly indebted country, with a debt-to-GDP ratio north of 260%. Even such a marginal increase in rates is unsustainable for them long-term.
Rumors are now circulating that The Federal Reserve, which convened last week and strongly alluded to rate cuts during their September meeting, may now have to step in prematurely for an emergency rate cut. This time last week there was an 11% chance (according to CME futures) that the Fed would cut interest rates by 50 bps at the next meeting. That probability has now risen to 83%. Lower rates will be great for the Bitcoin price; hold tight.
All of this uncertainty around fiat monetary policy shines a light on Bitcoin. Bitcoin’s monetary policy is predictable and verifiable: there will never be more than 21,000,000 BTC and the rate at which these coins enter circulation is known. In a world of increasing uncertainty, the certainty of Bitcoin’s supply provides a fixed point of reference for the world.
Stock Trading Platforms Down
Multiple popular stock brokers experienced outages this morning; during the most opportune time to buy the dip. According to downdetector, Schwab, Vanguard, Fidelity, TD Ameritrade, and Robinhood all experienced connectivity issues.
The Bitcoin network hasn’t had an outage since 2013. Its historical uptime is 99.98%. Wealth stored in the Bitcoin network can be accessed 24/7.
Hashprice (Miner Revenue per Terahash)
This price dip combined with last week’s difficulty increase of 10% has pushed hash price to an all-time low of $0.039; cracking below $0.04 for the first time in history.
Hashprice can be a slightly deceptive measure of profitability as it doesn’t necessarily account for the increasing hashpower and efficiency of newer-generation ASICs. For reference, an S21 Pro mining with a rate of $0.078/kWh is profiting ~$80 per month at the current hash price. At this time four years ago, when hashprice was at ~$0.09, the most efficient ASIC at the time, the S19, was profiting ~$76 per month at the same electricity rate.
So despite how bleak things may appear in the short-term, Bitcoin, and Bitcoin miners have held up exceptionally well.
Mining Profitability by ASIC Type
Here’s a table breaking down the cost in electricity to mine 1 BTC based on popular ASIC models and electricity rates. The latest-generation ASICs, the S21 and S21 Pro, have remained relatively unfazed by the drop in hashprice. Miners using these ASICs will benefit as difficulty likely drops at the next adjustment.
We have S21s and S21 Pro’s available - turnkey - on the Blockware Marketplace. Click here to start mining today.
Blockware Direct ASIC Pricing with Hosting
The Bitcoin price has dipped - and we’ve dropped our prices. The best time to deploy capital is when everyone else is panicic.
For those seeking to purchase ASICs in bulk (with or without hosting), contact sales@blockwaresolutions.com or reach out here.
Contact sales@blockwaresolutions.com or reach out here.
All content is for informational purposes only. This Blockware Intelligence Newsletter is of general nature and does consider or address any individual circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal, business, financial or regulatory advice. You should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.