Melanion Capital’s Post

Transcript

99% of the hash rate probably is at the moment in mining farms and I think that will change drastically. I think that a lot of the hash rate will move into homes where people mine Bitcoin with Bitcoin heaters. Is it central heating systems or space heaters?Because the incentive model is much better. I think mining farms with no additional revenue stream will have it really, really hard to be profitable the next 10 years. If you have additional revenue streams from heat, reuse or grid balancing, I think there will be still a lot of mining farms because there is stranded energy, there is grid balancing, but data centers, Bitcoin mining farms without any additional revenue stream. Except Bitcoin mining will have it really, really hard because a private household imagine you have buy, you built a new home and you have to buy a heating method anyway. So you don't have to write off that Bitcoin miner for example like a mining farm because you have to pay for a gas heating system or oil heating system or a heat pump anyway. And same is it with the Bitcoin heater. So if you don't have to write it off because you need to buy one. Anyway, and you need to buy energy to heat your home anyway, and you don't have to have a technician on hand 24/7 to run your mining operations. You don't have to pay rent. There are a lot of really good incentives which will push more and more of the hash rate into homes. So also Bitcoin mining will be more decentralized, but of course that's completely. New beginning and it will takes 1020 years until a major percentage of hash rate will also decentralize away from mining farms without any additional revenue stream to homes. And yeah, but I think and yeah, actually it's interesting what you're saying because I always thought that the real competition for mining farms. Were people who were who are stealing the electricity. So you had a lot of you have a lot of scandals going on every year of like a university professor who was like had a mining space and using the electricity of the of the university and like in China there's a Bitcoin ban but you had a lot, you have a lot of people mining Bitcoin in China so. Nobody understand how it's possible and so on. But what you're saying is that your electricity price is almost 0 because they are already paying the electricity for their heating. So you are just mining Bitcoin at no additional electricity cost or consumption. Even better actually because you are saving and you're you're gonna make money on it. So and actually if like your business model succeeds. You will have a true decentralization like the Western network because you have like people around the world. Maybe there will be a small advantage for the colder countries because they need more heating than the Caribbeans or like people living in hot areas. But even in the desert at night, it is cold. So. So yeah, I like the idea. It's very interesting.