SLP162 Matt D’Souza - Bitcoin Halving Analysis: Bullish for Competitive Miners

Stephan Livera Podcast

Podcast Notes Key Takeaways Anyone can have a high conviction in Bitcoin and change their mind later, but not miners, they commit by investing capital“You have Billions of dollars’ worth of infrastructure, electricity spending, facility spending, to secure the Bitcoin network, that is a network effect, that is power” – Matt D’SouzaInteresting mines are being sprung up by VC funds that raise a ton of capital. They pay for electricity in cash and hold the bitcoins, thus; removing supply off the network which is excellent for the price of BitcoinNewer generation miners like the S17+ reduce the impact of electricity cost and keep more miners in the gameAt $.055 /kWh, breaking even with S9s requires a bitcoin price of $7,062 vs just $2,700 with S17+Inefficient miners capitulate in a bear market and greed is punished in a bull marketBull or Bear, mining is all about survivability, a miner must never engage in speculationAfter the halving, inefficient miners will shutoff, difficulty will adjust, and efficient miners get even better marginsMany factors come into choosing the location of a mining farm – A few:Cheap power, land, and good climateAvoid: Political instability, areas prone to power & internet outagesAim to get at least 3-5 year contracts locked in with utilitiesCombine multiple revenue streams to outperform the price of bitcoin (e.g. self-mining, selling rigs, hosting other miners)Most of the profits are made in 1-2 months segments of the year; be positioned to take advantage of them

Read the full notes @ podcastnotes.org

Matt D’Souza CEO of Blockware Solutions joins me to talk about his team’s recent research piece on Bitcoin Halving and analysis from a mining perspective. In this conversation, we chat:

Market participant profiles
Miner electricity distribution
Shut off and breakeven cost
Mining Rigs
Scenario Analysis
Why some miners operate at a loss
Difficulty adjustment dynamics
Why Efficient miners welcome the halving

Matt D’Souza links:

Twitter: @mjdsouza2
Research: 2020 Halving Analysis
Blockware: blockwaresolutions.com

Sponsor links:

Kraken
Unchained Capital
CypherWheel by CypherSafe
SwanBitcoin

Stephan Livera links:

Show notes and website
Follow me on twitter @stephanlivera
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