Tuesday, November 24, 2020
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Bitcoin mining continues on bull course

The Bitcoin miners continue to push the tube and raise the difficulty again by double-digit percentage points. Meanwhile, a look at Venezuela shows that BTC already has very real use cases.

The new darling of the Bitcoin community, MicroStrategy CEO Michael Saylor. Since the company absorbed 0.2 percent of the Bitcoin supply, the Bitcoin Bull Case has once again received a boost and CEO Saylor has received a clear boost in popularity. Not least because MicroStrategy seeks protection against inflation in Bitcoin and not in its physical counterpart gold. The reasons for this are clear: Bitcoin is simply a much safer asset than gold. Ascending trend.

Bitcoin is 19.3 trillion times more secure than 10 years ago, 50 times more secure than the next best solution. Gold is still as safe as it was in 1934.

Michael Saylor

In plain language: Bitcoin has a future, gold does not.

It’s one of those things with mining. The industry is complex and is made up of a number of factors such as price, electricity price, Coinbase Reward, hash rate of the ASICs, etc. Even so, there seems to be a certain pattern, as Bitcoin analyst PlanB points out.

The difficulty, i,e. the relative difficulty of finding a valid hash for the next block, increases in the course of halving. This is astonishing at first, as the revenue of the miners drops considerably with the halving of the Coinbase reward. Nevertheless, the miners are bullish and continue to invest diligently in hardware.

Today we direct our gaze to the battered Venezuela. Inflation, centralization, and mismanagement have been paralyzing the Latin American country for some time. For many, BTC has long been a real alternative there. So also for Aníbal Santaella, Bitcoiner from Venezuela and a direct line to the country that is difficult to access.

“A kleptocracy led by thieves” is how Santaella calls his form of government.

Reports are the trigger for frustration that the Venezuelan government now also wants to get involved in matters of BTC. However, at the expense of its citizens. Anyone who successfully digs for Bitcoin must surrender a significant part of it in accordance with a national mining pool. Mining equipment such as ASICs can only be imported through official government channels.

One consequence of centralization efforts such as this is that value creation is very inefficient and that the proceeds will probably primarily go into the hands of the government.

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