“It might make sense just to get some in case it catches on.”
Satoshi Nakamoto, Jan. 16, 2009
The events of 2020 are a clear signal that mainstream bitcoin adoption has arrived. The first quarter brought global economic panic, while the remainder of the year focused on the rebalancing of global risk. As many expected, the first days of 2021 have shown that bitcoin is a hedge on global risk in high demand.
Real World Problems
Bitcoin adoption often implies financial gain, but the bitcoin per dollar exchange rate is surprisingly the least interesting part of Bitcoin. What's interesting about Bitcoin is what is being built on Bitcoin. Yes, heaps of old money are being invested in the new money, and the amount of new money you can buy for the old money is decreasing. In fact, the Colombian Peso recently hit “sat parity”, meaning that 1 satoshi is now worth more than 1 peso. However, numbers on a screen are much less interesting than the impact a once in a millennia innovation will have on human lives and the health of our planet. Already, bitcoin mines are subsidizing renewable energy investments, borderless low cost bitcoin transactions are enabling migrant workers to send payments to their loved ones back home, and fast and final bitcoin payments are reducing friction in domestic and international trade while enabling economic prosperity for the once unbanked.
On the popular concern of the health of our planet, subsidizing renewable energy investments with bitcoin mining has an incredibly profitable triple bottom line impact. In addition to the societal and environmental benefits of backing money with surplus renewable energy, the financial benefit of mining bitcoin is exceptionally strong at this time. While the bitcoin per dollar exchange rate signals a rapidly increasing value of bitcoin, bitcoin mining (i.e. hashrate) is growing much slower (in the short run) due to physical constraints on infrastructure development and construction. Due to this relationship between exchange rate and hashrate, operational bitcoin mines are currently earning a sizable slice of an increasingly valuable pie. Of course, the massive financial arbitrage opportunity in bitcoin mining will not outlast the societal and environmental benefits of bitcoin. However, with smart project finance decisions today, investments in bitcoin mines will consistently produce financially, socially, and environmentally profitable bitcoin for many years to come.
At Satoshi Energy, we exist to help sustainability focused investors procure bitcoin mines, manage their bitcoin mining finances, and scale a portfolio of mining projects that keeps pace with the exponentially expanding bitcoin network. To learn more please reach out at firstname.lastname@example.org.
Monthly Market Metrics
At the time of publishing, bitcoin is...
- 12.022 years old
- $770B market capitalization
- 140 EH/s (~10GW) of globally decentralized data centers backing the money with low cost surplus energy.
Thank you for reading.
Satoshi Energy Corp.