Every month, Blockware CEO Matt D’Souza will provide an update on the state of the Bitcoin Mining Market. The scope of Matt’s involvement in the space provides a well-rounded perspective, which allows Matt to harmonize what is happening in Bitcoin, the Global Macroeconomic Environment, and Bitcoin Mining to develop a comprehensive understanding of what influences Bitcoin.
Read MoreWhat is fascinating about BTC are the multiple short-term correlations that emerge. We have witnessed strong, short term correlations to Gold, to USD/CNY, and most recently US Equities.
Read MoreBy marrying the proper strategy and time horizon, Bitcoin Mining offers opportunities to significantly outperform simple buy and hold investment strategies. Bitcoin’s extreme volatility is best managed with a Dollar Cost Average Strategy, which mining best achieves…Mining is an excellent complement to holding Bitcoin. Market participants should have exposure to both to best position themselves over the long-term to capture the opportunity in Bitcoin: a disruptive technology and commodity in its infancy.
Read MoreMany haven't noticed yet, but 30%+ of the mining network has shut off since the Halving. New Bitcoin is being allocated to more efficient miners who can hold and accumulate…
Difficulty just adjusted (-6%) and if the Bitcoin Network Hash Rate remains at present levels and block times remain constant, then Difficulty is estimated to decrease by another 16%-21% between now and the next adjustment. This reflects the immediate impact of the Halving - a net difficulty reduction of 22%-28%. Miners are going to receive margin relief
Read MoreWe analyze 2 Mining Strategies vs Holding Bitcoin:
Buy and Hold Strategy: a miner buys Bitcoin and holds for the long-term
Mine and Sell to Cash: a miner buys a mining rig and sells all rewards daily to cash for the life cycle of the machine
Mine and Play with House Money: a miner buys a mining rig and sells their operating expense to cash but holds the remainder in Bitcoin
With the proper strategy and time horizon, Bitcoin Mining offers opportunities to outperform simple buy and hold investment strategies. Many market participants get distracted by the illusion of being able to buy Bitcoin at the low and sell at the top. This is an improbable, lottery ticket strategy.
Read MoreWe have been receiving several questions about what will happen with the Bitcoin Cash (BCH) and Bitcoin SV (BSV) halving this week & whether these are precedents for the Bitcoin Quantitative Hardening. Below are Blockware Solutions expectations:
Several Miners run software to toggle between SHA-256 Protocols based on whichever is most profitable at the moment. This is simply arbitraging protocols to maximize profits which tightens the spread in revenue between each protocol.
As the revenue of BCH & BSV get cut in half, these miners that toggle back and forth will switch over to mining BTC. We expect a slight uptick in Bitcoin Difficulty. If every miner on the BCH & BSV Network switched over to Bitcoin it would increase Difficulty on the Bitcoin Network by 5.2%. BCH and BSV have their evangelists so we do not expect a material impact. We expect the result to be a future Difficulty increase of 1%-2.5% for Bitcoin attributed to BCH and BSV Miners switching over.
Read MoreThe 2020 Market Crash has revealed that our society and many industries are vulnerable and failure prone. But Only 1 Thing Matters - Bitcoin SURVIVED and will Continue to Survive by Itself.
A majority of assets perform well in a Bull Market – you can blindly throw darts at a board and be successful. Bear Markets reveal inefficiencies and pockets ripe for disruption.
Read MoreIf you’re a trader or investor in Bitcoin and don’t understand that the primary source of sell pressure on the price of Bitcoin comes from Miners, its in your best interest to research Miner Sell Pressure, Difficulty, Halving 2020, and Miner Capitulation.
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