Posts in Research Report
The Structure of Cyclical Markets

All financial markets are driven by human behavioral dynamics, which is why similar patterns are repeated across markets, asset classes and time. These recurring patterns define the secular phases of the market cycle and create the foundation for examining the driving forces in every asset class through periods of expansion and contraction.

Utilizing the framework highlighted by this report, within the present macroeconomic context, can provide valuable signals to help investors more effectively allocate capital.

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Bitcoin Energy Gravity

This Blockware Intelligence Research Report models the relationship between the price of Bitcoin and its mean operating cost of production for modern mining rigs.

It demonstrates how this relationship plays an important role in Bitcoin price cycles and the long-term monetization of the asset.

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Bitcoin User Adoption Report

Societal adoption of disruptive technologies is never a linear process – it has always followed an exponential S-Curve pattern. Bitcoin is a disruptive technology network that is quantifiably still in its early stages of adoption. In addition to examining the most pertinent Bitcoin user growth data and its historical relation to Bitcoin price, this report proposes a conceptual framework for forecasting future Bitcoin adoption in the context of past disruptive technology adoption cycles.

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Bitcoin is Certainty in an Uncertain World

This Blockware Intelligence Research Report contrasts the certainty provided by Bitcoin’s immutable scarcity with the macroeconomic uncertainty associated with record-high inflation.

We examine the historical impact of high inflation on the performance of various traditional asset classes including commodities, fixed income, & equity markets. In doing so, we will illustrate the similarities and superiorities of Bitcoin compared to every other asset class in this unrestrained inflationary environment to make it clear that Bitcoin is not simply a commodity, but a disruptive network technology and the ultimate savings vehicle.

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New Generation Mining Rigs Are Safe Haven “Bitcoin Dividend” Assets

As the macro landscape weighs on markets all over the world, many investors are flocking to traditional safe-haven assets. The Russian invasion of Ukraine, record-high inflation in the US, and a hawkish federal reserve have led to the price of Bitcoin falling from $69,000 to $38,000. While unconventional, new-generation mining rigs provide a unique opportunity for investors. Because of the algorithmic supply dynamics in the Bitcoin network (difficulty adjustment), these new rigs enable miners to earn a consistent positive cash flow even in the face of extreme volatility. Last, your machine dollar-cost averages into Bitcoin at a discount, which enables you to still capture massive future potential upside.

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Valuing Public Bitcoin Miners on Their Hash Rate

Billions of dollars are currently flooding into public Bitcoin mining companies. They are able to raise a significant amount of capital for two key reasons. First, these are high-growth technology companies that actually spin-off a positive cash flow. This is a stark contrast to the unprofitable high growth names that peaked in 2021 like Uber, Zillow, and Robinhood. Second, many traditional firms may not be able to buy Bitcoin directly, so they invest in related equities to get proper exposure.

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Research ReportJoe Burnett
Blockware Solutions 2021 Year in Review

2021 was another exciting year for global Bitcoin adoption. Fresh off the cross through $20,000 in December 2020, Elon Musk announced the addition of $1.5 billion in Bitcoin to Tesla’s balance sheet. This news was enough to see Bitcoin’s market capitalization surpass $1 trillion for the first time on February 19th.

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2021 Bitcoin Market Outlook - $40,000 is Only the Beginning

As Bitcoin price continues to make new highs in 2021, it is imperative to understand that the current Bull Cycle (March 2020 - Present) has been, and continues to be, disproportionately driven by institutional investment, while retail investors have remained slow to participate. This is a powerful signal that the present Bitcoin Bull market is still in its early stages. A key characteristic of early Bull Market’s is heavy institutional accumulation during the early stages of the Bull Market. We are presently witnessing this unfold in Bitcoin.

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Research ReportTanner Davis
ASIC & Bitcoin Mining Purchasing Guide

This article is co-written by Luxor Mining and Mason Jappa, Sam Chwarzynski, and Tanner Davis of Blockware Solutions, a leading US based ASIC broker and hosting facility.. Blockware offers an all-encompassing mining package from equipment procurement to hosting and research.

Starting a crypto mining operation can feel both intoxicating and daunting. You generally have some belief in crypto and want to take part in the energy arbitrage available to generate it at a lower cost than purchasing it. But where do you start?

This guide covers the investment decision, the process of purchasing equipment, and other key considerations.

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Research ReportTanner Davis
Understanding Bitcoin Market Participants – Vulnerabilities in the Price of Bitcoin Driven by Miners

We analyze the following:

  1. The Bitcoin Network:

    • Who are the market participants and how do they influence the price of Bitcoin?

    • Peeling back the layers of the Mining Network.

  2. How Next Generation Mining Rigs Have Leveled the Playing Field – Keeping High Electricity Rate Miners in the Game.

  3. Busting the Myth – “Breakeven Price of the Miner is a Price Floor.”

  4. Impact of the 2020 Halving on the Bitcoin Industry – Hitting the Trifecta. 

  5. Difficulty: Satoshi’s Ingenious Network Stabilizing Mechanism – Understanding its Gravitational Pull.

  6. How Miner Capitulation Accelerates Bottoms in Bitcoin.

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写在第三次减半前:万字解读矿工驱动的比特币价格机制

许多分析人士认为,比特币价格基础来自于矿工生产的收支平衡,但这种说法并不准确,因为有时随着比特币抛售,会让价格加速接近矿工生产成本,所以比特币其实一直存在持续的抛售压力,这种抛压主要来自于矿工。实际上是,比特币价格支撑主要基于矿工投降和网络算力净减少(有利的难度调整),因此了解与比特币矿工有关的价格博弈至关重要。

矿工生产比特币的成本主要来自电费,因为95%的矿工运营成本都是用电量,矿工需要比特币能够处于某一价位(或之上),这样他们赚取的收入就会大于支付的电费,在这种情况下,支付最低电费的比特币矿工就能赚到更多钱,而这就是比较优势。

我们将在本文中主要分析以下几个问题:

1、比特币网络

  • 谁是市场参与者,他们会如何影响比特币的价格?

  • 剥离比特币挖矿网络的各个层。

2、下一代比特币矿机如何平衡竞争环境——矿工如何在挖矿游戏中始终拿到性价比最高的电费。

3、打破神话–“矿工的价格底线就是比特币的价格基础”。

4、2020年比特币区块奖励减半对加密行业的影响——三连击。

5、挖矿难度:中本聪独创的网络稳定机制——了解其竞争力。

6、矿工投降如何加速比特币触底。

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How to Properly Secure Your Digital Currency - a Step by Step Guide by Blockware Solutions

Implementing the following best practices will defend against such attacks and keep a user’s assets safe:

  1. Avoid using a primary or publicly identifiable email address to access exchange accounts -Create a separate, secret email address that will only be utilized for an exchange account.

  2. Utilize a 2FA App, such as Google Authenticator, for securing email and exchange accounts - do NOT use text messages for 2FA.

  3. “Whitelist” withdrawal addresses on exchange accounts. By doing so, digital currency can only be transferred to pre-approved, whitelisted addresses. If an account is compromised the hacker can only send digital currency to the user’s own address.

  4. Remove the Inherent Risk - “Not your Keys, Not your Coins!” Users should always own their private keys and store their digital currency offline. Do NOT store digital currency on exchanges. Users should secure private keys with hardware devices, such as: Ledger Wallet.

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Research ReportMason Jappa
The Mining Market is Not Immune to Human Psychology

The specific trend we look for during turning points in market cycles is the churn and transfer of an asset between retail and institutional investors. Markets are dictated by human psychology, which is why similar patterns and characteristics are repeated across distinct markets, regardless of the asset. In Bitcoin Mining, we define a “Retail Miner” as a miner looking to buy or sell under 100 mining rigs. “Institutional Miners” are attempting to buy or sell 100+ mining rigs.

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