Daily Ramble
It looks like my days as a freelancer may be coming to a close. I’m not sure if this is good news or not just yet, but for the first time in many years, I signed a work contract. Officially, I’ll be providing energy advisory services to Sazmining, a blockchain mining company. Practically, I’ll be learning the Bitcoin mining industry and looking for opportunities to marry it with solar energy projects. Bitcoin mining relies on the cheapest forms of energy available and solar energy is on the cusp of becoming the cheapest form of power. The two are inevitably destined to collide and merge.
Renewable energy powered Bitcoin mining is not just good for mamma earth but will lead to a whole host of downstream impacts. The first step in seeing these possibilities is having the conviction that Bitcoin is becoming the reserve currency for the planet. That’s a hard pill to swallow for most, but I’m utterly convinced of the unstoppable nature of this digital organism. The second step is realizing that the mining infrastructure is growing in lock-step with Bitcoin’s price. The higher the price, the more incentive there is to mine Bitcoin, all things being equal.
Assumptions assumed, as the Bitcoin mining industry grows, it will consume more energy. But the beauty of Bitcoin is that it can consume energy that is otherwise stranded. One of the biggest downfalls of renewable energy is the cost of transporting it to where it’s used. With Bitcoin, that goes away. All that’s need to mine is power and a satellite connection to broadcast the new Bitcoin blocks mined. Suddenly, renewable energy power facilities can spring up in the remotest of locations spreading out human society and decentralizing the power grid.
So get straight what I’m saying and why I’m excited about Bitcoin’s adoption: we separate money and state, we get out of cities and into the country-side, and we drive renewable energy adoption reducing carbon emissions and global warming. Elon can have Mars, let’s get ourselves sorted out here on planet Earth, huh?
Favorite Thing on the Interwebs Today
Bitcoin Price Prediction
Weekend: $22k - $36k
Today: $32.2k - $36.5k
Tomorrow: $30.8k - $40k
The tentative bottom set on Friday does seem to be the bottom as the price ground up-and-to-the-right all weekend. No surprises in the least which is exactly what will give the bulls confidence to step back into the market to take long positions. Funding, sentiment, and momentum indicators have all reset. The perfect recipe. That said, we are exactly at the point where a pivot to the downside could occur sending us back down to test the newly formed bottom. It’s possible we go up a bit further today negating the idea of a bearish pivot, but if not, I anticipate tomorrow to show further upside.
Bitcoin Ed Bite
Q: What are the different types of Bitcoin wallets?
A: Hardware, mobile, and desktop are the three main types of wallets.
Hardware wallets are the most secure type of wallets. These are considered cold storage because the private keys are never exposed. Instead, the hardware device uses the private key to sign the transaction and broadcast it through your computer and to the Bitcoin network.
Mobile and desktop wallets are considered hot wallets because the applications are connected to the internet at all times. This increases the risk of having the private keys exposed. Mobile and desktop wallets can be broken down further into custodial and non-custodial. Custodial means that the application has control over your private keys, not you. Non-custodial means that you have control of your private keys.
TL;DR: Store Bitcoin you don’t plan to use often in hardware wallets and small amounts for transactions in a mobile or desktop wallet.
I’ll provide my wallet recommendations in future Ed Bites.
Have a great weekend,
Kent
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Well!! Congrats, M'Boy! New territory to learn and explore. I for one will miss the musings. If nothing else, they are amusing. But.. onward!!