More on the two pies

Continuing from here, on the economic similarity and political distinction between the tech IPOs (unicorns) and the bitcoin world.

There’s another similarity, less obvious but possibly more important. Both of these Innovative Disruptions depend on massive quantities of cheap energy. In other words they depend on COAL.

Bitcoin is being starved from two sources. The loss of free central bank counterfeit removed the sucker source. Inflation of energy prices resulting from our idiotic sanctions and wars is making the “mining” process unprofitable. Bitcoin requires constant growth through the “mining” process, with factory-size server farms churning out meaningless math to create the increasingly rare “magic numbers”.

The cheapest countries have already kicked out the “miners”, and now the non-cheap energy is getting even more expensive. Many “miners” are holding onto their newly generated “magic numbers” instead of selling them into the system, because selling isn’t profitable. When the price drops to the point where all “miners” stop selling, the whole setup will grind to a halt. The whales undoubtedly know the threshold, so they are pumping the suckers harder and harder to keep the price above the threshold while the whales pull out their real money “cleanly”.


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