Bitcoin Mining in Outer Space

Bitcoin Mining in Outer Space

Elon Musk & Jeff Bezos are racing to put data centers into orbit. This begs the question, is it possible to mine Bitcoin in outer space? Nick Moran of Intercosmic Energy is building this exact project.

In this episode of the Blockware Podcast, Mitchell Askew interviews Nick to learn more.

Winter Curtailments Strike Again

Bitcoin Mining difficulty is on the verge of a 4th consecutive negative adjustment. Downward difficulty adjustments occur as Bitcoin Miner unplug machines in the aggregate — leading to the rest of the Bitcoin miners earning more BTC on a daily basis. The reason for this series of negative adjustments is two-fold:

• Negative BTC Price action forcing inefficient miners to unplug their machines
• Cold weather across the Northern Hemisphere resulting in “Demand Response” from Bitcoin Miners

The Bitcoin Network Hashrate (as measured by the 14-day moving average) is down ~8% from its peak in late October. This means BTC miners are mining ~8% more Bitcoin on average compared to October. Having miners online during times like this can significantly amplify long-term returns. Blockware positions their clients for success during these times in two ways:

1. Encouraging and facilitating the use of the most efficient mining hardware available. This increases the likelihood that during BTC price dips, other Bitcoin miners will become unprofitable first. Meaning they’ll unplug their machines, making you more profitable during downturns. Think about it like this: if you’re camping in the woods and a bear attacks your group, you don’t have to outrun the bear. You just have to outrun the slowest person in your group.
2. Providing the option to decentralize your mining fleet across multiple facilities. Blockware has clients located in seven different US States — spanning multiple geographies, grids, and operators. This is the best risk-mitigated approach to Bitcoin Mining as it enables you to spread your eggs across multiple baskets. If a cold-front forces your miners hosted in Iowa offline temporarily, your miners in Texas will keep chugging away. Inversely during summer heat waves.

Learn more about Bitcoin Mining with Blockware: https://mining.blockwaresolutions.com/info

In the ‘Monday Mining Metrics’ from two weeks ago we predicted this exact sequence of negative difficulty adjustments to play out in December. You can read that newsletter here for more detailed information:

Monday Mining Metrics: The Polar Vortex & Bitcoin Mining