Blockware Updates On The Market And Berlin Visit - Mining Rigs & Hosting Currently Available In The US!
Hello Miners and Blockchain Enthusiasts,
The Blockware Team has returned from an eventful trip at Blockchain Week in Berlin. We had insightful discussions with some of the largest Bitcoin Miners in Europe and the brightest blockchain technologists in the world. Additionally, we Co-Hosted a private dinner with Consensys to discuss the Future of Staking and Decentralized Finance which included invitees such as: Polychain Capital, Winklevoss Capital, Andreessen Horowitz, SKALE Labs and MarkerDAO. This was a gathering of the leading funds and blockchain companies in the industry - approximately 30 in attendance.
We had deep discussions around staking, and we feel there are emerging opportunities for miners to participate in staking. Miners are a critical piece of a blockchain’s security and transactional infrastructure. While it differs some, staking will align very well with a miner’s business model, and we see the opportunity for you to capture excellent returns - Blockware is best positioned to continue to bring you the most lucrative opportunities and insights first.
In addition to staking, we discussed the current and future state of the industry, and we’d like to share some market insights with you:
Institutional Mining
We are witnessing a significant influx of institutional participation into Bitcoin - even traditional finance is diving in. To our surprise, a number of institutions are accumulating Bitcoin through mining rather than through an exchange. We found this very interesting, and it makes sense based on their circumstances:
Institutions want to acquire Bitcoins that have absolutely zero chance of illicit traces. They want to assure these coins are clean and untainted. The most effective way to obtain clean coin is through mining. Institutions can accumulate “virgin coins” and there will be zero subjectivity of their previous use. This is critical to institutions as they are under significant regulation and scrutiny. This is a massive positive catalyst for Bitcoin and the mining space.
This may mean there could be a premium market for mined coins that are easily traceable (as opposed to coins purchased off exchanges). Mined coins will become increasingly scarce as the Bitcoin mining rewards are halved next May and the ratio of mined coins that are easily traced to coins that have been traded several times over decreases.
Green Mined Coins
In a similar vein to traceability of a Bitcoin’s origin, some are considering how a Bitcoin was mined - specifically using renewable vs nonrenewable energy. Some miners have begun an “all-green tokens” initiative to ensure/prove that all Bitcoin mined by their facilities were through renewable energy sources. This provides an incentive if buyers are willing to pay a premium for such “green coins.” There is presently a movement of paying premiums for environmentally responsible initiatives: Beyond Meat’s burgers that are non-meat, the shift from plastic to paper straws, and LED light bulbs that are environmentally friendly. All these products come at a premium and consumers are willing to pay that premium (on average 5%-7%) to benefit the environment. As this market matures we can see a scenario of Bitcoins mined through renewables trading at a 5%-7% premium.
We believe there is value for miners to keep their mined coins they plan on hodling in private wallets rather than on exchange to maintain the traceability and custody of these virgin coins. In the future, you may see a premium on the Bitcoin that can be easily traced from mining.
Thanks again to everyone who took the time to meet with us in Berlin. We have never been more excited and optimistic about the future of the Bitcoin and Blockchain Ecosystem.
- Blockware Team