Profile picture
Christopher Bendiksen @C_Bendiksen
, 12 tweets, 6 min read Read on Twitter
1/ @CoinSharesCo just published the latest update in our #bitcoin mining research series:…

If you read no further, we show that #bitcoin mining is predominantly powered by #renewables, with a lower bound of 78% renewables penetration vs the 18% global avg.
2/ Huge thanks to Three Body Capital, @nic__carter, @danheld and @GarrickHileman for contributions, review and suggestions. For a full look at the report, you can find it here:…
3/ The report is a follow-up on our last one, published in May, where we introduced some new methodologies for calculating the overall power draw of the #bitcoin mining network and calculated market average all-in creation costs.…
4/ At the time of the May report, the network was hashing at approximately 30 EH/s and we estimated the market average all-in creation costs at ¢5/kWh and 18-month depreciation schedules to be approximately $6,500.
5/ This time around the hashrate is approximately 40 EH/s, having topped out around 55 EH/s in late September. Under the same assumptions, we estimate that the creation costs have increased to $6,800. The cash-cost component of that at an 18-mo. depreciation schedule is ~$3,400.
6/ In order to unpack the concepts of all-in versus cash-cost in #bitcoin mining I wrote a Medium post discussing the creation cost dynamics as well as their effects on the network.…
7/ One of the key takeaways from that post is that it is the cash-cost breakeven level, -not- the all-in breakeven level, that matters in terms of miners calling quits and pulling the plug on equipment.
8/ We are currently near the cash cost level and the recent drop in hashrate suggests that we've been above it during the recent price fall, causing a significant amount of mining gear to be removed from the network.
9/ I go on to discuss how price doesn't follow hashrate, and never did. It's the other way around as only increased prices can pay for additional hash power. I'm sorry @maxkeiser, but unless I am missing nuances in your argumentation, I think you've got this one wrong.
10/ Finally, and this is something I will discuss in detail in another Medium post next week, we show that contrary to popular narratives, #bitcoin mining is predominantly powered by #renewables. It has a lower bound of 77.6% renewables penetration vs. an 18.2% global average.
11/ By inference, that makes #bitcoin mining one of the cleanest industries on the planet, a far cry from the dubious claims put forward by less researched, and more opinion-based sources such as @DigiEconomist. Journalists take note.
12/ And while we're on the subject, the combined power draw of global PS4, Xbox One and Wii U units running four hours a day (4.9 GW) is higher than that of the entire #bitcoin mining network (4.7 GW). Fortunately @danheld has the electricity police on speed dial 🚨
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Christopher Bendiksen
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member and get exclusive features!

Premium member ($30.00/year)

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!