Author: Charles Edwards

Bitcoin’s Production Cost

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Charles Edwards

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An Estimate of Bitcoin’s Production and Electrical Cost — a Historic Floor in Bitcoin’s Price.     Takeaways Bitcoin’s electricity consumption can be used to estimate Bitcoin’s Production Cost Bitcoin’s Production Cost can be used to estimate Miner profitability Bitcoin Mining has historically been a very profitable business 2019 has been the worst year for […]

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Bitcoin Energy-Value Equivalence

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Charles Edwards

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The Intrinsic Value of Bitcoin as Determined by Energy Spent     Take-aways Energy, raw Joules alone, can be used to estimate Bitcoin’s fair value Increased energy input increases the fair value of a Bitcoin (and vice versa for decreases) Bitcoin’s price is mean reverting to its Energy Value The Energy Value model states that […]

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The Centralization of Bitcoin

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Charles Edwards

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Over the last 3 years, Bitcoin has been centralising into the hands of a select few organizations. The use of Bitcoin for transaction settlement is also changing — Bitcoin is moving off-chain.     Summary Bitcoin’s primary use cases today point towards centralization More Bitcoin is now stored on centralized platforms than ever before, up […]

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Bitcoin’s Massive Volume Growth

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Charles Edwards

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On the Massive growth of the Bitcoin Derivatives market and its implications on Bitcoin’s future.     In 2019, the primary use of Bitcoin remains investing and speculation. At face value, a look at Bitcoin’s spot market volume paints a bleak picture. Diving deeper we see a thriving derivatives market showing that Bitcoin’s liquidity is […]

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Hash Ribbons & Bitcoin Bottoms

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Charles Edwards

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When miners give up, it is possibly the most powerful Bitcoin buy signal ever.     n August, I wrote an article on using Bitcoin’s Hash Rate to find major Bitcoin price bottoms based on miner capitulation (you can find it here). Just days before, WillyWoo published an indicator using Bitcoin’s Difficulty to achieve a similar […]

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