Hey everybody is mad here with alt coin buzz with you on this thursday hope you’re having a phenomenal one take a look at would be chained is up to with a very interesting partnership in the world of japanese tea will also take a look at the price action of vechain it’s one of our favorites over in the alt coin buzz army and the author coined by staff there looking at that store were also going back to this story from yesterday which i promised would return to buy garrett analyzing the thud why there is no death spiral coming for bitcoin anytime soon so i was garrett rights as the bear market continues discussions about bitcoins demise are increasing thanks to queen cher’s a british crypto asset investment company who releases by annual research on crypto mining we know can shed some light on the bitcoin death spiral fud fear uncertainty and so the whole concern here is gerd described as the fact that you have increasing difficulty traditionally in mining bitcoin with a decreasing price those two variables are kind of at odds with each other and that means.
There’s really less and less profitability for the minor so i scare it writes this would lead to an implosion of the network as more and more miners leave the network leaving the network insecure and possibly causing crypto as a whole to collect we’re going to link to the paper with you can download as a pdf it introduces the fact that there there’s an estimate that the current cost to create each bitcoin is currently about $6,800 which is a standard price per kilowatt-hour of 0.5 cents per kilowatt-hour so this cost of $6,800 is obviously at odds with the current value which at the time of this recording bitcoin is at just under $4,000 to the paper hypothesizes that quote the average minor is either running at a loss and an able to recover their capital or mining at electricity costs closer to $0.03 per kilowatt-hour depreciating mining gear over 24 to 30 months or paying less for mining gear than our estimates the paper chooses to contextualize the second point and provide some encouraging perspective.
Noble energy uses and the advantages it may have for bitcoin miners so just an interesting quick facts 60% of bitcoin miners are in china and 80% of these chinese miners are remaining in the chinese province of sichuan so if you have 80% of 60% you have i believe almost 50% of the world’s miners are in that single province of sichuan china so that’s global miners nearly 50% of them are in sichuan little bit of positive news for the environmental catastrophes because you always hear about how bad bitcoin and crypto mining is for the environment but it looks like 77.6% of the energy used for mining bitcoin comes from renewable energy sources so that’s pretty good this means that bitcoin is greener than most other large-scale industries around the world and garrett ends with the idea of curtailment that the queen cher’s article brings up so this is something that’s really taken into consideration when discussing bitcoin energy cost and usage but curtailment in this context is.
Term for the older generation of renewable energy which holds consequences for electricity companies such as overloading the power grid high curtailment rates are usually seen in places with large amounts of renewable energy production who’s energy stores are not used up by the locals i’m not an energy engineer but i believe that is the case in my canadian province of quebec where were very reliant on the hydroelectric grid and we produce at a massive surplus in conclusion duty abundant production of renewable energy in places like china and the western united states where the majority of bitcoin miners are located and issues like curtailment it is unfair to assume that there is some precise price point in which bitcoin will enter a death spiral due to unprofitability and i think besides that people are still willing to operate at a loss for certain amount of time so it’s not like some perfect mathematical formula we’re up while if the production cost is above the current market cost that we got to shut things down immediately it’s not really how it works people have long-term vision that have strategies the network is clearly.
Surroundings reminders do seem to be comfortable continuing to mine at the moment they could be mining at a loss they could not at all depends on what their energy or hardware costs are and as explained above this can vary based on electricity surplus at the end of the day guys i’ve said it before i think the free market is going to figure it out let me know if you disagree will take a look at the paper itself so here you have it the bitcoin mining network courtesy of shares research trends marshall creation cost electricity consumption and sources this is available to download in a pdf and again as i always say if you really want to get into some of the technicals and some of the numbers is nicely quantified for is here over the course of a 20 or so page report we’re going to link to this in the description below and you can check it out if you want to dive into more details.
Okay and another quick news today by way of chris vechain to partner with historic japan tea company here’s a bit of a curve ball as far as one of the oldest businesses in japan fuji my room ot garden is not working with featuring to improve authenticity and traceability of their tea products via nfc chips with all the beach and nfc chips and use them in their limited offering a fuji teeth after the trial is complete is expected it is expected that a formal partnership will be announced to achieve their end result vechain assigns every product with a unique id for traceability purposes via this chip customers can scan the product to learn about the history of the tea garden and more importantly the verification certificate issued and stored on the vechain thor blockchain you haven’t heard about fuji marumo teegarden while they’ve been around for the past 90 years and one of the most famous origins of japan tea shizuoka the city has been one of the imperative japanese tea.
Since the mid 1200 so this video is being recorded on the 6th of december but at the upcoming japan classy culture experiences and party in singapore on december 7th fiji teagarden will demonstrate their two products with v chains technology for the world to see sophie chain according to chris has a bright future especially if you can get itself embedded in the worldwide food and medicine traceability business we deserve to know what products are in the food drinks and medicine we put in our bodies so a pretty good development as i see it not one i think that i would necessarily personally expecting but there you have it the price of each and right now at about four tenths cuz i should have 5 tenths 4.6 tenths of one cent this is one of our favorites over at alt coin buzz and i say this is very very low lower than that what i remember as far as the last time i checked so maybe this is something that will help i think every little bit helps but certainly we are not at all-time-highs when it comes to vici.
There you are if you want to track it we’re going to link to this in the description below you can also check out this medium article beaching foundation beach and enables customer to verify the proof of origin in japanese tea products so very cool initiative and it just goes to show me with some outside the box thinking goes to show what you can do with blockchain technology so do be sure to check that out and do sure to follow all coin buzz and alt coin buzz news of course were also on facebook instagram and telegram check out our last video if you have not already check out our website here it’s thursday members of the alt coin buzz army happy investing if you choose to invest if not we will see you again hopefully on friday in our next video take care.