Bitcoin: Is This the End… Or Just a Dip? 📉

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Well, it appears the little machines that tirelessly churn out… digital nothings, have slowed down a bit. Yes, the “hashrate”-whatever that actually is-of Bitcoin has, according to those VanEck gentlemen, decreased by a mere 4%. A tragedy, naturally. Though, apparently, this is supposed to be… good? One hears such things from analysts these days. 🤷‍♀️ They say when miners give up-a “capitulation,” they call it with such drama-the price goes up. Historically, mind you. History, as we all know, is a most reliable predictor of… well, nothing, really.

Mr. Sigel and Mr. Bush, those dedicated observers of the digital ether, write in a report (one imagines over strong tea and a sigh) that when this hashrate compresses – such a clinical term! – better returns tend to follow. 65% of the time, no less. Of course, that still leaves 35% to utter ruin, doesn’t it? A comforting thought.

And if one looks even further ahead – because why wouldn’t one try to see into the murky depths of the future? – the numbers become even more… optimistic. 77% positive returns! All fuelled by miners shutting down. It’s a beautiful, cyclical absurdity, isn’t it? The more people despair, the higher the price, apparently. It’s enough to make one question the very nature of capital. 😅

This, naturally, is excellent news for the miners. Or, at least, might be. Assuming the price rises, and they don’t all go bankrupt first. A delicate balance, really. Bitcoin currently languishes at $88,400, having tumbled from its previous, rather inflated, peak. Such is life.

Bitcoin miner breakeven prices tank over 35%

It seems the cost of keeping those lights on for the machines has also plummeted. A 36% drop in the electricity price! One can almost see the miners weeping with joy… or perhaps just shivering in the cold as they contemplate their mounting debts. The era of the expensive S19 XP miner is, at least temporarily, over. Another fleeting moment in the grand, confusing saga of Bitcoin.

The VanEck boys attribute this hashrate hiccup to a shutdown in China. A whole 1.3 gigawatts of capacity… diverted to more productive endeavors, like keeping the lights on for actual people, perhaps? Or, even more likely, devoured by the insatiable appetite of artificial intelligence. Which, frankly, seems far more sensible. 🤖

Nation-states are still backing companies to mine Bitcoin

But fear not, the dream lives on! Apparently, a good number of nations – a rather eclectic mix, including Russia, France, and even El Salvador – are still in the Bitcoin mining game. A little state support to bolster the inevitable bubble. One almost feels pity for the taxpayers. Almost. And Japan, they say, has recently joined the party. One can only imagine the polite, efficiency-driven mining operations they will run.

It’s all rather… fascinating, isn’t it? A complex web of numbers, speculation, and the unwavering belief in something no one truly understands. One expects the drama will continue, probably for a very long time. And one will be here, observing it all with a weary smile. ☕️

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2025-12-23 03:58