Only a few months ago, I was reading about how great it was to be a bitcoin miner in Canada or Washington state- in the U.S. Cheap power, 'safe' jurisdiction, cold climate; all the things a bitcoin mining operation needs.
It was at the same time Elevate Group was being formed. I was doing research and making contact with miners from all over the world, and not for a moment did I consider doing business in Washington, the U.S. in general, or Canada. Why?
Because I read between the lines, or through the lines I should say. What I could see happening in these already developed countries was once they understood the business, they would no longer want to offer power at such low rates. Let's look at the transition as presented by the news, here's an article talking about why bitcoin miners flocked to Quebec to take advantage of the low power costs:
That was in November of 2017, it seemed that the hype was to continue - only a few months later, in February of 2018 another article about the demand from Bitcoin miners:
Only in this article, it states : Hydro-Quebec mulls higher rates as Bitcoin miner' demand surge"
So already there was a hint of what's to come, and why I didn't go for the bait. Five months after that, in June of 2018, Quebec government put a moratorium on mining, and then a month later, we saw this:
Yep, they did it. Quebec realized they want in on the action, and higher power prices were their way of doing it. Capitalism includes government bodies and quasi-government bodies like utilities too. Bottom line, low power rates for bitcoin miners was on it's way out. It wasn't just Canada, here is the latest from Washington State in the U.S.:
Washington was becoming a mining hub, with companies like MGTC housing thousands of ASIC miners; not anymore. Moving forward, miners who want to mine are looking at a 50% increase in power costs AND they will have to pay ("up-front") for the capital expense required to put the power infra-structure in place. That is going to make it very costly to mine.
So, the moral of the story is: developed countries are not going to embrace blockchain technology without getting paid for it. Why? Because they don't need to. They are the leaders of the pack right now, but not for long. Countries like Malta and the like who are embracing blockchain technology through business incentives, low tax rates, and such are going to attract capital, intellect, and innovation. In the years ahead, they will surpass developed nations in many ways.
So, where did I choose to start a mining farm and why. Well, I chose Irkutsk Siberia- in Russia. Why Russia? One word, Putin.
Putin seems to understand that the blockchain and bitcoin can be used as a tool to lead Russia ahead of western nations. In order to do that, he will embrace the technology and the currency, as it is a direct competitor to Central Banks- a creation of western civilization. It seemed to me that Siberia was the perfect place; you had cold temperatures, the industrial infrastructure was already there because Siberia is a heavy industry province, and on top of all that, cheap power was plentiful.
I believe Putin will use bitcoin to his advantage, and strategically make the moves necessary to bring Russia ahead of the pack, in all sorts of ways. Mining is just a tangential beneficiary of his quest to lead Russia to a better future, and of course, to show the west who's boss.
If you want a current example of looking through news flow, take a look at this article in Globalcoinreport.com
So what's the "real reason the SEC has rejected so many applications for a bitcoin ETF?
According to the article, it's this:
"According to the government enforcement defense and securities litigation attorney, Jake Chervinsky, the real reason for the SEC rejecting all of these ETFs is the risk of fraud and market manipulation."
As good intentioned as the author is, he's missing the real story. If manipulation was the real reason, rest assured the SEC would have focused on equity markets as there is plenty of manipulation going on all the time right there in front of them. So what's the real reason? Here's what I'm saying:
The reason the SEC is dragging it's feet is that bitcoin and the blockchain is a direct competitor to western capital markets. Money inflow into bitcoin means money outflow from traditional markets, and the U.S. does not want to see that. Let's be clear, if the U.S. wanted to support or embrace bitcoin and the blockchain in general, it would have already done so - and the US wouldn't be filled with citizens who were clueless about this next generation technology. Instead, the US is content to hold on to it's capital markets as long as possible, and to spin it's propaganda of consumer protection as a facade for what it's really doing- delaying the inevitable new era of capital markets led by bitcoin.
Welcome to the matrix, here's your red pill.