What do you think that does? I think you know? Renewables and esg were a significant uh blow to bitcoin, as its uh q2 rally sort of came to an end um. What do you think the prospects are for a fresh look at bitcoin from institutional investors that are concerned about esg? Is there going to be a there there? If they look, are they going to find a better, cleaner bitcoin if thats, what theyre? Looking for the jurys still out on that one, i think in north america, because we like in north america, there are still quite a few natural gas possibilities. Theres still quite a few, i mean there is some coal, but a lot of it is gas not to say we dont have a lot of solar power and hydroelectric power as well theres a huge mix, and i know that because a lot of these companies are Really ramping up their infrastructure now, as opposed to dealing with old infrastructure that has you know that was online before people were paying too much attention about esg, they are making a conscious effort, if not to use renewables, all the time to try to make that part Of their mix and to commit to carbon offsets take her to leave that take or leave that, as you see fit um. But carbon offsets are a part of their strategy, um and theyre becoming creative, and this is something thats been part of the bitcoin mining ecosystem.

For quite a long time, because dont forget that the cheapest energy is often renewable and it really is a race to the cheapest energy source, if youre going to be competitive in bitcoin mining brad. If we can talk a little bit about institutional adoption, weve seen a few headlines break this week. I think: can you kind of run us down uh, who are the the players uh from wall street that are uh making moves in bitcoin uh over the past week? Well, first, i just want to go back to you, know, kind of the story of the mining and the hash rate, and talking about institutional money, i mean theres a lot of institutional money going into mining. You know setting up the operations and investing the capital to um, to set up the facilities with the transformers and connections to the grid and everything and and also to invest in the the rigs um. And one thing i think is super interesting is that you are seeing you know the the whats happening with the hash rate isnt. It is it evidence that the market signals are working because price is youre, you know 48 000 and people are putting in x hashes. You know because they can make money uh and so its this. This industry keeps calling for capital um in terms of uh. You know your question: uh coindesk wrote the story this week. That citigroup is getting into bitcoin futures and um, and wells fargo also set up a solution for um private wealth, uh clients and thats.

Just something that weve seen is that you know these huge banks sort of reluctant to be publicly uh, transparently, openly embracing bitcoin, but theyre still providing a solution to their rich clients, because they dont want to turn those people away and those people are demanding to invest. In crypto, weve certainly seen a recovery in the price of mining equipment alongside the rally in the bitcoin price this august – and i wonder if you start to see then some of the capital that might flow into machines and infrastructure instead starting to flow into the spot Market and perhaps um fueling the other side of that uh virtuous cycle. If you will uh brad any thoughts on on kind of how investors might play that, i mean in general. You know this is an early industry. People are still figuring it out, um and as weve seen theres just the this clock. Turning of you know, decisions are made that okay were gon na. This is how were gon na get into crypto, or this is how were going to get into crypto, and then it takes time and then over time you see these announcements. I would guess you know um the fall. I mean bitcoins doing really well this year. You know its the third year in a row and im guessing you know: stock people keep talking to stocks being at record, but cryptos doing better. You know um. I would think those capital allocation decisions well probably start to see a lot of those in the fall.

I dont know its just my guess. You know i mean, based on all the signals were picking up. Christy lets um lets close it out with a little bit from ether. You and i were talking about this earlier uh ethereum uh analysts have noted that the um, the ether supply rate, increase uh for at least one day. This week was lower uh than the bitcoin supply rate increase uh and you know um. Obviously, the supply rate of bitcoin being an important part of its investment story and stock to flow ratio, uh being an important kind of analytical narrative. I wonder if you can comment a little on on kind of what we should be looking at uh in the weeks ahead in terms of monitoring. You know whether uh ether is setting itself up as a as a viable alternative to bitcoin uh. In terms of that narrative of um of limited supply, yeah were actually going to talk about ethereum here on all about bitcoin. Are we so yeah? A new ethereum block is mined every 14 seconds. Okay and five ether are created with each new block, and this is going to keep happening until i guess the end of time unless they change their mind um. There is no at the moment no supply cap on ether bitcoin, on the other hand, has a hard cap of 21 million bitcoins thats it its hard coded into the protocol. Roughly every four years, the amount of bitcoin issued from each new block gets cut in half.

So today, thats how we limit ours in bitcoin every day, uh every 10 minutes, or so we get 6.25 bitcoin in the spring of 2024, thats gon na get cut in half every four years, till 2040, 2140, roughly uh, and then no more bitcoin could put cant Create more with the last ethereum hard fork as a way sort of to control their issuance a new, and i dont mean we and they im, not ether bitcoin. Just this is all about bitcoin um. A new burning process was introduced as a way to control the amount of available ether being issued. So under eip 1559 transaction fees on ethereum are split up into a minimum fee called the base fee which is now burned, so that ether is gone and theres. Also a priority fee and then theres the ether, but its the base fee transaction fees. Now that are getting burned, um that burning, that is, then reducing the net uh supply, reducing the supply exactly exactly so. As a result, the upgrade has eliminated something like a hundred thousand ether representing 36 of the new coins issued since uh august 5th um according to etherchain. So the thing is that, with eth with ether its that net issuance thats always going to be variable under this design. Um, unlike bitcoin, which is you know, tick tock, next block thats. What we get um so devs are the the devs for ethereum are hoping for equilibrium um in terms of how much gets burned and how much gets newly issued and so far the metrics are kind of working out that way, but it will always depend on how Much use the network is getting which will affect the transaction fees, the base, transaction fees, which will then ultimately affect the burn rate, and it can always get tweaked in a future hard fork.

This is another thing about ethereum. These sorts of changes. Are they they happen? The ethereum devs will go in and just be like you know what we should change it this way. We should change the issuance that way. Um. We can hard fork to do this or hard for it to do that, and that happens. They tinker with the supply and theres a precedent there and thats fine. This is not a judgment call but its different from bitcoin that does not exist and its highly highly highly unlikely that bitcoin would ever do that. So, yes, there is a burn rate and yes, the um. The supply is starting to even out um, but were still at a point where were not going to ever know how many ether there are going to be ultimately um, although you know we can kind of guesstimate, whereas with bitcoin we know and its part of the Value proposition of bitcoin its hard coded right into it, does bitcoin care how many ether there is.

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