Mining for digital gold ⛏️

I hope you are having a great weekend.

I am busy trying to get my house ready to sell in NH this week👷. It’s a lot of work trying to make a big house you've lived in for 15 years look pristine.  

Hopefully, the hard work will pay off, and I find the right buyer soon.  I’ll let you know how that goes over the next couple of weeks.  The real estate market is tough right now.

I know my limitations, and I know I am not a great real estate investor. That’s really not my thing at all.

However, I am a pretty darned good stock trader! 

I know how to spot a bargain there.

Last Monday, I spotted big potential for CAVA coming into this week, and I told all of my Bullseye Trades members about it.

Sure enough, those options I told people about jumped over 140% a few days after Bullseye members were able to get a good look at them.

On the chart below, you can see where my email went out on Monday and how the stock traded afterward…

I personally made well over $9000 on my CAVA, just on Monday alone.

Not a bad way to start the week if you ask me!

Now, trading is hard, of course, and while I am a great trading teacher, everyone’s results will vary, so don’t think that everyone will replicate my gains.

A fresh week is coming, and that means I’ll have a brand new trading idea dropping tomorrow morning.

If you are a Bullseye Trades member… be on the lookout for it!

If you aren’t… then use this link to make the upgrade right now.

It’s super easy, and with the quality of ideas I give members, I am practically giving away this service. 

Now, let’s talk about what is happening in crypto right now.

Yesterday, I outlined why I won’t be surprised if we see six-figure Bitcoin before the year is out…

It’s far from certain, of course, but I think the stars are lining up.

Even though I am very bullish on digital currencies, I feel it is like real estate.  I know my limitations, and I don’t think that’s the best thing for me to invest in directly.

That said, I added that I don’t own any crypto right now and don’t plan to buy any at this point. 

Instead, I prefer to trade the Bitcoin miners.

Just like gold.  I would much rather trade the gold miners, than try and trade gold itself.  

Bitcoin itself is pretty esoteric for many people, and Bitcoin mining even more so, so I thought I’d write up a little primer in case you’re among the uninitiated.

Bitcoin mining is the process of validating transactions and adding them to the blockchain — the decentralized public ledger of all Bitcoin transactions.

You’ve probably heard that the computers that “mine” Bitcoin are solving very complex math problems, and that’s true, but it gives the impression that some whiz kid could come along and shortcut the whole process.

In reality, solving these problems is essentially guesswork, and the machines doing the guessing do so with brute force.

The best way I’ve heard to think about it is that mining Bitcoin is like buying tickets to the lottery. The more tickets you buy — the more guesses your computer(s) make — the better your odds of winning.

But unlike the lottery, the Bitcoin network was designed to have winners at fixed intervals — one every roughly ten minutes.

To maintain those intervals, the difficulty of solving a block adjusts based on how many miners there are competing for a solution.

So, as computational power is added to the blockchain network, the difficulty adjusts upward to make mining more difficult.

Winning the Bitcoin lottery — successfully solving a block — means receiving a set amount of new Bitcoins as well as fees from the block of transactions the miner added to the blockchain.

When Bitcoin first started, the set reward for mining a block was 50 bitcoins. However, as part of Bitcoin's design, this block reward is halved approximately every four years in a process known as "halving."

As of the latest halving on April 19, the set reward for mining a block is 3.125 Bitcoins.

By design, there will only ever be 21 million Bitcoins in circulation, with the last one expected to be mined around the year 2140. After that time, miners will still be rewarded with transaction fees for validating transactions on the network, but the block reward will be zero.

This predetermined supply schedule is one of the great appeals of Bitcoin – The currency can never be artificially inflated.

When Bitcoin first got started, people were able to mine Bitcoins using their personal computers…

Today, competition among miners is so intense that a personal computer would be essentially useless at Bitcoin mining.

Instead, purpose-built computers called ASICs (Application-Specific Integrated Circuit) dominate the industry, and are vastly more efficient compared to traditional computer processors. Top-of-the-line ASICs can easily cost upwards of $10,000.

Around the world, there are thousands of “mining farms” consisting of many ASICs housed in dedicated warehouses.

Because operating ASICs is so energy intensive, they are often located near energy sources like oil and gas wells, solar farms, dams, or geothermal sources.

The entire Bitcoin network consumed somewhere between 67 and 240 terawatt hours (TWh) in 2023. To put that in perspective, the entire U.S. used about 4,000 TWh that year.

With global warming at the top of everyone’s minds, that much energy use is concerning, and it led Elon Musk to stop accepting Bitcoin for Tesla transactions in 2021.

Aside from the cost of purchasing, maintaining, and housing ASICs, the major cost for Bitcoin miners is energy, and that cost is so high that it leads many miners to be unprofitable…

That’s the case even more so after “halvings,” which shake out miners operating on slim margins. 

This creates big acquisition opportunities for better-situated miners, and that’s what I’ll speak more about this evening, so be on the lookout for another dispatch…

To Your Success,

Jeff Bishop

P.S.  My next Bullseye Trade idea is going to drop just hours from now!  Make sure you are on the list, and get my top trading idea each and every week.

Last week, I personally made over $9800 trading on the same idea I shared with Bullseye Trades members before the market even opened!

Here is the message I shared in our company Slack channel about it…

Join Bullseye Trades today!

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