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The 2036 Issue: Here Come The Sovereigns
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From The 2036 Issue: A look at coming impact of sovereign nations on Bitcoin mining, by Jacob Langenkamp, Fellow at BPI.
Key facts
- From The 2036 Issue: A look at coming impact of sovereign nations on Bitcoin mining, by Jacob Langenkamp, Fellow at BPI
- Take for instance the Strategic Bitcoin Reserve (SBR) legislative proposal in Brazil in 2026
- Now that it is 2036, they will experience the next halving event this year in which the block reward will drop to 0.39 Bitcoin per block
- This piece is featured in the latest Print edition of Bitcoin Magazine, The 2036 Issue
Summary
By the year 2036, Bitcoin mining looks nothing like it did five years ago, much less ten. Long gone is the model of Bitcoin miners that dominated the landscape of the early to mid-2020’s. The compressing margins had already strained this business model by the middle of the decade. Then the explosion of artificial intelligence and high-performance compute (AI/HPC) data centers created a more profitable use of grid connected electricity. As the era of public Bitcoin mining companies ended, governments started to notice the advantages of Bitcoin mining for expanding and managing a national grid. There was a growing realization that mining Bitcoin with the excess electricity was akin to exporting the power over the internet, rendering the expensive cross-border transmission infrastructure unnecessary for this specific sales activity.