Bitcoin is an inherently volatile asset class. As the market capitalization grows, and as we see more diversified entrants into the space (ie. institutional investors), we’ll likely see the drawdowns become less frequent and severe. The reality is, the drawdowns will still be severe and they will likely be larger than traditional assets. You simply can’t expect an asset that has an incredible 10 year history of returning 200% compounded annual returns to not have times where it drops substantially. It is these drops that shake out the weak hands thereby allowing the purchase by stronger hands, which allows the asset to grow further than the previous cycle. In fact, during the last bull run cycle in 2017 there were no less than 6 TIMES that BTC dropped by 30% or more. Expect similar during this bull run.

BTC gives an investor the ability to invest asymmetrically. The investor does not have to put a large proportion of their current wealth into BTC in order to reasonably move the needle on their long term wealth. BTC has proven this over the last 10 years by delivering massive gains which have outclassed every other asset. If you are not going to invest in BTC today, then where are you going to put your investment? Real estate? Stocks? Bonds? Commodities? All of these have been vastly outperformed by BTC in the last 10 years. BTC has been the apex predator of the financial markets and it continues to gain adoption while absorbing the money supply because it is a superior form of money and store of value.

Modern Mining has secured a space in Medicine Hat, Alberta, along with an agreement for large-scale electricity; this provides our operations with reliable, low-cost power in a secure location. Additionally, this aligns with one of Modern Mining’s goals of supporting and diversifying the Alberta economy.

This is a question that could be answered in many ways. In short, digital currencies are a young asset class. Bitcoin was born in 2009, so it has not had much more than a decade of track record behind it. In that time, it has grown from no value to over $1 trillion. In fact, Bitcoin has averaged 200% compounded returns over the last 10 years. No other asset has come close to that pace of growth. You don’t get that level of growth without large drawdowns from time to time. If you are investing in Bitcoin, you must understand there will be volatility. It’s just the nature of the asset. That being said, the larger Bitcoin grows in terms of market cap, and the more institutional investment that it attracts, the less volatility it should have in the future.  

The BTC network uses the energy of a few million computers to solve complex math problems. These computers battle with each other to be the first one to solve the math problem every 10 minutes. The successful computer receives a BTC reward (currently 6.5 BTC) and the right to add the next block (transactions over the last 10 minutes) to the blockchain (record of all past transactions). It is this network effect of millions of computers which gives Bitcoin it’s unbreakable level of security. A bad actor cannot alter the network protocol as it would be virtually impossible to acquire enough computing power to do so. That is what ultimately gives Bitcoin it’s value. It order to be a superior store of value you MUST have absolute security and integrity of the network.  If you compare the energy use of the bitcoin blockchain to millions of bank branches, personnel, and the associated infrastructure to run legacy finance there is no comparison – legacy finance takes far more energy. In fact, there is much research out there to say Bitcoin mining could accelerate the development of clean energy sources. If you still have concerns about Bitcoin’s energy use, this article should put your mind at ease: BCEI White Paper