Just last month, the largest bitcoin event in history was held in Miami.
The conference hosted upwards of 25,000 attendees, 450 speakers, 400 sponsors, and 3,000 companies.
And this year, one corner of the crypto world was in the spotlight: Bitcoin miners.
No longer relegated to the shadows, mining companies large and small took up almost half of the exhibition space.
Wall Street investment firms hosted events specifically for miners for the first time. And the conference even dedicated a stage specifically to bitcoin mining.
On that stage, packed audiences gathered to hear mining industry leaders discuss the future of their industry.
Of all the panels and discussions about crypto mining at Bitcoin 2022, it’s hard to beat this one from the keynote address by Kevin O’Leary.
During his speech, he said…
Bitcoin mining is going to save the world.
If you’re not familiar with O’Leary, he’s an uber-successful venture capitalist, asset manager, and most famously, “Mr. Wonderful” on the TV show Shark Tank.
He’s also the man who once called bitcoin “a giant nothing burger,” worthless, and garbage as recently as 2019.
So why such a huge about-face for a once-proclaimed bitcoin skeptic?
O’Leary says it’s due to government regulation pushing bitcoin mining into greener territory.
He specifically brought up a March proposal by the Securities and Exchange Commission (SEC) that would mandate public companies undergo a carbon audit.
This mandate would force companies to report their business’s effect on the environment. They’d also have to lay out the steps they’re taking to address it.
O’Leary believes the SEC proposal and similar regulations will result in bitcoin mining operations using more climate-friendly power.
And in his words, green bitcoin mining is “one of the biggest investment opportunities” he’s ever seen…
Bitcoin Mining Is Getting Greener – and More Profitable
If this sounds familiar to you, it’s because Daily editor Teeka Tiwari has been saying the same thing for about a year. Here’s Teeka last May:
Unlike Wall Street and gold miners, bitcoin miners are taking steps to actually reduce their reliance on fossil fuels.
According to a 2020 study from the Cambridge Center for Alternative Finance, about 76% of crypto miners use a mix of renewable and traditional energy sources to power their operations…
The same study also found that about 39% of crypto mining’s total energy consumption comes from renewable sources…
[So] bitcoin miners are taking concrete steps to reduce their carbon footprint. Not because they love the environment… but because they’re finding renewable energy can be far cheaper than non-renewables.
Here’s why that’s important…
Electricity is by far the largest direct cost for bitcoin miners… And how much a company spends on it makes a tremendous difference in profitability.
So miners are turning to renewable energy to cut costs and increase their efficiency.
For example, solar-generated electricity costs about $0.037 per kilowatt-hour (kWh)… wind energy costs about $0.040 per kWh… and hydroelectric energy costs about $0.050 per kWh.
In contrast, non-renewables like coal, nuclear, and natural gas come in at an average cost of $0.112, $0.163, and $0.060 per kWh, respectively.
On top of that, all three non-renewables come with additional financial and environmental costs like drilling, fracking, and waste disposal.
Renewable energy also insulates miners from aggressive legislation that punishes companies using energy sources that emit greenhouse gasses like carbon dioxide or methane.
So green bitcoin mining is not only better for the environment… it leaves more money on the table for mining companies and investors like us…
Putting Your Money to Work
Mr. Wonderful’s comments at Bitcoin 2022 show he’s come to the same realization we did last year: The greener a bitcoin miner is, the greater chance it has of being a profitable long-term investment.
And there’s still plenty of upside left…
Teeka predicts bitcoin will hit $500,000 in the coming years. That’s a 1,180% gain from today.
When you combine that upside with lower renewable energy costs to mine BTC… we’ll see bitcoin miners eventually surpass their old highs.
That’s why Wall Street is throwing lavish parties for miners even while bitcoin is down 16% this year… and why we think every portfolio should hold bitcoin and bitcoin miners.
So if you’re looking for broad exposure to this trend, consider the Amplify Transformational Data Sharing ETF (BLOK).
It holds some of the largest bitcoin miners… but also includes companies in the broader blockchain ecosystem. So it’s not a pure-play on miners.
And if you’re looking to put even more money to work in crypto, consider this…
Teeka believes you’ll see some of the fastest gains in history if you invest in the cryptos and companies leading NFT and metaverse development.
These NFT projects have held strong during the recent plunges in crypto… and a coming catalyst is about to accelerate their adoption and send prices through the roof.
Click here to learn more about this catalyst and where to position yourself… you’ll even get a free pick (no strings attached) that could potentially 10x your money when this trend takes off.
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As more of Wall Street embraces bitcoin and bitcoin miners… it’s only a matter of time before investors on the sidelines wake up to what we’ve been telling you for years…
The best way to prepare for that inevitability is to get positioned today.
Analyst, Palm Beach Daily