At $81,000 in energy value, or the inherent value of Bitcoin as measured by the raw joules of power that are sent into the mining network alone, the cryptocurrency has accomplished a noteworthy milestone.
The Capriole Fund founder, Charles Edwards, tweeted this achievement soon after Bitcoin surpassed $72,000 and set a new all-time high.
The energy worth of Bitcoin determines its fair value to be $81,000, 14% more than its current market price. This has significant ramifications. The energy efficiency of the mining hardware itself as well as the hash rate needed to solve the SHA-256 algorithm determine how much electricity is needed to power Bitcoin mining.
https://x.com/caprioleio/status/1767093395124531482?s=20
The joules of energy used to manufacture Bitcoin, as well as the energy input, supply growth rate, and constant that represents the fiat dollar worth of energy, may all be used to calculate the fair value of the cryptocurrency.
Sharp drops in energy intake have historically indicated excellent opportunities to sell, while robust increases in energy input have often indicated excellent times to purchase.
Due to massive inflows into U.S. exchange-traded funds, Bitcoin, the largest cryptocurrency in the world by market value, topped $71,000 for the first time this year, increasing its gain to almost 70%. BTC has increased 3.12% to $71,835 at the time of writing, following hitting a new all-time high of $72,422.
Bitcoin miners draw energy at record pace
Bitcoin miners are using electricity at a never-before-seen pace, according to Bloomberg, indicating a return to survival mode.
The spike in activity is caused by a rise in the price of Bitcoin, which is being fueled by a number of causes, including the introduction of spot Bitcoin exchange-traded funds (ETFs) and the approaching April halving, which is a quadrennial occurrence.
13 of the largest mining corporations have ordered more than $1 billion worth of specialised computers since February 2023, according to data collated by TheMinerMag based on public filings, as reported by Bloomberg.
The platforms CleanSpark and Riot have each invested a substantial amount—up to $473 million and $415 million, respectively—in the purchase of these machines.
