In a recently released episode of Anthony Pompliano’s podcast, Off the Chain, CEO of MiningStore, JP Baric made an appearance to talk about Bitcoin, the state of the crypto-mining industry and what’s in store for the future. According to Baric, the mining space is going to be very different after 24 months.
“We’re going to have something like an internet boom, where there’s going to be so much capital in the space searching for yield. Once the vehicles and on-ramps are there and built for companies, everyone is going to want exposure to these assets.”
Baric said his business model primarily revolves around the U.S. dollar to TeraHash (TH) ratio, which represents the profit that each TH earns the miner. Currently, this ratio is at around $0.20/TH, but it has been as high as $100/TH before ASICs became mainstream. He also mentions how there is a 1-2% decrease in profitability per month for mining, and another 50% decrease after the scheduled halvings.
“Spending $40/kWh is where you can last in the market right now. We expect that to come down, but there isn’t much power available for less than $25, unless it’s very small and stranded.”
The MiningStore CEO further talked about how Bitcoin mining has the biggest economic incentive for miners, with over $5 billion in rewards last year. He stated that PoW coins capture the most value. Additionally, Baric said that PoS coins won’t have value, as they it doesn’t cost anything to stake coins.
“If you’re not spending real-world capital, creating jobs or using energy, your coin’s not going to have value. Deploying infrastructure, shipping machines across the globe, hiring all the staff, all these people’s time and energy and money is going into building these projects and the real infrastructure investments,