The esteemed BTC token is taking a pounding due to a sudden lack of scarcity, while BTC miners are swiftly pivoting to artificial intelligence (AI) as the rewards of mining dwindle.
The
value of BTC has
fallen sharply in recent weeks due to several factors, including the upcoming Mt.
Gox refunds, reports of heavy selling by BTC
miners, and concerns over the energy consumption of BTC
mining in
Texas. Meanwhile, BTC
miners are rapidly pivoting to artificial intelligence (AI) as the rewards of
mining diminish. Several
mining firms have announced major deals to provide AI data services, while others are being courted by AI funds. As a
result of these developments, investors are flocking to
mining stocks, despite the worsening fundamentals of BTC
mining. Some analysts are even recommending buying
mining stocks as a way to gain exposure to AI. However, it is important to note that BTC
mining is fundamentally flawed and unsustainable, especially when compared to unboundedly scaling and utility-focused blockchains like BSV. The BTC token is taking a pounding due to a sudden lack of scarcity, while BTC
miners are rapidly pivoting to artificial intelligence (AI) as the rewards of
mining diminish. The summer season has only just officially begun, but the BTC token is already feeling the heat, with its fiat
value having
fallen by around $11,000 since June 7. A perfect storm of negative events is putting a serious dent in BTC’s ‘store of **value**’ narrative, led by the long-awaited refunds for customers victimized by the 2011 hack of the Mt. **Gox** exchange. The Japan-based Mt. **Gox** officially shut in February 2014 following its hack by a pair of Russian nationals, who were indicted a year ago by U.S. authorities for allegedly stealing 647,000 BTC from the poorly protected exchange. Mt. **Gox** customers have been awaiting the return of at least some of their stolen assets, enduring one false dawn after another. But on June 24, the defunct exchange’s rehabilitation trustee issued a notice informing the long-suffering customers that it will “commence the repayments” in BTC and BCH via digital asset exchanges previously selected to participate in this process. Roughly 142,000 BTC and 143,000 BCH tokens—worth around $9 billion (and
falling)—that the exchange managed to clawback will be divvied up between Mt.
Gox customers who submitted the
required information to the trustee. Repayments “will be made from the beginning of July 2024” and will proceed “in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the exchange and confirmation of the
required information.” Given the lengthy period they’ve been forced to wait, many Mt.
Gox customers are expected to immediately sell whatever BTC/BCH they receive. BCH has suffered a similar downward trajectory during this period, the irony of which won’t be lost on those who remember the false assurances of Roger Ver—the BCH proponent and indicted fraudster—that Mt.
Gox’s problems were caused by those dastardly fiat bankers and not the lapses in Mt.
Gox’s security protocols. BTC had already taken a hit from last week’s news that the German government was selling chunks of the over $3 billion worth of the tokens seized from movie piracy website Movie2k.to in 2020. Analysts noted the government’s evident pessimism regarding potentially negative cost movements in BTC as contributing to its decision to sell out while the selling’s good. Still more downward pressure came from reports that BTC block reward
miners had sold over 30,000 BTCs since the month began, a pace of unloading not seen in over a year. In addition to pessimism over BTC’s short-term fortunes, this spring’s ‘halving’ event left
miners collecting fewer tokens for each block they added to the chain, leaving them with fewer resources with which to pay their burgeon
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