> Mining Bitcoin becomes increasingly interesting in an inflationary environment. Due to the nature of energy contracts with utilities, miners can lock in their electricity rate for a number of years. This means you can keep your operating expenses fixed while prices of virtually everything else, including Bitcoin are likely to be increasing over time.
> 
> If you are buying a new generation machine, the value of the new machine historically has a beta of 0.96 compared to Bitcoin (Hashrate Index Research). While it tracks the volatile price of Bitcoin, it continues to earn a consistent daily cash flow regardless of daily fluctuations.

> These daily positive cash flows will likely persist even under extreme short-term (12-18 months) volatility.

> Key Points
> 
> 1. Bitcoin is highly resistant to any changes that could alter its value proposition of being a perfectly scarce, portable, durable, divisible, and fungible savings technology.
> 
> 2. Macroeconomic uncertainty is creating turmoil across asset classes. Inflation recently hit a 40-year high after unprecedented monetary stimulus, the Federal Reserve is in the process of raising interest rates, oil is appreciating to historically significant levels, consumer confidence is eroding, and Russia has invaded Ukraine.
> 
> 3. The fixed income market is beginning to signal that investors expect the Federal Reserve to increase interest rates in the short term too much (to fight inflation) that it ends up squeezing credit, causing a recession and ultimately leading to lower interest rates in the future.
> 
> 4. Commodities have fared well in historical inflationary periods, and Bitcoin is a new super commodity due to its unique immutable scarcity.
> 
> 5. In an uncertain excessive inflationary macroeconomic environment, accumulating Bitcoin is an attractive capital allocation strategy that investors should be utilizing as superior savings technology.