Crypto News

The Case For Union Workers In Bitcoin Mining

Published

11 months ago

November 1, 2023

Recently in the news, a Pennsylvania Bill, the “Cryptocurrency Energy Conservation Act”, was stripped of language that would have created a 2 year moratorium on Bitcoin mining. The author of the bill, Rep. Greg Vitalli, cited staunch resistance to the moratorium stating “the strong opposition to sweeping changes to the state’s environmental laws is being pushed by trade labor unions.” Aside from the misguided and outdated attack on Bitcoin’s energy use, this begets the discussion; is there value to Bitcoin Miners employing union labor at U.S. mining facilities?

I can hear Max Kaiser now. “Bitcoin doesn’t need corrupt unions!” And he’s right, Bitcoin does not need unions. Quite the opposite, unions and workers definitely need Bitcoin, (hence why I started the Proof of Workforce nonprofit). But the question isn’t whether Bitcoin needs unions, it’s whether the American Bitcoin Mining Industry could benefit from union workers.

An Overview of Unions

There are over 14.3 million union workers in the United States. One recent study showed that nationwide,

unions have 29.1 billion in assets on hand. Unions participate in local, state, and federal elections and have secured major victories in recent contract negotiations. Their mission is simple: wages, benefits and working conditions.

There are some Bitcoiners who are vehemently anti-union. Simultaneously, a foundational tenement found amongst them is that the fiat system is rigged against everyday, working people. These beliefs are somewhat at odds with each other. Why? The mission of a union is to protect the wage laborer from the inherent incentive model of an employer which is profits. The most prevalent example of this today is unions fighting for workers to achieve pay raises commensurate with true inflation. However, as a Bitcoiner, I understand the complexity of the issue, and the challenge many Bitcoiners have to support unions, who often take political positions in a polarized political arena.

As unions have grown, they have become bigger, wealthier, and more politically savvy. The sandbox in which they play is on behalf of the worker, but sometimes the lines can become blurred. It’s like the movie Donnie Brasco. The main character went undercover into the mafia to fight crime, but towards the end of the film, as he is in too deep, his wife tells him “Ya know, you are becoming just like them,” to which he responds, “I ain’t becoming like one of them, I AM THEM.”

Sometimes larger unions and union leaders can stray, forgetting which team they are on, but for the most part they remain true to the rank and file that form the core of their membership. Many larger unions consist of smaller, autonomous and self-sovereign unions of workers. My point is this. Don’t loop all unions in with some of the bad apples that have popped up throughout union history. Unions share more values in common with Bitcoiners than either camp realizes.

Arguments Against Miners Using Union Labor

1. Increased Costs Amidst Slim Margins

Miners have to be nimble, always reducing costs and operating lean, in order to survive bear markets, halvings, changes in energy availability etc. Surely, having to deal with striking unions and drawn out negotiations is another headache most miners want nothing to do with

2. The Miner is the Primary Worker

Along with unions, come improved working conditions, hours and benefits. In Bitcoin mining, the hardest worker on site is the mining machine. Human labor is needed to facilitate mining, but at times, all humans could leave the site, and the miners would continue to mine. The point is, the human labor in mining supports the operation. In that sense, I could see Miners scratching their heads wondering, is a union fighting for improved working conditions and benefits truly necessary.

3. Union Politics

Many smaller unions make up larger unions, and those larger unions, as mentioned earlier, can get involved in politics. Bitcoin is apolitical, a network and protocol available to all, equally. Bitcoin Miners, like the Bitcoin they mine, likely don’t want to get roped into politics. They want to mine their Bitcoin in peace. But as we know, and saw in the recent Pennsylvania bill, politics sometimes can find you, even when you don’t want to be found.

An Argument For Miners Using Union Labor

1. Unions Protect Union Jobs: Staying in Business

Unions protect union jobs. If union jobs are at Bitcoin Mining sites, then unions protect Bitcoin Mining. At the end of the day, if a state passes legislation that is detrimental to Bitcoin mining, those Miners in that State can find their entire business at risk. In this scenario, the headaches associated with Unions i.e. better pay and benefits etc. seem preferable over perhaps going out of business

2. Potential to Reduce or supplement government advocacy budgets.

As we have seen recently in Pennsylvania, organized labor can be quite effective when it comes to advocacy. I could envision a strategy from mid-level miners, choosing to employ union workers, and reducing their government affairs budget/operating budget drastically. And, in turn, potentially having superior results with government advocacy; even when compared to other miners in the same state with large government affairs budgets.

3. Coalition Building

Unions often work together strategically with other unions. This has led to a lot of success amongst organized labor. In a scenario where Bitcoin miners employed union labor, this could open the door to coalition building across broader industries, ranging from energy, transportation, medical etc. In coalition building, one never knows what kind of unexpected opportunities may arise.

As to the pros and cons of a Bitcoin Mining Company employing unionized labor, it likely varies miner to miner. What is certain, as so eloquently pointed out by my brothers at Blue Collar Bitcoin on a recent thread, “Demand for Labor is High, Supply for Labor is Low.” As the world barrels towards the next wave of commercialized machinery, i.e. Ai and Bots, there will be a window where unions continue to gain tremendous strength and influence in society. For the Bitcoin Miner, this may be a force warranting a strategic alignment.

This is a guest post by Dom Bei. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Unions present a formidable force in politics, one that could work for Bitcoin miners in more than one sense.

Crypto News

Detroit Aims to Drive Digital Asset Innovation on Day Three of the America Loves Crypto Tour

Published

2 days ago

September 13, 2024

Crypto-natives and fans of Detroit rapper Big Sean flocked to the Lager House, just outside of downtown Detroit, for the third stop of the America Loves Crypto Tour. The event provided both an evening of live entertainment and a call to action to get out the crypto vote in the upcoming 2024 elections following previous stops in Arizona and Nevada.

Michigan is considered a battleground state, and the Stand With Crypto Alliance sees the state’s 940,000 bi-partisan Bitcoin and crypto owners — 25,000 of which are Stand With Crypto members — as potentially crucial for the upcoming presidential election. The 2020 election’s margin within Michigan was only about 156,000 voters, which means that crypto voters could well swing the electoral outcomes in 2024.

Local startup founders, university blockchain clubs, former State Representative Ryan Berman (R) and operatives of the Stand With Crypto Alliance took the stage for the third stop on the battleground state roadshow to communicate a simple message: Digital asset owners and entrepreneurs have leverage, and it’s time to make their political voices heard.

The last few years have seen the US Securities and Exchange Commission’s (SEC) inconsistent regulatory actions have a chilling effect on the industry. Adam Zientarski, co-founder of Detroit Ledger Technologies, remarked that he would like to see that change so that “startups can actually be focused on growth and not on moving the company to another country”. On behalf of entrepreneurs in the state, he simply asks regulators to “let them build.”

In an interview with Bitcoin Magazine, former Michigan State representative and Attorney General candidate Ryan Berman echoed similar thoughts on the role of regulation.

“You can’t predict what is going to happen in this technology space, but we want to make sure people can innovate and have the tools necessary without government blocking them,” Berrman said. “Detroit has been on a rebound over the last couple of decades. It would be beneficial and put Michigan on the map to say ‘Hey, we want to welcome these types of companies, we want innovation.’”

Berrman went on to emphasize the economic importance of fostering innovation in the state:

“Here, at this event, we’ve heard from these entrepreneurs from the University of Michigan, [which] has half of their student body from out of state. The other half is in-state kids from our big schools – currently, our students leave the state looking for jobs. What can we do to keep our students here? Technology is at the forefront.

Crypto Education: Not Just For Elected Officials

Technological innovation took the driver’s seat during the America Loves Crypto’s stop in The Motor City, and what stuck out was the cultural interest in Bitcoin and crypto co-mingled with the pride many Detroiters, in particular college students, have for their state of residence. President of the University of Michigan Blockchain Club Evan Solomon received raucous applause from the crowd when shouting out his alma mater.

College students and educational institutions, a particular point of pride for Michigan, seem to be paying strong attention to Bitcoin and crypto during this election season. Speaking with Bitcoin Magazine, Solomon proudly shared that his on-campus club has received support from the prestigious Ross School of Business to host an event with 25 visiting organizations in attendance.

Yet, Solomon also remarked that clear regulation is “the single most important thing” when it comes to fostering talent and strengthening the industry in the state. When students consider what careers or companies to pursue post-college, the stigma of over-regulation is a major factor. But the tides are turning and Solmon is optimistic following a 2023 meeting with U.S. Senator Gary Peters (D), saying: “I thought the reception was great, they wanted to hear us out, and they wanted to hear about the applications.”

Code And Law: Constitutional Battles for Developers

Bitcoin and crypto are in the State of Michigan not just a matter of revenue and economic development, but of important constitutional considerations for more than 940,000 Michigan crypto owners.

Berman, who has a background in law, explained that overlapping First, Second and Fourth Amendment considerations have informed his perspective on crypto. Specifically, he argued that 3D printing files for creating firearms are as much a Second Amendment constitutional right as they are issues of free speech and privacy, and he sees overlap with cryptocurrency in that regard now that developers of open source privacy tools are also being prosecuted.

“Freedom of speech is what our Founding Fathers were all about. Publishing a manual can be bad if somebody uses it for a bad purpose, but [in the case of 3D-printed guns] there’s plenty of legitimate purposes as well. But even if there aren’t any, it doesn’t matter what the purpose is, it’s all about freedom, it’s all about the First Amendment. I’m totally an advocate for not only the Second and First Amendments, but the Fourth Amendment in particular when you’re talking about encrypted communications.”

America Loves Crypto continues its road show this week and the following in Milwaukee, Philadelphia and Washington D.C. Attendees can RSVP for these free events where they will be able to register to vote while connecting with like-minded folks ahead of election day this November.

The Motor City and State of Michigan see opportunity in creating a business-friendly environment for the Bitcoin and crypto industry, welcoming the Stand With Crypto Alliance.

Crypto News

Bitcoin Surges to $60,000 as Markets Brace for Potential Fed Rate Cut

Published

2 days ago

September 13, 2024

Bitcoin has climbed back to $60,000, fueled by anticipation of a Federal Reserve interest rate cut expected next week. Bitcoin’s rally comes as markets prepare for the possibility of a 25-50 basis point rate reduction, a move that many believe could further boost BTC and risk-on investments.

BREAKING: $60,000 #Bitcoin 🚀 pic.twitter.com/pualhxdQOU

— Bitcoin Magazine (@BitcoinMagazine) September 13, 2024

Earlier this summer, Federal Reserve Chair Jerome Powell hinted that a rate cut could come as early as September. Speaking on June 12th, Powell noted that the central bank would consider lowering rates once they were confident inflation was moving back toward their 2% target. This week’s announcement that U.S. inflation has dropped to 2.5%, lower than expectations, has potentially paved the way for such a move.

JUST IN: 🇺🇸 Fed Chair Powell says an interest rate cut could come as soon as September 👀 pic.twitter.com/RuIFqVZqSC

— Bitcoin Magazine (@BitcoinMagazine) July 31, 2024

The Federal Reserve announce its decision this coming Wednesday, September 18, at the next scheduled Federal Open Market Committee (FOMC) meeting. A rate cut could provide additional momentum for Bitcoin, which has already risen more than 125% over the last year.

Just yesterday, the European Central Bank cut its key interest rate by 0.25 percentage points, following the Bank of Canada’s decision to also reduce its policy rate by 25 basis points last week.

Bitcoin touches $60,000 ahead of a potential interest rate cut by the Federal Reserve, signaling market optimism amid falling reported inflation data.

Crypto News

Bitcoin Price Action: What to Expect Next

Published

2 days ago

September 13, 2024

Bitcoin’s recent price movements have caused concern among investors about what might come next. However, by looking at key indicators such as the 200-week moving average, Pi Cycle Top Indicator, and the Golden Ratio Multiplier, we can gain insights into potential support and resistance levels for Bitcoin.

Leaning Bearish?

In recent weeks, Bitcoin’s price has fluctuated, dipping as low as $53,000 before stabilizing in the middle of our newly formed $50,000 to $60,000 range. If this bearish price action is to continue and price breaks to lower lows the 200-week moving average heatmap (blue line), a historically critical support level, is currently close to $39,000 but fast approaching $40,000 (white line). This round psychological level also aligns with the Bitcoin Investor Tool (green line), which has also converged with the 200-week moving average, could serve as potential downside targets.

Figure 1: Converging levels of support at $40,000 if bearish price action continues.

Nearby Targets

Above current price there are several important levels closer to the current price that investors need to keep an eye on. The Pi Cycle Top Indicator (upper orange line) suggests a crucial resistance level around $62,000, based on the 111-day moving average. The Golden Ratio Multiplier (lower orange line) indicates that the 350-day moving average, currently around $53,000, has been a solid level of support during this market cycle, especially as this is close to the technical $52,000 support and significant psychological support of $50,000.

Figure 2: Nearby support between $53,000 and $50,000, with immediate resistance between $60,000 and $62,000.

More Chop?

In the short term, Bitcoin could very well continue ranging between the low $50,000 region and the $60,000 resistance, similar to the range we had formed between $70,000 and $60,000 that led to fairly stagnant price action for a majority of 2024. Despite recent downturns, Bitcoin’s long-term outlook is still promising. In the past, Bitcoin has experienced similar periods of fluctuating prices before eventually reaching new highs. However, this process can take some time, potentially weeks or even months, before a sustainable trend reversal occurs following periods of low volatility.

Figure 3: Monthly volatility is rapidly decreasing, potentially as BTC finds a new range between $50,000 and $60,000. View Live Chart 🔍

Conclusion

For long-term investors, it’s important to remain calm and not be swayed by day-to-day price changes. Over-trading often leads to poor decisions and losses, and the key is to stick to a strategy, whether it involves accumulating at support levels or taking profits at resistance.

Bitcoin’s recent price action has not been ideal, but with some simple technical analysis and a clear understanding of support and resistance levels, investors can prepare and react rather than over overreact to natural market fluctuations.

For a more in-depth look into this topic, check out our recent YouTube video here: Bitcoin Price Action: What to Expect Next

Bitcoin’s Path Forward: Insights into Price Targets, Support, and Resistance Zones