Crypto News

The Case For Union Workers In Bitcoin Mining

Published

1 year 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 Aside from the misguided and outdated attack on Bitcoin’s energy use, this begets the discussion; is there value to Bitcoin Miners employing union labor at U.S. mining facilities?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

David Bailey Forecasts $1M Bitcoin Price During Trump Presidency

Published

4 hours ago

January 21, 2025

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In an in-depth discussion on the Hell Money Podcast, David Bailey, CEO of BTC Inc., shared insights into Bitcoin’s transformative potential, its geopolitical implications, and its role as a cornerstone of a new global economic framework.

“I see this happening so much faster than anyone can appreciate. Within 10 years, Bitcoin will become the reserve asset of the world.”

00:00 Intro
07:15 Bitcoin soft forks
11:00 Bitcoin vs. Crypto in US policy
19:20 How much political power does Bitcoin have?
23:50 Bitcoiners are politically homeless
26:20 Strategic Bitcoin Reserve
29:00 Bitcoin development and ossification
32:00 Separation of money and state
33:40 Raise your time preference
35:20 SBR as a way out of USD global reserve status
41:00 Will they eventually fight us?
43:00 Incentives as a political movement
46:30 What happens next?
49:15 Bitcoin Vegas & Inscribing Vegas 2025

The Political and Economic Power of Bitcoin

Bitcoin has evolved into a significant political and financial instrument. Its decentralized nature, immutable ledger, and finite supply make it an attractive alternative to traditional fiat currencies, particularly during periods of economic uncertainty. Bailey emphasizes that Bitcoin is no longer merely a speculative asset but has become a political force capable of influencing policy and elections.

“Within the next four years, Bitcoin will be the most widely held asset in the world. This isn’t a special one-off moment—it’s the changing of the guard of the world order.”

As Bitcoin gains adoption among individual investors, corporations, and governments, its ability to sway decisions in both the public and private sectors continues to grow. This makes Bitcoin a strategic tool for economic stability and a hedge against systemic risks such as inflation, currency devaluation, and geopolitical instability. Understanding this evolution is crucial for investors looking to align their strategies with Bitcoin’s increasing influence in global finance.

Strategic Bitcoin Reserve: A Game-Changer for Economies

Bailey highlights the concept of a Strategic Bitcoin Reserve (SBR) as a key driver in Bitcoin’s path to becoming a global reserve asset. If a major economy, such as the United States, were to adopt an SBR, it could trigger a domino effect, with other nations racing to establish their own reserves. This global competition could significantly accelerate Bitcoin’s transition from a speculative asset to a fundamental part of national and international financial strategies.

“If America gets an SBR, China gets an SBR. If America and China have an SBR, within 12 months every country on the planet will have an SBR. The game theory effects of us kicking this off, in my opinion, are like the biggest catalyst possible for hyperbitcoinization.”

An SBR offers governments the ability to hedge against inflation, protect their economies from devaluation, and diversify their reserves. Unlike gold, Bitcoin is easily transferable, highly divisible, and operates transparently on a decentralized network. For investors, national adoption of Bitcoin reserves signals long-term stability and growth potential, reinforcing the case for allocating a portion of portfolios to Bitcoin and related assets.

Orange-Pilling Trump: A Strategic Advocacy Moment

One of the most intriguing aspects of David Bailey’s efforts in advancing Bitcoin’s adoption was his strategic engagement with former President Donald Trump. Bailey discussed how Bitcoin advocates pitched Bitcoin to Trump as more than just a digital currency, emphasizing its economic and political advantages. By framing Bitcoin as a tool for strengthening American competitiveness and financial independence, Bailey and his team successfully captured Trump’s interest.

“We are within a couple of years of being the most powerful political faction in the United States. And not just the United States—there are bitcoiners embedded in power structures across the planet.”

Bailey’s team leveraged Bitcoin mining as a key entry point in their discussions, highlighting the economic benefits of Bitcoin mining operations in the United States, such as job creation and energy innovation. This approach aligned Bitcoin with Trump’s “America First” policies, presenting it as a way to bolster the nation’s energy independence and economic strength. These discussions laid the groundwork for a broader understanding of Bitcoin’s strategic value at the highest levels of government.

Governance and Innovation in Bitcoin

While Bitcoin’s decentralized nature is its greatest strength, it also presents challenges in governance and technological adaptability. Bailey underscores the importance of continuous innovation, particularly through mechanisms like soft forks, to ensure that Bitcoin remains scalable, secure, and competitive. Without these updates, the risk of ossification—where the network becomes resistant to necessary changes—could hinder Bitcoin’s evolution.

“Bitcoin gives governments a really elegant way out of the money-printing trap. They can print money, buy Bitcoin, and as the price of Bitcoin goes up, they’re still solvent. Later, they can peg their currency to Bitcoin.”

The Bitcoin community must navigate these governance complexities with a focus on collaboration and forward-looking solutions.

Hyperbitcoinization and the $1 Million Price Target

Bailey predicts that Bitcoin could reach a value of $1 million per coin within the next four years, driven by its growing adoption and the systemic challenges faced by traditional financial systems. This projection signifies more than just a price milestone—it represents a fundamental shift in the global economic order. Hyperbitcoinization, as Bailey describes it, involves Bitcoin becoming the default reserve currency, complementing or even replacing traditional fiat currencies.

“When we get to a million bucks, which I think can happen over the next four years—in my personal opinion, I think it’s possible—the Federal Reserve is, like, going to be completely impotent.”

This transition would have profound implications. Bitcoin’s decentralized nature would democratize access to financial systems, reduce reliance on central authorities, and promote greater economic inclusion. For investors, the journey toward hyperbitcoinization offers unparalleled opportunities as Bitcoin’s dual role as a store of value and medium of exchange becomes increasingly evident.

Interview Key Takeaways

Political Leverage: Bitcoin’s influence on policymaking and elections underscores its role as a hedge against political and economic risks.
National Adoption Trends: The adoption of SBRs by major economies could catalyze global Bitcoin adoption, creating a favorable environment for long-term investment.
Technological Resilience: Continuous innovation, including scalability solutions like the Lightning Network, is essential for sustaining Bitcoin’s growth and usability.
Portfolio Diversification: Bitcoin’s uncorrelated performance relative to traditional assets makes it an attractive addition to diversified investment strategies.
Economic Stability: In an era of rising inflation and monetary instability, Bitcoin provides a transparent, secure, and decentralized alternative to fiat currencies.

The Future of Bitcoin in the Global Economy

David Bailey’s insights provide a compelling vision of Bitcoin’s transformative potential, offering investors a clear opportunity to align their strategies with a rapidly evolving financial landscape. By understanding and leveraging Bitcoin’s role in fostering economic resilience and innovation, investors can position themselves to benefit from its adoption as a global reserve asset and a tool for long-term portfolio growth. As the world confronts challenges such as inflation, currency instability, and geopolitical uncertainty, Bitcoin emerges as a beacon of financial stability and innovation. For investors, the implications of Bitcoin’s growth extend far beyond speculative returns—it represents a strategic opportunity to participate in the evolution of the global financial system.

“It’s like, well, once that happens, then it’s not $1 million or $10 million. It’s like, it is the reserve asset of the world.”

In the coming decade, Bitcoin’s role as a stabilizing force and driver of innovation will become increasingly evident. Its seamless integration into national and corporate strategies, combined with its adaptability, positions Bitcoin as a cornerstone of future financial systems. Bailey’s vision challenges investors to consider the profound implications of a decentralized monetary system that prioritizes transparency, inclusion, and resilience.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.

David Bailey Forecasts $1M Bitcoin Price During Trump Presidency David Bailey, CEO of BTC Inc., shares bold predictions for Bitcoin’s future, including its potential to reach $1 million during the Trump presidency. This article delves into the political, economic, and technological forces shaping Bitcoin’s role as a global reserve asset and highlights key strategies for investors to align with its transformative potential.

Crypto News

Trump Did Not Free Ross On Day One Because Of Course He Didn’t

Published

7 hours ago

January 21, 2025

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I’m not here to say “I told you so.”

In my Take from October 4, I did write that Donald Trump does not give a damn about Bitcoin, and in my Take from November 5 I wrote he just wants in on the crypto scam. But I didn’t mention Ross Ulbricht in either of these, largely because even I expected Trump to at least follow through on his promise to free Ross. It’s an easy promise to keep, without any real downside for Trump; after more than ten years in prison Ulbricht deserves to be free.

I didn’t really expect Trump to free Ross on day one of his presidency, however. Inauguration day is quite a busy day for a new president, I’m sure.

Having said that, it is what Trump himself said he would do. Of course Trump also said that he would have resolved the war in Ukraine by now — apparently they’re still fighting.

Trump is a bullshitter. He will just say whatever he wants or whatever people want to hear, with no regard for the truth. He may in fact well have the most recorded lies out of any human being in history: Fact checkers from The Washington Post have for example counted over 30,000 false or misleading claims during his first term as president alone.

Still, it is also true that Trump had a busy day yesterday. He signed 26 executive orders (a record amount for a first day president), and pardoned over 1500 of his supporters; those who stormed the US Capitol Building on January 6th four years ago. Yes, that means the QAnon Shaman walks free before Ross Ulbricht (H/T Trey Walsh)… but let’s just hope that Elon Musk is proven right in the next few days, and Ross will be freed too.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Trump Did Not Free Ross On Day One Because Of Course He Didn’t Donald Trump broke his campaign promise to free Ross Ulbricht on day one of his presidency… let’s hope he follows through in the next couple of days after all.

Crypto News

Advanced Mathematical Projections for the Bitcoin Bull Cycle Peak

Published

7 hours ago

January 21, 2025

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The current Bitcoin bull market presents a compelling opportunity for investors seeking precise, data-driven forecasts regarding the timing and magnitude of the next price peak. In a rigorous analysis presented by Bitcoin Magazine Pro, lead analyst Matt Crosby applies a sophisticated blend of historical data, moving average analysis, and statistical modeling to predict the forthcoming Bitcoin bull cycle peak.

Crosby’s findings project October 19, 2025, as a pivotal date, with Bitcoin reaching a median price of $200,000 and the potential for peaks extending to $230,000 when accounting for statistical outliers.

Access the Comprehensive Analysis

For an in-depth understanding of the mathematical methodologies and the complete analysis, refer to the full video presentation available on Bitcoin Magazine Pro’s platform.

The Pi Cycle Top Indicator: An Analytical Benchmark

Central to Crosby’s predictive framework is the Pi Cycle Top Indicator, renowned for its precision in identifying Bitcoin’s cyclical price peaks within narrow temporal margins during past bull markets. The indicator functions by employing two critical moving averages:

111-Day Moving Average (111DMA): Reflecting shorter-term price dynamics.
350-Day Moving Average (350DMA) multiplied by two: Offering a broader historical perspective.

The nomenclature “Pi” arises from the ratio of these averages, approximating 3.142. Historically, the intersection of these moving averages has corresponded with Bitcoin’s market cycle peaks:

2017: The indicator predicted the peak with a one-day margin of error.
2021: Accurately identified the exact peak date.

Methodological Precision: From Data to Predictions

Crosby extends his analysis through Monte Carlo simulations, a robust statistical technique that models numerous potential trajectories for Bitcoin’s price evolution. Key facets of this approach include:

Quantifying median daily returns and associated volatility over the preceding 791 days.
Running more than 1,000 simulations to map a spectrum of plausible price paths.
Deriving a median price peak of $200,000, with an average of $230,000 when incorporating extreme data points.

These simulations align with historical patterns, suggesting that the next Bitcoin bull cycle peak will likely occur on October 19, 2025.

Examining Diminishing Returns

To estimate the price range at the projected peak, Crosby evaluates the historical phenomenon of diminishing returns, where each successive cycle exhibits proportionally smaller price increases relative to its moving averages:

2013: Bitcoin’s price exceeded its moving averages by 440%.
2017: This figure decreased to 299%.
2021: The peak was 32% above the moving averages.

Extrapolating this trend and incorporating Monte Carlo simulations yields the following projections:

Median Price Peak: $200,000.
Average Price Peak: $230,000, accounting for statistical variability.

Implications for Investors

Crosby underscores the inherent uncertainties in any predictive model, emphasizing the importance of adapting to evolving market dynamics. Factors such as institutional adoption, macroeconomic trends, and unforeseen events could significantly influence Bitcoin’s trajectory. Nonetheless, this analysis provides a rigorous, data-driven framework to inform investment strategies during the current bull cycle.

Key Insights

Projected Peak Date: October 19, 2025.
Forecasted Price Range: A median of $200,000, with potential peaks averaging $230,000.
Analytical Tools: Pi Cycle Top Indicator and Monte Carlo Simulations, powered by Bitcoin Magazine Pro data.

For ongoing access to live data, advanced analytics, and exclusive content, visit BitcoinMagazinePro.com.

Disclaimer

This article is intended for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct thorough independent research before making investment decisions.

Advanced Mathematical Projections for the Bitcoin Bull Cycle Peak Discover how advanced statistical methods and historical data, including the renowned Pi Cycle Top Indicator and Monte Carlo simulations, are used to project Bitcoin’s next bull cycle peak, with insights into potential price ranges and timing for savvy investors.