By Ryan Dinse
In the first half of 2021, huge amounts of money were flowing into a new kind of publicly traded stock…
The bitcoin miners.
Big players like hedge funds were using them as a ‘conventional’ way to get exposure to the crypto boom. Companies like JPMorgan offered their clients products loaded with bitcoin miners.
Then there was panic in the fickle mainstream.
Bitcoin prices fell back to under $30,000 in mid-July, due to China’s crackdown and the US Federal Reserve’s hawkish stance.
Frightened institutional money started bolting back out again.
When crypto prices started rising again, bitcoin miners were back on the radar.
Prices then had another blip in September.
But while the herd's watched the price action…an under-the-radar opportunity has emerged.
It’s one we’re going to bring your attention to below. With three carefully selected, publicly listed stocks.
To understand what’s opening up, you first need to get a grasp of the psychology of crypto-criticism…
The mental contortions crypto critics go through to justify their criticism are amazing.
Take the ‘China arguments’ for example…
At various points over my time in Bitcoin [BTC] I’ve heard:
Of course, none of these points are stated honestly.
For example, more energy is spent on clothes dryers in the US than is used on securing bitcoin. Ban the dryers!
And yet, these kinds of slurs proliferate as no-coiner talking points until the moment they’re disproven.
Not to worry. The sceptics usually find another dubious argument to cope with their failures — cue regurgitated Tether [USDT] FUD (fear, uncertainty, and doubt) from 2017 that you’ve been fed lately!
I could literally spend months trying to disprove these arguments — and we get letters in from subscribers worried about some of them.
But to my mind, this is wasted time.
You don’t need to convince people who are dead set against crypto.
And you don’t want to fall into their trap of doubts.
After all, everyone gets into bitcoin at the price they deserve.
I say this from experience…
I spent my early years in bitcoin from 2013–16 listening to these critics with an open mind, and I get it.
They can make very persuasive arguments to make you second guess yourself.
And some of them come from smart people who you might respect.
You’ll likely have had the same experience…‘This is a guy who usually knows what he’s talking about. But he’s telling me bitcoin could fall to zero?’
But the course of reality taught me they were almost always wrong.
And the upward rise of cryptos — with pullbacks along the way — backs this up.
Total market capitalisation of all cryptos in existence was in the hundreds of millions pre-2015.
By 2018 it reached $720 billion. By 2019 it had pulled back to $200 billion.
But by May 2021 it had shot to $2.4 TRILLION.
The sell-off after then took it to under $2 trillion.
But now cryptos are on the upward creep once more…$2.2 trillion at the time of writing.
The point is, the sceptics can offer all the arguments they like.
The fact is, no one is smart enough to truly understand all aspects of bitcoin.
I mean, I’ve been in this space eight years and I still learn new things every day in fields as abstract as game theory, economics, cryptography, technology and psychology.
My point is, listening to closed-minded critics (as opposed to genuine, open-minded enquirers) in my early years cost me a lot of wasted time and angst.
Even though I never truly believed them, it stopped me concentrating on the things that really mattered in an effort to refute an argument.
So forgive me if I seem blasé in dealing with questions that a lot of ‘serious people’ demand answers to.
Or, as Satoshi Nakamoto (the anonymous creator of Bitcoin) himself (or herself) remarked in a message board back in 2008 to an early critic:
And like I said, my experience to date has shown most critics to be wrong.
They’re stuck in a loop of confirmation bias. Praying for a day of redemption when crypto doesn’t just have a pullback (which is natural) but crumbles. Where they can finally say ‘I told you so’.
Fat chance, I say!
In fact, the recent death of the ‘China arguments’ has actually thrown up a huge investing opportunity for you right now.
Unwrapping this opportunity for you is the purpose of this special issue.
We’re going to:
If you believe in the future project of decentralisation and cryptocurrencies.
If you think, ultimately, it will be the critics who look stupid.
And if you’re looking for outside-the-box ways to leverage potentially huge crypto returns…
Then let’s begin…
In June, the Chinese Communist Party (CCP) came down hard on bitcoin miners operating in the country.
At first, I was sceptical of this news because we’ve seen ‘China bans bitcoin’ stories pretty much every year since I got into bitcoin.
But, as I’ll show you shortly, we can verify that it happened without having to trust anyone.
That’s the beauty of decentralised systems.
Back to this in a second…
First though, what were bitcoin miners doing in China in the first place?
The process of mining bitcoin uses computing ‘grunt’ power to try to ‘win’ block rewards. These are new BTC issued roughly every 10 minutes when a new block of transactions is added to the blockchain.
It amounts to a random game of chance.
But…the more computing power you have — measured by ‘hashrate’ — in relation to everyone else, the more chance you have of winning more BTC over time.
While anyone, anywhere, can become a bitcoin miner, the key to being profitable is access to cheap electricity.
And that’s why so many bitcoin miners were set up in China.
China has low-cost coal power stations in regions like Inner Mongolia and Xinjiang that over time became major bitcoin mining hubs.
Chinese miners also used excess hydropower in the southern provinces during the rainy season.
Apparently, there was a bit of a winter migration every year from north to south by miners to move to cheaper sites.
But in June 2021, the entire industry came to a shuddering halt.
The official version behind China’s bitcoin mining crackdown was its use of coal-fired plants.
As reported by CoinDesk:
‘China’s own environmental policy is a key factor in the mining crackdown, industry pros said. Specifically, China’s carbon neutrality policy created an energy shortage within the country due to its drastic reduction in coal-fired power, which contributed over 57% of the country’s energy use.’
While this may be a factor, I’m not sure it’s the whole story.
My take is that Bitcoin is actually an existential threat to the CCP’s attempts for complete control over its civilians’ private and financial lives.
Bitcoin was always a bigger threat to totalitarian regimes than it ever was to Western democracies.
And if you look at how China basically closed down Hong Kong — a hub that allowed money to move offshore more freely than in the mainland — you can see why they’d see Bitcoin as a similar threat.
Plus, they’ve got their own central bank digital currency (CBDC) in the works. So perhaps they just decided to try to kill off a competitor?
No one knows for sure what the actual motivations were.
But whatever the real reasons for the CCP’s eventual crackdown on bitcoin mining…we know it happened for real this time by looking at this chart:
What you’re seeing here is the total ‘hashrate’ — or computing power — securing the Bitcoin network.
The more computing power there is, the higher this figure is, and the more secure the network is.
As you can see, this hashrate dipped hard on Chinese miners closing down.
Which was independent confirmation the news was true.
However, I’d point out the Bitcoin network still remained immensely secure.
It’s currently as secure as it was only a year ago.
Funnily enough, the China mining exodus was hugely profitable for existing miners as there was less competition — less computing power to compete against — in the hunt for block rewards. You can see that here:
What this chart shows is miners are currently making 57% more BTC for the same amount of computing power — now that China’s miners have left the market.
Yet another argument against Bitcoin is completely disproved.
It’s a three-in-one FUD buster — that China controls Bitcoin, the ‘dirty Chinese’ power criticism, and the ‘China will kill crypto’ argument.
Turns out all three are incorrect.
More interestingly, the hashrate has recently started to bounce back up as high profits have spurred other miners to invest and enter the game.
As Bitcoin Magazine reported, this was entirely expected in the Bitcoin system design:
‘Hashrate recovering demonstrates that all facets of Bitcoin are indeed antifragile, governed purely by free-market principles.
‘Ultimately, Bitcoin cannot be banned; it simply flocks elsewhere if one country chooses to go down that route. And that is true for mining and trading alike.’
That’s the thing about decentralised systems.
They’re designed to combat many different attack vectors.
There’s no one single point of failure.
Seeing it play out in real life, you can’t help but sit back and admire the beautiful simplicity of Nakamoto’s original design.
A perfect synthesis of game theory and free markets in action.
So, who are the companies picking up the slack?
Which investable plays are likely to benefit in 2022 from the big crypto move from East to West?
That’s where the three mining plays I have for you come into the picture…
My name is Ryan Dinse. I head up New Money Investor alongside my Co-Editor Greg Canavan.
This is a space evolving even quicker than the internet was 25 years ago. New technologies, protocols and uses — and new ways to make your financial life better and easier — are emerging weekly.
We set up New Money Investor to be your guide. Showing you how and where to position your money…the truth and the falsehoods around cryptos…the best places, according to our research, to earn income...emerging speculative ideas that could give you multiple hits of capital gain… how to stay safe from centralised power ‘blowback’…
AND how to leverage this decentralisation trend through the stock market.
Now, with the above in mind…
Since we launched the service in early 2021 we’ve actually held off on pulling the trigger on crypto stock plays.
The timing needed to be right.
The market set-up needed to be right.
And the opportunity in terms of potential return on investment needed to be huge.
It couldn’t just be any old blockchain stock, which the herds have been chasing for several years now.
Bitcoin mining companies have always been on our radar. But the whole situation has been in flux. Even in a steady market, in many ways they’re just as risky as investing in cryptos themselves. Much like buying gold mining stocks. The potential rewards if you get it right are huge. But so are the risks.
The risks, in our opinion, have outweighed the potential rewards until now.
But the situation has changed and evolved rapidly in just the last few months.
And we think we’ve found the three best ways to take advantage.
If they pay off as we predict in 2022, that potential pay-off could be huge.
Let me further explain…
To fully understand our timing…and the rationale behind the three plays we’ve selected…you need to get your head around the tectonic shift taking place in the world of Bitcoin.
Cryptocurrencies themselves are practically newborns when compared to other assets.
But this shift is even newer. It’s only just started happening in the last few months.
Just like buying bitcoin in 2012, the spoils will go to those who see what’s happening, and act early. Back to China…
No one’s ever going to trust ‘China Coin’ in the free world, no matter what technology they build it on.
And they’re holding back the innovators and entrepreneurs in their own country from competing.
The good news is it appears the free markets of North America are ready to take advantage of it.
The US is the second-biggest mining destination in the world, accounting for 17% of the world’s mining activity as at April 2021.
[Note: These figures are only ever estimates because bitcoin mining is open to all and requires no registration process. But it can be inferred from electricity usage, favourable bitcoin location economics, and any public company announcements.]
Take a look at this…
The above chart is before the mining exodus officially began, though you can see the process of Chinese mining decline was already playing out.
As Darin Feinstein, founder of Blockcap and co-founder of Core Scientific, stated, this trend has ramped up in recent months:
‘For the last 18 months, we’ve had a serious growth of mining infrastructure in the U.S. We’ve noticed a massive uptick in mining operations looking to relocate to North America, mostly in the U.S.’
If this continues, we could see the US become the new mecca for bitcoin miners.
As another insider noted:
‘“500,000 formerly Chinese miner rigs are looking for homes in the U.S,” said Marathon Digital’s Fred Thiel.
“If they are deployed, it would mean North America would have closer to 40% of global hashrate by the end of 2022.”’
What North America has that is attractive to bitcoin miners is access to low-cost power…
Crypto-friendly regulations in certain states (notably Texas and Wyoming)…
A huge and growing ‘green energy’ industry (remember all that talk of bitcoin being bad for the environment!)…
And a deregulated energy market which throws up interesting possibilities for innovation…
For example, using excess power from renewables to mine bitcoin when the grid doesn’t need it. Or even finding new revenue opportunities for the oil and gas industry.
Companies like Great American Mining help oil and gas producers get rid of gas by-product by mining bitcoin in a way that’s also more environmentally friendly.
As reported in Bitcoin Magazine:
‘Edward Evenson, head of business development for Slush Pool and Braiins, explained that these mining companies get their energy at no cost and help reduce carbon emissions.
‘“Gas vent capture/flaring would otherwise just be channelled into our atmosphere,” Evenson explained to Bitcoin Magazine. “As far as sustainability is concerned, yes, it is sustainable as many gigawatts of energy are currently just being wasted in a not-so environmentally friendly way… This will be one of many solutions in the future that keeps bitcoin mining as one of the ‘greener’ industries in the world.”’
Let’s stop here for a second to let this all sink in…
Not only is bitcoin mining not bad for the environment, it’s actually just the opposite.
Because it could encourage a whole new sphere of innovation in energy technology.
Bitcoin can actually be thought of as energy preserved through time.
Basically, the process of bitcoin mining converts energy into a unit of stored value that transcends time and space.
Maybe that’s a bit esoteric, but I think it’s a great way to think of it.
Historically, money and energy have always been tied together as it ensures money has a tether to reality. Whether that’s with petrodollars or the hunt for gold. Refined gold, after all, is just the result of expended energy and human labour.
Pure fiat currency, on the other hand, can be produced at will. There’s no marginal cost and it’s unlimited in supply.
A system of debt without any real-world tie, especially when interest rates don’t even reflect the reality of market forces anymore.
That’s not a good thing.
Debasement of money is an evil and insidious tax on everyone, especially the poorer amongst us. And it’s supported by the subtle threat of violence.
I truly believe a bitcoin-based monetary system will ensure a fairer system, a level playing field at the very least.
With all this in mind, which bitcoin mining stocks have we just issued urgent recommendations on?
Sorry, I’m going to have to pause here. Out of respect to our subscribers, I can’t reveal the names of these three new recommendations in an open forum.
But don’t be too frustrated.
You can get the names of…and full write-ups on…these three bitcoin miner plays by taking out a subscription to our advisory, New Money Investor.
Note — this comes with a 100% refund, 30-day guarantee.
Meaning you can read the full report, get the names and ticker symbols, and still get 100% of your subscription fee refunded if you so desire.
Just to make it perfectly clear…
You’re not risking anything by checking out our research on these bitcoin miners…finding out who they are, and why we’re making them the very first stock recommendations in New Money Investor…and then weighing up whether you buy them or not.
You can do all that, and still get a refund within 30 days if you wish.
There’s no harm in at least checking them out.
But it’s important to note that where you WILL be taking on risk is if you actually decide to buy these stocks.
I want to be very clear on that as well.
There are no refunds on any losses if you buy these stocks and they go down!
Over the last decade, remember, bitcoin saw a daily price change of 10% or greater more than 300 times.
This is because we’re still in the price-discovery phase. A process of collective learning and exploration…mixed with bouts of fear and greed.
It’s also now a process where the centralised system (the one that is threatened by the very existence of cryptos) lashes out.
An ingrained system of grifters, middlemen and leaners see this emerging system growing and maturing. And they do not like it. Not one bit.
It’s no longer something they laugh at and belittle.
It’s an existential threat.
As such, the crypto world has been hit and hit and hit again, from every angle. This has been the pattern of the last decade. But in the first half of 2021 the attacks took on a new, desperate viciousness.
The most recent combo of punches was the most savage yet.
Punch one: Elon Musk declared Tesla would no longer accept bitcoin payments. (As I’ve showed readers of my advisory, New Money Investor, there’s a self-interested reason why Musk did this. It’s nothing to do with bitcoin’s environmental impact, which he’s clearly known about all along…)
Punch two: the US announced a money laundering probe into Binance, the world’s biggest crypto exchange.
Punch three: China said (yet again) it’s going to crack down on crypto mining. And it followed through.
Global regulators have thrown everything but the kitchen sink at digital assets.
This hammered crypto prices for a time.
And, in turn, hammered the stock prices of crypto miners.
But you know what? The stress test was passed.
Look, that’s a hugely important point you need to understand.
I need you to read the following quote very carefully.
It comes from ex-Goldman Sachs executive, and popular crypto advocate, Raoul Pal. And it outlines perfectly what a seminal moment this recent new game stress test was (emphasis added):
‘Something to get your head around:
‘Headline: A major asset class crashed 42% in 14 days, wiping out $1.02trn in value in an orgy of liquidation of people up to 100 x levered, with very low regulation. Many tokens fell up to 70%, including unregulated lending and borrowing biz.
‘Beneath the headline: Crypto had a major, major VAR-shock test and NOTHING happened. Leverage liquidation was offset by overcollateralization. No one was left holding the baby. No firm went under. The Fed didn’t need to step in. Defi didn't break and carried on near normal.
‘There were no daisy chains of collateral losses. There was no collateral pressure. Stablecoins remained stable. A few exchanges went down for an hour or two. No exchange big losses occurred, no need to mutualise losses either. No protocol failed. No firms needed rapid funding.
‘No one had open ended losses. The system didn't break. It offered zero systemic risk to the broader financial world. Speculators lost money and that is it.’
Speculators took their licks.
And the rest of the financial world carried on as normal.
That, reader, is what we call ‘the new game’ in fully functional action.
And what a difference to the traditional investing world, eh?
There was no begging bowl put out to government, no cries for bail-ins or bail-outs from so-called capitalists…just an acceptance that you take individual responsibility for your actions, good or bad.
This is how free markets SHOULD work!
But the main point is that the system stood up to the test. What’s more, as a tech-led revolution, it’ll only get better from here too.
But still very risky.
Regulatory action, technology risk, a general economic downturn (and flight to cash from more speculative assets) could send them down.
There’s also some danger of environmental regulations changing the economics of these three businesses.
But the majority of the three have seen the writing on the wall and are well on their way to being carbon neutral, either by locating close to renewable energy sources or by buying carbon credits to offset emissions.
One thing’s for sure, even if I’m right on the future of Bitcoin and cryptocurrencies, you need to expect volatility in prices as this all plays out.
There’ll be big ups and downs and you can expect the share prices of these three stocks to reflect that.
To deal with that, you might want to consider dollar-cost averaging into these investments over time as a volatility-dampening strategy.
Also, at this very early stage, the barriers to entry are fairly low. So, if the BTC price keeps rising, you can expect competitors to enter the market.
With all those risks in mind, if you’re going to take the leap into this field, we think:
So, here’s all you need to do to get started.
Take out a subscription to New Money Investor.
Use the 30-day trial period to assess our research on these three bitcoin mining plays.
Also use that time to go over the full set of resources we’ve put in place to help our readers set up a diversified ‘new money portfolio’. (This portfolio is also heavily focused on helping you earn INCOME from cryptos.)
Go over it all in the first month.
If, for whatever reason, you don’t want to stay a subscriber, get a full refund.
Pretty simple really. You’ll have got our bitcoin mining recommendations — as well as every other recommendation we’ve published to date — and you won’t be a cent out of pocket.
I don’t think you’ll feel a need to get a refund when you see what we’re up to with this project! No one else, to our knowledge, is doing anything like it.
But that’s up to you. You can start your trial now by clicking here.
New Money Investor has been set up to help you be an early winner in the new money game.
The winners of this game will win…and win big.
The losers will be obliterated.
You’ve seen the most recent ‘shake-out’ in the crypto space.
You’ve seen the fickle institutional money start to crawl back as prices have started to rise again.
New Money Investor looks past all that…at the big picture.
By the middle of this decade, the early manoeuvres in this new money game will be complete.
Institutions, corporations, and whole cities and governments will have crossed the Rubicon.
At some point, it’s likely the crazy volatility you’re seeing in crypto prices will simmer down.
The ‘tokenisation’ of all assets — from stocks to real estate, to gold and money itself — will be fully mainstream.
Central banks will have their digital currencies in place…and working.
Bitcoin or Ethereum could well be the new US dollar…or something new altogether.
New ecosystems for making money and generating income will have replaced the dying ones.
However it evolves…the scaffolding of this new game will soon be in place.
The early-adoption profits are there for the taking NOW.
As well as the three mining plays we’ve just put urgent buys on, you’ll get access to a suite of complimentary reports.
They’re designed to give you everything you need to be among the early winners in this new money game.
You can download and keep everything we send you, no matter what.
All we ask is that you become a subscriber to New Money Investor.
Like I say, it’s covered by a fully guaranteed, no-obligation, 30-day trial period on your membership cost.
Here’s the best part...
The full price of this service is $199 for a one-year subscription.
But today, you can get HALF OFF the full publisher’s price.
For everything you’ll receive, and the calibre of the analysis and insights considering what’s at stake…that’s a great deal.
Here are your special reports:
Remember, you also get…
Our new report on three bitcoin miners to buy now, plus the four special reports mentioned above are yours to download and keep, no matter what — even if you decide to cancel for a full fee refund in the first 30 days.
And you get all this for HALF the publisher’s price of $199.
That’s just $99.
Editor, New Money Investor