On Monday (21 November 2022), Charles Edwards, Co-Founder of digital asset management firm\u00a0Capriole Investments, took a closer look at the Bitcoin mining industry in the wake of a very painful crypto bear market that started one year ago.<\/p>\n
Edwards took to Twitter earlier today to say:<\/p>\n
\u201cIt\u2019s a Bitcoin miner bloodbath. Most aggressive miner selling in almost 7 years now. Up 400% in just 3 weeks! If price doesn\u2019t go up soon, we are going to see a lot of Bitcoin miners out of business\u2026 What we are seeing is not sustainable. Mine-and-hodl is not a viable strategy as a Bitcoin miner. Miners are paying the consequences of the \u2018never selling\u2019 arrogance widespread just 6 months ago. You need to manage (trade) your Bitcoin position constantly in this market\u2026 Any strategy which relies on long-term leverage (positions which can\u2019t be exited immediately) ALWAYS blows up in crypto.<\/em>\u201c<\/p>\n On 2 November 2022, Edwards introduced his \u201cBitcoin Yardstick\u201d metric is a very simple way to figure out how cheap\/expensive Bitcoin is at any particular time:<\/p>\n He went on to say:<\/p>\n \u201cSimilar in concept to a PE Ratio, except instead of stock earnings, the Bitcoin Yardstick is taking the ratio of energy work done to secure the Bitcoin network in relation to price. Lower readings = cheaper Bitcoin = better value\u2026<\/em><\/p>\n