Dispatch #168: The Bitcoin Climate Change

In this patch of your weekly Dispatch:

• Inflation dips 📉
• Amazon does AI 🤖
• Miners’ wallets 🫰

The Big Idea

It Gets Greener with Bitcoin

We all appreciate the green on our crypto charts, but this week, we’re expanding our perspective to the world outside, where green means more than financial gains. We're talking about the environment, the foundation we all depend on, yet often taken for granted. And not one to shy away from its social responsibilities, it is Bitcoin that can help us advance.

Cornell University researchers highlighted Bitcoin mining's potential to combat climate change by supporting renewable energy initiatives. The study published on Wednesday focuses on pre-commercial U.S. renewable projects, estimating Bitcoin mining profits that could drive millions into future green investments. In Texas alone, the combined profits of 32 projects could reach $47M. What’s interesting is that the study aligns seamlessly with the COP28 United Nations Climate Change Conference, marking the first official Bitcoin mining delegation at such an event.

Does Bitcoin's “presence” at the conference mean progress and potential for constructive contributions, indicating a shift in the narrative to acknowledge Bitcoin's role in climate change adaptation? By now you should know who Dispatch is rooting for, but here are some of the possibilities that Bitcoin mining creates:

• Miners can tap into diverse global energy sources, promoting investment in renewables like hydro, wind, geothermal, and solar.
• Bitcoin's continuous 24/7 operations and consistent energy demand create a valuable market for stranded energy, balancing supply and demand to prevent grid overload.
• Monetizing vented methane from landfills helps reduce methane emissions, a significant contributor to climate change.

The potential for Bitcoin to usher in positive change for our environment and beyond is undeniable, but more importantly – it could be crucial as it's not always about the financial charts, but the green world we live in.

The Latest In…

Investing Legend Charles Munger Passes Away at 99

Charles Munger, renowned for his partnership with Warren Buffett at Berkshire Hathaway, died at 99 last Tuesday, 28 November. Munger, Berkshire's vice chairman, played a pivotal role in transforming the company into a conglomerate valued at over $700B. One of the bluntest voices in the world of investing, Munger was not onboard with Bitcoin, but his impressive career spanned law, business, and investing.

A World War II veteran, he shifted to full-time investing in the 1960s, achieving remarkable success in his investment partnership from 1962-1975. Integral to Berkshire's success, Munger and Buffett turned the struggling textile company into a diversified giant. Their value investing philosophy centered on long-term horizons and quality companies. Charles Munger's legacy extends beyond his financial acumen, leaving an indelible mark on the investment landscape.

The Latest In…

The Real Dip We Need

We’ve been hoping for this for a while now and it’s finally happening – no, not Bitcoin’s recent surge above $38,000, but the news that possibly sparked it. In a recent speech, the Fed highlighted a potential economic slowdown, signaling a positive development in the battle against inflation. Here’s what the statement brought up:

• Economic Cooling: Recent data signaled a slowdown in October, particularly in consumer spending and manufacturing, aligning with Q4 moderation expectations.
• Labor Market Shift: Job creation has slowed, with indicators like unemployment and job vacancies pointing to a loosening labor market, albeit still historically tight.
• Inflation Insights: While inflation remains high, October's CPI reported no inflation and core inflation showed moderation.

The Latest In…

Amazon’s AI Stays Corporate

Amazon enters the AI arena with Q, its new generative AI-powered assistant designed for work. Positioned as an enterprise AI, Q focuses on productivity within Amazon Web Services (AWS) and aims to outperform Microsoft's Copilot assistant. Q answers queries, generates text and visualizations, and takes actions for users, saving time in architecting and troubleshooting AWS workloads. It's business-savvy, connecting to over 40 enterprise systems including Salesforce, Microsoft, and Google.

With an emphasis on reinventing generative AI, Q doesn't directly compete with popular chatbots but targets enterprise efficiency, making it a notable player in the evolving AI landscape.

The Latest In…

Silver Linings in Tax Season

Two things are certain in life: taxes and Nexo's dedication to our clients' ease of use. Which is why, and just in time for tax season, we've partnered with Koinly to integrate their benchmark tax tool for seamless crypto tax reporting. Nexo users can now generate tailored tax forms and reports within the app's Transactions section. Enjoy free tax reports for up to 800 transactions annually, making tax season more manageable. Here's to a stress-free tax season with Nexo and Koinly!

The Week’s Most Interesting Data Story

It All Pays Off

In light of this week’s Big Idea, have you ever wondered how much Bitcoin miners actually have? We’re clearing out all unknowns – the chart below displays the amount of Bitcoin held in miner wallets over the last three years with the current figure of… drum-roll, please – 1.82 million coins valued at just over $67B. 👀

Hot Topics

What the Community Is Discussing

Dive in – it’s a long read.

The Holy Grail of crypto criteria?

One smooth operator.

What to Watch for Next Week:

• How is the ETF race going?
• Which altcoins are rallying?
• Is crypto trading (firmly) back?