Even after China banned bitcoin various exchanges are reporting that the aggregate hash rate for bitcoin has continued to increase. Bitcoin has become increasingly hard to mine so it is now handled by specialized machines.
The pace at which the economic actors within the mining industry moved to unplug, pack, ship, and plug in miners is extremely impressive. Of course the recovery was aided by new deliveries hitting the market as well, but the global coordination to find the ASICs that were forced to leave China new homes cannot be overstated.
Dedicated mining machines are expensive which makes them more of a specialized asset as larger numbers of machines are needed. Some miners are moving to selected locations where power is available in Canada and the US. Shipping larger numbers of machines from China is not difficult but the cost is brutal.
The prices of BTC also are all over the dial. This means miners need to have reserves to pay for power etc. Recent selling pressure has reduced a lot of risk assets and bitcoin positions have seen a lot of selling lately. It’s hard to estimate the supply and demand for bitcoin as it is not a mainstream asset like gold or a ETF etc.
Power consumption however tends to be fixed cost item in a budget. The cost for buildings are also fixed line items. The strike price for bitcoin varies substantially so the estimates for earning are a variable item in a budget.
Low interest rates with fiat currencies have led to more inflation that many want. Even worse is that the hyper rich are still accumulating more wealth while the typical peasant is now worse off. This is driven by brual tax cuts which only drive more inequality. Taxing the hyper rich has been hard as they tend to dominate political lobbying to maintain policies from Reagan onward in place. Before Reagan, top marginal rates were close to 70% and his cuts reduced this to below 40%. The result was $5 trillion is wealth shifted per year towards the richest. The roaring 80s was an example of the excesses of tax cuts on the economy. Then the 90s tech bubble roared until September 11, 2001.
The shit really hit the fan only to have Bush spent $5 trillion on two unfunded wars. Iraq was conquered and the dictator was removed. Afghanistan was a testing ground for cruise misses which were unleashed by the hundreds. While Iraq has been stabilized Afghanistan has not panned out as planned.